Impact Minerals Limited
Annual Report 2022

Plain-text annual report

ABN 52 119 062 261 ANNUAL REPORT 2022 Corporate Directory BOARD OF DIRECTORS Peter Unsworth Michael Jones Paul Ingram Frank Bierlein Non-Executive Chairman Managing Director Non-Executive Director Non-Executive Director COMPANY SECRETARY Bernard Crawford REGISTERED OFFICE & PRINCIPAL PLACE OF BUSINESS 26 Richardson Street West Perth, WA 6005 Telephone: +61 (8) 6454 6666 Facsimile: +61 (8) 6314 6670 Email: info@impactminerals.com.au Web: www.impactminerals.com.au AUDITORS Hall Chadwick WA Audit Pty Ltd 283 Rokeby Road Subiaco, WA 6008 SHARE REGISTRY Computershare Investor Services Pty Ltd Level 11, 172 St Georges Terrace Perth, WA 6000 Telephone: +61 (8) 9323 2000 Facsimile: +61 (8) 9323 2033 SECURITIES EXCHANGE LISTING The Company is listed on the Australian Securities Exchange Ltd (“ASX”) Home Exchange: Perth, Western Australia ASX Code: IPT, IPTOB Impact Minerals Ltd Annual Report 2022 1 Impact Minerals Limited Impact Minerals Limited is an exploration company listed on the ASX in November 2006. The Company manages extensive tenement holdings of nearly 4,000 square kilometres within Australia featuring significant potential for high-grade mineral deposits of gold, silver, lead, zinc, copper, nickel and PGM’s. The Directors of the Company have extensive experience in mineral exploration and a strong history of exploration success, business development and corporate management. Impact Minerals intends to build wealth for its shareholders through a vigorous campaign of project generation and discovery of major mineral deposits to move towards profitable mining operations. Contents 2 Chairman’s Letter 3 Overview: A Year of Transition 4 Review of Operations 33 Directors’ Report 44 Auditor’s Independence Declaration 45 Consolidated Statement of Profit or Loss and Other Comprehensive Income 46 Consolidated Statement of Financial Position 47 Consolidated Statement of Changes in Equity 48 Consolidated Statement of Cash Flows 49 Notes to the Consolidated Financial Statements 72 Directors’ Declaration 73 Independent Auditor’s Report 79 Shareholder Information 82 Tenement Schedule 2 Impact Minerals Ltd Annual Report 2022 Chairman’s Letter The year to 30th June 2022 saw a significant strategic change in focus for your company from its long standing projects in eastern Australia to a new and significant portfolio of battery, precious and strategic metals projects in the emerging mineral province of south west Western Australia. Exploration during the year has focussed on this new portfolio and in particular on the flagship Arkun-Beau project centred about 200 km south east of Perth and first staked in 2020 following the discovery of the world class Julimar platinum group metal discovery in the region. First pass reconnaissance soil geochemistry surveys at Arkun-Beau have already returned a significant number of anomalies for a range of deposit styles including nickel-copper-PGM hosted by mafic rocks, lithium pegmatites as well as rare earth elements and rubidium. Follow up work will be a prime focus in the coming year and will involve negotiating numerous land access agreements with land owners. Impact also acquired three further 100% owned projects and entered into four joint ventures on very attractive terms during the year bringing the company’s total land position in Western Australia to about 4,000 sq km. Preliminary soil geochemistry traverses on all of the new projects have all returned significant anomalies for the same range of metals as Arkun and this is very encouraging. These projects will also be a focus of work in 2023. First pass drill programmes were also completed at the Hopetoun joint venture located near the mining centre of Ravensthorpe and also the previously acquired Doonia joint venture located 80 km east of Kambalda. Data including assays from these drill programmes are still being interpreted with a view to determining next steps. An integral part of the change in strategic focus has been the rationalisation of Impact’s projects in eastern Australia. As part of this process during the year Impact completed the sale of two tenements which were part of the Commonwealth project to ASX listed company Orange Minerals Limited and agreed to the sale of the Blackridge gold project in Queensland. Subsequent to the year end Impact also agreed to sell 75% of the Commonwealth Project to unlisted company Burrendong Resources Pty Ltd, subject to Burrendong listing on the ASX by mid 2023. Impact was also pleased to announce that IGO Limited, one of Australia’s leading mining and exploration companies, agreed to farm into two tenements which form a small part of the company’s significant Broken Hill project in NSW. IGO can spend up to $18 million over 8 years to earn a 75% interest in the tenements. A significant deep seated EM conductor has been identified and IGO have indicated that this will be drill tested by the end of 2022 if possible. More details on the Company’s activities and projects are set out in the Review of Operations. We are looking forward to an exciting 2023 with maiden drill programmes on a number of our new projects. Peter Unsworth Chairman Impact Minerals Ltd Annual Report 2022 3 Overview: A Year of Transition During the Year Impact completed a strategic transition in its exploration programme from eastern Australia to Western Australia and assembled a portfolio of 10 projects covering about 4,000 square kilometres (Figure 1). All 10 projects are very poorly explored and yet have significant potential for the discovery of a wide range of battery, strategic and precious metals. Of the ten projects, five are 100% owned (Beau, Arkun, Mineral Hill, Martup Hills and Dinninup) and five are joint ventures with private groups (Jumbo, Narryer, Dalgaranga and Hopetoun which were commenced during the year, and Doonia). All contain untested geophysical and geochemical targets in emerging prospective terranes across Western Australia. As part of strategic transition, a rationalisation of Impact’s project portfolio in eastern Australia was continued during the year. The company sold two tenements that were part of the Commonwealth Project (EL8632 and part of EL8505) to Orange Minerals NL for $180,000 cash and 250,000 shares in Orange (ASX Release 4th February 2021). Orange listed on the Australian Stock Exchange in December 2021 (ASX:OMX) with the shares currently trading at about $0.16 per share. Impact’s shares are escrowed until October 2022. In addition Impact still holds 1,000,000 shares in Australasian Metals Limited (ASX:A8G) which it received for the sale of the Clermont gold project in Queensland at a nominal 10 cents per share. The shares, which are escrowed until April, are currently trading at about $0.30 per share. Impact also agreed to the sale of its Blackridge gold project in Queensland to an unlisted private company. The project comprises one small mining lease and three exploration licences covering about 142 sq kilometres. The terms of the sale are: Figure 1: Location of Impact’s projects in Western Australia 1. $30,000 cash for the outright sale of ML2386 (completed). 2. $50,000 cash as a non- 3. A 1% NSR royalty for all gold produced after the first 5,000 ounces of production. refundable option fee to purchase Impact’s 100% owned subsidiary company Blackridge Exploration Pty Ltd within two years for a further $350,000. Blackridge holds three exploration licences: EPM26806, EPM27410 and EPM27571 (completed). In August 2022 Impact reached an agreement to sell 75% interest in the entire Commonwealth project to unrelated company Burrendong Resources Pty Ltd. Burrendong is aiming to conduct an IPO in 2023. 4 Impact Minerals Ltd Annual Report 2022 Review of Operations 1. ARKUN PROJECT, WA (IPT 100%) Fifteen of these targets were covered by a single line soil geochemistry traverse, each up to several kilometres long along gazetted roads and tracks with soil samples taken at 100 metre spacings along the traverses. Each traverse was long enough to extend well away from the target area into areas of “background” in order to establish the relative anomalism of the various metals in the target above background. A significant number of high priority targets for nickel-copper-platinum group metals-gold (PGM) and, for the first time, lithium-caesium- tantalum pegmatites, rare earth elements (REE) and rubidium were defined by the soil geochemistry. The overall results of the soil geochemistry survey are described below and presented as additive Z scores in the following Figures. Further details on some of the priority targets identified and the sampling and analytical techniques used can be found in ASX Release 21st September 2021 and 27th October 2021. Beau The Arkun Project, which covers about 1,900 square kilometres, is centred between York and Corrigin 130 km east of Perth and was staked following the significant PGM discovery at Julimar just 75 km north east of Perth by Chalice Mining Ltd (ASX:CHN) (ASX Release 29th May 2020). Impact is one of the larger ground holders in the region (Figure 1.1). During the year, 17 first pass targets for nickel-copper-PEM- gold and lithium were identified by a proprietary geophysical method owned by Southern Sky Energy Pty Ltd, with input from the interpretation of regional magnetic data, surface geology maps and reconnaissance field checking and rock chip samples. This work has shown that: 1. It is likely that mafic and ultramafic rocks are more widespread than shown on the regional Geological Survey maps. 2. The mafic and ultramafic rocks contain low levels of PGE up to 25 to 30 ppb platinum+palladium+gold in rock chip samples in many places. This is encouraging as it suggests elevated background levels of these metals are widespread across the project area. 3. Most of the project area is covered by residual soils and ferricrete with limited transported cover meaning that quick assessments of target areas can be made with conventional soil geochemistry techniques. Figure 1.1: Location of priority targets for follow up on Impact’s tenements. Impact Minerals Ltd Annual Report 2022 5 Review of Operations continued 1.1 NICKEL-COPPER- PALLADIUM-PLATINUM- GOLD RESULTS The results for nickel-copper- palladium-platinum and gold are shown as additive Z scores in Figure 1.2. Gold has been included because it shows a strong mathematical correlation with the other metals. It is evident that the central part of the Arkun project area stands out as being strongly anomalous in all five metals and six high priority targets and five medium priority targets have been identified as warranting follow up work. Of note is that the targets are commonly anomalous in all five metals and in particular palladium and gold (Figure 1.2). This suggests a potential relationship to sulphide mineralisation rather than being the result of elevated backgrounds of only nickel and copper related to areas of mafic rocks. This is an exceptional result and supports Impact’s original contention that the Arkun area is highly prospective for nickel-copper- PGM mineralisation. N4 N3 N1 N2 Figure 1.2: Additive Z scores for Ni-Cu-Pd-Pt-Au across the main Arkun project area. Note the large areas of anomalism in the central part of the project area. Four priority areas for follow up work are highlighted. Other areas of elevated response are also evident including the Beau target to the north. The drill results are presented as additive Z score indices. Z scores are a standard statistical calculation of the number of standard deviations a raw data (assay) value is from the mean of the data. For example a Z score of 2 indicates a value 2 standard deviations above the mean. The higher the Z score, the more anomalous the data point is with respect to the dataset. Z scores are a standard method of normalising data so that statistically meaningful associations between datasets can be made. In this case the Z scores for individual metals that occur within assemblages specific to the alteration zones around a nickel-copper-PGM deposits are simply added together in order to amplify the association. 6 Impact Minerals Ltd Annual Report 2022 Review of Operations continued Four priority areas, N1 to N4 were described in the ASX Release dated 21st September 2021 and are shown in (Figure 1.3). The soil anomalies all cover extensive areas and are coincident with either gravity highs or magnetic lows which together may represent mafic-ultramafic intrusions that are potential hosts for nickel-copper-PGM sulphide mineralisation. N1 N3 N2 N4 Figure 1.3: Priority Targets for Ni-Cu-PGM-Au shown on images of regional gravity data and regional magnetic data (bottom right). Top left: Target N1. Strongly elevated soil geochemistry responses extend over an area of at least 600 metres by 300 metres and occurring close to a significant gravity high (warmer colours). Top right: Target N2. Multiple moderate to strongly elevated soil geochemistry responses extend over several line kilometres with about six areas of interest within the one target identified and all coincident with a broad gravity high. Bottom Left: Target N3. Moderate soil responses over about 1,000 metres are coincident with a moderate gravity high. Bottom Right: Target N4. Moderate soil responses coincident with the western edge of a magnetic low (cooler colours). The magnetic low may represent a mafic intrusion with elevated nickel-copper-PGM at its base on the western side. Impact Minerals Ltd Annual Report 2022 7 Review of Operations continued 1.2 LITHIUM-CAESIUM-TANTALUM RESULTS The results for lithium-caesium-tantalum are shown as additive Z scores in Figure 1.4. The coincidence of the three metals together suggests the potential for the source of the anomalies to be lithium-caesium-tantalum (LCT) pegmatites, a key source of hard rock lithium for the emerging battery metals industry. It is evident that numerous areas across the Arkun project stand out as being strongly anomalous in all three metals and six high priority targets and at least five medium priority targets have been identified as warranting follow up work (Figure 1.4). One of the standout areas is the Beau target, the northern most priority area identified. This target was purchased by Impact in 2020 for its nickel-copper-PGM potential and modest soil responses for those metals were returned (Figure 1.2). However, there are numerous strong LCT responses in the area as well. Beau L3 L2 L1 Figure 1.4: Additive Z scores for Li-Cs-Ta across the main Arkun project area. Note the large areas with very elevated Z scores in the central east part of the project area and at Beau to the north. Six priority areas for follow up work are highlighted. Other areas of elevated response are also evident. 8 Impact Minerals Ltd Annual Report 2022 Review of Operations continued Three priority areas, L1 to L3 were described in the ASX Release dated 21st September 2021 (Figure 1.5). There has been no previous exploration for lithium at Arkun. Figure 1.5: Priority Targets for Li-Cs-Ta shown on images of regional magnetic data and regional gravity data (lower image). Top Left: Target L1. Strongly elevated soil geochemistry responses extend over many hundreds of metres of extent along the traverses. The prominent magnetic NW trending magnetic unit is a banded iron formation suggesting much of the area may be a deformed and metamorphosed greenstone belt which are hosts to major lithium deposits in Western Australia. Top Right: Target L2. Moderate soil geochemistry responses occur over several hundred metres in about four places along the traverse. The responses are centred over an ovoid feature in the magnetic data interpreted as a granite intrusion that may represent a parent intrusion to LCT pegmatites. Lower Image: Target L3. Moderate soil responses over a prominent gravity low. The low may be caused by a granite intrusion. Note this is the same traverse as Target N4 (Figure 4). Impact Minerals Ltd Annual Report 2022 9 Review of Operations continued 1.3 RARE EARTH ELEMENT RESULTS The results for all 15 of the REE are shown as an additive Z scores in Figure 1.6. The REE comprise: lanthanum, cerium, praseodymium, neodymium, promethium, samarium, europium, gadolinium, terbium, dysprosium, holmium, erbium, thulium, ytterbium, and lutetium. It is evident that the central part of the Arkun project area stands out as being strongly anomalous in the REE and six high priority targets and have been identified as warranting follow up work. Numerous other areas of anomalism are also present. Of note is that the targets are generally anomalous in both the light and the more valuable heavy REE (ASX Release 27th October 2021). This is a very exciting outcome for Impact and, also supports the Company’s original contention that the Arkun area is a highly prospective part of the Yilgarn Craton. Three priority areas, R1 to R3 are shown in more detail in Figure 1.8. The soil anomalies all cover extensive areas and occur within larger magnetic granites. R2 R3 R1 Figure 1.6: Additive Z scores for REE across the Arkun project. Note the large areas of anomalism in the central part of the project area. Seven priority areas for follow up work are highlighted. Other areas of elevated response are also evident. 10 Impact Minerals Ltd Annual Report 2022 Review of Operations continued 1.4 RUBIDIUM RESULTS The results for rubidium are shown in Figure 1.7. Numerous areas stand out as being strongly anomalous and four high priority targets have been identified for follow up work. Two of these areas, Rb1 and Rb2, are shown in more detail in Figure 1.9. Numerous other areas with anomalous rubidium results are also evident (Figure 1.7). Rb1 Rb2 Figure 1.7: Ionic leach results for rubidium. Four priority areas for follow up work are highlighted. Other areas of elevated response are also evident. Note that the low absolute levels of rubidium are a function of the very dilute nature of the chemical digest used in the Ionic Leach assay method. Impact Minerals Ltd Annual Report 2022 11 Review of Operations continued 1.5 DISCUSSION AND NEXT STEPS The results of Impact’s first ever soil geochemistry programme at Arkun have outlined a significant number of areas for follow up work for a wide range of commodities: nickel-copper-PGM; lithium LCT pegmatites; REE and rubidium. Follow-up field checking and sampling will continue with the aim of prioritising areas for more detailed soil geochemistry and ground geophysical surveys that will extend away from the roads and into the surrounding paddocks. In order to explore in the paddocks, land access agreements will be required with the relevant land owners and this process has commenced. Agreements with about 30 landholders have been signed or are in progress. R1 R1 R2 R2 R3 Figure 1.8: Priority Targets for REE shown on images of regional magnetic data. Strongly elevated soil geochemistry responses extend over distances of many hundreds of metres and are mainly associated with the magnetic units with larger granite bodies. 12 Impact Minerals Ltd Annual Report 2022 Review of Operations continued Rb1 Rb2 Figure 1.9: Priority Targets for rubidium shown on images of regional magnetic data. Numerous areas of strongly elevated values for rubidium above background are evident. An airborne EM survey was also completed during the year over 7 priority areas in the Arkun-Beau project area at a broad line spacing of 400 metres between survey lines. Six of these areas were previously identified in proprietary geophysical data and returned strong soil geochemical responses (N1 to N6) (ASX Release 21st September 2021). One further area with a strong geophysical response but limited soil geochemistry response was also surveyed. Processing of the data will commence shortly with final data expected in late 2023. Follow up soil geochemistry surveys have also been completed on five priority areas including the Beau area. Samples were taken on a nominal 400 m by 400 m or 200 m grid spacing. Results are expected by late 2022. Impact Minerals Ltd Annual Report 2022 13 Review of Operations continued 2. JUMBO JOINT VENTURE PROJECT (IMPACT 80%) The Jumbo joint venture project comprises one tenement (E70/5852) covering 360 km2 and is adjacent to Impact’s Arkun project centred about 150 km south east of Perth. The project contains many of the same geological features and extensions of the similar structures as those considered prospective at Arkun and is therefore a natural addition to Impact’s large strategic ground holding in this very under explored part of Western Australia. During the year significant high priority targets for a wide range of battery and strategic metals were identified in new soil geochemistry results from Jumbo. The soil geochemistry survey was limited to one major access road across the project area and samples were taken mostly at about 100 metre spacings at the side of the road over a distance of about 30 kilometres (Figures 2.1 to 2.4). The traverse was designed to get as close as possible to first pass geophysical anomalies identified by Impact’s joint venture partner, Southern Sky Energy Pty Ltd, using its proprietary EPR technology. The results of the soil geochemistry survey (combined with the Arkun soil results) are presented as additive Z scores in Figures 2.1 to 2.4. Figure 2.1: Additive Z scores for Ni-Cu-Pd-Pt-Au across the Jumbo-Arkun project area. Nine priority areas for follow-up work are highlighted including three new ones at Jumbo. Other areas of elevated response are also evident including the Beau target to the north. Figure 2.2: Additive Z scores for Li-Cs-Ta across the Jumbo-Arkun project area. Eight priority areas for follow up work are highlighted including two new areas at Jumbo. Other areas of elevated response are also evident throughout the project area which will also require follow-up work. 14 Impact Minerals Ltd Annual Report 2022 Review of Operations continued New targets have been identified at Jumbo as follows: Nickel-copper-Platinum Group Elements-Gold (Figure 2.1): three new priority targets identified. The eastern most target has a significant gold-dominant response, and which covers an area of several hundred metres across trend. Lithium-caesium-tantalum (Figure 2.2): two new priority targets identified with several lower priority areas also warranting follow up. The two priority targets are at least a few hundred metres wide. Rare Earth Elements (Figure 2.3): three new priority targets identified with numerous other lower priority areas also warranting follow up. Rubidium (Figure 2.4): the entire soil geochemistry traverse stands out as being elevated in rubidium, in particular in comparison with Arkun. The large area covered by elevated REE and rubidium results suggests that the Jumbo area may be underlain by extensive areas of granitoid and pegmatite rocks that are enriched in these metals compared to Arkun. This is encouraging for future exploration. First pass follow-up field checking, and sampling will start in 2023 with the aim of prioritising areas for more detailed soil geochemistry and ground geophysics. Land access agreements will be required with relevant landowners and this process will also be commenced. Figure 2.3: Additive Z scores for all REE across the Jumbo-Arkun project area. Seven priority areas for follow up work are highlighted including three new areas at Jumbo. Note that there several other areas with strong responses within the Jumbo project which will also require follow-up work. Figure 2.4: Rubidium assay values across the Jumbo-Arkun project area. The Jumbo project stands out as a very elevated area for rubidium compared to most of the Arkun project. This may reflect a higher background for rubidium in this area and therefore may be more prospective for this valuable alkali metal. Impact Minerals Ltd Annual Report 2022 15 Review of Operations continued 3. DINNINUP PROJECT The Dinninup project comprises 4 exploration licences covering about 485 square kilometres located about 350km south west of Perth (Overview Figure; E70/5842, E70/6111, E70/6112 and E70/6113) (ASX Release 22nd April 2022). The project was brought to Impact’s attention by an unrelated private group Fiddler’s Creek Mining Company Pty Ltd. As consideration for a 100% interest in the project, Impact paid $20,000 cash to the vendor, and issued 3 million unlisted options exercisable at 2.4 cents expiring on 31 October 2025. The area is underlain by a variety of Archaean-aged granites and high- grade metamorphic rocks including gneisses that are cross-cut by numerous, mostly northwest trending faults and shear zones, as well as younger west-northwest trending Proterozoic dykes (Figure 3.1). A number of areas of interest for follow up were identified by Southern Sky Energy Pty Ltd using their proprietary EPR technology and which were close to a major access road that traverses the project area. A reconnaissance soil geochemistry survey was completed along the main access road with samples taken mostly at about 100 metre spacings at the side of the road over a distance of about 20 kilometres (Figure 3.1). Figure 3.1: Geology of (left) and magnetic data (right) of the Dinninup Project showing major structures and the location of the soil geochemistry traverses. 16 Impact Minerals Ltd Annual Report 2022 Review of Operations continued Ni-Cu-Pd-Pt-Au Figure 3.2: Additive Z scores for Ni-Cu-Pd-Pt-Au across the Dinninup project area. Three priority areas for follow-up work are highlighted Figure 3.3: Additive Z scores for Li-Cs-Ta across the Dinninup project area. Two priority areas for follow up work are highlighted. Soil Geochemistry Results The results of the soil geochemistry survey are presented as additive Z scores in Figures 3.2, 3.3 and 3.4. Further details about the soil survey and the calculation of Z Scores can be found in the ASX Release dated 22nd April 2022. Nine new targets have been identified at Dinninup as follows: Nickel-copper-Platinum Group Elements-Gold (Figure 3.2): three new priority targets identified. The easternmost target has a significant response, and which covers an area of several hundred metres across trend. This anomaly is coincident with a series of Proterozoic dykes which may be a potential host for this style of mineralisation. Lithium-caesium-tantalum (Figure 3.3): two new priority targets identified with one area covering at least several hundred metres. Rare Earth Elements (Figure 3.4): four new priority targets identified with numerous other lower priority areas also warranting follow-up. Impact Minerals Ltd Annual Report 2022 17 Review of Operations continued Figure 3.4: Additive Z scores for all REE across the Dinninup project area. Four priority areas for follow up work are highlighted. Note that there are several other areas with strong responses which will also require follow-up work. NEXT STEPS The results of Impact’s first ever soil geochemistry programme at Dinninup, as at the Company’s other projects in the region, Arkun, Beau and Jumbo, have outlined a number of areas for follow-up work for nickel-copper-PGM mineralisation, LCT pegmatites and REE. These results further confirm the prospectivity of this poorly explored part of the emerging mineral province of south west Western Australia. First pass follow-up field checking, and sampling will commence in 2023, with the aim of prioritising areas for more detailed soil geochemistry and ground geophysics that will extend away from the roads and into the surrounding paddocks. This work will dovetail with continuing on-ground follow-up work at Arkun and Jumbo. In order to explore in the paddocks, land access agreements will be required with the relevant landowners and this process has been initiated. 18 Impact Minerals Ltd Annual Report 2022 Review of Operations continued 4. HOPETOUN (Impact earning 80%) The Hopetoun project comprises two tenements (E74/563 and E74/679) covering 75 km2 and is located just north of the town of Hopetoun, close to the Ravensthorpe mining centre (Figure 4.1). The project covers part of the Albany Fraser Mobile Belt which is considered prospective for a variety of mineral deposits. The project contains six drill ready targets for base and precious metals of which two were fully permitted for drilling. The targets were identified by Impact’s joint venture partner using the proprietary EPR technology owned by Southern Sky Energy Pty Ltd and associated soil geochemistry anomalies in limited sampling. During the year drilling programmes were completed at the Top Knotch (RC and diamond drilling) and Silverstar (diamond drilling) prospects. The Hopetoun area has received very little exploration because of a perception that much of the area is underlain by barren Proterozoic gneisses. In addition, there is extensive younger cover which has hindered previous explorers. However, a review of the regional airborne magnetic data over the area suggests that much of the gneiss terrane may be an extension of the Ravensthorpe greenstone belt to the north which contains numerous mines and deposits of lithium (Mt Cattlin mine, Allkem Limited, ASX:AKE), nickel sulphide (the dormant RAV 8 mine and associated deposits), copper-gold (including the Kundip historic mining centre, Medallion Metals Ltd ASX:MM8), zinc-lead-copper (Trilogy deposit, ASX:MM8) as well as nickel laterite (First Quantum Minerals Limited, TSX:FM). Accordingly, Impact on behalf of the joint venture has applied for a new Figure 4.1: Image of airborne magnetic data over the Ravensthorpe-Hopetoun area showing the interpreted extension of the Ravensthorpe greenstone belt south of the Jerdacuttup Fault together with the licences in the Hopetoun Joint Venture. The new licence is EL74/730. exploration licence that is underlain by the Munglinup Greiss, as well as an extension of the Ravensthorpe greenstone belt and associated Jerdacuttup Fault. This will also form part of the Hopetoun Joint Venture (Figure 4.1) with gabbroic to doleritic units interpreted as sills. These mafic rocks are anomalous in copper (Figure 4.2) No significant intercepts were recorded and the source of the geophysical and geochemical anomalies is unknown. At the Top Knotch copper-gold Prospect the drilling intersected a sequence of felsic gneisses and granodiorites interlayered A follow up detailed soil geochemistry survey was completed over the area to better refine the target and results are awaited. Impact Minerals Ltd Annual Report 2022 19 Review of Operations continued Figure 4.2: Cross section from the Top Knotch Prospect showing the soil geochemistry responses and highlighting the sub- horizontal zones of alteration and copper which are increasing in intensity down hole. The location of the one off completed diamond drill holes is also shown. 20 Impact Minerals Ltd Annual Report 2022 Review of Operations continued At Silverstar, a 25 metre thick (true width) shear zone containing high-temperature alteration minerals with extensive potassium and silica alteration was intersected and which includes a zone up to 20 cm thick with minor disseminated chalcopyrite-pyrrhotite mineralisation in places. In addition, one narrow zone of deformed quartz veins about 25 cm thick was intersected at 190 metres down hole which contains up to 5% molybdenite together with anomalous bismuth values. (Figure 4.3). The Company emphasises that these estimates are based on visual observations only and that chemical assays will be required to determine the absolute amounts of any metals present. Final assays were being interpreted at the time of this report. All of this is encouraging and follow work including drilling may be required. Soil geochemistry surveys over several other targets was also completed. The results of this work are awaited. Figure 4.3: Large “slugs” of grey-blue molybdenite in a zone of fractured quartz veins with associated biotite (dark brown) and chlorite (green). Impact Minerals Ltd Annual Report 2022 21 Review of Operations continued 5. DOONIA PROJECT, WA (IPT 80%) Figure 5.1: Location of the Doonia Project in the Eastern Goldfields of Western Australia. Impact’s 80% owned Doonia gold project lies 75 kilometres east of the world class St Ives gold mining centre in Western Australia and comprises one Exploration Licence E15/1790 (Figure 5.1). The Doonia project was identified during a review of the Eastern Goldfields for intrusion-hosted gold deposits in light of the recent major Hemi discovery in the Pilbara (De Grey Mining Ltd ASX:DEG). The project has been further enhanced by the recent discovery of significant gold-copper-magnetite mineralisation hosted by a magnetic porphyry intrusion at the Burns project located just 20 km west of Doonia (Lefroy Exploration Ltd (ASX:LEX)) (Figure 5.1 and ASX Release 4th March 2021). Of note, the Doonia and Burns prospects were both first identified in the same regional exploration programme by WMC Resources Limited in the 1990’s with modest gold anomalism found in both areas in broad spaced aircore drilling. However, neither area was followed up at the time. Impact has identified a previously unrecognised distinct and coherent zoned soil geochemical anomaly centred over the small magnetic anomalies which comprises a core area of gold+bismuth that is 2,500 metres long and up to 1,000 metres wide (Figure 5.2). The core area is also characterised by anomalous copper-nickel and zinc and is partly surrounded by a larger halo of arsenic+antimony. These results are interpreted to be potentially related to a gold-bismuth mineralised system associated with a differentiated mafic to felsic intrusion. The system covers a large area and is a priority drill target. The mineralisation at Burns is also characterised by a metal association of copper-gold-bismuth-arsenic (with molybdenum-silver-tellurium which were not assayed at Doonia). This is a compelling similarity. During the year a maiden reverse circulation drill programme was completed to test several soil geochemistry and geophysical targets. 22 Impact Minerals Ltd Annual Report 2022 Review of Operations continued Figure 5.2: Image of regional magnetic data over the Doonia project with warmer colours indicating more magnetic units. A large oval deep- seated anomaly is centred directly under the project area above which a cluster of near surface anomalies is present and interpreted as possible magnetic intrusions. These smaller anomalies are coincident with a gold-bismuth soil geochemistry anomaly (ASX Release 17th November 2020). Logistical issues and poor ground conditions significantly impaired the drill programme and only six holes out of a planned 12 holes were completed. The results of the drill programme were being interpreted at year end. One drill hole intersected a pocket of abiogenic gas of unknown thickness and composition at about 100 metres down hole. Abiogenic gas is a common but not widely known phenomenon close to and within many gold and nickel mines as well as along major faults in the Goldfields of Western Australia. Impact is currently undertaking an assessment of the composition of the gas with respect to potential safety issues as well as the possible areal extent of the pocket and its significance. Impact Minerals Ltd Annual Report 2022 23 Review of Operations continued 6. BROKEN HILL PROJECT Impact has one of the largest ground holdings surrounding the world class Broken Hill mine in New South Wales (Figure 6.1) During the year Impact announced that IGO Newsearch Pty Ltd, a 100% owned subsidiary of IGO Limited (ASX:IGO) had agreed to farm into the Company’s Broken Hill nickel- copper-platinum group metals (PGM) prospects in New South Wales. Previous work by Impact had established that a large amount of deep drilling will be required to further explore the exciting nickel- copper-PGM prospects generated at Broken Hill and therefore it was appropriate that a well-funded partner with excellent credentials was brought in to help fund what could be quite significant expenditures going forward. Impact is pleased to have the joint venture with IGO, one of Australia’s most outstanding exploration and mining companies. The principal terms of the deal, which applies only to EL7390 and EL8234, two of the 11 tenements that comprise Impact’s holdings around Broken Hill (Figure 6.1) are: Figure 6.1: Impact’s ground holdings around Broken Hill. EL7390 (blue) and EL8234 (green) are highlighted. 1. 2. 3. 4. IGO can spend $6 million over four years to earn a 51% interest in the project (Stage 1 earn in). An unincorporated joint venture between IGO and Impact will be formed at this time. IGO can spend a further $12 million over a further four years to earn a 75% interest in the project (Stage 2 earn in). 5. After Stage 2 is complete, the parties can elect to contribute pro-rata or dilute. If one party’s interest dilutes to less than 10% then its interest will convert to a 1% Net Smelter Royalty. If, after completing Stage 1, IGO elects not to proceed to Stage 2 or, during Stage 2 does not meet its expenditure requirements, IGO will revert to a 49% interest in the project giving Impact a majority 51% interest. A minimum expenditure of $500,000 in the first year is required. IGO can withdraw prior to the minimum expenditure being reached by paying the lesser amount of either the balance of unspent minimum expenditure or $200,000. IGO have completed a detailed ground electromagnetic (EM) geophysical survey using a deep penetrating SQUID system over the entire joint venture area including the Moorkai Trend and the Little Broken Hill Gabbro (Figure 6.1 and 6.2). The Moorkai Trend is a nine kilometre long ultramafic to mafic dyke and chonolith complex that is very poorly explored. Drilling by Impact at the southern end of the Trend has returned high grades of nickel-copper-PGM’s in the Platinum Springs area in a channel-like structure at the base of the ultramafic unit (ASX Release 24 Impact Minerals Ltd Annual Report 2022 Review of Operations continued 9th March 2021). There has been no drilling of significance along the rest of the Trend. and/or PGM’s in the basal unit to the intrusion over several kilometres of trend (ASX Release 15th April 2021). At the Little Broken Hill Gabbro, Impact completed the first ever drill programme across the seven-kilometre-long intrusion and identified numerous areas of highly anomalous nickel, copper Extensive further deep drilling is required at both prospects and the initial work by IGO was aimed at identifying specific and large EM targets that may represent targets for high grade massive sulphide deposits. The farm-in applies only to two tenements, EL7390 and EL8234, of Impact’s extensive tenement holdings at Broken Hill (Figure 6.1). The remaining tenements, which are all 100% owned by Impact, are considered by Impact to be one of the most under explored parts of Australia given the long history of mining at the nearby Broken Hill deposit itself. There has been limited exploration for the best part of 30 years in the area and there is significant potential on this ground for the discovery of major deposits of silver-lead- zinc and in particular copper. The company is considering its options for progressing exploration on these tenements. Results of the EM Survey One significant electromagnetic (EM) conductor has been identified by IGO at the southern end of the Moorkai Trend (Figure 6.2). The new EM conductor has been modelled to have a high conductance of about 8,000 siemens and with the top edge of the modelled EM plate centred at a depth of about 350 metres below surface. It has a length of about 420 metres and extends for at least 85 metres down dip moderately to the south. The conductor is considered prospective for massive sulphide mineralisation based on its discrete dimensions and modelled high conductance. It is a priority target for follow-up work and IGO plan to drill the conductor by the end of 2022. Figure 6.2: Location of newly identified EM plate in relation to the 9 km long Moorkai Trend with previous rock chip and drill results (pre-Impact work). Impact Minerals Ltd Annual Report 2022 25 Review of Operations continued The EM plate is located approximately 1,000 metres southeast along strike from the main Platinum Springs Prospect where previous drilling by Impact returned a narrow intercept of high-grade massive sulphide mineralisation in PSD002 (Figure 6.1 and ASX Release 23rd February 2016) that returned: 0.6 metres at 11.5 g/t platinum, 25.6 g/t palladium, 1.4 g/t gold, 7.6% copper, 7.4% nickel, 44.3 g/t silver, 0.16% cobalt, 1.3 g/t rhodium, 1.7 g/t iridium, 2.0 g/t osmium and 0.8 g/t ruthenium from 57.1 metres down hole (Figure 6.2). A down hole EM survey of PSD002 indicated the massive sulphide had a high conductance greater than 5,000 siemens and similar to that modelled for the new conductor (Figure 6.3). 6.2 ABOUT THE PLATINUM SPRINGS PROSPECT AND MOORKAI TREND The Platinum Springs Prospect lies at the southern end of the Moorkai Trend, a nine kilometre long ultramafic to mafic dyke and chonolith complex that is very poorly explored (Figures 6.1 and 6.2). Although high grade rock chips occur along the entire Trend, only the southern end has been explored in detail but with limited success prior to Impact’s work in the area. This is because the mineralisation appeared to be discontinuous and erratic and the controls on its distribution were poorly understood. Work by Impact, including extensive drilling, identified high grades of nickel-copper-PGM’s in a channel-like structure at the base of the ultramafic unit and which has yet to be followed up (ASX Release 9th March 2021). The channel-like structure was identified in close-spaced drilling using Impact’s proprietary ratio for PGM mineralisation and was the first coherent zone of mineralisation defined in the area in over 30 years Figure 6.3: High grade massive sulphide from PSD02. The sulphide has a conductance in excess of 5,000 siemens and similar to that modelled for the new conductor. Figure 6.4: 1VD mag image showing location of new EM plate in relation to the Moorkai intrusive trend with interpreted feeder zone. of exploration. This work has led to a new geological framework within which to understand the Moorkai Trend (ASX Release 9th March 2021). The EM conductor is located within a major structure to the southeast of the main outcrops of the Moorkai intrusive complex (Figures 6.2 and 6.4). It is possible that the Moorkai Trend formed in a large (now folded) perpendicular structure between two major shear zone structures which bound the intrusive complex (Figure 6.2 and 6.4). These shear zones may be feeder zones to the Moorkai Trend and also raise the possibility that the Trend continues to the south to southeast where similar strongly magnetic rocks occur under thin cover (Figure 6.4). 26 Impact Minerals Ltd Annual Report 2022 Review of Operations continued 6.3 THE IMPORTANCE OF FEEDER ZONES Recently published scientific work, and by the CSIRO in particular, has shown that many chonoliths and other steeply dipping mafic-ultramafic intrusions that host significant massive sulphide deposits, commonly have mineralisation within conduits that act as feeder zones to the entire intrusive complex. These feeder zones are priority target areas because the research work has also shown that within intrusions with strong vertical magma flow, massive sulphides are often deposited as the magma slows its ascent and drains back down into the main conduit. This “back flow” can cause deposition of massive sulphides in the feeder zone as proposed in a very elegant model for chonolith development developed by Professor Steve Barnes and co-workers at CSIRO (Figure 6.5). Impact has been using this model to help drive its exploration programme at Broken Hill (ASX Release 21st January 2021). Accordingly, the Company views the new conductor identified by IGO as a compelling target. Figure 6.5: Model for the formation of nickel-copper-PGM deposits within evolving magma conduits including chonoliths. Note the massive sulphide within the feeder zones/conduit necks (from Barnes, S.J. et al. Ore Geology Reviews Volume 76, July 2016, Pages 296-316) Impact Minerals Ltd Annual Report 2022 27 Review of Operations continued 7. COMMONWEALTH PROJECT, NSW (IPT 100%) During the year a programme of 17 reverse circulation drill holes were completed at the Apsley porphyry copper-gold prospect, part of the Company’s 100% owned Commonwealth project in the Lachlan copper-gold province in New South Wales (ASX Release 23rd August 2021 and Figure 7.1). The prospect lies about 15 km south of the recent significant Boda-Kaiser porphy copper discovery (Alkane Resources Ltd ASX:ALK). The drill holes, which are the first ever holes to be drilled at Apsley, tested a number of specific coincident IP geophysical and soil geochemistry anomalies at widely spaced reconnaissance intervals (ASX Releases 10th August 2020, 16th February 2021, 12th March 2021, 16th April 2021 and 23rd August 2021). A very large halo of copper was defined which is interpreted to possibly be part of the outer zone of a large alteration system around an alkaline porphyry copper-gold deposit similar to the Ridgeway deposit (155 Mt at 0.73 g/t gold and 0.38% copper Newcrest Mining Limited (ASX: NCM)) 100 km south of Apsley and hosted by rocks of the same age and geochemistry as at Apsley. The halo is defined by copper values of more than 100 ppm copper in continuous zones up to nearly 250 metres thick and potentially extending over an area of at least 1,000 metres by 1,000 metres in size (Figure 7.2). There are numerous thinner zones up to about 80 metres thick that contain between 200 ppm and 250 ppm copper and these include one to four metre thick zones of higher grades of up to 4,700 ppm copper related to zones of narrow quartz-sulphide veins. The halo also contains widespread low-level molybdenum (Figure 7.2). Figure 7.1: Location and geology of Impacts Commonwealth Project in NSW. The halo constitutes a significant inventory of copper and very recently published scientific work about the Ridgeway deposit has shown that similar grades of copper up to 200 ppm define a halo that extends only 200 metres to 300 metres away from the high grade core of the deposit (Figure 7.3). From a presentation by Prof. D Cooke, Centre for Ore Deposit and Earth Science (“CODES”) at UTAS at geohug.rocks The size of the halo is also very significant given the reconnaissance nature of the drill programme which was done at very broad spacings 28 Impact Minerals Ltd Annual Report 2022 Review of Operations continued Figure 7.2: View looking South of the copper halo (red bubbles >100 ppm copper, green bubbles >200 ppm copper) with an associated molybdenum halo (>2 ppm molybdenum). Thick intercepts of low to modest grade copper occur over an area of at least about one square kilometre. of many hundreds of metres between most drill holes (Figure 7.2). The Ridgeway deposit, which lies 400 metres below surface, was not discovered until the drill density was at a spacing of 200 metres by 200 metres between drill holes (Figure 7.3). Accordingly there is plenty of scope to find a Ridgeway sized deposit within the copper halo at Apsley. Three Areas For Follow Up Work Identified Within the large copper halo three broad areas for follow up work (T1, T2 and T3: Figure 7.4) have been identified based on zonation patterns in pathfinder and commodity metal assemblages which are being increasingly used as vectors towards ore in exploration for porphyry copper-gold deposits (ASX Release 10th August 2020). Figure 7.3: Summary of the geology and copper values around the Ridgeway deposit located near Orange in NSW. Note the very low levels of copper present in so called “unremarkable” altered rocks even as close as 200 metres to 300 metres away from the high grade core (RHS of Figure). Distinctive alteration halos only occur within 10’s of metres thick around high grade zones. The cross section shows a deposit would be easily missed unless the drill spacing was about 200 metres between holes. Impact Minerals Ltd Annual Report 2022 29 Review of Operations continued At Apsley, metal assemblages typical of the core (Cu-Au) and the so-called upper phyllic zone (W, Sn, Bi) which lies directly above the core of many porphyry copper-gold deposits, can be readily identified in the drilling data and help define the areas for follow up work. Follow up area T1, is a zone of overlap between the core assemblage and the upper phyllic zone assemblage in the north west of the halo. Area T2 is a large zone defined mainly by the upper phyllic zone and strong alteration present in Hole APIPT001 in the centre of the halo. Area T3 may represent a target at depth in the south east corner of the halo (Figure 7.4). However, the widespread nature of the drilling and also the low levels of copper and in particular gold reported are insufficient at this stage to provide more definitive vectors to ore. This interpretation of the zonation at Apsley is based on a widely used model for the levels of metals present around porphyry copper-gold deposits NEXT STEPS The Apsley target was drilled because of the strong combined geophysical and geochemical anomalies. The results, whilst very encouraging are not as definitive as required for immediate follow up drilling. Further drilling is required, possibly to some depth, in several areas. However, further studies on the nature and composition of the alteration minerals are required first in order to determine further vectors to ore. During the year Impact received several unsolicited approaches to evaluate the Commonwealth project. In August 2022 Impact reached an agreement to sell a 75% interest in the project to unrelated company Burrendong Resources Pty Ltd. Burrendong is aiming to conduct an IPO in 2023. Figure 7.4: Maps showing the down hole traces of drill holes showing metal assemblages for copper-gold (Cu-Au core) and molybdenum-tungsten-tin (Mo-W-Sn upper phyllic zone) at Apsley. Three target areas for follow up work have been identified (T1, T2 and T3). 30 Impact Minerals Ltd Annual Report 2022 Review of Operations continued At Apsley, metal assemblages typical of the core (Cu-Au) and the so-called upper phyllic zone (W, Sn, Bi) which lies directly above the core of many porphyry copper-gold deposits, can be readily identified in the drilling data and help define the areas for follow up work. Follow up area T1, is a zone of overlap between the core assemblage and the upper phyllic zone assemblage in the north west of the halo. Area T2 is a large zone defined mainly by the upper phyllic zone and strong alteration present in Hole APIPT001 in the centre of the halo. Area T3 may represent a target at depth in the south east corner of the halo (Figure 7.4). However, the widespread nature of the drilling and also the low levels of copper and in particular gold reported are insufficient at this stage to provide more definitive vectors to ore. This interpretation of the zonation at Apsley is based on a widely used model for the levels of metals present around porphyry copper-gold deposits NEXT STEPS The Apsley target was drilled because of the strong combined geophysical and geochemical anomalies. The results, whilst very encouraging are not as definitive as required for immediate follow up drilling. Further drilling is required, possibly to some depth, in several areas. However, further studies on the nature and composition of the alteration minerals are required first in order to determine further vectors to ore. During the year Impact received several unsolicited approaches to evaluate the Commonwealth project. In August 2022 Impact reached an agreement to sell a 75% interest in the project to unrelated company Burrendong Resources Pty Ltd. Burrendong is aiming to conduct an IPO in 2023. COMMONWEALTH AND SILICA HILL DEPOSITS The focus on porphyry copper exploration during the year lead to no work being done at the Commonwealth and Silica Hill deposits where Mineral Resources containing 88,800 ounces of gold and 3.3 million ounces of silver have been defined (ASX Release August 22nd 2019). The Mineral Resources were prepared in accordance with the JORC 2012 Code by independent resource consultants Optiro and are stated in the tables below. The Inferred Resource for the Commonwealth deposit at a cut-off of 0.5 g/t gold is: COMMONWEALTH (MAIN SHAFT TO COMMONWEALTH SOUTH) Resource Classification Cut-off 0.5 g/t gold Tonnes Gold (g/t) Contained gold (oz) Silver (g/t) Contained silver (oz) Zinc (%) Lead (%) Copper (%) Inferred 912,000 2.4 70,800 44 1,300,000 1.20% 0.50% 0.08 A separate Inferred Mineral Resource (included within the overall resource) has also been calculated for a high grade massive sulphide lens at Main Shaft alone to demonstrate the high grade nature of such deposits which are the principal target for Impact’s exploration programme. The Main Shaft Inferred Resource is: MAIN SHAFT MASSSIVE SULPHIDE LENS Resource Classification Cut-off 0.5 g/t gold Tonnes Gold (g/t) Contained gold (oz) Silver (g/t) Contained silver (oz) Zinc (%) Lead (%) Copper (%) Inferred 142,000 4.5 20,600 161 737,500 4.6 1.7 0.2 Impact Minerals Ltd Annual Report 2022 31 Review of Operations continued At Silica Hill the maiden Inferred Resource at a 50 g/t silver cut-off is: Resource Classification Cut-off 50 g/t silver Lode Tonnes (t) Silver (g/t) SILICA HILL Inferred Inferred North 397,000 South 313,000 TOTAL 710,000 89 87 88 Contained silver (oz) 1,136,000 871,000 2,007,000 Gold (g/t) Contained gold (oz) 1 0.5 0.8 12,900 5,100 18,000 The resources are open along trend and at depth and extensive further resource definition and extensional drilling is required to follow up key intercepts at Main Shaft, Commonwealth South and Silica Hill. ABOUT THE MINERAL RESOURCE ESTIMATE AT COMMONWEALTH The mineralisation at Commonwealth-Main Shaft is typical of a volcanogenic massive sulphide (VMS) type system, containing high grade gold, silver, zinc, lead and copper mineralisation which occurs at the upper contact of a porphyritic rhyolite with the overlying volcanic sedimentary rocks. The Commonwealth Resource strike length is 400 m and it is open along trend in particular to the south. The mineralisation has been defined to a maximum depth of 150 m and is still open. The total number of holes drilled at the Commonwealth Project by Impact and previous explorers in a number of separate drill campaigns is 132. Of these holes, 66 were used in the estimation to define a wireframe model. Impact has twinned some of the historical higher grade intersections and these have largely confirmed the grades and widths. The average depth of the drill holes is 52 metres highlighting the shallow nature of the deposit. Holes were drilled with a variety of azimuths and dips to ensure the mineralised units were intersected at optimal angles. Quality control measures employed by Impact included the use of certified standards (1% of total sample population), field duplicates (2% of total sample population) and blanks (2% of total sample population). No previous quality assurance/quality control (QAQC) has been carried out at the Commonwealth Project. Analysis of the standards and blanks showed acceptable to good levels of accuracy in the assaying and little contamination. The duplicate samples matched the originals with a high degree of precision. The drill hole database was reviewed and validated. The top cuts used were gold 30 ppm, silver 500 ppm, copper 1% and zinc 10%. Three-dimensional solid wireframes were constructed from sectional interpretations of the mineralisation using a nominal 0.5 g/t gold cut-off grade. Drill hole intercepts were composited downhole to 1 m lengths and gold, silver, copper, zinc, lead and arsenic grade estimation was carried out using ordinary kriging with hard boundaries. Three search passes, with increasing search distances and decreasing minimum sample numbers, were employed to fully inform the model. All elements filled all cells in the first three search passes. The Commonwealth Mineral Resource estimate has been classified as an Inferred Mineral Resource in accordance with the guidelines of the Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code, 2012). Mineral Resources have been classified on the basis of confidence in geological and grade continuity, geological modelling confidence, grade continuity and limited QAQC. No Measured or Indicated Mineral Resources have been defined. The Mineral Resource estimate for the Commonwealth Project has been reported above a 0.5 ppm gold cut-off grade. The estimate has been depleted for previous historic mining. 32 Impact Minerals Ltd Annual Report 2022 Review of Operations continued ABOUT THE MINERAL RESOURCE ESTIMATE AT SILICA HILL The mineralisation at Silica Hill lies between 60 m and 200 m north east of the Commonwealth deposit. It comprises a stockwork of veins and disseminations of gold, silver, zinc, lead and copper minerals typical of certain epithermal styles of mineralisation. Visible silver minerals such as proustite and pyrargyrite are common. The mineralisation is hosted by a large flow banded rhyolite flow or sill with large phenocrysts of quartz and feldspar throughout the unit. Within the rhyolite is a second porphyry unit of a different composition that separates the two main zones of mineralisation. The Silica Hill Resource strike length is 500 metres and it is open along trend in particular to the south. The mineralisation has been defined to a maximum depth of 290 metres and is still open. The Mineral resource comprises two limbs, one being south-south west dipping lode (South Lode) that truncates a north- northeast steeply dipping lode (North Lode). These Mineral Resources have a total strike length of 240 metres and extend vertically to about 190 metres below surface for the North Lode and to 290 metres below surface for the South Lode. The horizontal width is variable ranging from 4 metres to 40 metres and averaging 20 metres where the two limbs are separate and 75 metres wide where the two limbs join. Thirty four drill holes, 10 RC and 24 diamond, have been completed at Silica Hill, all drilled by Impact. Of these holes, 32 were used in the estimation to define a wireframe model. Quality control measures employed during drill programmes by Impact included the use of certified standards (1% of total sample population), field duplicates (2% of total sample population) and blanks (2% of total sample population). Analysis of the standards and blanks showed acceptable to good levels of accuracy in the assaying and little contamination. The duplicate samples matched the originals with a high degree of precision. The drill hole database was reviewed and validated. Three-dimensional solid wireframes were constructed from sectional interpretations of the mineralisation using a nominal 15 g/t silver cut-off grade. Drill hole intercepts were composited downhole to 1 m lengths and gold and silver grade estimation was carried out using top-cut ordinary kriging with hard boundaries. The top cuts used were respectively 525 g/t silver and 4.8 g/t gold for the north lode and 350 g/t silver and 2.5 g/t gold for the south lode. Three search passes, with increasing search distances and decreasing minimum sample numbers, were employed to fully inform the model. For silver 15% of the blocks and for gold 6% of the blocks did not receive an estimate in the first three passes. These blocks were assigned the nearest estimated grade. The Mineral Resource estimate for Silica Hill has been reported above a 50 g/t silver cut-off grade. The Silica Hill Mineral Resource estimate has been classified as an Inferred Mineral Resource in accordance with the guidelines of the Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code, 2012). Mineral Resources have been classified on the basis of confidence in geological and grade continuity, geological modelling confidence, grade continuity and limited QAQC. No Measured or Indicated Mineral Resources have been defined. Impact Minerals Ltd Annual Report 2022 33 Directors’ Report Your Directors present their report on the consolidated entity consisting of Impact Minerals Limited (“the Company”) and its subsidiaries (“the Group” or “the Consolidated Entity”) and its subsidiaries at the end of the year ended 30 June 2022. DIRECTORS The following persons were Directors of Impact Minerals Limited during the whole of the financial year and up to the date of this report unless noted otherwise: – Peter Unsworth, Non-Executive Chairman – Michael Jones, Managing Director – Paul Ingram, Non-Executive Director – Frank Bierlein, Non-Executive Director (appointed 13 October 2021) – Markus Elsasser, Non-Executive Director (retired 31 January 2022) PRINCIPAL ACTIVITIES The principal activity of the Group during the financial year was exploration for deposits of nickel, gold, copper and platinum group elements. FINANCIAL RESULTS The consolidated loss of the Group after providing for income tax for the year ended 30 June 2022 was $2,399,307 (2021: $4,760,174). DIVIDENDS No dividends have been paid or declared since the start of the financial year. No recommendation for the payment of a dividend has been made by the Directors. OPERATIONS AND FINANCIAL REVIEW During the year Impact continued a significant strategic change in focus from its long-standing projects in eastern Australia to a new and significant portfolio of battery, precious and strategic metals projects in the emerging mineral province of south west Western Australia. Exploration during the year has focussed on this new portfolio and in particular on the flagship Arkun-Beau project centred about 200 km south-east of Perth and first staked in 2020. Here, first pass reconnaissance soil geochemistry surveys along gazetted roads and tracks returned a significant number of anomalies for a range of deposit styles including nickel-copper-PGM hosted by mafic rocks, lithium pegmatites as well as rare earth elements and rubidium hosted by both weathered and fresh intrusive rocks. The anomalies all lie within freehold farmland and considerable time was spent during the year negotiating land access agreements with landowners. To date about 30 agreements have been signed or are in progress. An airborne EM survey was also completed over seven priority areas and this data is currently being interpreted along with the results of 900 follow up soil samples to identify targets for drilling in early 2023. Impact also acquired three further 100% owned projects and entered into four joint ventures on very attractive terms during the year bringing the company’s total land position in Western Australia to about 4,000 km2. Preliminary soil geochemistry traverses on the three 100% owned projects, Dinninup, Mineral Hill and Martup Hills as well as one of the joint venture projects, Jumbo, adjacent to Arkun, all returned significant anomalies for the same range of metals as Arkun and this is very encouraging. A synthesis and interpretation of previous exploration data is underway on two of the other joint venture projects, Dalgaranga and Narryer. First pass drill programmes were also completed at the Hopetoun joint venture located near the mining centre of Ravensthorpe and also the previously acquired Doonia joint venture located 80 km east of Kambalda. Data including assays from these drill programmes are still being interpreted with a view to determining next steps. An integral part of the change in strategic focus has been the rationalisation of Impact’s projects in eastern Australia. As part of this process during the year Impact completed the sale of two tenements which were part of the Commonwealth project to Orange Minerals Limited (“Orange”) for $180,000 cash and 250,000 shares. Orange listed on the Australian Stock Exchange in December 2021 (ASX:OMX). Impact also still holds 1,000,000 shares in Australasian Metals Limited (ASX:A8G) which it received for the sale of the Clermont project in Queensland in early 2021. 34 Impact Minerals Ltd Annual Report 2022 In addition, the Company also agreed to the sale of the Blackridge gold project in Queensland under the following terms: – $30,000 cash for the outright sale of ML2386; – $50,000 cash as a non-refundable option fee to purchase Impact’s subsidiary company Blackridge Exploration Pty Ltd within two years for $350,000 and which holds three exploration licences EPM26806, EPM27410 and EPM27571; and – a 1% NSR royalty for all gold produced after the first 5,000 ounces of production. Subsequent to the year end, Impact also agreed to sell 75% of the Commonwealth Project to unlisted company Burrendong Resources Pty Ltd. The sale is subject to Burrendong listing on the ASX by mid-2023. Impact is now considering its options for its last remaining project in eastern Australia, the Broken Hill Project. During the year Impact entered into an agreement whereby IGO Limited, one of Australia’s leading mining and exploration companies agreed to farm into two tenements which form a small part of the Broken Hill project and which are prospective for deposits of nickel, copper and PGM. IGO can spend up to $18 million over 8 years to earn a 75% interest in the tenements. As part of the first-year exploration programme IGO has completed a major ground electromagnetic survey over the two tenements concerned. A significant deep-seated conductor has been identified and IGO have indicated that this will be drill tested by the end of 2022 if possible. FINANCIAL As at 30 June 2022, the Group had net assets of $18,557,017 (2021: $15,632,776) including cash and cash equivalents of $3,816,089 (2021: $3,415,778). Competent Persons Statement The review of operations contained in this report is based on information compiled by Dr Mike Jones, a Member of the Australian Institute of Geoscientists. He is a director of the Company and works for Impact Minerals Limited. He has sufficient experience which is relevant to the style of mineralisation and types of deposits 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 (the JORC Code). Dr Jones has consented to the inclusion in the report of the matters based on his information in the form and context in which it appears. Impact Minerals confirms that it is not aware of any new information or data that materially affects the information included in previous market announcements and in the case of mineral resource estimates, that all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed. SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS Significant changes in the state of affairs of the Group during the financial year were as follows: – In March 2022, the Company raised $2,000,000 (before costs) via a placement of 166,666,667 new shares at an issue price of 1.2 cents each. – In June 2022 the Company completed a Renounceable Rights Issue raising $3,199,999 (before costs) via the issue of 290,908,970 new shares at an issue price of 1.1 cents each together with one free attaching listed option exercisable at $0.02 on or before 2 June 2024 for every two new shares subscribed for (145,454,389 Listed Options). A further 12,800,000 listed options were issued to the underwriter as part consideration for their services. EVENTS SINCE THE END OF THE FINANCIAL YEAR In August 2022 the Company announced that it had agreed to implement a Share Purchase Agreement (“SPA”) with Burrendong Minerals Limited (“Burrendong”) whereby Burrendong would acquire 75% of the shares in Impact’s wholly owned subsidiary Endeavour Minerals Pty Ltd (“Endeavour”). The principal assets of Endeavour are the Commonwealth Project tenements (EL8504, EL8505, EL5874, EL8212 and EL8252). Burrendong intends to list on the ASX. There has not arisen in the interval between the end of the financial year and the date of this report any other item, transaction or event of a material and unusual nature likely, in the opinion of the Directors, to affect significantly the operations, the results of those operations, or the state of affairs of the Group in future financial years. Directors’ ReportcontinuedImpact Minerals Ltd Annual Report 2022 35 LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS The Directors are not aware of any developments that might have a significant effect on the operations of the Group in subsequent financial years not already disclosed in this report. ENVIRONMENTAL REGULATION The Group is subject to significant environmental regulation in respect of its exploration activities. Tenements in Western Australia, New South Wales and Queensland are granted subject to adherence to environmental conditions with strict controls on clearing, including a prohibition on the use of mechanised equipment or development without the  approval of the relevant government agencies, and with rehabilitation required on completion of exploration activities. These regulations are controlled by the Department of Mines, Industry Regulation and Safety (Western Australia), the Department of Industry (New South Wales) and the Department of Natural Resources, Mines and Energy (Queensland). Impact Minerals Limited conducts its exploration activities in an environmentally sensitive manner and the Group is not aware of any breach of statutory conditions or obligations. Greenhouse gas and energy data reporting requirements The Directors have considered compliance with the National Greenhouse and Energy Reporting Act 2007 which requires entities to report annual greenhouse gas emissions and energy use. The Directors have assessed that there are no current reporting requirements for the year ended 30 June 2022, however reporting requirements may change in the future. INFORMATION ON DIRECTORS Peter Unsworth B.Com (Non-Executive Chairman), Director since 28 April 2006 Experience and expertise Mr Unsworth, formerly a chartered accountant, has more than 40 years’ experience in the corporate finance, investment, and securities industries and has a wealth of management experience with both public and private companies. A former Executive Director with a leading Western Australian stockbroking company, Mr Unsworth has been a Director of a number of public exploration and mining companies. He is a former Director and Chairman of the Western Australian Government owned Gold Corporation (operator of The Perth Mint). Other current directorships None Former directorships in last three years Stealth Global Holdings Limited (appointed July 2018, retired October 2019) Special responsibilities Chair of the Board Interests in shares and options Ordinary shares – Impact Minerals Limited Unlisted options – Impact Minerals Limited Listed options – Impact Minerals Limited 19,994,440 35,000,000 2,000,171 Directors’ Reportcontinued36 Impact Minerals Ltd Annual Report 2022 Michael Jones PhD, MAIG (Managing Director), Director since 31 March 2006 Experience and expertise Dr Jones completed undergraduate and post-graduate studies in Mining and Exploration Geology at Imperial College, London. His PhD work on gold mineralisation saw him move to Western Australia in 1988 to work for Western Mining Corporation exploring for gold and nickel deposits in the Yilgarn. From 1994, he consulted to the exploration and mining industry specialising in the integration of geological field mapping and the interpretation of geochemical, geophysical and remotely sensed data for target generation. Dr Jones has worked on over 80 projects both in Greenfields and near mine exploration in a wide variety of mineralised terrains and was the founding Director of Lithofire Consulting Geologists in Perth, Australia. He was also the team leader during the discovery of a significant gold deposit at the Higginsville Mining Centre, near Kalgoorlie and an iron ore deposit near Newman, both in Western Australia. Other current directorships Former directorships in last three years None None Special responsibilities Managing Director Interests in shares and options Ordinary shares – Impact Minerals Limited Unlisted options – Impact Minerals Limited Listed options – Impact Minerals Limited 9,643,814 71,000,000 964,380 Paul Ingram B.AppSc, AIMM, MICA (Non-Executive Director), Director since 27 September 2009 Experience and expertise Mr Ingram is a geologist with extensive experience in managing major mineral exploration programs for several publicly listed companies and has been involved in the mining sector for over forty years. He has designed and implemented innovative techniques for exploration in remote areas and has managed projects in countries throughout Australia and east Asia. Other current directorships A-Cap Resources Limited (Director since June 2009) Besra Gold Inc. (Director since September 2020) Former directorships in last three years None Special responsibilities None Interests in shares and options Ordinary shares – Impact Minerals Limited Unlisted options – Impact Minerals Limited Listed options – Impact Minerals Limited 725,850 20,000,000 72,584 Directors’ ReportcontinuedImpact Minerals Ltd Annual Report 2022 37 Frank Bierlein PhD (Non-Executive Director), Director since 13 October 2021 Experience and expertise Dr Bierlein is a geologist with 30 years of experience as a consultant, researcher, lecturer and industry professional. Dr Bierlein has held exploration and generative geology management positions with QMSD Mining Co Ltd, Qatar Mining, Afmeco Australia and Areva NC, and consulted for, among others, Newmont Gold, Resolute Mining, Goldfields International, Freeport-McMoRan, and the International Atomic Energy Agency. He was a non- executive director of Gold Australia Pty Ltd from 2015 to 2019 and chaired the Advisory Board of a Luxemburg- based private equity fund between 2014 and 2021. Dr Bierlein has worked on six continents spanning multiple commodities, and over the course of his career has published and co-authored more than 130 articles in peer-reviewed scientific journals. Dr Bierlein obtained a PhD (Geology) from the University of Melbourne, is a Fellow of the Australian Institute of Geoscientists (AIG), and a member of both the Society of Economic Geologists (SEG) and the Society of Geology Applied to Mineral Deposits. Other current directorships PNX Metals Limited (Director since June 2021) Blackstone Limited (Director since November 2021) Firetail Resources Limited (Director since November 2021) Former directorships in last three years None Special responsibilities None Interests in shares and options COMPANY SECRETARY Unlisted options – Impact Minerals Limited 8,000,000 Bernard Crawford B.Com, CA, MBA, AGIA ACG (appointed 4 April 2016) Mr Crawford is a Chartered Accountant with over 30 years’ experience in the resources industry in Australia and overseas. He has held various positions in finance and management with NYSE, TSX and ASX listed companies. Mr Crawford is the CFO and/or Company Secretary of a number of public companies. He holds a Bachelor of Commerce degree from the University of Western Australia, a Master of Business Administration from London Business School and is a Member of Chartered Accountants Australia and New Zealand and the Governance Institute of Australia. MEETINGS OF DIRECTORS The number of formal meetings of the Company’s Board of Directors held during the year ended 30 June 2022, and the number of meetings attended by each Director were: Peter Unsworth Michael Jones Paul Ingram Frank Bierlein Markus Elsasser Number of meetings attended Number of meetings eligible to attend 7 7 7 5 4 7 7 7 5 4 The directors also have a number of informal meetings with management during the year, both in person and by conference call. RETIREMENT, ELECTION AND CONTINUATION IN OFFICE OF DIRECTORS Mr Peter Unsworth, being a Director retiring by rotation who, being eligible, will offer himself for re-election at the Annual General Meeting. Directors’ Reportcontinued38 Impact Minerals Ltd Annual Report 2022 REMUNERATION REPORT (AUDITED) The Directors present the Impact Minerals Limited 2022 Remuneration Report, outlining key aspects of the Company’s remuneration policy and framework, and remuneration awarded this year. The report contains the following sections: a) Key management personnel covered in this report b) Remuneration governance and the use of remuneration consultants c) Executive remuneration policy and framework d) Relationship between remuneration and the Group’s performance e) Non-executive director remuneration policy f) Voting and comments made at the Company’s last Annual General Meeting g) Details of remuneration h) Service agreements i) Details of share-based compensation and bonuses j) Equity instruments held by key management personnel k) Loans to key management personnel l) Other transactions with key management personnel. A) KEY MANAGEMENT PERSONNEL COVERED IN THIS REPORT Non-Executive and Executive Directors (see pages 35 to 37 for details about each director) Name Position Peter Unsworth Non-Executive Chairman Michael Jones Managing Director Paul Ingram Non-Executive Director Frank Bierlein Non-Executive Director Markus Elsasser Non-Executive Director B) REMUNERATION GOVERNANCE AND THE USE OF REMUNERATION CONSULTANTS The Company does not have a Remuneration Committee. Remuneration matters are handled by the full Board of the Company. In this respect the Board is responsible for: – the over-arching executive remuneration framework; – the operation of the incentive plans which apply to executive directors and senior executives (the executive team), including key performance indicators and performance hurdles; – remuneration levels of executives; and – non-executive director fees. The objective of the Board is to ensure that remuneration policies and structures are fair and competitive and aligned with the long-term interests of the Company. In addition, all matters of remuneration are handled in accordance with the Corporations Act requirements, especially with regards to related party transactions. That is, none of the Directors participate in any deliberations regarding their own remuneration or related issues. Independent external advice is sought from remuneration consultants when required, however no advice was sought during the year ended 30 June 2022. Directors’ ReportcontinuedImpact Minerals Ltd Annual Report 2022 39 C) EXECUTIVE REMUNERATION POLICY AND FRAMEWORK In determining executive remuneration, the Board aims to ensure that remuneration practices are: – competitive and reasonable, enabling the Company to attract and retain key talent; – aligned to the Company’s strategic and business objectives and the creation of shareholder value; – transparent and easily understood; and – acceptable to shareholders. All executives receive consulting fees or a salary, part of which may be taken as superannuation, and from time to time, options. The Board reviews executive packages annually by reference to the executive’s performance and comparable information from industry sectors and other listed companies in similar industries. All remuneration paid to specified executives is valued at the cost to the Group and expensed. Options are valued using a Black-Scholes option pricing model. D) RELATIONSHIP BETWEEN REMUNERATION AND THE GROUP’S PERFORMANCE Emoluments of Directors are set by reference to payments made by other companies of similar size and industry, and by reference to the skills and experience of Directors. Fees paid to Non-Executive Directors are not linked to the performance of the Group. This policy may change once the exploration phase is complete and the Group is generating revenue. At present the existing remuneration policy is not impacted by the Group’s performance including earnings and changes in shareholder wealth (e.g. changes in share price) with the exception of incentive options issued to Directors, subject to shareholder approval. The Board has not set short term performance indicators, such as movements in the Company’s share price, for the determination of Non-Executive Director emoluments as the Board believes this may encourage performance which is not in the long-term interests of the Company and its shareholders. The Board has structured its remuneration arrangements in such a way it believes is in the best interests of building shareholder wealth in the longer term. The Board believes participation in the Company’s Incentive Option Scheme motivates key management and executives with the long-term interests of shareholders. E) NON-EXECUTIVE DIRECTOR REMUNERATION POLICY The Board policy is to remunerate Non-Executive Directors at commercial market rates for comparable companies for their time, commitment and responsibilities. Non-Executive Directors receive a Board fee but do not receive fees for chairing or participating on Board committees. Board members are allocated superannuation guarantee contributions as required by law, and do not receive any other retirement benefits. From time to time, some individuals may choose to sacrifice their salary or consulting fees to increase payments towards superannuation. The maximum annual aggregate Non-Executive Directors’ fee pool limit is $250,000 as approved by shareholders at the Company’s 2016 Annual General Meeting (“AGM”) held on 9 November 2016. Fees for Non-Executive Directors are not linked to the performance of the Group. Non-Executive Directors’ remuneration may also include an incentive portion consisting of options, subject to approval by shareholders. F) VOTING AND COMMENTS MADE AT THE COMPANY’S LAST ANNUAL GENERAL MEETING Impact Minerals Limited received more than 90% of “yes” votes on its Remuneration Report for the 2021 financial year. The Company did not receive any specific feedback at the AGM or throughout the year on its remuneration practices. Directors’ Reportcontinued40 Impact Minerals Ltd Annual Report 2022 G) DETAILS OF REMUNERATION The following table show details of the remuneration received by the Group’s key management personnel for the current and previous financial year. Short-term employment benefits Post- employment benefits Salary & fees $ Non- monetary benefit $ Super- annuation $ Share-based payments Shares $ Options $ Total $ % of remuneration to total from shares and options % 59,361 246,880 32,877 23,836 21,096 384,050 56,240 246,879 28,585 31,300 363,004 – – – – – – – – – – – 5,936 – 3,288 2,384 – 11,608 5,343 – 2,715 – 8,058 – – – – – – – – – – 91,000 156,297 175,000 421,880 56,000 56,000 56,000 92,165 82,220 77,096 434,000 829,658 25,015 51,795 13,701 13,701 86,598 298,674 45,001 45,001 104,212 475,274 58.2 41.5 60.8 68.1 72.6 – 28.9 17.3 30.4 30.4 – Name 2022 Directors P Unsworth M Jones P Ingram F Bierlein(1) M Elsasser(2) TOTALS 2021 Directors P Unsworth M Jones P Ingram M Elsasser TOTALS (1) Appointed 13 October 2021. (2) Retired 31 January 2022. No components of remuneration are linked to the performance of the Group. H) SERVICE AGREEMENTS M Jones, Managing Director Dr Jones is remunerated pursuant to an ongoing Consultancy Services Agreement. Dr Jones was paid fees of $246,880 for the year ended 30 June 2022. The notice period (other than for gross misconduct) is three months. I) DETAILS OF SHARE-BASED COMPENSATION AND BONUSES Options Options over ordinary shares in Impact Minerals Limited are granted under the Employee Option Acquisition Plan (“Option Plan”). Participation in the Option Plan and any vesting criteria are at the Board’s discretion and no individual has a contractual right to participate in the Option Plan or to receive any guaranteed benefits. Any options issued to Directors of the Company are subject to shareholder approval. Options issued to Directors in the 2022 financial year were approved by shareholders at the 2021 Annual General Meeting. Further information on the fair value of share options and assumptions is set out in Note 24 to the financial statements. Directors’ ReportcontinuedImpact Minerals Ltd Annual Report 2022 41 J) EQUITY INSTRUMENTS HELD BY KEY MANAGEMENT PERSONNEL The following tables detail the number of fully paid ordinary shares and options over ordinary shares in the Company that were held during the financial year and the previous financial year by key management personnel of the Group, including their close family members and entities related to them. Options 2022 Directors Opening balance at 1 July Granted as remuneration Options exercised Net change (other) Balance at 30 June Vested but not exercisable Vested and exercisable Vested during the year P Unsworth 30,000,000 13,000,000 – (5,999,829) 37,000,171 M Jones 66,000,000 25,000,000 – (19,035,620) 71,964,380 P Ingram 16,000,000 8,000,000 F Bierlein – 8,000,000 M Elsasser(1) 16,000,000 8,000,000 – – – (3,927,416) 20,072,584 – 8,000,000 n/a n/a TOTALS 128,000,000 62,000,000 – (28,962,865) 137,037,135 – – – – – – 37,000,171 71,964,380 20,072,584 8,000,000 n/a 137,037,135 – – – – – – 2021 Directors P Unsworth 32,000,000 M Jones 71,000,000 P Ingram 17,000,000 M Elsasser 17,000,000 TOTALS 137,000,000 (1) Retired 31 January 2022. – – – – – – – – – – (2,000,000) 30,000,000 – 30,000,000 13,000,000 (5,000,000) 66,000,000 – 66,000,000 28,000,000 (1,000,000) 16,000,000 (1,000,000) 16,000,000 (9,000,000) 128,000,000 – – – 16,000,000 7,000,000 16,000,000 7,000,000 128,000,000 55,000,000 During the year, no ordinary shares in the Company were issued to Directors as a result of the exercise of remuneration options. Shareholdings 2022 Directors P Unsworth M Jones P Ingram F Bierlein M Elsasser(1) TOTALS 2021 Directors P Unsworth M Jones P Ingram M Elsasser TOTALS (1) Retired 31 January 2022. Opening balance at 1 July Granted as remuneration Options exercised Net change (other) Balance at 30 June 15,994,098 7,715,052 580,680 – 23,310,402 47,600,232 15,994,098 7,715,052 580,680 23,310,402 47,600,232 – – – – – – – – – – – – – – – – – – – – – – 4,000,342 19,994,440 1,928,762 9,643,814 145,170 725,850 – n/a – n/a 6,074,274 30,364,104 – – – – – 15,994,098 7,715,052 580,680 23,310,402 47,600,232 Directors’ Reportcontinued42 Impact Minerals Ltd Annual Report 2022 The assessed fair value at grant date of options granted to individuals is allocated equally over the period from grant date to vesting date, (and the amount included in the remuneration tables above). Fair values at grant date are determined using a Black-Scholes option pricing model that takes into account the exercise price, the term of the option, the impact of dilution, the share price at grant date and expected volatility of the underlying share, the expected dividend yield and the risk-free interest rate for the term of the option. K) LOANS TO KEY MANAGEMENT PERSONNEL There were no loans to individuals or members of key management personnel during the financial year or the previous financial year. L) OTHER TRANSACTIONS WITH KEY MANAGEMENT PERSONNEL There were no other transactions with key management personnel during the financial year or the previous financial year. END OF REMUNERATION REPORT (AUDITED) SHARES UNDER OPTION Unissued ordinary shares of the Company under option at the date of this report are as follows: Date options granted 8 Nov 2018 8 Nov 2019 and 15 Nov 2019 30 Apr 2021 30 Nov 2021 16 Mar 2022 21 Apr 2022 22 Apr 2022 3 June 2022 (Listed) TOTAL Expiry date Issue price of shares Number under option 30 Nov 2022 $0.0375 20,000,000 5 Nov 2023 $0.0149 93,000,000 29 Apr 2023 $0.03 4,000,000 31 Oct 2025 $0.0217 83,000,000 15 Mar 2023 $0.03 500,000 31 Oct 2025 $0.024 4,000,000 22 April 2025 $0.024 3,000,000 2 Jun 2024 $0.02 158,254,389 365,754,389 No option holder has any right under the options to participate in any other share issue of the Company or any other entity. SHARES ISSUED ON THE EXERCISE OF OPTIONS There were no shares issued on the exercise of options during the year and up to the date of this report. CORPORATE GOVERNANCE STATEMENT The Company’s 2022 Corporate Governance Statement has been released as a separate document and is located on the Company’s website at http://www.impactminerals.com.au/corporate-governance/. PROCEEDINGS ON BEHALF OF THE GROUP No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of the Company, or to 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 part of those proceedings. Directors’ ReportcontinuedImpact Minerals Ltd Annual Report 2022 43 INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS During the financial year, the Company paid a premium to insure the Directors and Officers of the consolidated entity against any liability incurred as a Director or Officer to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits the disclosure of the nature of the liabilities covered or the amount of the premium paid. The Group has not entered into any agreement with its current auditors indemnifying them against claims by a third party arising from their position as auditor. NON-AUDIT SERVICES The Company may decide to employ the auditor on assignments additional to their statutory audit duties where the auditor’s expertise and experience with the Company and/or the Group are important. Details of the amounts paid or payable to the auditor (Hall Chadwick WA Audit Pty Ltd) for audit and non-audit services provided during the year are set out in Note 19. During the year ended 30 June 2022, no fees were paid or were payable for non-audit services provided by the auditor of the consolidated entity (2021: $Nil). AUDITOR’S INDEPENDENCE DECLARATION A copy of the Auditor’s Independence Declaration as required under section 307C of the Corporations Act 2001 is set out on the following page. Signed in accordance with a resolution of the Directors. Peter Unsworth Chairman Perth, 28 September 2022 Directors’ Reportcontinued44 Impact Minerals Ltd Annual Report 2022 Auditor’s Independence Declaration To the Board of Directors AUDITOR’S CORPORATIONS ACT 2001 INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE As lead audit Director for the audit of the financial statements of Impact Minerals Limited for the financial year ended 30 June 2022, I declare that to the best of my knowledge and belief, there have been no contraventions of: • • the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and any applicable code of professional conduct in relation to the audit. Yours Faithfully HALL CHADWICK WA AUDIT PTY LTD MARK DELAURENTIS CA Director Dated this 28th day of September 2022 Perth, Western Australia Impact Minerals Ltd Annual Report 2022 45 Consolidated Statement of Profit or Loss and Other Comprehensive Income for the year ended 30 June 2022 Revenue from operating activities Other income Corporate and administration expense Depreciation expense Employee benefits expense Impairment of exploration expenditure Occupancy expense Loss before tax from continuing operations Income tax expense Loss for the year from continuing operations Other comprehensive income (OCI) Items that will not be reclassified to profit or loss Change in the fair value of financial assets through OCI Other comprehensive income for the year (net of tax) Total comprehensive loss for the year attributable to the owners of Impact Minerals Limited Notes 3(a) 3(a) 3(b) 11 5 10 Consolidated 2022 $ 3,509 444,385 2021 $ 15,630 140,152 (751,010) (717,709) (16,956) (39,072) (886,164) (383,217) (1,121,911) (3,712,774) (71,160) (63,184) (2,399,307) (4,760,174) – – (2,399,307) (4,760,174) 27,500 27,500 45,000 45,000 (2,371,807) (4,715,174) Cents per share Cents per share Loss per share attributable to the owners of Impact Minerals Limited Basic and diluted loss per share 18 (0.11) (0.26) The Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes. 46 Impact Minerals Ltd Annual Report 2022 Consolidated Statement of Financial Position for the year ended 30 June 2022 ASSETS Current Assets Cash and cash equivalents Trade and other receivables Other current assets Assets held for sale Total Current Assets Non-Current Assets Financial assets at fair value through other comprehensive income Property, plant and equipment Exploration expenditure Other non-current assets Total Non-Current Assets TOTAL ASSETS LIABILITIES Current Liabilities Trade and other payables Short-term provisions Total Current Liabilities TOTAL LIABILITIES NET ASSETS EQUITY Issued capital Option reserve Transactions with non-controlling interest Financial asset reserve Accumulated losses TOTAL EQUITY Notes Consolidated 2022 $ 2021 $ 6 7 8 9 10 11 12 13 14 3,816,089 3,415,778 107,172 76,013 3,482,942 38,999 27,047 115,141 7,482,216 3,596,965 222,500 145,000 27,710 25,319 11,195,288 11,993,262 273,055 262,555 11,718,553 12,426,136 19,200,769 16,023,101 508,446 299,789 135,306 643,752 643,752 90,536 390,325 390,325 18,557,017 15,632,776 15 58,426,867 53,787,639 16(a) 16(b) 16(c) 1,406,016 901,996 (1,161,069) (1,161,069) 72,500 45,000 17 (40,187,297) (37,940,790) 18,557,017 15,632,776 The Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes. Impact Minerals Ltd Annual Report 2022 47 Consolidated Statement of Changes in Equity for the year ended 30 June 2022 Issued capital $ Option reserve $ Financial asset reserve $ Transactions with non- controlling interest $ Accumulated losses $ Total equity $ At 1 July 2020 46,931,843 1,005,268 Total comprehensive loss for the year Other comprehensive income Total comprehensive loss for the year (net of tax) Transactions with owners in their capacity as owners – – – Shares issued Share issue costs 7,303,750 (502,114) – – – – – Fair value of options issued – 169,238 Exercise of options 54,160 (54,160) Fair value of options expired – (218,350) – – 45,000 45,000 – – – – – (1,161,069) (33,398,966) 13,377,076 – – – – – – – – (4,760,174) (4,760,174) – 45,000 (4,760,174) (4,715,174) – – – – 218,350 7,303,750 (502,114) 169,238 – – At 30 June 2021 At 1 July 2021 53,787,639 901,996 45,000 (1,161,069) (37,940,790) 15,632,776 53,787,639 901,996 45,000 (1,161,069) (37,940,790) 15,632,776 Total comprehensive loss for the year Other comprehensive income Total comprehensive loss for the year (net of tax) Transactions with owners in their capacity as owners Shares issued Share issue costs Fair value of options issued Fair value of options expired – – – 5,199,999 (560,771) – – – – – – – 656,820 (152,800) – 27,500 27,500 – – – – – – – – – – – (2,399,307) (2,399,307) – 27,500 (2,399,307) (2,371,807) – – – 5,199,999 (560,771) 656,820 152,800 – At 30 June 2022 58,426,867 1,406,016 72,500 (1,161,069) (40,187,297) 18,557,017 The Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes. 48 Impact Minerals Ltd Annual Report 2022 Consolidated Statement of Cash Flows for the year ended 30 June 2022 CASH FLOWS FROM OPERATING ACTIVITIES Payments to suppliers and employees Interest received Other income received Research and development tax rebate Government grants Notes Consolidated 2022 $ 2021 $ (1,017,759) (1,027,057) 3,996 28,904 245,622 – 20,589 27,700 93,502 67,470 Net cash flows used in operating activities 25 (739,237) (817,796) Cash flows from investing activities Payments for property, plant and equipment Payments for exploration activities Payments for the acquisition of tenements Proceeds from disposal of tenements Net cash flows used in investing activities Cash flows from financing activities Proceeds from issue of shares Share issue costs Net cash flows from financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at beginning of the year (19,347) (26,842) (3,485,753) (4,840,546) (255,000) (103,750) 210,000 – (3,550,100) (4,971,138) 5,199,999 7,245,000 (510,351) (471,714) 4,689,648 6,773,286 400,311 984,352 3,415,778 2,431,426 CASH AND CASH EQUIVALENTS AT END OF THE YEAR 6 3,816,089 3,415,778 The Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes. Impact Minerals Ltd Annual Report 2022 49 Notes to the Consolidated Financial Statements for the year ended 30 June 2022 NOTE 1: CORPORATE INFORMATION The consolidated financial report of Impact Minerals Limited for the year ended 30 June 2022 was authorised for issue in accordance with a resolution of the Directors on 28 September 2022. Impact Minerals Limited is a for-profit company incorporated in Australia and limited by shares which are publicly traded on the Australian Securities Exchange. The nature of the operation and principal activities of the consolidated entity are described in the attached Directors’ Report. The principal accounting policies adopted in the preparation of these consolidated financial statements are set out below and have been applied consistently to all periods presented in the consolidated financial statements and by all entities in the consolidated entity. NOTE 2: STATEMENT OF COMPLIANCE These general purpose financial statements have been prepared in accordance with Australian Accounting Standards, other authoritative pronouncements of the Australian Accounting Standards Board, Urgent Issues Group Interpretations and the Corporations Act 2001. Critical accounting estimates The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed where appropriate. b) Going concern The financial report has been prepared on the going concern basis, which contemplates the continuity of normal business activity and the realisation of assets and the settlement of liabilities in the ordinary course of business. The Consolidated Group incurred a loss for the year of $2,399,307 (2021: loss of $4,760,174); included in this loss were impairment expenses of $1,121,911 (2021: $3,712,774). During the year the Consolidated Group incurred net cash outflows from operating activities of $739,237 (2021: $817,796). As at 30 June 2022 the Consolidated Group had a cash balance of $3,816,089 (2021: $3,415,778). Compliance with IFRS The consolidated financial statements of Impact Minerals Limited also comply with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). Management have prepared a cash flow forecast, which indicates that the Consolidated Group will have sufficient cash flows to meet all commitments and working capital requirements for the 12 month period from the date of signing this financial report. New and amended accounting standards and interpretations adopted by the Group No new standards or interpretations relevant to the operations of the Group have come into effect for the reporting period. Accounting Standards that are mandatorily effective for the current reporting year There are no new or amended accounting standards and interpretations relevant to the operations of the Group that come into effect in subsequent reporting periods at this time. The Directors have determined that there is no material impact of the new and revised Standards and Interpretations on the Group and, therefore, no material change is necessary to Group accounting policies a) Basis of measurement Historical cost convention These consolidated financial statements have been prepared under the historical cost convention, except where stated. Based on the cash flow forecast and other factors referred to above, the Directors are satisfied that the going concern basis of preparation is appropriate. In particular, given the Company’s history of raising capital to date, the Directors are confident of the Company’s ability to raise additional funds as and when they are required. c) Principles of consolidation Subsidiaries The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of the Company as at 30 June 2022 and the results of all subsidiaries for the year then ended. The Company and its subsidiaries together are referred to in this financial report as the Group or the consolidated entity. Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its investment with the entity and has the ability to affect those returns through its power to direct the activities of the entity. The acquisition method of accounting is used to account for business combinations by the Group. Notes to the Consolidated Financial Statementscontinued50 Impact Minerals Ltd Annual Report 2022 NOTE 2: STATEMENT OF COMPLIANCE (CONTINUED) c) Principles of consolidation (continued) Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date that control ceases. Intercompany transactions, balances and unrealised gains on transactions between Group companies are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group. Non-controlling interests in the results and equity of subsidiaries are shown separately in the Consolidated Statement of Profit or Loss and Other Comprehensive Income, Consolidated Statement of Financial Position, and the Consolidated Statement of Changes in Equity respectively. d) Critical accounting judgements and key sources of estimation uncertainty The application of accounting policies requires the use of judgments, estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions are recognised in the period in which the estimate is revised if it affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. e) 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 of Impact Minerals Limited. f) Functional and presentation of currency The consolidated financial statements are presented in Australian dollars, which is the Group’s functional and presentational currency. g) Leases Leases in which a significant portion of the risks and rewards of ownership are not transferred to the Group as lessee are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to profit or loss as incurred over the period of the lease. Leases in which a significant portion of the risks and rewards of ownership are transferred to the Group as lessee are classified as finance leases. At the commencement date of a lease, the Group recognises a liability to make lease payments (i.e., the lease liability) and an asset representing the right to use the underlying asset during the lease term (i.e., the right-of-use asset). The Group separately recognises the interest expense on the lease liability and the depreciation expense on the right-of-use asset. h) Employee benefits Short-term obligations Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating sick leave expected to be settled within 12 months after the end of the period in which the employees render the related service, are recognised in respect of employees’ services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liability for annual leave and accumulating sick leave is recognised in the provision for employee benefits. Liabilities for non-accumulating sick leave are recognised when the leave is taken and measured at the rates paid or payable. All other short-term employee benefit obligations are presented as payables. The obligations are presented as current liabilities in the Statement of Financial Position if the entity does not have an unconditional right to defer settlement for at least 12 months after the reporting date, regardless of when the actual settlement is expected to occur. Other long-term obligations The liability for long service leave and annual leave which is not expected to be settled within 12 months after the end of the period in which the employees render the related service, is recognised in the provision for employee benefits and measured as the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the end of the reporting period on national government bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows. Share-based payments The Group provides benefits to employees of the Company in the form of share options. The fair value of options granted is recognised as an employee benefits expense with a corresponding increase in equity. The fair value is measured at grant date and spread over the period during which the employees become unconditionally entitled to the options. The fair value of the options granted is measured using a Black-Scholes option pricing model, taking into account the terms and conditions upon which the options were granted. Notes to the Consolidated Financial StatementscontinuedImpact Minerals Ltd Annual Report 2022 51 NOTE 2: STATEMENT OF COMPLIANCE (CONTINUED) h) Employee benefits (continued) The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, on a straight-line basis over the vesting period. The amount recognised as an expense is adjusted to reflect the actual number that vest. The dilutive effect, if any, of outstanding options is reflected as additional share dilution in the computation of earnings per share. Termination benefits Termination benefits are payable when employment is terminated before the normal retirement date, or when an employee accepts voluntary redundancy in exchange for these benefits. The Group recognises termination benefits when it is demonstrably committed to either terminating the employment of current employees according to a detailed formal plan without possibility of withdrawal or providing termination benefits as a result of an offer made to encourage voluntary redundancy. Benefits falling due more than 12 months after the end of the reporting period are discounted to present value. No termination benefits, other than accrued benefits and entitlements, were paid during the period. i) Goods and services tax (GST) Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the taxation authority. In this case, it is recognised as part of the cost of acquisition of the asset or as part of the expense. Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the taxation authority is included with other receivables or payables in the Statement of Financial Position. Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to the taxation authority, are presented as operating cash flows. j) Financial instruments Financial assets Initial recognition and measurement Financial assets are classified, at initial recognition, as subsequently measured at amortised cost, fair value through Other Comprehensive Income (OCI), and fair value through profit or loss. The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow characteristics and the Group’s business model for managing them. With the exception of trade receivables that do not contain a significant financing component or for which the Group has applied the practical expedient, the Group initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs. In order for a financial asset to be classified and measured at amortised cost or fair value through OCI, it needs to give rise to cash flows that are ‘solely payments of principal and interest (SPPI)’ on the principal amount outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level. The Group’s business model for managing financial assets refers to how it manages its financial assets in order to generate cash flows. The business model determines whether cash flows will result from collecting contractual cash flows, selling the financial assets, or both. Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the marketplace (regular way trades) are recognised on the trade date, i.e. the date that the Group commits to purchase or sell the asset. Financial assets designated at fair value through OCI (equity instruments) This is the category most relevant to the Group. Upon initial recognition, the Group can elect to classify irrevocably its equity investments as equity instruments designated at fair value through OCI when they meet the definition of equity under IAS 32 Financial Instruments: Presentation and are not held for trading. The classification is determined on an instrument-by-instrument basis. Gains and losses on these financial assets are never recycled to profit or loss. Dividends are recognised as other income in the statement of profit or loss when the right of payment has been established, except when the Group benefits from such proceeds as a recovery of part of the cost of the financial asset, in which case, such gains are recorded in OCI. Equity instruments designated at fair value through OCI are not subject to impairment assessment. Derecognition A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised (i.e. removed from the Group’s consolidated statement of financial position) when: – The rights to receive cash flows from the asset have expired; or – The Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass- through’ arrangement; and either (a) the Group has transferred substantially all the risks and rewards of the asset, or (b) the Group has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset. Notes to the Consolidated Financial Statementscontinued52 Impact Minerals Ltd Annual Report 2022 NOTE 2: STATEMENT OF COMPLIANCE (CONTINUED) j) Financial instruments (continued) The Group considers a financial asset in default when contractual payments are 90 days past due. However, in certain cases, the Group may also consider a financial asset to be in default when internal or external information indicates that the Group is unlikely to receive the outstanding contractual amounts in full before taking into account any credit enhancements held by the Group. A financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows. Financial liabilities Initial recognition and measurement Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables as appropriate. All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. The Group’s financial liabilities include trade and other payables. NOTE 3: REVENUE AND EXPENSES a) Revenue from operating activities Interest income Gain on sale of tenements (Note 9) Research and development tax rebate Other government rebates Other income Total revenue from operating activities Consolidated 2022 $ 3,509 114,859 245,622 – 83,904 447,894 2021 $ 15,630 – 93,502 16,430 30,220 155,782 Revenue is measured at fair value of the consideration received or receivable. Amounts disclosed as revenue are net of returns, trade allowances, rebates and amounts collected on behalf of third parties. Interest income is recognised as it accrues. Amounts received or receivable from the Australian Tax Office (ATO) in respect of the Research and Development Tax Rebate (R&D Rebate) are recognised in Other Income for the year in which the claim is lodged with the ATO. Management assesses its research and development activities and expenditures to determine if these are likely to eligible under the R&D Rebate. b) Employee benefits expense Wages, salaries and other remuneration expenses Directors’ fees Superannuation fund contributions Share-based payment expense (Note 24) Total employee benefits expense Consolidated 2022 $ 143,893 137,169 19,702 585,400 886,164 2021 $ 110,795 116,125 17,459 138,838 383,217 NOTE 4: SEGMENT INFORMATION The Group operates in one geographical segment, being Australia and in one operating category, being mineral exploration. Therefore, information reported to the chief operating decision maker (the Board of Impact Minerals Limited) for the purposes of resource allocation and performance assessment is focused on mineral exploration within Australia. The Board has considered the requirements of AASB 8: Operating Segments and the internal reports that are reviewed by the chief operating decision maker in allocating resources and have concluded at this time that there are no separately identifiable segments. Notes to the Consolidated Financial StatementscontinuedImpact Minerals Ltd Annual Report 2022 53 NOTE 5: INCOME TAX a) Major components of income tax expense are as follows: Current income tax expense/(benefit) Deferred income tax expense/(benefit) Income tax expense reported in the Consolidated Statement of Profit or Loss and Other Comprehensive Income b) The prima facie tax on loss from ordinary activities before income tax is reconciled to the income tax as follows: Consolidated 2022 $ 2021 $ – – – – – – Loss from ordinary activities before income tax expense (2,399,307) (4,760,174) Prima facie tax benefit on profit from ordinary activities before income tax at 25% (2021: 26%) Tax effect of permanent differences: – Share-based expense – Non-deductible expenses – Government grant received – Tax losses not recognised Income tax expense/(benefit) on pre-tax profit c) Deferred tax assets and (liabilities) are attributable to the following: Accrued expenses Capital raising costs Exploration expenditure Plant and equipment Provision for employee entitlements Other Tax losses d) Unrecognised deferred tax assets Deferred tax assets have not been recognised in respect of the following items as the Directors do not believe it is appropriate to regard realisation of future tax benefits as probable: – Tax losses – Capital losses (599,827) (1,309,048) 146,350 2,024 38,180 2,805 (61,405) (30,231) 512,858 1,298,294 – – 6,375 186,392 8,392 143,135 (2,949,330) (2,617,229) (6,928) (6,963) 33,826 (10) 24,897 1,460 2,729,675 2,446,308 – – 6,867,006 7,029,303 444,481 488,929 7,311,487 7,518,232 The income tax expense or benefit for the period is the tax payable on the current period’s taxable income based on the applicable income tax rate for each jurisdiction, adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses. Notes to the Consolidated Financial Statementscontinued 54 Impact Minerals Ltd Annual Report 2022 NOTE 5: INCOME TAX (CONTINUED) The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities. Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses. The Company and its wholly-owned Australian controlled entities have formed a tax consolidated group. The head entity of the tax consolidated group is Impact Minerals Limited. No deferred tax asset has been recognised in the Consolidated Statement of Financial Position in respect of the amount of either these losses or other deferred tax expenses. Should the Company not satisfy the Continuity of Ownership Test, the Company will be able to utilise the losses to the extent that it satisfies the Same Business Test. NOTE 6: CASH AND CASH EQUIVALENTS Cash at bank and on hand Short-term deposits Consolidated 2022 $ 2021 $ 3,791,089 890,778 25,000 2,525,000 3,816,089 3,415,778 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. The weighted average interest rate for the year was 0.16% (2021: 0.36%). The Group’s exposure to interest rate risk is set out in Note 23. The maximum exposure to credit risk at the end of the reporting period is the carrying amount of each class of cash and cash equivalents mentioned above. NOTE 7: TRADE AND OTHER RECEIVABLES Current Debtors GST Other Consolidated 2022 $ 2021 $ 77,716 28,788 668 107,172 – 35,095 3,904 38,999 Trade receivables are normally due for settlement within 30 days. They are presented as current assets unless collection is not expected for more than 12 months after the reporting date. Collectability of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectible are written off by reducing the carrying amount directly. A provision for doubtful receivables is established when there is objective evidence that the Group will not be able to collect all amounts due according to the original terms of the receivables. The amounts held in trade and other receivables do not contain impaired assets and are not past due. Based on the credit history of these trade and other receivables, it is expected that these amounts will be received when due. The Group’s financial risk management objectives and policies are set out in Note 23. Due to the short-term nature of these receivables, their carrying value is assumed to approximate their fair value. Notes to the Consolidated Financial StatementscontinuedImpact Minerals Ltd Annual Report 2022 55 NOTE 8: OTHER CURRENT ASSETS Prepayments Deposits NOTE 9: ASSETS HELD FOR SALE Tenements held for sale Consolidated 2022 $ 43,929 32,084 76,013 Consolidated 2022 $ 3,482,942 3,482,942 2021 $ – 27,047 27,047 2021 $ 115,141 115,141 In February 2021, the Company announced that it had reached an agreement for the sale of tenement EL8632 and the northern part of block EL8505 in the Company’s Lachlan Fold Belt portfolio to Orange Minerals Pty Ltd an unrelated company. As at 30 June 2021 these tenements were held as Assets Held for Sale - $115,141. During the year the sale was completed, and the Company recognised a gain on the sale of the tenements of $114,859 (Note 3). The Company also holds 250,000 shares in Orange Minerals NL. In April 2022, the Company announced that it had sold Mining Lease ML 2386 to Peter Campbell FT Pty Ltd (“PCFT”) an unrelated Company for $30,000. The Company also granted PCFT an option (“Option”) to buy all of the shares in Blackridge Exploration Pty Ltd (“Blackridge” a wholly owned subsidiary of Impact). The assets of Blackridge are three exploration licences EPM26806, EPM27410 and EPM27571. PCFT paid the non-refundable Option Fee of $50,000 in August 2022 and has two years to exercise the Option. Upon exercise of the Option, PCFT will pay $350,000 for the shares in Blackridge and the Company will retain a 1% gross gold royalty after the first 5,000 ounces have been recovered from any of the tenements. At 30 June 2022 the Blackridge tenements were held at their fair value ($342,942). In August 2022 the Company announced that it had agreed to implement a Share Purchase Agreement (“SPA”) with Burrendong Minerals Limited (“Burrendong”) whereby Burrendong would acquire 75% of the shares in Impact’s wholly owned subsidiary Endeavour Minerals Pty Ltd (“Endeavour”). The principal assets of Endeavour are the Commonwealth Project tenements (EL8504, EL8505, EL5874, EL8212 and EL8252). Burrendong intends to list on the ASX. Burrendong paid Impact a non-refundable exclusivity fee of $25,000 for eight weeks. The exclusivity period can be extended by for a further eight weeks for a second non-refundable payment of $25,000. The principal terms of the SPA are to include: – on execution of the SPA Impact to receive a non-refundable payment of $250,000; – following execution of the SPA Burrendong will have nine months to complete an ASX listing; – upon listing Impact will receive a further $250,000 in cash, a 19.9% interest in the newly listed company and will also retain a 25% interest in the project. – the project will operate under an Incorporated Joint Venture with Burrendong to sole fund exploration until the earlier of the first $5 million of expenditure or a Decision to Mine. – normal dilution clauses will subsequently apply and if Impact reduces to less than a 10% interest it will convert to a royalty of 2% NSR; and – Impact shareholders will be entitled to a priority right to subscribe for up to $3,000,000 worth of shares. At 30 June 2022 the Company’s 75% interest in the Commonwealth tenements was held at their fair value ($3,140,000). Notes to the Consolidated Financial Statementscontinued56 Impact Minerals Ltd Annual Report 2022 NOTE 10: FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME Opening balance Additions Change in fair value (Note 16(c)) Closing balance Consolidated 2022 $ 145,000 2021 $ – 50,000 100,000 27,500 45,000 222,500 145,000 In February 2021, the Company announced that it had reached an agreement for the sale of tenement EL8632 and the northern part of block EL8505 in the Company’s Lachlan Fold Belt portfolio to Orange Minerals Pty Ltd an unrelated company. The consideration being (a) a non-refundable deposit of $15,000; (b) $50,000 in shares in a company to be listed (ultimately Orange Minerals NL ASX:OMX); (c) $180,000 in cash; and (c) a 1% Net Smelter Royalty. During the current reporting period the sale was completed, and the Company recognised a gain on the sale of the tenements of $114,859. The Company holds 250,000 shares in Orange Minerals NL. The Company also holds 1,000,000 shares in Australasian Metals Ltd (ASX:A8G). Financial assets are recognised and derecognised on settlement date where the purchase or sale of an investment is under a contract whose terms require delivery of the investment within the timeframe established by the market concerned. They are initially measured at fair value, net of transaction costs, except for those financial assets classified as fair value through profit or loss, which are initially measured at fair value. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss. The Group classifies its financial assets as either financial assets at fair value though profit or loss (“FVPL”), fair value though other comprehensive income (“FVOCI”) or at amortised cost. The classification depends on the entity’s business model for managing the financial assets and the contractual terms of the cash flows. For investments in equity instruments, the classification depends on whether the Group has made an irrevocable election at the time of initial recognition to account for the equity investment at FVPL or FVOCI. Financial assets at FVOCI For assets measured at FVOCI, gains and losses will be recorded in other comprehensive income. There is no subsequent reclassification of fair value gains and losses to profit or loss following the derecognition of the investment. Dividends from such investments continue to be recognised in profit or loss as other income when the Group’s right to receive payments is established. Impairment losses (and reversal of impairment losses) on equity investments measured at FVOCI are not reported separately from other changes in fair value. The Group has elected to measure its listed equities at FVOCI. Assets in this category are subsequently measured at fair value. The fair values of quoted investments are based on current bid prices in an active market. Notes to the Consolidated Financial StatementscontinuedImpact Minerals Ltd Annual Report 2022 57 NOTE 11: EXPLORATION AND EVALUATION Opening balance Exploration expenditure incurred during the year Sale of Lachlan Fold Belt tenements (refer Note 9) Sale of Clermont Project Sale of the Blackridge Project (refer Note 9) Sale of 75% interest in the Commonwealth Project (refer Note 9) Impairment expense Closing balance Consolidated 2022 $ 2021 $ 11,993,262 10,946,163 3,939,357 4,975,014 – – (115,141) (100,000) (475,420) (3,140,000) – – (1,121,911) (3,712,774) 11,195,288 11,993,262 The Group recognised an impairment charge of $110,525 in relation to the disposal of its Blackridge project and $949,045 in relation to the disposal of a 75% interest in its Commonwealth project. Further impairment losses of $62,341 were booked following a review of the Group’s remaining tenements. Exploration and evaluation expenditure, including the costs of acquiring licences and permits, are capitalised as exploration and evaluation assets on an area of interest basis. Costs incurred before the Group has obtained the legal rights to explore an area are recognised in the Statement of Profit or Loss and Other Comprehensive Income. Exploration and evaluation assets are only recognised if the rights of the area of interest are current and either: i) ii) the expenditures are expected to be recouped through successful development and exploitation or from sale of the area of interest; or activities in the area of interest have not at the reporting date reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves, and active and significant operations in, or in relation to, the area of interest are continuing. Exploration and evaluation assets are assessed for impairment if sufficient data exists to determine technical feasibility and commercial viability, and facts and circumstances suggest that the carrying amount exceeds the recoverable amount. For the purposes of impairment testing, exploration and evaluation assets are allocated to cash-generating units to which the exploration activity relates. The cash generating unit shall not be larger than the area of interest. Once the technical feasibility and commercial viability of the extraction of minerals in an area of interest are demonstrable, exploration and evaluation assets attributable to that area of interest are first tested for impairment and then reclassified to mineral property and development assets within property, plant and equipment. When an area of interest is abandoned or the directors decide that it is not commercial, any accumulated costs in respect of that area are written off in the financial period the decision is made. Notes to the Consolidated Financial Statementscontinued58 Impact Minerals Ltd Annual Report 2022 NOTE 12: OTHER NON-CURRENT ASSETS Deposits paid NOTE 13: TRADE AND OTHER PAYABLES Trade creditors Other payables and accruals Consolidated 2022 $ 273,055 273,055 2021 $ 262,555 262,555 Consolidated 2022 $ 2021 $ 432,436 252,485 76,010 47,304 508,446 299,789 These amounts represent liabilities for goods and services provided to the Group prior to the end of the financial year and which are unpaid. Trade creditors are unsecured, non-interest bearing and are normally settled on 30-day terms. The Group’s financial risk management objectives and policies are set out in Note 23. Due to the short-term nature of these payables, their carrying value is assumed to approximate their fair value. NOTE 14: PROVISIONS Short-term Employee entitlements NOTE 15: CONTRIBUTED EQUITY a) Share capital Ordinary shares fully paid Consolidated 2022 $ 2021 $ 135,306 135,306 90,536 90,536 Consolidated 2022 $ 2021 $ 58,426,867 53,787,639 Notes to the Consolidated Financial StatementscontinuedImpact Minerals Ltd Annual Report 2022 59 NOTE 15: CONTRIBUTED EQUITY (CONTINUED) b) Movements in ordinary shares on issue Balance at 30 June 2020 Share issued during the year: – Placement(a) – Share issue(b) – Option conversion(c) – Share issue(d) – Placement(e) – Transaction costs Balance at 30 June 2021 Share issued during the year: – Placement(f) – Rights issue(g) – Transaction costs Balance at 30 June 2022 Consolidated Number $ 1,559,494,630 46,931,843 216,333,333 3,245,000 838,065 2,708,434 18,750 54,160 1,996,215 40,000 242,424,242 4,000,000 – (502,114) 2,023,794,919 53,787,639 166,666,667 2,000,000 290,908,970 3,199,999 – (560,771) 2,481,370,556 58,426,867 (a) (b) (c) (d) (e) (f) (g) In July 2020, the Company raised $3,245,000 (before costs) via a placement of 216,333,333 new shares at an issue price of 1.5 cents each. During the prior reporting period the Company issued a total of 838,065 new shares as part consideration for geological consulting services in relation to the identification of, and application for, the Doonia project (tenement E15/1790). During the prior reporting period the Company issued 2,708,434 new shares for nil consideration on the cashless exercise of 8,000,000 employee options. In January 2021, the Company issued 1,996,215 new shares as part consideration for geological consulting services in relation to the grant of the five tenements in the Yilgarn Craton of Western Australia (Arkun project) refer Note (b) above. In April 2021, the Company raised $4,000,000 (before costs) via a placement of 242,424,242 new shares at an issue price of 1.65 cents each. In March 2022, the Company raised $2,000,000 (before costs) via a placement of 166,666,667 new shares at an issue price of 1.2 cents each. In June 2022 the Company completed a Renounceable Rights Issue raising $3,199,999 (before costs) via the issue of 290,908,970 new shares at an issue price of 1.1 cents each together with one free attaching listed option exercisable at $0.02 on or before 2 June 2024 for every two new shares subscribed for (145,454,389 Listed Options). A further 12,800,000 listed options were issued to the underwriter as part consideration for their services. 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. 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. Notes to the Consolidated Financial Statementscontinued60 Impact Minerals Ltd Annual Report 2022 NOTE 15: CONTRIBUTED EQUITY (CONTINUED) c) Movements in options on issue Balance at beginning of the financial year Options granted - unlisted Options granted - listed Options exercised Options expired Balance at the end of the financial year Refer to Note 24 for details of share-based payments. NOTE 16: RESERVES a) Option reserve Opening balance Fair value of options issued(a) Options exercised Transfer to retained earnings upon expiry/lapse of options Balance at the end of the financial year Consolidated 2022 Number 2021 Number 157,000,000 176,500,000 90,500,000 4,000,000 158,254,389 – – (8,000,000) (40,000,000) (15,500,000) 365,754,389 157,000,000 Consolidated 2022 $ 2021 $ 901,996 1,005,268 656,820 – 169,238 (54,160) (152,800) (218,350) 1,406,016 901,996 (a) During the year 87,000,000 Director and employee options were issued. The fair value of Director and employee options is determined at grant date and is expensed over the vesting period for those options. During the year (i) 500,000 unlisted $0.03 options expiring on 15 March 2023 were issued to the lead manager of the April 2022 Placement as part consideration for their services (these options were valued at $500); (ii) 3,000,000 unlisted $0.024 options expiring on 22 April 2025 were issued as part consideration for the acquisition of the Dinninup Project (these options were valued at $21,000); and (iii) 12,800,000 listed $0.02 options expiring on 2 June 2024 were issued to the lead manager of the June 2022 Renounceable Rights Issue as part consideration for their services (these options were valued at $49,920). The options reserve is used to recognise the fair value of options issued to employees and contractors. The details of share-based payments made during the reporting period are shown at Note 24. b) Transactions with non-controlling interest The transactions with non-controlling interest reserve records items related to the acquisition of shares in Invictus Gold Limited. c) Financial asset reserve Opening balance Financial assets at fair value through other comprehensive income (Note 10) Closing balance Consolidated 2022 $ 45,000 27,500 72,500 2021 $ – 45,000 45,000 Notes to the Consolidated Financial StatementscontinuedImpact Minerals Ltd Annual Report 2022 61 NOTE 17: ACCUMULATED LOSSES Balance at the beginning of the financial year Net loss attributable to members Transfer from financial asset reserve Transfer from share option reserve upon lapse of options Balance at the end of the financial year NOTE 18: LOSS PER SHARE Basic and diluted loss per share Consolidated 2022 $ 2021 $ (37,940,790) (33,398,966) (2,399,307) (4,760,174) – – 152,800 218,350 (40,187,297) (37,940,790) 2022 Cents (0.11) 2021 Cents (0.26) The following reflects the income and share data used in the calculations of basic and diluted loss per share: Profits/(losses) used in calculating basic and diluted loss per share (2,399,307) (4,760,174) 2022 $ 2021 $ Weighted average number of ordinary shares used in calculating basic loss per share 2022 Number 2021 Number 2,093,716,040 1,802,937,566 Basic loss per share Basic loss per share is calculated by dividing the loss attributable to owners of the Group, 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. 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 additional ordinary shares that would have been outstanding assuming the conversion of all dilutive potential ordinary shares. The issue of potential ordinary shares is antidilutive when their conversion to ordinary shares would increase earnings per share or decrease loss per share from continuing operations. The calculation of diluted earnings per share has therefore not assumed the conversion, exercise, or other issue of potential ordinary shares that would have an antidilutive effect on earnings per share. Notes to the Consolidated Financial Statementscontinued62 Impact Minerals Ltd Annual Report 2022 NOTE 19: AUDITOR’S REMUNERATION Audit services Hall Chadwick WA Audit Pty Ltd – Audit and review of the financial reports Total remuneration NOTE 20: CONTINGENT ASSETS AND LIABILITIES Contingent assets The Group had contingent assets in respect of: Consolidated 2022 $ 2021 $ 35,500 35,500 34,750 34,750 Future bonus and royalty payments In September 2018 the Company completed the sale of its wholly owned subsidiary Drummond East Pty Ltd, the holder of its seven Pilbara licences, to Pacton Gold Inc. (Pacton). Under the terms of the Sale Agreement Pacton must pay a CAD$500,000 Bonus to the Company upon publishing a measured, indicated or inferred gold resource of more than 250,000 ounces on the licences. The Company retains a 2% NSR royalty on the licences with Pacton retaining the right to buy back 1% of the royalty for CAD$500,000 at any time. During the year the completed the sale of tenement EL8632 and the northern part of block EL8505 in the Company’s Lachlan Fold Belt portfolio to Orange Minerals Pty Ltd (this company ultimately listed as Orange Minerals NL ASX:OMX) (“Orange”). Impact retains a 1% Net Smelter Royalty over the project. Contingent liabilities The Group had contingent liabilities in respect of: Future royalty payments In March 2016, Impact Minerals Limited completed the acquisition of tenement EL7390 from Golden Cross Resources Limited (“Golden Cross”) for $60,000 cash. Golden Cross retains a royalty equal to 1% of gross revenue on any minerals recovered from the tenement. At its election, Impact has the right to buy back the royalty for $1.5 million cash at any time up to a decision to mine, or leave the royalty uncapped during production. During the 2021 financial year the Company completed the acquisition five tenements in the Yilgarn Craton of Western Australia (“Arkun project”) from Milford Resources Pty Ltd (”Milford”). Milford retains a 1% net smelter royalty on any minerals recovered. During the 2021 financial year the Company acquired tenement EL70/5424 from Beau Resources Pty Ltd (”Beau”). Beau retains a 2% gross revenue royalty on any minerals recovered. During the financial year the Company acquired tenements E70/5761 and E70/5780 from Beau. Beau retains a 2% gross royalty on all products extracted from the tenements. NOTE 21: EVENTS OCCURRING AFTER THE REPORTING PERIOD In August 2022 the Company announced that it had agreed to implement a Share Purchase Agreement (“SPA”) with Burrendong Minerals Limited (“Burrendong”) whereby Burrendong would acquire 75% of the shares in Impact’s wholly owned subsidiary Endeavour Minerals Pty Ltd (“Endeavour”). The principal assets of Endeavour are the Commonwealth Project tenements (EL8504, EL8505, EL5874, EL8212 and EL8252). Burrendong intends to list on the ASX. There have been no other events subsequent to the reporting date which are sufficiently material to warrant disclosure. Notes to the Consolidated Financial StatementscontinuedImpact Minerals Ltd Annual Report 2022 63 NOTE 22: COMMITMENTS In order to maintain an interest in the exploration tenements in which the Group is involved, the Group is committed to meet the conditions under which the tenements were granted. The timing and amount of exploration expenditure commitments and obligations of the Group are subject to the minimum expenditure commitments required as per the Mining Act 1978 (Western Australia), the Mining Act 1992 (New South Wales) and the Mineral Resources Act 1989 (Queensland) and may vary significantly from the forecast based upon the results of the work performed which will determine the prospectivity of the relevant area of interest. As at balance date, total exploration expenditure commitments on granted tenements held by the Group that have not been provided for in the financial statements and which cover the following 12 month period amount to $2,723,444 (2021: $2,112,089). For the period greater than 12-months to five years, commitments amount to $8,748,542 (2021: $5,143,297). These obligations are also subject to variations by farm-out arrangements, or sale of the relevant tenements. Commitments in relation to the lease of office premises are payable as follows: Consolidated 2022 $ 2021 $ 5,455 20,002 – – – – 5,455 20,002 Within one year Later than one year but not later than five years Later than five years NOTE 23: FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES Financial risk management Overview The Group has exposure to the following risks from their use of financial instruments: – Interest rate risk – Credit risk – Liquidity risk – Commodity risk. This note presents information about the Group’s exposure to each of the above risks, their objectives, policies and processes for measuring and managing risk, and the management of capital. The Board of Directors has overall responsibility for the establishment and oversight of the risk management framework. Risk management policies are established to identify and analyse the risks faced by the Group, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Group’s activities. The Board oversees how management monitors compliance with the Group’s risk management policies and procedures and reviews the adequacy of the risk management framework in relation to the risks faced by the Group. The Group’s principal financial instruments are cash, short-term deposits, receivables and payables. Interest rate risk Interest rate risk is the risk that the value of a financial instrument or cash flows associated with the instrument will fluctuate due to changes in market interest rates. Interest rate risk arises from fluctuations in interest-bearing financial assets and liabilities that the Group uses. Interest-bearing assets comprise cash and cash equivalents which are considered to be short-term liquid assets. It is the Group’s policy to settle trade payables within the credit terms allowed and therefore not incur interest on overdue balances. Notes to the Consolidated Financial Statementscontinued64 Impact Minerals Ltd Annual Report 2022 NOTE 23: FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED) Interest rate risk (continued) The following table sets out the carrying amount, by maturity, of the financial instruments that are exposed to interest rate risk: Floating interest rate $ Fixed interest rate maturing in 1 year or less $ Over 1 to 5 years $ More than 5 years $ Non- interest bearing $ Total $ Consolidated – 2022 Financial assets Cash and cash equivalents Trade and other receivables Weighted average interest rate Financial liabilities Trade and other payables Weighted average interest rate Consolidated – 2021 Financial assets Cash and cash equivalents Trade and other receivables Weighted average interest rate Financial liabilities Trade and other payables Weighted average interest rate – – – – – – – – – – – – – – 25,000 – 25,000 0.32% – – – 2,525,000 – 2,525,000 0.66% – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – 3,791,089 3,816,089 107,172 107,172 3,898,261 3,923,261 – – 508,446 508,446 508,446 508,446 – – 890,778 3,415,778 38,999 38,999 929,777 3,454,777 – – 299,789 299,789 299,789 299,789 – – Fair value sensitivity analysis for fixed rate instruments The Group does not account for any fixed rate financial assets or liabilities at fair value through profit or loss. Therefore, a change in interest rates at the reporting date would not affect profit or loss. Notes to the Consolidated Financial StatementscontinuedImpact Minerals Ltd Annual Report 2022 65 NOTE 23: FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED) Interest rate risk (continued) Cash flow sensitivity analysis for variable rate instruments A change of 100 basis points in interest rates at the reporting date would have increased/(decreased) equity and profit or loss by the amounts shown below: Consolidated – 2022 Financial assets Cash and cash equivalents Cash flow sensitivity (net) Consolidated – 2021 Financial assets Cash and cash equivalents Cash flow sensitivity (net) Carrying value at period end $ Profit or loss Equity 100 bp increase $ 100 bp decrease $ 100 bp increase $ 100 bp decrease $ 3,816,089 22,239 22,239 (22,239) (22,239) 22,239 22,239 (22,239) (22,239) 3,415,778 13,433 13,433 (13,433) (13,433) 13,433 13,433 (13,433) (13,433) Credit risk Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations and arises principally from the Group’s receivables from customers and investment securities. The Group trades only with recognised, creditworthy third parties. It is the Group policy that all customers who wish to trade on credit terms are subject to credit verification procedures. In addition, receivable balances are monitored on an ongoing basis with the result that the Group’s exposure to bad debts is not significant. The maximum exposure to credit risk is the carrying value of the receivable, net of any provision for doubtful debts. With respect to credit risk arising from the other financial assets of the Group, which comprise cash and cash equivalents, the Group’s exposure to credit risk arises from default of the counter party, with a maximum exposure equal to the carrying amount of these instruments. This risk is minimised by reviewing term deposit accounts from time to time with approved banks of a sufficient credit rating which is AA and above. Exposure to credit risk The carrying amount of the Group’s financial assets represents the maximum credit exposure. The Group’s maximum exposure to credit risk at the reporting date was: Cash and cash equivalents Trade and other receivables Consolidated 2022 $ 2021 $ 3,816,089 3,415,778 107,172 38,999 3,923,261 3,454,777 Notes to the Consolidated Financial Statementscontinued66 Impact Minerals Ltd Annual Report 2022 NOTE 23: FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONTINUED) Foreign currency risk Exposure to foreign exchange risk may result in the fair value or future cash flows of a financial instrument fluctuating due to movement in foreign exchange rates of currencies in which the Group holds financial instruments which are other than the AUD functional currency of the Group. The Group’s exposure to foreign currency risk is minimal at this stage of its operations. Commodity price risk The Group’s exposure to commodity price risk is minimal at this stage of its operations. Liquidity risk Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group’s reputation. The Group’s objective is to maintain a balance between continuity of funding and flexibility. The following are the contractual maturities of financial liabilities: Consolidated – 2022 Trade and other payables Trade and other receivables Consolidated – 2021 Trade and other payables Trade and other receivables Carrying amount $ Contractual cash flows $ 6 months or less $ 508,446 508,446 508,446 508,446 508,446 508,446 107,172 107,172 107,172 107,172 107,172 107,172 299,789 299,789 299,789 299,789 299,789 299,789 38,999 38,999 38,999 38,999 38,999 38,999 Fair value of financial assets and liabilities The fair value of cash and cash equivalents and non-interest bearing financial assets and financial liabilities of the Group is equal to their carrying value. Capital risk management The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. The management of the Group’s capital is performed by the Board. The capital structure of the Group consists of net debt (trade payables and provisions detailed in Notes 13 and 14 offset by cash and bank balances) and equity of the Group (comprising contributed issued capital, reserves, offset by accumulated losses detailed in Notes 15, 16 and 17). The Group is not subject to any externally imposed capital requirements. None of the Group’s entities are subject to externally imposed capital requirements. Notes to the Consolidated Financial StatementscontinuedImpact Minerals Ltd Annual Report 2022 67 NOTE 24: SHARE-BASED PAYMENTS Share Option Plan The Group has a Director and Employee Option Acquisition Plan (“Option Plan”) for Directors, employees and contractors of the Group. In accordance with the provisions of the Option Plan executives and employees may be granted options at the discretion of the Directors. Options issued to Directors are subject to approval by shareholders. Each share option converts into one ordinary share of Impact Minerals Limited on exercise. No amounts are paid or are payable by the recipient on receipt of the option. The options carry neither rights of dividends nor voting rights. Options may be exercised at any time from the date of vesting to the date of their expiry. The following share-based payment arrangements were in existence during the reporting period: Option series Number Grant date Expiry date Vesting date Exercise price 38(1) 40,000,000 8 Nov 2018 30 Nov 2021 30 Nov 2019 $0.03 39 40 41 42 43 44 45 46(2) 47(a) 47(b) 48(3) 49(4) 20,000,000 8 Nov 2018 30 Nov 2022 30 Nov 2020 $0.0375 37,000,000 8 Nov 2019 5 Nov 2023 Immediate 37,000,000 8 Nov 2019 5 Nov 2023 5 Nov 2020 9,500,000 15 Nov 2019 5 Nov 2023 Immediate 9,500,000 15 Nov 2019 5 Nov 2023 5 Nov 2020 4,000,000 30 Apr 2021 29 Apr 2023 Immediate 83,000,000 30 Nov 2021 31 Oct 2025 Immediate 500,000 16 Mar 2022 15 Mar 2023 Immediate 1,000,000 21 Apr 2022 31 Oct 2025 18 Mar 2023 3,000,000 21 Apr 2022 31 Oct 2025 18 Mar 2024 3,000,000 22 Apr 2022 22 Apr 2025 Immediate 158,254,389 3 Jun 2022 2 Jun 2024 Immediate $0.0149 $0.0149 $0.0149 $0.0149 $0.03 $0.0217 $0.03 $0.024 $0.024 $0.024 $0.02 Fair value at grant date $0.00382 $0.00432 $0.00677 $0.00677 $0.00677 $0.00677 $0.0076 $0.007 $0.001 $0.0084 $0.0084 $0.007 $0.0039(5) (1) Expired during the reporting period. (2) Unlisted Options issued to lead manager of April 2022 Placement. (3) Unlisted Options issued as part consideration of the acquisition of the Dinninup Project. (4) Listed Options issued as part of the June 2022 Renounceable Rights Issue. (5) 12,800,000 of the listed options were issued to the lead manager of the Renounceable Rights Issue and have been valued at $0.0039 per option. Notes to the Consolidated Financial Statementscontinued68 Impact Minerals Ltd Annual Report 2022 NOTE 24: SHARE-BASED PAYMENTS (CONTINUED) Share Option Plan (continued) Fair value of share options granted during the year The fair value of share options at grant date is determined using a Black-Scholes option pricing model that takes into account the exercise price, the term of the option, the share price at grant date, the expected price volatility of the underlying share and the risk-free rate for the term of the option. The fair value of options is determined at grant date and is expensed over the vesting period for those options. No director or employee options were issued during the reporting period. The fair value of Director and employee share options expensed during the year was $585,400 (2021: $138,838). The model inputs for options granted during the year ended 30 June 2022 are as follows: Inputs Exercise price Grant date Vesting date Expiry date Share price at grant date Expected price volatility Risk-free interest rate Expected dividend yield Issue 45 Issue 47 $0.0217 $0.024 30 Nov 2021 21 Apr 2022 immediate 1,000,000 on 18 Mar 2023 3,000,000 on 18 Mar 2024 31 Oct 2025 31 Oct 2025 $0.013 90.8% 1.31% 0% $0.016 88.2% 2.8% 0% Movements in share options during the year Movement in the number of share options on issue during the year: Outstanding at the beginning of the year Granted during the year Exercised during the year Expired during the year Outstanding at the end of the year Exercisable at the end of the year 2022 2021 Number of options 157,000,000 248,754,389 Weighted average exercise price $ Number of options Weighted average exercise price $ 0.02 0.02 176,500,000 4,000,000 0.03 0.03 – – (8,000,000) 0.0149 (40,000,000) 365,754,389 361,754,389 0.03 0.02 0.02 (15,500,000) 157,000,000 157,000,000 0.07 0.02 0.02 The weighted average remaining contractual life of share options outstanding at the end of the year was 2.03 years (2021: 1.72 years). Notes to the Consolidated Financial StatementscontinuedImpact Minerals Ltd Annual Report 2022 69 NOTE 24: SHARE-BASED PAYMENTS (CONTINUED) Share Option Plan (continued) Share options outstanding at the end of the year Share options issued and outstanding at the end of the year have the following exercise prices: Expiry date 30 November 2021 30 November 2022 5 November 2023 29 April 2023 15 March 2023 31 October 2025 31 October 2025 2 June 2024 (Listed) 22 April 2025 Totals Exercise price $ 2022 Number 2021 Number 0.03 0.0375 0.0149 0.03 0.03 0.0217 0.024 0.02 0.024 – 40,000,000 20,000,000 20,000,000 93,000,000 93,000,000 4,000,000 4,000,000 500,000 83,000,000 4,000,000 158,254,389 3,000,000 – – – – 365,754,389 157,000,000 NOTE 25: RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES Cash flows from operating activities Profit/(Loss) for the year Non-cash flows in profit/(loss): – Depreciation – Share-based remuneration – Exploration expenditure write-off – Government grants receivable – Gain on sale of tenements Changes in assets and liabilities – Decrease/(Increase) in trade and other receivables – Decrease/(Increase) in other current assets – – Increase/(Decrease) in trade creditors and accruals Increase in provisions Net cash used in operating activities Non-cash investing and financing activities There were no non-cash investing and financing activities during the year. Consolidated 2022 $ 2021 $ (2,399,307) (4,760,174) 16,956 585,400 39,072 138,838 1,121,911 3,712,774 – 51,040 (114,859) – (50,064) (45,666) 101,622 44,770 1,497 8,187 (13,277) 4,247 (739,237) (817,796) Notes to the Consolidated Financial Statementscontinued70 Impact Minerals Ltd Annual Report 2022 NOTE 26: RELATED PARTY DISCLOSURE a) Parent entity Impact Minerals Limited Ordinary Australia b) Subsidiaries Class Country of incorporation Aurigen Pty Ltd Siouville Pty Ltd Invictus Gold Limited Drummond West Pty Ltd(i) Endeavour Minerals Pty Ltd(ii) Blackridge Exploration Pty Ltd(iii) Class Country of incorporation Ordinary Australia Ordinary Australia Ordinary Australia Ordinary Australia Ordinary Australia Ordinary Australia (i) Drummond West Pty Ltd is a wholly owned subsidiary of Invictus Gold Limited. (ii) Endeavour Minerals Pty Ltd is a wholly owned subsidiary of Invictus Gold Limited. (iii) Blackridge Exploration Pty Ltd is a wholly owned subsidiary of Drummond West Pty Ltd. c) Key management personnel compensation Short-term employee benefits Post-employment benefits Share-based payments Ownership 2022 % – Ownership 2022 % 100 100 100 100 100 100 2021 % – 2021 % 100 100 100 100 100 100 2022 $ 2021 $ 384,050 363,004 11,608 434,000 829,658 8,058 104,212 475,274 Detailed remuneration disclosures are provided in the Remuneration Report on pages 38 to 42. A total of $246,880 (2021: $246,879) was capitalised as exploration expenditure. Notes to the Consolidated Financial StatementscontinuedImpact Minerals Ltd Annual Report 2022 71 NOTE 27: PARENT ENTITY DISCLOSURE Financial Performance Profit/(loss) for the year Other comprehensive income Total comprehensive profit/(loss) Financial Position ASSETS Current assets Non-current assets TOTAL ASSETS LIABILITIES Current liabilities TOTAL LIABILITIES NET ASSETS EQUITY Issued capital Option reserve Financial asset reserve Transactions with non-controlling interest Accumulated losses TOTAL EQUITY 2022 $ 2021 $ (2,399,307) (4,760,174) – – (2,399,307) (4,760,174) 7,482,216 3,596,965 9,403,845 10,111,428 16,886,061 13,708,393 640,874 640,874 387,446 387,446 16,245,187 13,320,947 58,426,867 53,787,639 1,406,016 72,500 901,996 45,000 (1,161,069) (1,161,069) (42,499,127) (40,252,619) 16,245,187 13,320,947 No guarantees have been entered into by Impact Minerals Limited in relation to the debts of its subsidiaries. Impact Minerals Limited’s commitments are disclosed in Note 22. Notes to the Consolidated Financial Statementscontinued72 Impact Minerals Ltd Annual Report 2022 Directors’ Declaration The Directors of Impact Minerals Limited declare that: 1. in the Directors’ opinion, the financial statements and notes set out on pages 45 to 71 and the Remuneration Report in the Directors’ Report are in accordance with the Corporations Act 2001, including: a. giving a true and fair view of the consolidated entity’s financial position as at 30 June 2022 and of its performance, for the financial year ended on that date; and b. complying with Australian Accounting Standards (including the Australian Accounting Interpretations), Corporations Regulations 2001 and mandatory professional reporting requirements. 2. the financial statements also comply with International Financial Reporting Standards as disclosed in Note 2; and 3. there are reasonable grounds to believe that the consolidated entity will be able to pay its debts as and when they become due and payable. The Directors have been given the declarations required by Section 295A of the Corporations Act 2001 by the Managing Director and Chief Financial Officer for the financial year ended 30 June 2022. Signed in accordance with a resolution of the Directors. Peter Unsworth Chairman Perth, Western Australia 28 September 2022 Directors’ Declarationfor the year ended 30 June 2022Impact Minerals Ltd Annual Report 2022 73 Independent Auditor’s Report to the Members INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF IMPACT MINERALS LIMITED Report on the Audit of the Financial Report Opinion We have audited the financial report of Impact Minerals Limited (“the Company”) and its subsidiaries (“the Consolidated Entity”), which comprises the consolidated statement of financial position as at 30 June 2022, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and the directors’ declaration. In our opinion: a. the accompanying financial report of the Consolidated Entity is in accordance with the Corporations Act 2001, including: (i) giving a true and fair view of the Consolidated Entity’s financial position as at 30 June 2022 and of its financial performance for the year then ended; and (ii) complying with Australian Accounting Standards and the Corporations Regulations 2001. b. the financial report also complies with International Financial Reporting Standards as disclosed in Note 2. Basis for Opinion We conducted our audit in accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance about whether the financial report is free from material misstatement. 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 Consolidated Entity in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Key Audit Matters 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. 74 Impact Minerals Ltd Annual Report 2022 Key Audit Matter How our audit addressed the Key Audit Matter Exploration and Evaluation Expenditure - $11,195,288 (Refer to note 11) Mineral exploration expenditure is a key audit matter due to: • The significance of the balance to the Consolidated Entity’s financial position; and • The level of judgement required in evaluating the management’s requirements of AASB 6 Exploration for and application of Evaluation of Mineral Resources (“AASB 6”). AASB 6 is an industry specific accounting Our audit procedures included but were not limited to: • Assessing management’s determination of its areas of interest for consistency with the definition in AASB 6. This involved analysing the tenements in which the Consolidated Entity holds an interest and the exploration programmes planned for those tenements; • For each area of interest, we assessed the to tenure by registries and Consolidated Entity’s corroborating rights to government standard significant requiring the application of judgements, estimates and evaluating agreements in place with other parties as applicable; industry knowledge. This includes specific requirements be capitalised as an asset and subsequent expenditure for to requirements which must be complied with for capitalised expenditure to continue to be carried as an asset. • We considered the activities in each area of interest to date and assessed the planned future activities for each area of interest by evaluating budgets for each area of interest; • We tested the additions to capitalised expenditure for the year by evaluating a sample of recorded expenditure for consistency to underlying records, the capitalisation requirements of the Consolidated Entity’s accounting policy and the requirements of AASB 6; • We considered the activities in each area of interest to date and assessed the planned future activities for each area of interest by evaluating budgets for each area of interest; • We assessed each area of interest for one or more of the following circumstances that may indicate impairment of the capitalised expenditure: • The licenses for the right to explore expiring in the near future or are not expected to be renewed; • Substantive expenditure for further exploration in the specific area is neither budgeted or planned; • Decision or intent by the Consolidated Entity to discontinue activities in the specific area of interest Independent Auditor’s Reportcontinued Impact Minerals Ltd Annual Report 2022 75 Key Audit Matter How our audit addressed the Key Audit Matter due to lack of commercially viable quantities of resources. • Data indicating that, although a development in the specific area is likely to proceed, the carrying amount of the exploration asset is unlikely to be recovered in full from successful development or sale. Assets classified as held for sale - $3,482,942 Our audit procedures included but were not limited to: (Refer to Note 9) • Review of the Agreements; • Assessment of the the measurement and classification of the assets to ensure they were recorded at the lower of the transactions to verify carrying amount or fair value less cost to sell; and • Assessing the appropriateness of the related disclosures in the financial statements. • The Company announced a Share Purchase Agreement with Burrendong Minerals Limited to dispose of 75% of the shares in Impact’s wholly owned subsidiary Endeavour Minerals Pty Ltd. The principal assets of the subsidiary are the Commonwealth Project tenements (EL8504, EL8505, EL5874, EL8212 and EL8252). At balance date the the Company’s interest 75% in Commonwealth tenements was carried at $3,140,000. • The Company granted Peter Campbell FT Pty Ltd an option to buy all the shares in Blackridge Exploration Pty Ltd. The principal licenses assets are three exploration EPM26806, EPM27410 and EPM27571. At balance date the Company’s tenements the Blackridge tenements was carried at $342,942. As a result of these transactions the assets were from Capitalised Exploration reclassified Expenditure to Assets Held for Sale. The assets were carried at the lower of cost or net relisable value. We considered this as a key audit matter because of transactions. the size and nature of the Independent Auditor’s Reportcontinued 76 Impact Minerals Ltd Annual Report 2022 Other Information The directors are responsible for the other information. The other information comprises the information included in the Consolidated Entity’s annual report for the year ended 30 June 2022, but does not include the financial report and our auditor’s report thereon. Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Directors for the Financial Report The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In Note 2, the directors also state in accordance with Australian Accounting Standard AASB 101 Presentation of Financial Statements, that the financial report complies with International Financial Reporting Standards. In preparing the financial report, the directors are responsible for assessing the Consolidated Entity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Consolidated Entity or to cease operations, or has no realistic alternative but to do so. Auditor’s Responsibilities for the Audit of the Financial Report Our responsibility is to express an opinion on the financial report based on our audit. Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and maintain professional skepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Independent Auditor’s Reportcontinued Impact Minerals Ltd Annual Report 2022 77 • • • • • Obtain an understanding of internal controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Consolidated Entity’s internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Consolidated Entity’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Consolidated Entity to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Consolidated Entity to express an opinion on the financial report. We are responsible for the direction, supervision and performance of the Consolidated Entity audit. We remain solely responsible for our audit opinion. We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with the directors, we determine those matters that were of most significance in the audit of the financial report of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. Report on the Remuneration Report We have audited the Remuneration Report included in the directors’ report for the year ended 30 June 2022. The directors of the Company are responsible for the preparation and presentation of the remuneration report in accordance with s 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. Independent Auditor’s Reportcontinued 78 Impact Minerals Ltd Annual Report 2022 Auditor’s Opinion In our opinion, the Remuneration Report of the Company, for the year ended 30 June 2022, complies with section 300A of the Corporations Act 2001. HALL CHADWICK WA AUDIT PTY LTD MARK DELAURENTIS CA Director Dated this 28th day of September 2022 Perth, Western Australia Independent Auditor’s Reportcontinued Impact Minerals Ltd Annual Report 2022 79 Shareholder Information as at 16 September 2022 Additional information required by the Australian Securities Exchange Limited and not shown elsewhere in this report is as follows. 1. DISTRIBUTION OF HOLDERS OF EQUITY SECURITIES Analysis of number of equity security holders by size of holding: 1 - 1,000 1,001 - 5,000 5,001 - 10,000 10,001 - 100,000 100,001 and over Total The number of holders of less than a marketable parcel of ordinary fully paid shares is 1,779. 2. SUBSTANTIAL SHAREHOLDERS Substantial shareholders (i.e. shareholders who hold 5% or more of the issued capital): ABC BETEILIGUNGEN AG MRS SUSANNE BUNNENEBERG Shareholders 160 100 115 2,008 2,208 4,591 Number of shares Percentage held 201,729,905 200,199,999 8.13 8.07 3. VOTING RIGHTS (a) Ordinary shares Each shareholder is entitled to receive notice of and attend and vote at general meetings of the Company. At a general meeting, every shareholder present in person or by proxy, representative of attorney will have one vote on a show of hands and on a poll, one vote for each share held. (b) Options No voting rights. 4. QUOTED SECURITIES ON ISSUE The Company has 2,481,370,556 quoted shares on issue (ASX:IPT). The Company has 158,254,389 quoted options on issue exercisable at $0.02 on or before 2 June 2024 (ASX:IPTOB). 5. ON-MARKET BUY BACK There is no current on-market buy back. 6. UNQUOTED EQUITY SECURITIES Options exercisable at $0.0375 on or before 30 November 2022 Options exercisable at $0.03 on or before 15 March 2023 Options exercisable at $0.03 on or before 29 April 2023 Options exercisable at $0.0149 on or before 5 November 2023 Options exercisable at $0.024 on or before 22 April 2025 Options exercisable at $0.0217 on or before 31 October 2025 Options exercisable at $0.024 on or before 31 October 2025 Number on issue Number of holders 20,000,000 500,000 4,000,000 93,000,000 3,000,000 83,000,000 4,000,000 5 2 3 6 1 9 1 Shareholder Information80 Impact Minerals Ltd Annual Report 2022 continued 7. TWENTY LARGEST HOLDERS OF QUOTED ORDINARY SHARES Shareholder BNP PARIBAS NOMS PTY LTD DEUTSCHE BALATON AKTIENGESELLSCHAFT WHALE WATCH HOLDINGS LIMITED BNP PARIBAS NOMINEES PTY LTD ACF CLEARSTREAM DEUTSCHE BALATON AKTIENGESELLSCHAFT CITICORP NOMINEES PTY LIMITED MR YUNG WING HO & MRS KATHERINE KAM LING HO 20,588,070 MR WALTER LEONARD PARSONS STONE MR GEORGE DAVID BUTKERAITIS BNP PARIBAS NOMINEES PTY LTD TOWNS CORPORATION PTY LTD MR POH SENG TAN DR LEON EUGENE PRETORIUS NETWEALTH INVESTMENTS LIMITED BERNE NO 21 PTY LTD AVIANA HOLDINGS PTY LTD IAE STUDY IN AUSTRALIA PTY LTD PAUL THOMSON FURNITURE PTY LTD P J ENTERPRISES PTY LIMITED MR MARK ANDREW TKOCZ 20,000,000 19,875,000 19,071,331 18,300,000 17,000,000 15,000,000 14,164,135 13,500,000 13,157,895 13,000,000 12,987,261 12,982,391 12,339,071 Number of shares Percentage held 257,356,374 10.37 138,000,000 70,000,000 61,205,572 32,240,364 22,109,738 5.56 2.82 2.47 1.30 0.89 0.83 0. 81 0.80 0.77 0.74 0.69 0.6 1 0.57 0.54 0.53 0.52 0.52 0.52 0.50 802,877,202 32.36 Shareholder InformationImpact Minerals Ltd Annual Report 2022 81 Shareholder Information continued 8. TWENTY LARGEST HOLDERS OF QUOTED OPTIONS EXERCISABLE AT $0.02 ON OR BEFORE 2 JUNE 2024 Shareholder MR ROBERT XONG SENG TANG MR MARK ANDREW TKOCZ KLINGBIEL HOLDINGS PTY LTD MR GLENN RAYMOND SKENDER MR BRENDAN JON LINDSAY BNP PARIBAS NOMS PTY LTD MR MD AKRAM UDDIN DR LEON EUGENE PRETORIUS MR GUY LEON BANDUCCI MR OWEN HUNTER WALDRON & MRS JANET CHRISTINE WALDRON MR MD AKRAM UDDIN PAUL THOMSON FURNITURE PTY LTD ALBIANO HOLDINGS PTY LTD MATTHEW BURFORD SUPER FUND PTY LTD SUPER SECRET PTY LTD MR GEORGE DAVID BUTKERAITIS EUTHENIA TYCHE PTY LTD ERIC GOLF PTY LTD SUPERHERO SECURITIES LIMITED BERNE NO 21 PTY LTD Number of shares Percentage held 11,812,500 10,632,403 5,587,500 5,000,000 4,545,455 3,213,090 2,991,407 2,500,000 2,500,000 2,500,000 2,463,225 2,450,000 2, 272,728 2,000,000 2,000,000 1,987,500 1,869,395 1 , 8 1 8 , 1 8 1 1,795,486 1,750,000 7.46 6.72 3.53 3.16 2.87 2.03 1.89 1. 58 1.58 1.58 1.56 1.55 1 .4 4 1.26 1.26 1.26 1.18 1.15 1.13 1.11 71,688,870 45.30 82 Impact Minerals Ltd Annual Report 2022 Tenement Schedule Project / Tenement Location Status IPT Interest at end of quarter Commonwealth New South Wales EL5874 EL8212 EL8252 EL8504 EL8505 EL8632 Broken Hill New South Wales Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Queensland Western Australia Under options to buy Sold Under options to buy Under options to buy Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% – 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% EL7390 EL8234 EL8636 EL8674 EL8609 EL9036 EL9037 EL9115 EL9294 EL9384 Blackridge EPM26806 ML2386 EPM27571 EPM27410 Arkun E70/5424 E70/5430 E70/5431 E70/5432 E70/5433 E70/5434 E70/5490 E70/5504 E70/5505 E70/5816 Tenement Schedule continued Project / Tenement Location Status IPT Interest at end of quarter Doonia E15/1790 Jumbo E70/5852 Western Australia Western Australia Dalgaranga Western Australia E59/2620 Narryer E52/3967 E52/3985 Hopetoun E74/563 EL74/730 E74/679 Dinninup E70/5842 E70/6111 E70/6112 E70/6113 Martup E70/5761 Mineral Hill E70/5780 Western Australia Western Australia Western Australia Western Australia Western Australia Granted Granted Granted Granted Granted Earning In Application Earning In Granted Application Application Application Granted Granted 80% 80% 80% 80% 80% – – – 100% – – – 100% 100% 26 Richardson Street, West Perth Western Australia 6005 T: +61 (08) 6454 6666 F: +61 (08) 6454 6667 info@impactminerals.com.au www.impactminerals.com.au 

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