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Investigator Resources Limited
ABN 90 115 338 979

Annual Report 2019

Investigator Resources Limited
Corporate Directory
30 June 2019

Directors

D.M. Ransom (Chairman)
K.J. Wilson (Non-Executive Director)
A. McIlwain (Director and Acting Chief Executive Officer)

Joint company secretaries

Ms Melanie Leydin
Ms Anita Addorisio

Notice of annual general
meeting

Thursday, 28 November 2019 at 11.30am
Grant Thornton
Level 22, Collins Square, Tower 5
727 Collins Street
Melbourne VIC 3008

Registered office

18 King Street, Norwood SA 5067

Principal place of business

18 King Street
Norwood SA 5067

Share register

Auditor

Solicitors

Computershare Limited
Level 5, 115 Grenfell Street
Adelaide SA 5000

Grant Thornton Audit Pty Ltd
Level 3, 170 Frome Street
Adelaide SA 5000

Baker & McKenzie
L19, CBW, 181 William Street
Melbourne VIC 3000

Stock exchange listing

Investigator Resources Limited shares and options are listed on the Australian
Securities Exchange (ASX code: IVR and IVROA)

Website

www.investres.com.au

Investigator Resources Limited
Contents
30 June 2019

Chairman’s Letter

Review of Operations

Tenement Schedule

Financial Report

Directors’ Report

Auditors Independence Declaration

Financial Statements

Directors Declaration

Independent Auditor’s Report

Shareholder Information

Investigator Resources Limited
Chairman’s Letter
30 June 2019

In my Chairman’s Letter for 2017-2018 I promised the following plan would guide activities for Investigator for the 2019
financial year, as follows:

• We would change the prevailing grass-roots exploration strategy to generation of more advanced exploration

projects.

• We would rationalise tenement holdings. This would entail a reduction in tenement holdings in South Australia,

•

particularly those with high geological risk.
The Paris Silver Project would remain a core asset of the Company, irrespective of the outcome of the PFS. It has
size, grade and optionality to the silver price.
The high risk/high reward Maslins IOCG Project would be de-risked by way of a farm-out/joint venture arrangement
with a suitable partner.

This plan necessitated a tightening of the cash outgoings and restructuring of the material and human resources of the
Company.

All these objectives except for the acquisition of an advanced exploration project were initiated within the 2018-2019
financial year. Moreover, the plan was prescient given the financial environment within which the Company operated. Risk
capital was difficult to raise owing to stagnating commodity prices, and farm-out opportunities were limited by the financial
management strategies of mid-and large-cap companies. The stampede by microcaps into industrial minerals, notably
cobalt, lithium and graphite, which Investigator chose to ignore, hurt investors in that market.

Our share price sank to its perigee of $0.08/share in May 2019, essentially reflecting the low point in the Materials Sector
market. Ironically, the macro environment for commodities changed significantly in June 2019, when the international
markets started to perceive risk arising from low interest rate settings and the trade imbroglio between the USA and China.
Gold broke out of its holding pattern which had prevailed from January 2019 and commenced its current bull market. Silver
followed, but the base metals generally remain stagnant despite the optimistic projections of the commodities analysts.

With respect to our efforts to generate a project to carry Investigator forward, we have reviewed about 80 opportunities,
both local and international which have ranged from desk to field investigations. It was concluded that cost and country
risk militated against acquisitions offshore. Despite a tightening regulatory environment and somewhat higher geological
risk, our project generation efforts would be confined to Australia. This process is continuing and we would expect that the
final objective will be fulfilled by the end of calendar 2019.

On behalf of the Board, I wish to acknowledge the exploration team in Adelaide for their loyalty and dedication to the
Company in a market which has been generally unsupportive. I also acknowledge the contributions of my fellow directors,
notably Andrew McIlwain, whose efforts in the thankless task of restructuring the Company as Acting CEO, were carried
out with competence and good humour.

Dr David Ransom
Chairman

Investigator Resources Limited
Review of Operations
30 June 2019

MASLINS
Investigator 100%)

IOCG PROJECT

(Whittata

- EL5705;

The Maslins Iron Oxide Copper Gold (“IOCG”) Project is
located approximately 50km south of OZ Minerals’
Carrapateena mine and lies within the Olympic Dam Belt
of IOCG deposits. Maslins is an undrilled gravity anomaly
interpreted as having a shallower depth to basement
(estimated to be up to 600m) than the BHP’s recently
announced Oak Dam discovery 80kms to the North West.
The Maslins anomaly is complex, estimated to be 6km in
length and 1km wide and comprises a curved gravity and
partly magnetic trend with a prominent gravity high at its
northern end.

Originally granted to Investigator in 2016, the area was
identified using regional gravity in conjunction with the
2015 Magneto-Telluric (“MT”) data which defined a deep
MT conductivity corridor connecting Prominent Hill,
Olympic Dam, Carrapateena and the recently discovered
Oak Dam IOCG deposits (see Figure 1). It is relevant in
that Oak Dam was a revisited target evidently modelled
solely on gravity and lies below about 1km of cover.

The MT surveys by Geoscience Australia (GA) and
proprietary data compiled by Investigator defined a
drillable
to be
target considered by management
analogous to Olympic Dam.

Figure 1: Geoscience Australia’s AusLAMP MT 20km depth slice smoothed image showing the
Olympic Domain MT corridor and location of major IOCG deposits and Investigator’s tenement
holdings.

Investigator Resources Limited
Review of Operations
30 June 2019

In January 2018, Investigator joined with GA and the
Geological Survey of South Australia
to
undertake an infill MT geophysical survey across the
Maslins target area. The combined data from both the
Investigator stations and the GA survey was processed
and 3D modelled by a geophysical consultant.

(GSSA)

The MT data indicated a complex geoelectrical regime,
requiring three-dimensional (3D) inversion to provide
reliable results. This 3D inversion showed two large mid
crustal conductors imaged to the north and south of the
survey area. A key anomaly was a conductive zone
interpretable as a “pipe”, or “flare”, originating from the
southern mid-crustal conductor and extending towards
the Maslins gravity target, shown in Figure 2.

Figure 2: 3D model resistivity slices of MT data across the Maslins target, identifying a conductive
pipe trending from mid-crustal regional conductor towards Maslins gravity target.

Investigator also engaged a geophysical consultant to
independently review, reassess and verify the previous
gravity and magnetic modelling, including a focus on
assessing the gravity target in relation to known magnetic
bodies in the region. Data from the recently released
GSSA’s Gawler Craton Airborne Survey was included in
this magnetic modelling. This detailed database enabled
previously identified anomalies to be modelled at a
greater
level of confidence and, significantly, has
improved the interpreted locations of Gairdner dykes that
pervade the magnetic data. Comprehensive modelling of
the gravity and magnetic data using a variety of scenarios

has concluded that the Maslins Target is not related to the
Gairdner dykes themselves but is a valid magnetic and
gravity target in its own right.

The modelling of regional gravity data identified a number
of gravity targets at relatively shallow depths along its
trend. The closest drill hole previously drilled deep
enough to intersect prospective basement is some 7km
northeast of the Maslins Target. This work has enabled
Investigator to produce more refined 3D models which will
enhance drill hole targeting (see Figure 3).

Investigator Resources Limited
Review of Operations
30 June 2019

Figure 3: 3D modelled gravity shell looking to the NW over Maslins with previous drilling
and tenement boundary indicated. Investigator’s proposed drill holes shown in green.

Geophysical data collection, interpretation and modelling
provided further insight into the prospectivity of the
Maslins anomaly, and Investigator determined that the
scale of the Maslins anomaly and scope of the geological
potential requires a minimum 3,000m diamond drilling
programme to test it, as a high risk, high reward target.

Post year-end, Investigator announced signing of a
binding Heads of Agreement (HOA) with OZ Minerals
Limited (ASX: OZL or OZ Minerals) whereby OZ Minerals
will fund up to a $10 million, three-stage program to
explore Investigator’s Maslins IOCG Project.

Through this multistage program, OZ Minerals committed
to undertake further geophysical surveys, including
gravity and Magneto-Telluric (“MT”), in order to better
define target locations in the Maslins Project prior to
drilling. The initial diamond drill program of approximately
3,000m will commence in early 2020 and be completed
by mid-year.

Upon the completion of this first-stage option period, with
a committed expenditure of $1.4 million, OZ Minerals will
then decide whether to commit to further exploration and
expenditure towards earning a joint venture interest or
withdraw with no project interest earned.

The Maslins Project is located on EL 5705 (100% owned
by Gawler Resources Pty Ltd, a wholly owned subsidiary
of Investigator) that is subject of this HOA. Investigator
retains 100% of its adjacent tenements in the area,
including the recent EL Application 2019/00055 which
adjoins EL 5705 to the south.

HOA key elements:

Stage 1 Program or Option Period

Infill MT and gravity surveys – to be completed in
2019;

Diamond drilling - to commence in early 2020;

Investigator to manage the Stage 1 exploration
work program;

Expenditure of $1.4 M before withdrawal;

If early withdrawal, OZ Minerals is obliged to pay
the balance of the $1.4 million commitment in
cash; and

- On completion of Stage 1 expenditure, and
before 12th July 2020, OZ Minerals will commit to
progress to Stage 2 or withdraw with no project
interest earned.

Stage 2 Program

Further expenditure to a total of $4 million
(including Stage 1 expenditure) within a two-year
period to earn a right to a 51% interest in the Joint
Venture.

Stage 3 Program

A Joint Venture (OZL 51%, IVR 49%) is formed;
and

For a further expenditure of $6 million over a two-
year period, OZ Minerals can earn an additional
19% Joint Venture interest for a total of 70%.

Investigator Resources Limited
Review of Operations
30 June 2019

Further work programs

Post completion of Stage 3, and with a 70% Joint
Venture
interest earned by OZ Minerals,
Investigator may elect to either fund further
exploration and development costs on a pro-rata
basis or dilute to a 20% Joint Venture interest
until a positive decision to mine is made; and

If diluted to 20%, Investigator’s share of the
further work programs and development cost will
be treated as a loan from OZ Minerals to be
repaid from future production revenues.

Additional gravity and MT surveys, as part of OZ Minerals’
Earn-In commitment and complementing the previously
completed detailed surveys, will commence shortly and
be used in the final design of the proposed diamond drill
program commencing in early 2020.

PETERLUMBO (EL5368: Investigator 100%)

Paris Silver Project

The Paris Silver Project lies within the Company’s 100%
held Peterlumbo tenement, 60km northwest of the town
of Kimba, on the well-serviced northern Eyre Peninsula of
South Australia. The Paris Silver Project has an estimated
Indicated and Inferred Mineral Resource of 9.3million
tonnes at 139 g/t silver and 0.6% lead (at a 50 g/t silver
cut-off) for a contained resource of 42 million ounces of
silver and 55 thousand tonnes of lead. Paris is one of the
best undeveloped silver projects in Australia.

In the September 2018 quarter, Investigator completed a
review of the results of the metallurgical testwork
completed by Core Metallurgy as part of the Paris Pre-
testwork was
Feasibility Study.
improve
commissioned
to
metallurgical recoveries.
enhance lead recoveries and improve the gross revenue
of the product, however silver recoveries remained at
about 74%.

It identified alternatives

to define opportunities

further

This

Investigator ceased metallurgical testwork and flowsheet
optimisation and contacted several North American silver
specialist metallurgists to review the findings of Core’s
final report with the aim of defining any future work that
can improve the project’s performance when silver
economics improve.

In the March 2019 quarter, Investigator applied for and
was granted a further three-year term for the Peterlumbo
tenement (EL 5368) from the licence expiry. Towards
year-end, there was renewed market interest in precious
metals and a corresponding improvement in silver price,
meaning Investigator’s decision to retain the project will
continue
the Company with significant
to provide
exposure and leverage to silver.

Investigator continued environmental and groundwater
monitoring and rehabilitation works in accordance with
licence conditions.

Cartarpo Cobalt-Copper project

Investigator collected more than 300 soil samples across
the historic Cartarpo cobalt-copper mine and surrounds in
the December quarter. These samples returned some
anomalous copper and gold results and a work program
to follow up has been developed, however work has been
deferred to conserve Investigator’s cash position.

OTHER TENEMENTS
In the June 2019 quarter, Investigator pegged an area
immediately south of EL 5705 (within which the Maslins
Project sits) after it became vacant. This application (ELA
2019/00055) will add to Investigator’s strategic tenement
holdings within the Olympic Domain IOCG belt.

During the September 2018 quarter, Investigator was
granted the Screechowl tenement (EL6226). This will
allow exploration activities to assess magnesite potential
northwest of Leigh Creek.

Additionally, Bulloo Creek (EL6253) was granted, which
is part of the Wiawera and Plumbago tenement holding.
Surface rock sampling by Aztec Mining in 1990 of narrow
mine exposures returned maximum assays of 47%
copper, 32g/t gold, 760g/t silver and 1.5% lead (Aztec
Mining - SAMREF ENV8235). The plan is to follow up on
undrilled historic workings and a structurally associated
large magnetic anomaly in Wiawera that has driven new
target concepts and opportunities in the Olary District.
The Company continued the engagement process with
the Traditional Owners of the eastern region of the
Wiawera tenement with the aim of reaching an agreement
to enable early and non-ground disturbing exploration
activities to be undertaken.

Applications at Boondina (ELA2018/008) and Cooper
East Penong (ELA2018/112) tenements were offered but
were not taken up due to the Company’s decision to
rationalise tenement holdings.

Thurlga Joint Venture
Investigator held 75% of the Thurlga project, about 10km
west of the Paris silver deposit, in a Joint Venture with
Andromeda Metals Limited (ASX: ADN), however a
review of the project early in the year led to the Company
deciding to terminate the JV.

CORPORATE

Review of Corporate Strategy
Early in the year, Investigator’s Board completed a review
of corporate strategy and management structure of the
Company and determined the Company needed change
to better position itself for success in the current
challenging financial environment.

Investigator Resources Limited
Review of Operations
30 June 2019

The Board concluded that the near-term focus was to
acquire a high-profile advanced exploration project,
without particular
to commodity or
restriction as
jurisdiction, and it reviewed numerous opportunities.

By year end, it had review more than 80 projects, from
desk top studies through to site visits, across most
several
jurisdictions,
commodities and
promising domestic gold targets. Investigator expects to
announce news on this early in FY2020.

including

Board Changes
In August 2018, long-time Investigator Managing Director
John Anderson announced he would step down from the
role after more than 10 years. Investigator thanked him
for his tireless work while in the role and wished him well
in future endeavours.

Andrew McIlwain, who was a Non-executive Director of
Investigator since June 2018, was appointed in the
interim as Acting Chief Executive Officer.

Management Appointments
Ms Melanie Leydin was appointed Chief Financial Officer
and Joint Company Secretary following the resignation of
Angelo Gaudio from the roles, while Ms Anita Addorisio
was appointed Joint Company Secretary.

Ms Leydin has more than 25 years’ experience in the
accounting profession and nearly 15 years’ experience as
a Company Secretary for ASX-listed companies. She is a
Chartered Accountant and a Registered Company
Auditor. Her
company
responsibilities includes ASX and ASIC compliance,
control and implementation of corporate governance,
statutory financial reporting, re-organisation of companies
and shareholder relations.

experience

public

Ms Addorisio is an experienced finance professional with
more than 15 years’ senior finance experience and six
years’ experience as a Company Secretary for ASX-listed
companies within several industry sectors including
resources. She is a Fellow of CPA and holds a Masters in
Accounting.

JMEI tax credits
In July 2019, Investigator was advised by the Australian
Taxation Office (ATO) that its application for tax credits
under
the Federal Government’s Junior Minerals
Exploration Incentive (JMEI) scheme was successful. The
JMEI scheme, passed as legislation in March 2018 dating
to 1 July 2017, enables eligible exploration
back
companies to create refundable tax credits to distribute to
eligible shareholders by forgoing a portion of their carried
forward tax losses that have arisen from allowable
expenditure on "greenfield" exploration.

The JMEI applies to Shareholders who acquire new
shares in a greenfields minerals explorer before the end
of an income year in which the Commissioner has made
an exploration credits allocation. The shares must be
equity interests for the purposes of the debt and equity
tax rules. Australian resident shareholders that are issued
with JMEI credits will generally be entitled to refundable
tax offsets (for individual shareholders or superannuation
funds) or franking credits (for companies).

Investigator’s application

The ATO confirmed
to
participate in the JMEI scheme for the 2019/2020 tax year
was accepted. As a result, the ATO allocated 100% of the
$687,500 which Investigator applied for in exploration
credits. This will be allocated to the Company for
distribution to shareholders who acquire new Investigator
shares after 1 July 2019 and prior to 30 June 2020.
Investigator has not determined the timing of any future
equity raising.

The actual number of JMEI credits to be received by each
Eligible Shareholder for the 2019/20 income year will
depend on a number of factors including but not limited
to:

The actual amount of allowable greenfields
exploration expenditure incurred by the Company
during the 2019/20 financial year;

The total number of Investigator shares issued
during the 2019/20 financial year; and

Investigator’s tax losses for 2019/20 financial
year following the lodgement of its 30 June 2020
tax return.

Research & Development Tax Refund
In November 2018, the Company announced the receipt
of A$657,958 as a tax concession for the 2017/18 year
under
the Federal Government’s Research and
Development (R&D) Tax Incentive program. The R&D
Tax Incentive program assists businesses offset a portion
of costs relating to certain R&D activities. The incentive is
jointly administered by AusIndustry (on behalf of
Innovation Australia) and the Australian Taxation Office.

it was
Post year-end, AusIndustry advised
undertaking an examination of the registration for that
concession.

that

Investigator engaged Ernst & Young (EY) to assist with
the preparation of this submission and the Company
submitted a comprehensive response to AusIndustry on
26 August 2019 and has received no response on the
matter as at the date of this report.

Investigator Resources Limited
Review of Operations
30 June 2019

FY20 OUTLOOK

The year ahead will be focused on a number of tasks.
With the inception of the OZ Minerals earn-in/joint venture
post year end, Investigator have completed the additional
geophysical gravity survey at Maslins. This will be
complemented with a further infill MT program and final
drill hole designs will be proposed from the modeling of
this newly acquired data.
Diamond drilling of the Maslins anomaly is planned to
commence in January 2020.

Subsequent to year end, $2.2m was raised through a
share placement led by PAC Partners, thereby securing
funds that will enable Investigator to continue the search
for an additional value accretive project. As noted in the
Chairman’s Letter above, the focus is to secure a project
within Australia and we are well advanced in this
objective.

COMPETENT PERSON STATEMENT

The information in this report relating to exploration
results is based on information compiled by Mr. Jason
Murray who is a full-time employee of the company. Mr.
Murray is a member of the Australian Institute of
Geoscientists. Mr. Murray has sufficient experience of
relevance to the styles of mineralisation and the types of
deposits under consideration, and to the activities
undertaken, to qualify as a Competent Person as defined
in the 2012 Edition of the Joint Ore Reserves Committee
(JORC) Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves. Mr.
Murray consents to the inclusion in this report of the
matters based on information in the form and context in
which it appears.

The information in this report that relates to Mineral
Resources Estimates at the Paris Silver Project is
extracted from the report entitled “Significant 26%
upgrade for Paris Silver Resource to 42Moz contained
silver” dated 19 April 2017 and is available to view on the
Company website www.investres.com.au . The Company
confirms that it is not aware of any new information or data
that materially affects the information included in the
original market announcement and that all material
assumptions and technical parameters underpinning the
estimates in the relevant market announcement continue
to apply and have not materially changed. The company
confirms
the
Competent Person’s findings are presented have not
been materially modified
the original market
announcement.

form and context

in which

from

that

the

Registered
Holder

Tenement
Area (Km2)

583

343

78
98
167

1,969

491

901

492

719

492

189

386

112

274

355

4,381

169

Investigator Resources Limited
Tenement Schedule
30 June 2019

All tenements are in South Australia as below:

Tenement Number

Tenement Name

Project: Peterlumbo (IVR 100%)

6347

Peterlumbo

Sunthe

Project: Uno/Morgans (IVR 100%)

5845
5933
5913

Uno Range
Morgans
Harris Bluff

Project: West Eyre Peninsula (IVR 100%)

5512

Googs Lake

Project: Maslins (IVR 100%)

5704

5705

5706

5738

Project: Curnamona (IVR 100%)

5938

6192

6345

6253

Yalymboo-Oakden Hills

Whittata

Yudnapinna

Birthday

Wiawera

Plumbago

Treloars

Olary/Bulloo Creek

Project: Adelaide Geosyncline (IVR 100%)

5999

6226

Cartarpo

Screechowl Creek

Project: Northern Craton (IVR 100%)

6187

Algebuckina

Total Granted Project Tenement Area

GRL
GRL
GRL

IVR

GRL

Applications

ELA2019/00055

Kootaberra

GRL

Total Project Tenement Application Area

Note:

IVR - Investigator Resources Ltd.
IVR 100% - Investigator Resources Ltd and its wholly owned subsidiaries.
Sunthe - Sunthe Uranium Pty Ltd, a wholly owned subsidiary of Investigator Resources Ltd.
GRL - Gawler Resources Pty Ltd, a wholly owned subsidiary of Investigator Resources Ltd.

Investigator Resources Limited
Directors' report
30 June 2019

The Directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as
the 'Consolidated Entity') consisting of Investigator Resources Limited (referred to hereafter as the 'Company' or 'Parent
Entity') and the entities it controlled at the end of, or during, the year ended 30 June 2019.

DIRECTORS
The following persons were Directors of Investigator Resources Limited during the whole of the financial year and up to the
date of this report, unless otherwise stated:

D.M. Ransom Non-Executive Chairman
K.J. Wilson
A. McIlwain
J. A. Anderson Managing Director (Resigned 16 August 2018)

Non-Executive Director

Director and Acting Chief Executive Officer (effective 16 August 2018)

PRINCIPAL ACTIVITIES
The principal activity of the Company during the year was mineral exploration.

DIVIDENDS
There were no dividends paid, recommended or declared during the current or previous financial year.

REVIEW OF OPERATIONS
The loss for the consolidated entity after providing for income tax amounted to $2,868,319 (2018: $581,461).

The net result for the year includes receipt of the Research and Development tax incentive of $657,958 for the 2018 tax
period and an impairment charge, associated with the relinquishment of tenements (detailed below), for exploration and
evaluation assets of $1,797,782.

During the year, the Company incurred $907,442 expenditure on exploration activities across the Company’s tenements,
compared with $2,775,835 for the prior year.

At 30 June 2019, the Company had a cash position of $1,204,981 (2018: $2,889,752).

SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
There were no significant changes in the state of affairs of the consolidated entity during the financial year.

MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR
On 14 July 2019, the Company entered into a Heads of Agreement (HOA) with OZ Minerals Limited whereby OZ Minerals
will fund up to $10 million on a three-stage exploration program to explore and farm-in to the Company’s Maslins Project. The
Maslins Project is located on EL 5705 (100% owned by Gawler Resources Pty Ltd, a wholly owned subsidiary of Investigator)
that is subject of this HOA. OZ Minerals may earn up to 70% of the Maslins Project.

Subsequent to the year end, AusIndustry advised that it was undertaking an examination of the registration for tax concession
received under Research & Development Tax Incentive program for the financial year 2018. The Company submitted a
comprehensive response to AusIndustry on 26 August 2019 and has received no response on the matter as at the date of
this report.

On 2 September 2019, the Company announced it undertook a share placement to raise $2.2 million via the issue of 91.67
million fully paid ordinary shares at $0.024 a share with a 1 for 3 free attaching listed option, totalling 30.6m exercisable at
3.5 cents, with an expiry date of 31 December 2020.

No other matter or circumstance has arisen since 30 June 2019 that has significantly affected, or may significantly affect the
consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial
years.

Investigator Resources Limited
Directors' report
30 June 2019

LIKLEY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS
During the next financial year, the Company will pursue the strategy set out in the Review of Operations.

ENVIRONMENTAL REGULATION
The Company's operations are subject to significant environmental regulation under Commonwealth, State and Territory
legislation in relation to the discharge of hazardous waste and minerals arising from exploration activities conducted by the
Company in any of its tenements. At the date of this report there have been no known breaches of any environmental
obligation.

INFORMATION ON DIRECTORS
Name:
Title:
Qualifications:
Experience and expertise:

David Meldrum Ransom
Non-Executive Chairman
BSc Geology) (Hons) and PhD Structural Geology
Dr Ransom has over 45 years of experience within the mining industry in Australia
and abroad. Dr Ransom is a graduate of the University of Sydney (BSc Geology)
(Hons) and Australian National University (PhD 1968 Structural Geology). His
earlier experience included roles as a project geologist with the Aberfoyle Group
in Australia and Cominco Ltd in Canada. Dr Ransom also worked as a specialist
consultant for 20-years with a clientele including majors such as CRA, BHP,
Newmont and numerous companies in the microcap sector, specialising in
structural geology.

More recently over the past 17 years, Dr Ransom was employed by Acorn Capital
Ltd being an early investor with the role of resource analyst/portfolio manager
focusing on the microcap materials and energy sectors. He is well known and
highly regarded in the fund management industry. He retired from Acorn Capital
Ltd in September 2016, but remains as a consultant. Dr Ransom has extensive
board experience gained over the past 25 years in small mining and exploration
companies and served as non-executive director on ASX listed company Unity
Mining Limited (ASX: UML) for almost 7 years from 2007 to 2014.
None
Other current directorships:
Former directorships (last 3 years): None
Interests in shares:
Interests in options:

1,125,375
575,375 (listed), 2,500,000 (unlisted)

Name:
Title:
Qualifications:
Experience and expertise:

Kevin Wilson
Non-Executive Director
BSc (Hons), ARSM, MBA
Kevin has over 30 years’ knowledge and experience in the minerals and finance
industries. Previously Kevin was the Managing Director of Rey Resources Limited
(ASX: REY), an Australian energy exploration company, from 2008 to 2016 and
Leviathan Resources Limited, a Victorian gold mining company, from its initial
public offering in 2005 through to its sale in 2006.

He has prior experience as a geologist with the Anglo American Group in Africa
and North America and as a stockbroking analyst and investment banker with CS
First Boston and Merrill Lynch in Australia and USA. Mr Wilson currently serves
as Non-Executive Chairman of Navarre Minerals Limited (ASX: NML) and Non-
Executive Chairman of Metminco Limited (ASX: MNC).
Navarre Minerals Limited and Metminco Limited.

Other current directorships:
Former directorships (last 3 years): None
Interests in shares:
Interests in options:

Nil
Nil

Investigator Resources Limited
Directors' report
30 June 2019

Name:
Title:
Qualifications:
Experience and expertise:

Andrew McIlwain
Director and Acting Chief Executive Officer (effective 16 August 2018)
BE (Mining) Melb, MAusIMM, MAICD
Andrew has over 30 years’ experience in the mining industry. He is a qualified
mining engineer and has held operational, technical, senior management and
executive roles within Mount Isa Mines Limited, Central Norseman Gold Corp, WMC
Resources, Lafayette Mining and Unity Mining. More recently, an independent
consultant for a number of Australian resource companies focusing on corporate
transactions and has acted as an independent Non-Executive director of numerous
resource companies including Kidman Resources (ASX: KDR) and Tusker Gold.

Andrew brings operational and corporate experience in a variety of fields including
establishment of operational sustainability, project development and both equity and
conventional debt financing. Andrew also serves as Non-Executive Chairman of
Emmerson Resources Ltd (ASX: ERM).
Emmerson Resources Ltd (ASX: ERM).

Other current directorships:
Former directorships (last 3 years): None
Interests in shares:
Interests in options:

Nil
Nil

Name:
Title:
Qualifications:
Experience and expertise:

John Alexander Anderson (Resigned 16 August 2018)
Managing Director
BSc Hons, MAusIMM, MSEG, MAIG, MGSA
John was a Director of Investigator Resources since its inception as Southern
Uranium in July 2005 and was appointed the Managing Director in December 2006.
A geologist by training and exploration manager of 40 years’ experience, John
initiated the Company’s strategy and development of its strong ground and
innovative resource opportunities in the southern Gawler Craton of South Australia.

In his previous roles with Aberfoyle and then as General Manager Exploration
Australia for Mt Isa Mines Exploration, he has explored in most Australian
jurisdictions for a wide range of commodities with an emphasis on the major lead,
zinc, silver, copper, gold, tin and nickel mining centres including Kalgoorlie, Broken
Hill, McArthur River, Tasmania, central New South Wales, Mount Isa / Ernest Henry
and the Gawler Craton.

John led teams in the discoveries of the Paris silver, Angas zinc and White Dam
gold deposits in South Australia and several mineral sands deposits in the Murray
Basin. He served as a Non-Executive Director of Southern Gold Limited from 2004
to 2008. He is a former President of the South Australian Chamber of Mines and
Energy 2000 to 2002 and is a current member of the South Australian Government’s
Mining and Energy Advisory Council and the Advisory Board for the University of
Adelaide’s Institute for Minerals and Energy Research.
None
Other current directorships:
Former directorships (last 3 years): None
Interests in shares:
Interests in options:

Nil
Nil

'Other current directorships' quoted above are current directorships for listed entities only and excludes directorships of all
other types of entities, unless otherwise stated.

'Former directorships (last 3 years)' quoted above are directorships held in the last 3 years for listed entities only and excludes
directorships of all other types of entities, unless otherwise stated.

Investigator Resources Limited
Directors' report
30 June 2019

COMPANY SECRETARIES

Melanie Leydin
Ms Leydin was appointed Joint Company Secretary on 17 December 2018 and CFO on 31 December 2018. She is a
Chartered Accountant and the founding director of Leydin Freyer, an independent firm specialising in company secretarial
and accounting services for ASX listed companies, with over 25 years’ experience in the accounting profession and over 13
years’ experience as a Company Secretary for ASX listed companies.

Anita Addorisio
Ms Addorisio was appointed Joint Company Secretary on 31 December 2018. She is an experienced finance professional
with over 15 years’ senior finance experience and 6 years’ experience as a Company Secretary for ASX listed companies
within several industry sectors including Resources. She is a Fellow of CPA and holds a Masters in Accounting.

Angelo Gaudio
Mr Gaudio resigned as Company Secretary and CFO on 31 December 2018. Mr Gaudio has significant experience in senior
financial positions within the resource sector. Previous roles include; the Chief Financial Offer and Company Secretary for
Renascor Resources, as well as Vice President, Finance and Administration with Heathgate Resources.

MEETINGS OF DIRECTORS
The number of meetings of the company's Board of Directors (the Board) held during the year ended 30 June 2019, and the
number of meetings attended by each Director were:

Directors

D. M. Ransom
K. J. Wilson
A. McIlwain
J. A. Anderson **

Full Board

Attended

Held*

11
11
11
1

*
**

Held: represents the number of meetings held during the time the director held office.
J. A. Anderson (Managing Director) resigned effective 16 August 2018.

Due to its size and activities the Company does not have separate Board committees.

REMUNERATION REPORT (AUDITED)
The remuneration report details the Key Management Personnel remuneration arrangements for the consolidated entity, in
accordance with the requirements of the Corporations Act 2001 and its Regulations.

Key Management Personnel are those persons having authority and responsibility for planning, directing and controlling the
activities of the entity, directly or indirectly, including all directors.

The remuneration report is set out under the following main headings:
●
●
●
●
●

Principles used to determine the nature and amount of remuneration
Details of remuneration
Service agreements
Share-based compensation
Additional disclosures relating to Key Management Personnel

Principles used to determine the nature and amount of remuneration
The objective of the consolidated entity's executive reward framework is to ensure reward for performance is competitive
and appropriate for the results delivered. The framework aligns executive reward with the achievement of strategic objectives
and the creation of value for shareholders, and it is considered to conform to the market best practice for the delivery of
reward. The Board ensures that executive reward satisfies the following key criteria for good reward governance practices:
●
●
●
●

competitiveness and reasonableness
acceptability to shareholders
performance linkage / alignment of executive compensation
Transparency.

Investigator Resources Limited
Directors' report
30 June 2019

The Board is responsible for determining and reviewing remuneration arrangements for its directors and executives. The
performance of the consolidated entity depends on the quality of its directors and executives. The remuneration philosophy
is to attract, motivate and retain high performance and high-quality personnel.

In consultation with external remuneration consultants (refer to the section 'Use of remuneration consultants' below), the
Board has structured an executive remuneration framework that is market competitive and complementary to the reward
strategy of the consolidated entity.

The reward framework is designed to align executive reward to shareholders' interests. The Board have considered that it
should seek to enhance shareholders' interests by:
●
●

having economic profit as a core component of plan design
focusing on sustained growth in shareholder wealth, consisting of dividends and growth in share price, and delivering
constant or increasing return on assets as well as focusing the executive on key non-financial drivers of value
attracting and retaining high calibre executives.

●

Additionally, the reward framework should seek to enhance executives' interests by:
●
●
●

rewarding capability and experience
reflecting competitive reward for contribution to growth in shareholder wealth
providing a clear structure for earning rewards.

In accordance with best practice corporate governance, the structure of Non-executive Director and Executive Director
remuneration is separate.

Non-executive Directors’ remuneration
Fees and payments to Non-executive Directors reflect the demands and responsibilities of their role. Non-executive Directors'
fees and payments are reviewed annually by the Board. The Board may, from time to time, receive advice from independent
remuneration consultants to ensure Non-executive Directors' fees and payments are appropriate and in line with the market.
The Chairman's fees are determined independently to the fees of other Non-executive Directors based on comparative roles
in the external market. The Chairman is not present at any discussions relating to the determination of his own remuneration.
Non-executive Directors do not receive share options or other incentives.

ASX listing rules require the aggregate non-executive directors' remuneration be determined periodically by a general
meeting. The most recent determination was at the Annual General Meeting held on 18 November 2013, where the
shareholders approved a maximum annual aggregate remuneration of $500,000.

Executive remuneration
The consolidated entity aims to reward Executives based on their position and responsibility, with a level and mix of
remuneration which has both fixed and variable components.

The Executive remuneration and reward framework has four components:
●
●
●
●

base pay and non-monetary benefits
short-term performance incentives
share-based payments
other remuneration such as superannuation and long service leave.

The combination of these comprises the Executive's total remuneration.

Fixed remuneration, consisting of base salary, superannuation and non-monetary benefits, are reviewed annually by the
Board based on individual and business unit performance, the overall performance of the consolidated entity and comparable
market remunerations.

Executives may receive their fixed remuneration in the form of cash or other fringe benefits (for example motor vehicle
benefits) where it does not create any additional costs to the consolidated entity and provides additional value to the
executive.

The short-term incentives (STI) are payable to Executives based upon the attainment of agreed corporate and individual
milestones and are reviewed and approved by the Board of Directors. During the year, no STI were paid to the Executives.

Investigator Resources Limited
Directors' report
30 June 2019

The long-term incentives (LTI) include long service leave and share-based payments. Executives are issued with equity
instruments as LTIs in a manner that aligns this element of remuneration with the creation of shareholder wealth. LTI grants
are made to Executives who are able to influence the generation of shareholder wealth and thus have a direct impact on the
creation of shareholder wealth. During the year, no equity instruments were issued to the Executives as LTI.

Consolidated entity performance and link to remuneration
The Company is a minerals exploration entity and as such there is no direct relationship between the remuneration policy
and the Company’s financial performance.

Share prices at the end of the current financial year and the previous four financial years were:

Share price (cents per share)

2019

1.1

2018

1.1

2017

3.0

2016

3.4

2015

1.3

Share prices are subject to market sentiment and the international metal prices which may move independently of the
performance of the Key Management Personnel.

Use of remuneration consultants
During the financial year ended 30 June 2019, the consolidated entity has not engaged any remuneration consultants.

Voting and comments made at the company's 29 November 2018 Annual General Meeting ('AGM')
At the 29 November 2018 AGM, 78.5% of the votes received supported the adoption of the remuneration report for the year
ended 30 June 2018. The company did not receive any specific feedback at the AGM regarding its remuneration practices.

Details of remuneration

Amounts of remuneration
Details of the remuneration of Key Management Personnel (KMP) of the consolidated entity are set out in the following
tables.

Short-term benefits

Post-
employment
benefits

Long-term
benefits

Share-
based
payments

Cash
salary
and
fees
$

2019

Non-Executive Directors:
D. M. Ransom
K.J. Wilson

59,361
54,795

Executive Directors:
A. McIlwain*
J. A. Anderson**

Other KMP:
A. McIlwain*
A. R. T. Thin***
M. A. Gaudio***

29,072
107,019

122,500
83,881
60,000
516,628

Cash Termination Non-
bonus
$

payment monetary annuation
$

Super-

Long
service
leave
$

Equity-
settled
$

Total
$

-
-

-
-
-
-

-
-

-
137,812

-
-
-
137,812

-
-

-
-
-
-

5,639
5,205

-
-

65,000
60,000

2,762
31,008

-
75,797

31,834
-
- 351,636

-
7,137
-
51,751

-
-
-
75,797

- 122,500
91,018
-
-
60,000
- 781,988

Andrew McIlwain was appointed Acting Chief Executive Officer from 16 August 2018. The cash salary of $122,500 for
the year ended 30 June 2019 is for Mr McIlwain's role as Acting Chief Executive Officer.
J.A. Anderson resigned as the Manager Director on 16 August 2018.

**
*** (i) A.R.T. Thin resigned as the commercial manager effective 16 November 2018.

(ii) M.A. Gaudio resigned as the Company Secretary and Chief Financial Officer effective 31 December 2018.

Investigator Resources Limited
Directors' report
30 June 2019

Short-term benefits

Post-
employment
benefits

Long-term
benefits

Share-
based
payments

Cash
salary

Cash Termination Non-

Super-

2018

and fees bonus payment monetary annuation

Long
service
leave
$

Equity-
settled
$

Total
$

Non-Executive Directors:
D. M. Ransom
K. J. Wilson*
A. McIlwain**
D. G. Jones***
B. E. Foy****

59,361
43,414
1,674
20,548
54,795

-
-
-
-
-

Executive Directors:
J. A. Anderson

275,625 42,000

Other KMP:
M. A. Gaudio
A. R. T. Thin

-
120,000
200,000
-
775,417 42,000

-
-
-
-
-

-
-
-

-
-
-
-
-

-
-
-

5,639
4,124
159
1,952
5,205

-
-
-
-
-

10,913 75,913
47,538
1,833
22,500
60,000

-
-
-
-

41,344

8,562

367,531

-
19,000
77,423

-
-
8,562

- 120,000
- 219,000
10,913 914,315

K. J. Wilson was appointed as a Non-executive Director effective 15 September 2017.
A. McIlwain was appointed as a Non-executive Director effective 20 June 2018

*
**
*** D. G. Jones (Non-executive Director) retired effective 20 September 2017.
**** B. E. Foy (Non-executive Director) retired effective 30 June 2018.

Service agreements
Remuneration and other terms of employment for Key Management Personnel are formalised in service agreements. Details
of these agreements are as follows:

Name:
Title:
Agreement commenced:
Term of agreement:

David Ransom
Non-executive Chairman
23 January 2017
Annual Non-executive Chairman
inclusive of
superannuation contribution. As part of his appointment, Dr Ransom was granted
2,500,000 unlisted options exercisable at $0.048 and expiring on 23 January 2020 as
approved by shareholders at the Annual General Meeting held on 30 November 2017.

fees of $65,000 per annum

Kevin Wilson
Non-executive Director
20 September 2017
Annual Non-executive Director’s
superannuation.

fees of $60,000 per annum

inclusive of

Andrew McIlwain
Director and Acting Chief Executive Officer (effective 16 August 2018)
20 June 2018
Director’s fees of $30,000 per annum inclusive of any superannuation and from 15
August 2018 additional fee of $140,000 per annum for Acting Chief Executive Officer
role.

Investigator Resources Limited
Directors' report
30 June 2019

Name:
Title:
Agreement commenced:
Term of agreement:

J. A. Anderson
Managing Director (resigned on 16 August 2018)
11 May 2010
Base salary of $275,625 per annum with superannuation entitlement at 15% of the
base salary and annual short-term incentives of up to $100,000 with the quantum to be
assessed in accordance with KPIs to be agreed with the Board. Long term incentives
through the annual issue of share options having a value of up to $80,000.

Name:
Title:
Agreement commenced:
Term of agreement:

Angelo Gaudio
Company Secretary and Chief Financial Officer (resigned on 31 December 2018)
2 March 2016
$10,000 per month plus GST plus expenses.

A. R. T. Thin
Commercial Manager (resigned on 16 November 2018)
12 February 2013
Base salary of $200,000 per annum and superannuation 9.5% of base salary

Key Management Personnel have no entitlement to termination payments in the event of removal for misconduct.

Share-based compensation

Issue of shares
There were no shares issued to Directors and other Key Management Personnel as part of compensation during the year
ended 30 June 2019.

Options
There were no options over ordinary shares issued to Directors and other Key Management Personnel as part of
compensation that were outstanding as at 30 June 2019.

There were no options over ordinary shares granted to or vested by Directors and other Key Management Personnel as part
of compensation during the year ended 30 June 2019.

Additional disclosures relating to key management personnel

Shareholding
The number of shares in the company held during the financial year by each Director and other members of Key Management
Personnel of the consolidated entity, including their personally related parties, is set out below:

Ordinary shares
D. M. Ransom
J. A. Anderson*
A. R. T. Thin**

Balance at
the start of
the year

1,125,375
6,202,438
983,574
8,311,387

Received
as part of

remuneration Additions

Disposals/
other

Balance at
the end of
the year

-
-
-
-

-
(6,202,438)
(983,574)
(7,186,012)

1,125,375
-
-
1,125,375

J.A. Anderson resigned as the Managing Director effective 16 August 2018 and disposals represents shares held as at
the date of resignation.
A. R. T. Thin resigned as the Commercial Manager effective 16 November 2018 and disposals represents shares held
as at the date of resignation.

Subsequent to year end on 16 July 2019, Andrew McIlwain, Director and Acting Chief Executive Officer, acquired through
an on-market purchase 1,100,000 ordinary fully paid shares.

Investigator Resources Limited
Directors' report
30 June 2019

Option holding
The number of options over ordinary shares in the company held during the financial year by each Director and other
members of Key Management Personnel of the consolidated entity, including their personally related parties, is set out below:

Options over ordinary shares
D. M. Ransom1
J. A. Anderson2
A. R. T. Thin3

Balance at
the start of
the year

3,075,375
3,990,375
575,375
7,641,125

Granted

Exercised

Expired/
forfeited/
disposal

Balance at
the end of
the year

-
-
-
-

-
(3,990,375)
(575,375)
(4,565,750)

3,075,375
-
-
3,075,375

1 The balance includes 575,375 listed options acquired by D.M, Ransom in 2018 as part of the Share Purchase Plan
announced on 19 October 2017.
2 The balance includes 575,375 listed options acquired by J. A. Anderson in 2018 as part of the Share Purchase Plan
announced on 19 October 2017. J.A. Anderson resigned as the Managing Director effective 16 August 2018 and disposals
represents options held at the date of resignation.
3 A. R. T. Thin resigned as the Commercial Manager effective 16 November 2018 and disposals represents options held as
at the date of resignation.

This concludes the remuneration report, which has been audited.

SHARES UNDER OPTION
There were no unissued ordinary shares of Investigator Resources Limited under option outstanding at the date of this report.

SHARES ISSUED ON THE EXERCISE OF OPTIONS
There were no ordinary shares of Investigator Resources Limited issued on the exercise of options during the year ended
30 June 2019 and up to the date of this report.

INDEMNITY AND INSURANCE OF OFFICERS
The company has indemnified the Directors and executives of the company for costs incurred, in their capacity as a Director
or Executive, for which they may be held personally liable, except where there is a lack of good faith.

During the financial year, the company paid a premium in respect of a contract to insure the Directors and Executives of the
company against a liability to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits
disclosure of the nature of the liability and the amount of the premium.

INDEMNITY AND INSURANCE OF AUDITOR
The Company has not, during or since the end of the financial year, indemnified or agreed to indemnify the auditor of the
company or any related entity against a liability incurred by the auditor.

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

PROCEEDINGS ON BEHALF OF THE COMPANY
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.

NON-AUDIT SERVICES
Details of the amounts paid or payable to the auditor for non-audit services provided during the financial year by the auditor
are outlined in Note 25 to the financial statements.

Investigator Resources Limited
Directors' report
30 June 2019

The Directors are satisfied that the provision of non-audit services during the financial year, by the auditor (or by another
person or firm on the auditor's behalf), is compatible with the general standard of independence for auditors imposed by the
Corporations Act 2001.

The Directors are of the opinion that the services as disclosed in Note 25 to the financial statements do not compromise the
external auditor's independence requirements of the Corporations Act 2001 for the following reasons:
●

all non-audit services have been reviewed and approved to ensure that they do not impact the integrity and objectivity
of the auditor; and
none of the services undermine the general principles relating to auditor independence as set out in APES 110 Code
of Ethics for Professional Accountants issued by the Accounting Professional and Ethical Standards Board, including
reviewing or auditing the auditor's own work, acting in a management or decision-making capacity for the company,
acting as advocate for the company or jointly sharing economic risks and rewards.

●

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
immediately after this Directors' report.

AUDITOR
Grant Thornton Audit Pty Ltd continues in office in accordance with section 327 of the Corporations Act 2001.

This report is made in accordance with a resolution of Directors, pursuant to section 298(2)(a) of the Corporations Act 2001.

On behalf of the Directors

___________________________
D.M Ransom
Chairman

2 September 2019

___________________________
A McIlwain
Acting Chief Executive Officer

Level 3, 170 Frome Street
Adelaide SA 5000

Correspondence to:
GPO Box 1270
Adelaide SA 5001

T +61 8 8372 6666
F +61 8 8372 6677
E info.sa@au.gt.com
W www.grantthornton.com.au

Auditor’s Independence Declaration

To the Directors of Investigator Resources Limited

In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the audit of Investigator
Resources Limited for the year ended 30 June 2019, I declare that, to the best of my knowledge and belief, there have been:

a no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and

b no contraventions of any applicable code of professional conduct in relation to the audit.

GRANT THORNTON AUDIT PTY LTD
Chartered Accountants

J L Humphrey
Partner – Audit & Assurance

Adelaide, 2 September 2019

Grant Thornton Audit Pty Ltd ACN 130 913 594
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389

www.grantthornton.com.au

‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients
and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International
Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are
delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one
another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to
Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to
Grant Thornton Australia Limited.

Liability limited by a scheme approved under Professional Standards Legislation.

Investigator Resources Limited
Statement of profit or loss and other comprehensive income
For the year ended 30 June 2019

Interest income
Other income
Research and development incentive

Expenses
Employee benefit expenses
Corporate and other expenses
Exploration and evaluation expenses written off

Loss before income tax expense

Income tax expense

Consolidated

Note

2019
$

2018
$

6
7
14

44,443
24,182
23,572

73,567
227
1,492,392

(433,545)
(729,189)
(1,797,782)

(607,566)
(725,107)
(814,974)

(2,868,319)

(581,461)

Loss after income tax expense for the year attributable to the owners of
Investigator Resources Limited

(2,868,319)

(581,461)

Other comprehensive income for the year, net of tax

Total comprehensive income for the year attributable to the owners of
Investigator Resources Limited

Basic earnings per share
Diluted earnings per share

(2,868,319)

(581,461)

Cents

33
33

(0.39)
(0.39)

(0.08)
(0.08)

The above statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes

Investigator Resources Limited
Statement of financial position
As at 30 June 2019

Assets

Current assets
Cash and cash equivalents
Trade and other receivables
Inventories
Other assets
Total current assets

Non-current assets
Property, plant and equipment
Exploration and evaluation
Other assets
Total non-current assets

Total assets

Liabilities

Current liabilities
Trade and other payables
Provisions
Total current liabilities

Non-current liabilities
Provisions
Total non-current liabilities

Total liabilities

Net assets

Equity
Issued capital
Reserves
Accumulated losses

Total equity

Consolidated

Note

2019
$

2018
$

9
10
11
12

13
14
15

16
17

1,204,981
18,451
-
37,007
1,260,439

2,889,752
655,395
12,679
33,443
3,591,269

2,722
29,700,636
24,202
29,727,560

7,066
30,590,976
24,202
30,622,244

30,987,999

34,213,513

117,669
176,537
294,206

249,816
332,481
582,297

-
-

69,104
69,104

294,206

651,401

30,693,793

33,562,112

19
20
21

53,070,322
243,519
(22,620,048)

53,070,322
243,519
(19,751,729)

30,693,793

33,562,112

The above statement of financial position should be read in conjunction with the accompanying notes

Investigator Resources Limited
Statement of changes in equity
For the year ended 30 June 2019

Consolidated

Balance at 1 July 2017
Transactions with owners:
Shares issued during the year
Share issue costs
Listed Options issued to Fundraising Manager
Options issued to Key Management Personnel
Expired Options adjusted to accumulated losses

Issued
capital
$

Reserves
$

Accumulated
losses
$

Total equity
$

50,082,204

962,451

(20,070,338) 30,974,317

3,400,001
(411,883)

-
-
-

-
-
170,225
10,913
(900,070)

-
-
-
-
900,070

3,400,001
(411,883)
170,225
10,913
-

Total transactions with owners:

53,070,322

243,519

(19,170,268) 34,143,573

Loss after income tax expense for the year

Total comprehensive income for the year

(581,461)

Balance at 30 June 2018

53,070,322

243,519

(19,751,729) 33,562,112

Consolidated

Balance at 1 July 2018

Issued
capital
$

Reserves
$

Accumulated
losses
$

Total equity
$

53,070,322

243,519

(19,751,729) 33,562,112

Loss after income tax expense for the year

Total comprehensive income for the year

(2,868,319)

Balance at 30 June 2019

53,070,322

243,519

(22,620,048) 30,693,793

The above statement of changes in equity should be read in conjunction with the accompanying notes

Investigator Resources Limited
Statement of cash flows
For the year ended 30 June 2019

Cash flows from operating activities
Payments to suppliers and employees
Interest received
Research and development refund
Other income

Net cash used in operating activities

Cash flows from investing activities
Exploration expenditure
Payments for property, plant and equipment
PACE Grant funding received
Proceeds from disposal of property, plant and equipment

Net cash used in investing activities

Cash flows from financing activities
Proceeds from issue of shares
Share issue transaction costs

Net cash from financing activities

Consolidated

Note

2019
$

2018
$

(1,421,276)
48,643
657,958
-

(1,317,204)
73,377
858,006
227

(714,675)

(385,594)

(996,005)

-
-
25,909

(2,948,354)
(6,324)
237,994

(970,096)

(2,716,684)

-
-

3,400,001
(241,658)

3,158,343

Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year

(1,684,771)
2,889,752

56,065
2,833,687

Cash and cash equivalents at the end of the financial year

1,204,981

2,889,752

The above statement of cash flows should be read in conjunction with the accompanying notes

Investigator Resources Limited
Notes to the financial statements
30 June 2019

Note 1. General information

The financial statements cover Investigator Resources Limited (Investigator) as a consolidated entity consisting of
Investigator Resources Limited and the entities it controlled at the end of, or during, the year. The financial statements are
presented in Australian dollars, which is Investigator's functional and presentation currency.

Investigator is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered office and
principal place of business are:

Registered office

Principal place of business

18 King Street, Norwood SA 5067

A description of the nature of the consolidated entity's operations and its principal activities are included in the directors'
report, which is not part of the financial statements.

The financial statements were authorised for issue, in accordance with a resolution of Directors, on 2 September 2019. The
Directors have the power to amend and reissue the financial statements.

Note 2. Significant accounting policies

The principal accounting policies adopted in the preparation of the financial statements are set out either in the respective
notes or below. These policies have been consistently applied to all the years presented, unless otherwise stated.

New or amended Accounting Standards and Interpretations adopted
The consolidated entity has adopted all of the new or amended Accounting Standards and Interpretations issued by the
Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period. The impact of the AASB
15 and AASB 9 are referenced later in this note,

Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.
The impact of the AASB 16 is referenced later in this note.

Basis of preparation
These general-purpose financial statements have been prepared in accordance with Australian Accounting Standards and
Interpretations issued by the Australian Accounting Standards Board (AASB) and the Corporations Act 2001, as appropriate
for for-profit oriented entities. These financial statements also comply with International Financial Reporting Standards as
issued by the International Accounting Standards Board (IASB).

Historical cost convention
The financial statements have been prepared under the historical cost convention, except for, where applicable, the
revaluation of financial assets and liabilities at fair value through profit or loss, financial assets at fair value through other
comprehensive income, investment properties, certain classes of property, plant and equipment and derivative financial
instruments.

Critical accounting estimates
The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires
management to exercise its judgement in the process of applying the consolidated entity'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 in Note 3.

Going Concern
These financial statements have been prepared on a going concern basis which contemplates the continuity of normal
business activities and the realisation of assets and discharge of liabilities in the normal course of business. This includes
the realisation of capitalised exploration expenditure of $29,700,636 (2018: $30,590,976).

The consolidated group has incurred a net loss after tax for the year ended 30 June 2019 of $2,868,319 (2018: $581,461)
and operations were funded by a net cash outflow, from operating and investing activities of $1,684,771 (2018: $3,102,278).
At 30 June 2019, the consolidated group had net current assets of $966,233 (2018: $3,008,972).

Investigator Resources Limited
Notes to the financial statements
30 June 2019

Note 2. Significant accounting policies (continued)

The consolidated group’s ability to continue as a going concern is contingent on raising additional capital and/or the
successful exploration and subsequent exploitation of its areas of interest through sale or development. Should the
consolidated entity not achieve the matters set out above, there would then be significant uncertainty over the ability of the
consolidated entity to continue as a going concern, and, therefore, it may have to realise its assets and extinguish its liabilities,
other than in the ordinary course of business and at amounts different from those stated in the 2019 annual financial report.

The 2019 annual financial report does not include any adjustments that may be necessary if the consolidated group is unable
to continue as a going concern.

Parent entity information
In accordance with the Corporations Act 2001, these financial statements present the results of the consolidated entity only.
Supplementary information about the parent entity is disclosed in Note 28.

Principles of consolidation
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Investigator Resources
Limited ('Company' or 'Parent Entity') as at 30 June 2019 and the results of all subsidiaries for the year then ended.
Investigator Resources Limited and its subsidiaries together are referred to in these financial statements as the 'Consolidated
Entity'.

Subsidiaries are all those entities over which the consolidated entity has control. The consolidated entity controls an entity
when the consolidated entity is exposed to, or has rights to, variable returns from its involvement with the entity and has the
ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from
the date on which control is transferred to the consolidated entity. They are de-consolidated from the date that control ceases.

Intercompany transactions, balances and unrealised gains on transactions between entities in the consolidated entity are
eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset
transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies
adopted by the consolidated entity.

The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in ownership interest,
without the loss of control, is accounted for as an equity transaction, where the difference between the consideration
transferred and the book value of the share of the non-controlling interest acquired is recognised directly in equity attributable
to the parent.

Where the consolidated entity loses control over a subsidiary, it derecognises the assets including goodwill, liabilities and
non-controlling interest in the subsidiary together with any cumulative translation differences recognised in equity. The
consolidated entity recognises the fair value of the consideration received and the fair value of any investment retained
together with any gain or loss in profit or loss.

Functional and Presentation Currency
The financial statements are presented in Australian dollars, which is the Company’s functional and presentation currency.

Revenue recognition
AASB 15 Revenue from Contracts with Customers
The Consolidated Entity has adopted this standard from 1 July 2018. The adoption of this standard has had no effect on
comparatives.

The standard provides a single standard for revenue recognition. The core principle of the standard is that an entity shall
recognise revenue to depict the transfer of promised goods or services to customers in an amount that reflects the
consideration to which the entity expects to be entitled in exchange for those goods or services. The standard requires:
contracts (either written, verbal or implied) to be identified, together with the separate performance obligations within the
contract; determine the transaction price, adjusted for the time value of money excluding credit risk; allocation of the
transaction price to the separate performance obligations on a basis of relative stand-alone selling price of each distinct good
or service, or estimation approach if no distinct observable prices exist; and recognition of revenue when each performance
obligation is satisfied.

Investigator Resources Limited
Notes to the financial statements
30 June 2019

Note 2. Significant accounting policies (continued)

Credit risk is presented separately as an expense rather than adjusted to revenue. Contracts with customers are presented
in an entity's statement of financial position as a contract liability, a contract asset, or a receivable, depending on the
relationship between the entity's performance and the customer's payment. Sufficient quantitative and qualitative disclosure
is required to enable users to understand the contracts with customers; the significant judgements made in applying the
guidance to those contracts; and any assets recognised from the costs to obtain or fulfil a contract with a customer.

There is no impact to the Group’s historical financial results given the company is not currently in production.

Interest and other income
Interest
Interest revenue is recognised as interest accrues using the effective interest method. This is a method of calculating the
amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate,
which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the
net carrying amount of the financial asset.

Other income
Other income is recognised when it is received or when the right to receive payment is established.

Grant income
Research and Development tax credits are recognised in accordance with AASB 120: Accounting for Government Grants
and Government Assistance. The Research and development tax credit is recognised when there is reasonable assurance
that the grant will be received, and all conditions have been complied with. The Grant has been recognised as other income
within the period.

AASB 9 Financial Instruments
The Consolidated Entity has adopted this standard from 1 July 2018. The standard replaces all previous versions of AASB
9 and completes the project to replace AASB139 'Financial Instruments: Recognition and Measurement.

AASB 9 introduces new classification and measurement models for financial assets. A financial asset is measured at
amortised cost, if it is held within a business model whose objective is to hold assets in order to collect contractual cash
flows, which arise on specified dates and solely principal and interest. All other financial instrument assets are classified and
measured at fair value through profit or loss unless the entity makes an irrevocable election on initial recognition to present
gains and losses on equity instruments (that are not held-for-trading) in other comprehensive income ('OCI'). There has been
no change to the classification of financial assets as a result of the adoption of AASB 9.

For financial assets, new impairment requirements will use an 'expected credit loss' ('ECL') model to recognise an allowance.
Impairment will be measured under a 12-month ECL method unless the credit risk on a financial instrument has increased
significantly since initial recognition in which case the lifetime ECL method is adopted. There has been no change to the
carrying value of the allowance for impairment as a result of the transition to the new standard. The standard introduces
additional new disclosures.

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

There is no effect on the consolidated entity of this standard.

Reconciliation of financial instruments on adoption of AASB 9:

The table below shows the classification of each class of financial assets and liabilities under AASB 139 and AASB 9 as at
1 July 2018:

AASB 139 Carrying
classification

AASB 9
Carrying
classification

AASB 139
Carrying Amount
($)

AASB 9
Carrying
Amount ($)

Loans and receivables Amortised cost

655,395

Financial assets
Trade and other receivables
Financial liabilities

Trade and other payables

Amortised cost

249,816

Investigator Resources Limited
Notes to the financial statements
30 June 2019

Note 2. Significant accounting policies (continued)

Restoration Costs
Costs of site restoration are provided over the life of the facility from when exploration commences and are included in the
costs of that stage. Site restoration costs include the dismantling and removal of mining plant, equipment and building
structures, waste removal, and rehabilitation of the site in accordance with clauses of the exploration and mining permits.
Such costs are determined using estimates of future costs, current legal requirements and technology on a discounted basis

Any changes in the estimates for the costs are accounted on a prospective basis. In determining the costs of site restoration,
there is uncertainty regarding the nature and extent of the restoration due to community expectations and future legislation.
Accordingly, the costs have been determined on the basis that the restoration will be completed within one year of
abandoning the site.

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

Income tax
The income tax expense or benefit for the period is the tax payable on that period's taxable income based on the applicable
income tax rate for each jurisdiction, adjusted by the changes in deferred tax assets and liabilities attributable to temporary
differences, unused tax losses and the adjustment recognised for prior periods, where applicable.

Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to be applied when the
assets are recovered or liabilities are settled, based on those tax rates that are enacted or substantively enacted, except for:
● When the deferred income tax asset or liability arises from the initial recognition of goodwill or an asset or liability in a
transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting nor
taxable profits; or

● When the taxable temporary difference is associated with interests in subsidiaries, associates or joint ventures, and the
timing of the reversal can be controlled and it is probable that the temporary difference will not reverse in the foreseeable
future.

Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that
future taxable amounts will be available to utilise those temporary differences and losses.

The carrying amount of recognised and unrecognised deferred tax assets are reviewed at each reporting date. Deferred tax
assets recognised are reduced to the extent that it is no longer probable that future taxable profits will be available for the
carrying amount to be recovered. Previously unrecognised deferred tax assets are recognised to the extent that it is probable
that there are future taxable profits available to recover the asset.

Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current tax assets against
current tax liabilities and deferred tax assets against deferred tax liabilities; and they relate to the same taxable authority on
either the same taxable entity or different taxable entities which intend to settle simultaneously.

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

An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the
consolidated entity's normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within
12 months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used
to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current.

A liability is classified as current when: it is either expected to be settled in the consolidated entity's normal operating cycle;
it is held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no
unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities
are classified as non-current.

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

Investigator Resources Limited
Notes to the financial statements
30 June 2019

Note 2. Significant accounting policies (continued)

Joint operations
A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the
assets, and obligations for the liabilities, relating to the arrangement. The consolidated entity has recognised its share of
jointly held assets, liabilities, revenues and expenses of joint operations. These have been incorporated in the financial
statements under the appropriate classifications.

Impairment of non-financial assets
Goodwill and other intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually
for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. Other non-
financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount
may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its
recoverable amount.

Recoverable amount is the higher of an asset's fair value less costs of disposal and value-in-use. The value-in-use is the
present value of the estimated future cash flows relating to the asset using a pre-tax discount rate specific to the asset or
cash-generating unit to which the asset belongs. Assets that do not have independent cash flows are grouped together to
form a cash-generating unit.

Goods and Services Tax ('GST') and other similar taxes
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not
recoverable from the tax authority. In this case it is recognised as part of the cost of the 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 tax authority is included in other receivables or other 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 tax authority, are presented as operating cash flows.

Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the tax authority.

New Accounting Standards and Interpretations not yet mandatory or early adopted
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory,
have not been early adopted by the consolidated entity for the annual reporting period ended 30 June 2019. The consolidated
entity's assessment of the impact of these new or amended Accounting Standards and Interpretations, most relevant to the
consolidated entity, are set out below.

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

Investigator Resources Limited
Notes to the financial statements
30 June 2019

Note 2. Significant accounting policies (continued)

The consolidated entity will adopt this standard from 1 July 2019. As at reporting date, the Group has assessed the impact
of the standard and the expected impacts are as follows:

1.
2.
3.

Increase in assets and liabilities amounting to $131,664 and $132,052 respectively.
Increase in the loss position on the consolidated statement of comprehensive income in the amount of $388.
It is not expected that there will be any net impact on the consolidated statement of cash flows.

Note 3. Critical accounting judgements, estimates and assumptions

The preparation of the financial statements requires management to make judgements, estimates and assumptions that
affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in
relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and
assumptions on historical experience and on other various factors, including expectations of future events, management
believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will seldom equal
the related actual results. The judgements, estimates and assumptions that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within the next financial year are
discussed below.

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

Research and development incentive
The Group currently recognises Research and Development incentive on an accrual basis of costs incurred during the
year. Management complete a detailed estimate of the expected claim relating to the financial year based on current
projects lodged with AusIndustry.

Impairment of non-financial assets other than goodwill and other indefinite life intangible assets
The consolidated entity assesses impairment of non-financial assets other than goodwill and other indefinite life intangible
assets at each reporting date by evaluating conditions specific to the consolidated entity and to the particular asset that may
lead to impairment. If an impairment trigger exists, the recoverable amount of the asset is determined. This involves fair value
less costs of disposal or value-in-use calculations, which incorporate a number of key estimates and assumptions.

Income tax
The consolidated entity is subject to income taxes in the jurisdictions in which it operates. Significant judgement is required
in determining the provision for income tax. There are many transactions and calculations undertaken during the ordinary
course of business for which the ultimate tax determination is uncertain. The consolidated entity recognises liabilities for
anticipated tax audit issues based on the consolidated entity's current understanding of the tax law. Where the final tax
outcome of these matters is different from the carrying amounts, such differences will impact the current and deferred tax
provisions in the period in which such determination is made.

Recovery of deferred tax assets
Deferred tax assets are recognised for deductible temporary differences only if the consolidated entity considers it is probable
that future taxable amounts will be available to utilise those temporary differences and losses.

Employee benefits provision
As discussed in Note 2, the liability for employee benefits expected to be settled more than 12 months from the reporting
date are recognised and measured at the present value of the estimated future cash flows to be made in respect of all
employees at the reporting date. In determining the present value of the liability, estimates of attrition rates and pay increases
through promotion and inflation have been taken into account.

Investigator Resources Limited
Notes to the financial statements
30 June 2019

Note 3. Critical accounting judgements, estimates and assumptions (continued)

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

Note 4. Operating segments

Identification of reportable operating segments
The consolidated entity has identified its operating segments based on the internal reports that are reviewed and used by
the Board of Directors (chief operating decision makers) in assessing performance and determining the allocation of
resources. The consolidated entity operates in a single operating segment: that of the mineral exploration industry in
Australia.

Note 5. Other income

Net gain on disposal of property, plant and equipment
Other

Other income

Note 6. Employee benefit expenses

Benefits provided to employees
Charged to exploration and evaluation expenses
Employee options expense

Consolidated

2019
$

2018
$

24,182
-

24,182

227

Consolidated

2019
$

2018
$

943,412
(509,867)

1,683,896
(1,087,243)

10,913

433,545

607,566

Investigator Resources Limited
Notes to the financial statements
30 June 2019

Note 7. Corporate and other expenses

Audit fees
Tax and compliance services
Company secretarial fees
Consulting fee
Depreciation
Directors fees
Insurance and legal
Minimum lease rental payment
Shareholders communications
Office expenses
Other expenses
Expenditure allocated to exploration and evaluation projects

Note 8. Income tax expense

Numerical reconciliation of income tax expense and tax at the statutory rate
Loss before income tax expense

Tax at the statutory tax rate of 27.5%

Tax effect amounts which are not deductible/(taxable) in calculating taxable income:

Adjustment for non-deductible expenses

Temporary differences:

Deductible capital raising costs
Allowable exploration and evaluation expenditure
Prior period exploration and evaluation expenses written off

Net non-allowable expenses
Research and development incentive
Reduction of losses in prior periods
Effects due to change in company tax rate
Tax effect of deferred tax assets not brought to account as they do not meet the recognition
criteria

Income tax expense

Tax losses not recognised
Unused tax losses for which no deferred tax asset has been recognised

Potential tax benefit @ 27.5%

Consolidated

2019
$

2018
$

39,780
12,700
88,000
156,720
2,617
155,001
64,038
16,680
65,164
232,157
42,014
(145,682)

48,483
6,900
120,000
3,812
6,728
179,951
46,526
21,765
94,870
308,137
118,102
(230,167)

729,189

725,107

Consolidated

2019
$

2018
$

(2,868,319)

(581,461)

(788,788)

(159,902)

357
(788,431)

3,231
(156,671)

(36,429)
(249,547)
494,391
(61,669)
(6,482)
415,951
-

(37,558)
(735,699)
196,463
(2,636)
(410,408)
550,196
1,199,130

232,216

(602,817)

Consolidated

2019
$

2018
$

(50,978,023)

(50,133,596)

(14,018,956)

(13,786,739)

Investigator Resources Limited
Notes to the financial statements
30 June 2019

Note 8. Income tax expense (continued)

The above potential tax benefit for tax losses has not been recognised in the statement of financial position. These tax losses
can only be utilised in the future if the continuity of ownership test is passed, or failing that, the same business test is passed.

Note 9. Current assets - cash and cash equivalents

Cash at bank
Cash on deposit

Consolidated

2019
$

2018
$

34,981
1,170,000

1,134,744
1,755,008

1,204,981

2,889,752

At balance date, the ANZ bank provided the Company with a business credit card facility with a limit of $50,000. Credit card
transactions are reconciled monthly and credit card balances payable are included in trade and other payables.

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

Note 10. Current assets - trade and other receivables

Research and Development incentive receivable
Other receivables

Consolidated

2019
$

2018
$

-
18,451

634,386
21,009

18,451

655,395

Any Research and Development tax refunds are recognised on accruals basis as a credit to income tax expense.

Accounting policy for trade and other receivables
Other receivables are recognised at amortised cost, less any allowance for expected credit losses.

Note 11. Current assets - inventories

Diesel fuel

Accounting policy for inventories
Inventories is stated at the lower of cost and net realisable value.

Consolidated

2019
$

2018
$

12,679

Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion
and the estimated costs necessary to make the sale.

Investigator Resources Limited
Notes to the financial statements
30 June 2019

Note 12. Current assets - Other assets

Insurance prepayments

Note 13. Non-current assets - property, plant and equipment

Plant and equipment - at cost
Less: Accumulated depreciation

Consolidated

2019
$

2018
$

37,007

33,443

Consolidated

2019
$

2018
$

512,225
(509,503)

564,671
(557,605)

2,722

7,066

Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below:

Consolidated

Balance at 1 July 2017
Additions
Depreciation expense

Balance at 30 June 2018
Disposals
Depreciation expense

Balance at 30 June 2019

Total
$

7,471
6,323
(6,728)

7,066
(1,727)
(2,617)

2,722

Accounting policy for property, plant and equipment
Plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost includes
expenditure that is directly attributable to the acquisition of the items.

Depreciation is calculated on a straight-line basis to write off the net cost of each item of property, plant and equipment
(excluding land) over their expected useful lives as follows:

Plant and equipment

1- 5 years

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

Leasehold improvements and plant and equipment under lease are depreciated over the unexpired period of the lease or
the estimated useful life of the assets, whichever is shorter.

An item of property, plant and equipment is derecognised upon disposal or when there is no future economic benefit to the
consolidated entity. Gains and losses between the carrying amount and the disposal proceeds are taken to profit or loss.
Any revaluation surplus reserve relating to the item disposed of is transferred directly to retained profits.

Investigator Resources Limited
Notes to the financial statements
30 June 2019

Note 14. Non-current assets - exploration and evaluation

Exploration and evaluation Asset

Opening – net book value
Capitalised exploration expenditure
Impairment

Closing- net book value

Consolidated

2019
$

2018
$

29,700,636

30,590,976

30,590,976
907,442
(1,797,782)

28,630,115
2,775,835
(814,974)

29,700,636

30,590,976

A review of the consolidated entity's exploration licenses was undertaken during the period and, as a result of which, nine
licenses were relinquished and the company withdrew from the Thurlga Joint Venture. As a consequence, an impairment
charge against the exploration and evaluation assets was booked as at 30 June 2019. The licenses that were relinquished,
or applications withdrawn during the period, were as follows: EL5512, EL5908, EL4827, EL5872, EL5913, EL6048, EL6034,
EL6047, ELA2018/008 and ELA2018/009.

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

Note 15. Non-current assets - other assets

Security deposits

Note 16. Current liabilities - trade and other payables

Trade payables
Sundry payables

Consolidated

2019
$

2018
$

24,202

Consolidated

2019
$

2018
$

96,028
21,641

197,147
52,669

117,669

249,816

Refer to Note 23 for further information on financial instruments.

Accounting policy for trade and other payables
These amounts represent liabilities for goods and services provided to the consolidated entity prior to the end of the financial
year and which are unpaid. Due to their short-term nature they are measured at amortised cost and are not discounted. The
amounts are unsecured and are usually paid within 30 days of recognition.

Investigator Resources Limited
Notes to the financial statements
30 June 2019

Note 17. Current liabilities - provisions

Annual leave
Long service leave

Accounting policy for employee benefits

Consolidated

2019
$

2018
$

98,490
78,047

201,181
131,300

176,537

332,481

Short-term employee benefits
Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to be
settled wholly within 12 months of the reporting date are measured at the amounts expected to be paid when the liabilities
are settled.

Note 18. Non-current liabilities - provisions

Long service leave

Consolidated

2019
$

2018
$

69,104

Accounting policy for other long-term employee benefits
The liability for annual leave and long service leave not expected to be settled within 12 months of the reporting date are
measured at the present value of expected future payments to be made in respect of services provided by employees up to
the reporting date 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 reporting date on national government bonds with terms to maturity and currency that match, as closely as possible, the
estimated future cash outflows.

Note 19. Equity - issued capital

Ordinary shares - fully paid

739,972,032 739,972,032

53,070,322

Consolidated

2019
Shares

2018
Shares

2019
$

2018
$

Movements in ordinary share capital

Details

Balance
Placement shares issued
Share Purchase Plan (SPP) shares issued
Less: Share issue cost

Balance

Date

1 July 2017

585,426,577
109,090,910
45,454,545
-

50,082,204
2,400,000
1,000,001
(411,883)

30 June 2018

739,972,032

53,070,322

30 June 2019

739,972,032

53,070,322

Investigator Resources Limited
Notes to the financial statements
30 June 2019

Note 19. Equity - issued capital (continued)

Listed Options

Details

Balance
Listed Options issued during the year unexercised

Balance

Date

1 July 2017

30 June 2018
28 February 2019

30 June 2019

Options

-
160,660,226

160,660,226
1,363,636

162,023,862

During the year, 1,363,636 listed fully vested options (exercisable at $0.035, expiring on 31 December 2020) were issued
with the same terms and conditions as announced on 19 October 2017.

During the 2018 financial year, 20,000,000 listed fully vested options (exercisable at $0.035, expiring on 31 December 2020)
were issued to PAC Partners Pty Ltd or its nominees in consideration for lead manager services provided to the Company
(Lead Manager Options). The fair value of the Lead Manager Options issued was $170,225 and was determined using the
Black Scholes model (refer Note 34 for further information).

During the 2018 financial year, a further 140,660,226 listed fully vested options (exercisable at $0.035, expiring on 31
December 2020) were issued as free attaching options in conjunction with the capital raising activities as announced on 19
October 2017.

The options are listed on the ASX with an exercise price of $0.035 per share and expiring on 31 December 2020. During the
reporting period no listed options were exercised.

Unlisted Options

Details

Balance
Options issued to Key Management Personnel (KMP) during the
period
KMP Options lapsed during the period
Employee options lapsed during the period

Balance

Date

1 July 2017

30 June 2018

30 June 2019

Options

11,015,000

2,500,000
(2,340,000)
(5,260,000)

5,915,000

The Company issued 2,500,000 unlisted options to KMP during the 2018 financial year. The options are fully vested, unlisted
and have an exercise price and expiry date as set out in Note 34 below. During the reporting period no KMP options were
exercised. There were no unlisted options issued to employees during the reporting period. Subsequent to year ended 30
June 2019, no unlisted options have been exercised.

Ordinary shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the company in proportion
to the number of and amounts paid on the shares held. The fully paid ordinary shares have no par value and the company
does not have a limited amount of authorised capital.

On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each
share shall have one vote.

Share buy-back
There is no current on-market share buy-back.

Investigator Resources Limited
Notes to the financial statements
30 June 2019

Note 19. Equity - issued capital (continued)

Capital risk management
The consolidated entity's objectives when managing capital is to safeguard its ability to continue as a going concern, so that
it can provide returns for shareholders and benefits for other stakeholders and to maintain an optimum capital structure to
reduce the cost of capital.

Capital is regarded as total equity, as recognised in the statement of financial position, plus net debt. Net debt is calculated
as total borrowings less cash and cash equivalents.

In order to maintain or adjust the capital structure, the consolidated entity may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

The consolidated entity would look to raise capital when an opportunity to invest in a business or company was seen as
value adding relative to the current company's share price at the time of the investment. The consolidated entity is not actively
pursuing additional investments in the short term as it continues to integrate and grow its existing businesses in order to
maximise synergies.

The capital risk management policy remains unchanged from the 2018 Annual Report.

Accounting policy for issued capital
Ordinary shares are classified as equity.

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

Note 20. Equity - reserves

Share options reserve

Consolidated

2019
$

2018
$

243,519

Share options reserve
The share options reserve records items recognised as expenses or issue costs on valuation of options. Refer to Note 34
for share based payments made during the year ended 30 June 2019 and 30 June 2018.

Movements in reserves
Movements in each class of reserve during the current and previous financial year are set out below:

Consolidated

Balance at 1 July 2017
Share-based payment expense
Expired and lapsed options adjusted to Retained Earnings

Balance at 30 June 2018

Balance at 30 June 2019

Total
$

962,451
181,138
(900,070)

243,519

Investigator Resources Limited
Notes to the financial statements
30 June 2019

Note 21. Equity - accumulated losses

Accumulated losses at the beginning of the financial year
Expired options adjusted to retained earnings
Loss after income tax expense for the year

Accumulated losses at the end of the financial year

Note 22. Equity - dividends

Consolidated

2019
$

2018
$

(19,751,729)
-
(2,868,319)

(20,070,338)
900,070
(581,461)

(22,620,048)

(19,751,729)

There were no dividends paid, recommended or declared during the current or previous financial year.

Note 23. Financial instruments

Financial risk management objectives
The consolidated entity's activities expose it to a variety of financial risks: market risk (including foreign currency risk, price
risk and interest rate risk), credit risk and liquidity risk. The consolidated entity uses different methods to measure different
types of risk to which it is exposed. These methods include sensitivity analysis in the case of interest rate and ageing analysis
for credit risk.

Risk management is carried out by senior finance executives ('finance') under policies approved by the Board of Directors
('the Board'). These policies include identification and analysis of the risk exposure of the consolidated entity and appropriate
procedures, controls and risk limits. Finance identifies, evaluates and hedges financial risks within the consolidated entity's
operating units. Finance reports to the Board on a monthly basis.

The consolidated entity’s financial instruments consist mainly of deposits with banks, short-term investments, accounts
receivable, accounts payable and loans to related parties.

Market risk

Foreign currency risk
The consolidated entity is not exposed to foreign currency risk through foreign exchange rate fluctuations.

Price risk
The consolidated entity is not exposed to any significant price risk.

Interest rate risk
The consolidated entity's main interest rate risk arises interest income it can potentially earn on surplus cash deposits. The
Company has no interest-bearing borrowings from long-term borrowings and hence not exposed to any interest rate risk
from related variable rates.

The consolidated entity has cash and cash equivalents totalling $1,204,981 (2018: $2,889,752). An official increase/decrease
in interest rates of 0.5% (2018: 0.5%) basis points would have an adverse/favourable effect on profit before tax of $6,024
(2018: $14,448) per annum.

Credit risk
The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to recognised
financial assets, is the carrying amount, net of any provisions for impairment of those assets, as disclosed in the balance
sheet and notes to the financial statements

The credit risk for cash and cash equivalents is considered negligible as the consolidated entity invests its surplus funds with
reputable Australian banks with high quality external credit ratings. The consolidated entity does not have any other material
credit risk exposure to any single material credit risk exposure to any single receivable or group of receivables under financial
instruments entered into by the consolidated entity.

Investigator Resources Limited
Notes to the financial statements
30 June 2019

Note 23. Financial instruments (continued)

Liquidity risk
Vigilant liquidity risk management requires the consolidated entity to maintain sufficient liquid assets (mainly cash and cash
equivalents) and available borrowing facilities to be able to pay debts as and when they become due and payable.

The consolidated entity manages liquidity risk by maintaining adequate cash reserves and forecast cash flows and matching
the maturity profiles of financial assets and liabilities.

Fair value of financial instruments
Unless otherwise stated, the carrying amounts of financial instruments reflect their fair value.

Note 24. Key management personnel disclosures

Directors
The following persons were Directors of Investigator Resources Limited during the financial year:

D.M. Ransom
K.J. Wilson
A. McIlwain
J. A. Anderson

Chairman
Non-Executive Director
Director and Acting Chief Executive Officer (effective 16 August 2018)
Managing Director (Resigned 16 August 2018)

Compensation
The aggregate compensation made to Directors and other members of Key Management Personnel of the consolidated
entity is set out below:

Short-term employee benefits
Post-employment benefits
Long-term benefits
Share-based payments

Note 25. Remuneration of auditors

Consolidated

2019
$

2018
$

654,440
51,751
75,797
-

817,417
77,423
8,562
10,913

781,988

914,315

During the financial year the following fees were paid or payable for services provided by, the auditor of the company:

Audit services -
Audit or review of the financial statements

Other services -
Tax compliance and advisory services

Consolidated

2019
$

2018
$

39,780

48,483

12,700

6,900

52,480

55,383

Investigator Resources Limited
Notes to the financial statements
30 June 2019

Note 26. Commitments

The consolidated entity has certain obligations to perform exploration work and expend minimum amounts of money on such
works on mineral exploration tenements.

These obligations will vary from time to time, subject to statutory approval. The terms of current and future joint ventures, the
grant or relinquishment of licences and changes to licence areas at renewal or expiry, will alter the expenditure commitments
of the consolidated entity. To keep tenements in good standing, work programs should meet certain minimum expenditure
requirements. If the minimum expenditure requirements are not met, the Company has the option to negotiate new terms or
relinquish the tenements. The Company also has the ability to meet expenditure requirements by joint venture or farm-in
agreements.

Total expenditure commitments at balance date in respect of minimum expenditure requirements not provided for in the
financial statements are approximately:

Consolidated

2019
$

2018
$

1,974,268
291,332

1,635,842
840,905

2,265,600

2,476,747

75,540
69,410
3,465

105,169
1,980
5,940

148,415

113,089

Exploration Expenditure Commitments
Committed at the reporting date but not recognised as liabilities, payable:
Not later than one year
Later than one year but not later than two years

Office and Storage Shed Rentals

Committed at the reporting date but not recognised as liabilities, payable:
Not later than one year
Later than one year but not later than two years
Later than two years but not later than five years

Note 27. Related party transactions

Parent entity
Investigator Resources Limited is the Parent Entity.

Subsidiaries
Interests in subsidiaries are set out in Note 29.

Joint operations
Interests in joint operations are set out in Note 30.

Key management personnel
Disclosures relating to Key Management Personnel are set out in Note 24 and the remuneration report included in the
directors' report.

Investigator Resources Limited
Notes to the financial statements
30 June 2019

Note 27. Related party transactions (continued)

Transactions with related parties
The following transactions occurred with related parties:

Payment for other expenses:
Consulting fees paid to Andrew McIlwain & Associates Pty Ltd*

Consolidated

2019
$

2018
$

30,000

* Mr A. McIlwain is a director of Andrew McIlwain & Associates Pty Ltd (“AM&A”). From 1st July 2018, AM&A and Mr
McIlwain have been engaged to provide corporate advisory services to the company. The services to be provided are
based on normal commercial terms and conditions.

Receivable from and payable to related parties
There were no trade receivables from or trade payables to related parties at the current and previous reporting date.

Loans to/from related parties
There were no loans to or from related parties at the current and previous reporting date.

Terms and conditions
All transactions were made on normal commercial terms and conditions and at market rates.

Note 28. Parent entity information

Set out below is the supplementary information about the parent entity.

Statement of profit or loss and other comprehensive income

Loss after income tax

Total comprehensive income

Statement of financial position

Total current assets

Total assets

Total current liabilities

Total liabilities

Equity

Issued capital
Share options reserve
Accumulated losses

Total equity

Parent

2019
$

2018
$

(2,868,319)

(581,461)

(2,868,319)

(581,461)

Parent

2019
$

2018
$

1,260,439

3,591,269

30,987,999

34,213,513

294,206

582,297

294,206

651,401

53,070,322
243,519
(22,620,048)

53,070,322
243,519
(19,751,729)

30,693,793

33,562,112

Investigator Resources Limited
Notes to the financial statements
30 June 2019

Note 28. Parent entity information (continued)

Commitments for the Parent Entity are the same as those for the consolidated entity.

The Parent Entity has not entered into a deed of cross guarantee nor are there any contingent liabilities at year end.

Note 29. Interests in subsidiaries

The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance
with the accounting policy described in Note 2:

Name

Sunthe Uranium Pty Ltd
Gilles Resources Pty Ltd
Silver Eyre Pty Ltd
Kimba Minerals Pty Ltd
Goyder Resources Pty Ltd
Gawler Resources Pty Ltd

Principal place of business /
Country of incorporation

Australia
Australia
Australia
Australia
Australia
Australia

Ownership interest
2018
2019
%
%

100%
100%
100%
100%
100%
100%

Note 30. Interests in joint operations and farm-in arrangements

The consolidated entity has recognised its share of jointly held assets, liabilities, revenues and expenses of joint operations.
These have been incorporated in the financial statements under the appropriate classifications. Information relating to joint
operations that are material to the consolidated entity are set out below:

Name

Principal place of business /
Country of incorporation

Ownership interest
2018
2019
%
%

Thurlga – Pursuant to a farm-in agreement with
Peninsula Resources Pty Ltd

Australia

75%

Pursuant to a farm-in agreement with Peninsula Resources Pty Ltd, a wholly owned subsidiary of Andromeda Metals Limited,
the Company earned a 75% interest in the Thurlga tenement (EL 5419) by meeting the expenditure commitment of $750,000
during the year ended 30 June 2017. Gawler Resources Limited, a wholly owned subsidiary of Investigator Resources, is
the manager of the Joint Venture. The drilling on this tenement was contingent on the soil results. A detailed soil geochemical
sampling and soil results indicated towards low prospects in this tenement. During the period the company has discontinued
further exploration on this tenement and has withdrawn from the joint venture and the Company recognised an impairment
charge of $802,692 relating to the Thurlga tenement.

At the date of this report, other than disclosed in Note 31, the Company has no other interest in joint operations or farm-in
arrangements.

Investigator Resources Limited
Notes to the financial statements
30 June 2019

Note 31. Events after the reporting period

On 14 July 2019, the Company entered into a Heads of Agreement (“HOA”) with OZ Minerals Limited whereby Oz Minerals
will fund a $10 million three-stage exploration program to explore the Company’s Maslins Project. The Maslins Project is
located on EL 5705 (100% owned by Gawler Resources Pty Ltd, a wholly owned subsidiary of Investigator) that is subject of
this HOA. OZ Minerals Limited may earn up to 70% of the Maslins Project.

Subsequent to the year end, AusIndustry advised that it was undertaking an examination of the registration for tax
concession received under Research & Development (R&D) Tax Incentive program for the financial year 2018. The
Company submitted a comprehensive response to AusIndustry on 26 August 2019 and has received no response on the
matter as at the date of this report.

On 2 September 2019, the Company announced it undertook a share placement to raise $2.2 million via the issue of 91.67
million fully paid ordinary shares at $0.024 a share with a 1 for 3 free attaching listed option, totalling 30.6m, exercisable at
3.5 cents, with an expiry date of 31 December 2020.

Note 32. Cash flow information

Reconciliation of loss after income tax to net cash used in operating activities

Loss after income tax expense for the year

(2,868,319)

(581,461)

Consolidated

2019
$

2018
$

Adjustments for:
Depreciation and amortisation
Profit on disposal of plant and equipment
Employee options expense
Exploration expenditure written off

Change in operating assets and liabilities:

(Increase)/Decrease in trade and other receivables
(Increase)/Decrease in inventory
(Increase)/Decrease in other assets
(Decrease)/Increase in Provisions - current
(Decrease)/Increase in Provisions – non-current
(Decrease)/Increase in creditors and accruals

Net cash used in operating activities

Note 33. Earnings per share

2,617
(24,182)

-
1,797,782

6,728
-

10,913
814,974

626,903
12,679
6,477
(155,944)
(69,104)
(43,584)

(613,778)
(8,611)
(2,953)
(18,872)
9,756
(2,290)

(714,675)

(385,594)

Consolidated

2019
$

2018
$

Loss after income tax attributable to the owners of Investigator Resources Limited

(2,868,319)

(581,461)

Investigator Resources Limited
Notes to the financial statements
30 June 2019

Note 33. Earnings per share (continued)

Weighted average number of ordinary shares used in calculating basic earnings per share

739,972,032 685,501,297

Weighted average number of ordinary shares used in calculating diluted earnings per share 739,972,032 685,501,297

Number

Basic earnings per share
Diluted earnings per share

Accounting policy for earnings per share

Cents

(0.39)
(0.39)

(0.08)
(0.08)

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

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

Note 34. Share-based payments

During the reporting period there were no share-based payments issued to Directors or KMP (2018: nil).

Listed Options

During the 2018 financial year, 20,000,000 listed fully vested options (exercisable at $0.035, expiring on 31 December 2020)
were issued to PAC Partners Pty Ltd or its nominees in consideration for lead manager services provided, as approved by
shareholders at the Annual General Meeting held on 30 November 2017. Details of the listed options issued are set out at
Note 19 above.

The fair value of the options was determined as of $170,225 using the Black Scholes option pricing model using the following
inputs:

Weighted average share price at date of grant ($)
Weighted average exercise price ($)
Weighted average volatility %
Weighted average risk-free rate %
Days to expiry
Fair value of options $

Unlisted Options

0.022
0.035
74.852
2.015
1,163
170,225

During 2018 financial year, 2,500,000 unlisted fully vested options (exercisable at $0.048, expiring on 23 January 2020) were
issued to the Investigator’s Chairman, D. M. Ransom, as approved by shareholders at the Annual General Meeting held on
30 November 2017. Details of the options issued are set out at Note 19 above.

The fair value of the options was determined as of $10,913 using the Black Scholes option pricing model using the following
inputs:

Investigator Resources Limited
Notes to the financial statements
30 June 2019

Note 34. Share-based payments (continued)

Weighted average share price at date of grant ($)
Weighted average exercise price ($)
Weighted average volatility %
Weighted average risk-free rate %
Days to expiry
Fair value of options $

0.021
0.048
75.137
1.750
785
10,913

Details of unlisted share options on issue to KMP and other employees and weighted average exercise prices were as
follows:

Outstanding at 30 June 2017
Granted / Issued
Lapsed
Exercised
Outstanding at 30 June 2018
Granted / Issued
Lapsed
Exercised
Outstanding at 30 June 20191

KMP
Weighted
average
exercise
price
$

Employees
No. of
Options

Employees
Weighted
average
exercise
price
$

0.030
0.048
0.020
-
0.041
-
-
-
0.041

5,260,000
-
(5,260,000)
-
-
-
-
-
-

0.038
-
0.038
-
-
-
-
-
-

KMP
No. of
Options

5,755,000
2,500,000
(2,340,000)
-
5,915,000
-
-
-
5,915,000

1Includes 3,415,000 unlisted options held by J. A. Anderson who is no longer a KMP.

Accounting policy for share-based payments
Equity-settled and cash-settled share-based compensation benefits are provided to employees.

Equity-settled transactions are awards of shares, or options over shares, that are provided to employees in exchange for the
rendering of services. Cash-settled transactions are awards of cash for the exchange of services, where the amount of cash
is determined by reference to the share price.

The cost of equity-settled transactions are measured at fair value on grant date. Fair value is independently determined using
either the Binomial or 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 price volatility of the underlying share, the expected dividend
yield and the risk free interest rate for the term of the option, together with non-vesting conditions that do not determine
whether the consolidated entity receives the services that entitle the employees to receive payment. No account is taken of
any other vesting conditions.

The cost of equity-settled transactions are recognised as an expense with a corresponding increase in equity over the vesting
period. The cumulative charge to profit or loss is calculated based on the grant date fair value of the award, the best estimate
of the number of awards that are likely to vest and the expired portion of the vesting period. The amount recognised in profit
or loss for the period is the cumulative amount calculated at each reporting date less amounts already recognised in previous
periods.

The cost of cash-settled transactions is initially, and at each reporting date until vested, determined by applying either the
Binomial or Black-Scholes option pricing model, taking into consideration the terms and conditions on which the award was
granted. The cumulative charge to profit or loss until settlement of the liability is calculated as follows:
●

during the vesting period, the liability at each reporting date is the fair value of the award at that date multiplied by the
expired portion of the vesting period.
from the end of the vesting period until settlement of the award, the liability is the full fair value of the liability at the
reporting date.

●

Investigator Resources Limited
Notes to the financial statements
30 June 2019

Note 34. Share-based payments (continued)

All changes in the liability are recognised in profit or loss. The ultimate cost of cash-settled transactions is the cash paid to
settle the liability.

Market conditions are taken into consideration in determining fair value. Therefore, any awards subject to market conditions
are considered to vest irrespective of whether or not that market condition has been met, provided all other conditions are
satisfied.

If equity-settled awards are modified, as a minimum an expense is recognised as if the modification has not been made. An
additional expense is recognised, over the remaining vesting period, for any modification that increases the total fair value
of the share-based compensation benefit as at the date of modification.

If the non-vesting condition is within the control of the consolidated entity or employee, the failure to satisfy the condition is
treated as a cancellation. If the condition is not within the control of the consolidated entity or employee and is not satisfied
during the vesting period, any remaining expense for the award is recognised over the remaining vesting period, unless the
award is forfeited.

If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and any remaining expense
is recognised immediately. If a new replacement award is substituted for the cancelled award, the cancelled and new award
is treated as if they were a modification.

Investigator Resources Limited
Directors' declaration
30 June 2019

In the Directors' opinion:

●

the attached financial statements and notes comply with the Corporations Act 2001, the Accounting Standards, the
Corporations Regulations 2001 and other mandatory professional reporting requirements;

the attached financial statements and notes comply with International Financial Reporting Standards as issued by the
International Accounting Standards Board as described in Note 2 to the financial statements;

the attached financial statements and notes give a true and fair view of the consolidated entity's financial position as at
30 June 2019 and of its performance for the financial year ended on that date; and

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

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

Signed in accordance with a resolution of Directors made pursuant to section 295(5)(a) of the Corporations Act 2001.

On behalf of the Directors

___________________________
D.M Ransom
Chairman

2 September 2019

___________________________
A McIlwain
Acting Chief Executive Officer

Level 3, 170 Frome Street
Adelaide SA 5000

Correspondence to:
GPO Box 1270
Adelaide SA 5001

T +61 8 8372 6666
F +61 8 8372 6677
E info.sa@au.gt.com
W www.grantthornton.com.au

Independent Auditor’s Report

To the Members of Investigator Resources Limited

Report on the audit of the financial report

Opinion

We have audited the financial report of Investigator Resources Limited (the Company) and its subsidiaries (the Group),
which comprises the consolidated statement of financial position as at 30 June 2019, the consolidated statement of profit
or loss and other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash
flows for the year then ended, and notes to the consolidated financial statements, including a summary of significant
accounting policies, and the Directors’ declaration.

In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001, including:

a giving a true and fair view of the Group’s financial position as at 30 June 2019 and of its financial performance for the

year ended; and

b complying with Australian Accounting Standards and the Corporations Regulations 2001.

Basis for opinion

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are
further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are
independent of the Group 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.

Grant Thornton Audit Pty Ltd ACN 130 913 594
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389

www.grantthornton.com.au

Liability limited by a scheme approved under Professional Standards Legislation.

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.

We have determined the matter described below to be the key audit matter to be communicated in our report.

Key audit matter

How our audit addressed the key audit matter

Exploration and evaluation assets - Note 14

At 30 June 2019 the carrying value of Exploration and
Evaluation Assets was $29,700,636.

In accordance with AASB 6 Exploration for and Evaluation of
Mineral Resources, the Group is required to assess at each
reporting date if there are any triggers for impairment which
may suggest the carrying value is in excess of the recoverable
value.

The process undertaken by management to assess whether
there are any impairment triggers in each area of interest
involves an element of management judgement.

This area is a key audit matter due to the significant
judgement involved in determining the existence of
impairment triggers.

Our procedures included, amongst others:



obtaining the management reconciliation of capitalised
exploration and evaluation expenditure and agreeing to the
general ledger;

reviewing management’s area of interest considerations
against AASB 6;

conducting a detailed review of management’s
assessment of trigger events prepared in accordance with
AASB 6 including;



tracing projects to statutory registers, exploration
licenses and third party confirmations to determine
whether a right of tenure existed;

 enquiry of management regarding their intentions to
carry out exploration and evaluation activity in the
relevant exploration area, including review of
management’s budgeted expenditure; and

 understanding whether any data exists to suggest that
the carrying value of these exploration and evaluation
assets are unlikely to be recovered through
development or sale;

assessing the accuracy of impairment recorded for the
year as it pertained to exploration interests;

evaluating the competence, capabilities and objectivity of
management’s experts in the evaluation of potential
impairment triggers; and

assessing the appropriateness of the related financial
statement disclosures.

Information other than the financial report and auditor’s report thereon

The Directors are responsible for the other information. The other information comprises the information included in the
Group’s annual report for the year ended 30 June 2019, 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 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 preparing the financial report, the Directors are responsible for assessing the Group’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 Group or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial report

Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing
Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions
of users taken on the basis of this financial report.

A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance
Standards Board website at: http://www.auasb.gov.au/auditors_responsibilities/ar1.pdf. This description forms part of our
auditor’s report.

Report on the remuneration report

Opinion on the remuneration report

We have audited the Remuneration Report included in the directors’ report for the year ended 30 June 2019.

In our opinion, the Remuneration Report of Investigator Resources Limited, for the year ended 30 June 2019, complies
with section 300A of the Corporations Act 2001.

Responsibilities

The Directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance
with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report,
based on our audit conducted in accordance with Australian Auditing Standards.

GRANT THORNTON AUDIT PTY LTD
Chartered Accountants

J L Humphrey
Partner – Audit & Assurance

Adelaide, 2 September 2019

Investigator Resources Limited
Shareholder information
30 June 2019

The shareholder information set out below was applicable as at 27 August 2019.

DISTRIBUTION OF EQUITABLE SECURITIES

Analysis of number of equitable security holders by size of holding:

Range

1 - 1,000

1,001 - 5,000

5,001 - 10,000

10,001 - 100,000

100,001 Over

Total

Total holders

221

377

351

1,453

800

3,202

Units

21,434

1,280,082

2,866,700

62,133,560

673,670,256

739,972,032

% Units

0.00

0.17

0.39

8.40

91.04

100.00

EQUITY SECURITY HOLDERS
The names of the twenty largest security holders of listed equity securities are listed below:

Twenty Largest Shareholders

Name

CITIC AUSTRALIA PTY LTD
1
CITICORP NOMINEES PTY LIMITED
2
LAURIUM INVESTMENTS PTY LTD
3
GREGMAL NOMINEES PTY LIMITED
4
MR BRIAN JOHN ANDERSON
5
MR DIMITRI EMIL LAJOVIC
6
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
7
VALLEYTECH INSTRUMENTATION PTY LTD
8
EST MR MALCOLM THOM
9
10 WILLOW GLENN PTY LIMITED

CMC MARKETS STOCKBROKING NOMINEES PTY LIMITED

TAIPAN INVESTMENT MANAGEMENT PTY LIMITED

BNP PARIBAS NOMINEES PTY LTD

REVEDOR PTY LTD
ROBERTSON ARCHITECTURAL SERVICES PTY LTD
16
AUSTRIKE RESOURCES PTY LTD
17 MAPT PTY LIMITED

MR BRUCE EDWARD FOY + MRS ELIZABETH MARY FOY

19 MR MARK CRAIG
20

COMSEC NOMINEES PTY LIMITED

Total Top 20 Shareholders

No. of shares % Units

55,400,000
49,469,548
25,213,092
12,710,633
9,902,696
8,893,625
8,328,214
8,000,000
6,575,375
6,330,694

5,331,289

5,299,915

5,017,272

5,000,000

4,763,843
4,575,375

4,526,713

4,157,593
3,949,581

7.49
6.69
3.41
1.72
1.34
1.20
1.13
1.08
0.89
0.86

0.72

0.68

0.64
0.62

0.61

0.56
0.53

238,445,458

32.25

Investigator Resources Limited
Shareholder information
30 June 2019

Substantial Shareholders
Details of substantial shareholders are set out below:

Name

CITIC AUSTRALIA PTY LTD

CITICORP NOMINEES PTY LIMITED

Twenty Largest Option Holders

Name

CITICORP NOMINEES PTY LIMITED

MRS LESLEY LORD
MR ADAM ANTHONY MIOCEVICH
VALLEYTECH INSTRUMENTATION PTY LTD

TAYLOR FAMILY INVESTMENTS PTY LTD
MR WARWICK DYSON
MR MICHAEL REPS
PAC PARTNERS PTY LTD

MR IAN HEMBROW + MRS CLARE HEMBROW
ALEXIOS ADAMIDES NEUROSURGERY PTY LTD
MR IAN HEMBROW

MR DAVID JOHN IKIN + MRS ILDIKO IKIN

2
3
4

5
6
6
8

MR CRAIG RUSSELL STRANGER

12
14 WILLOW GLENN PTY LIMITED
MRS LYNN PORTEUS
15
BENRIE PTY LTD
16
MR JOHN RICHARD PAPWORTH
16

PG SUPERANNUATION FUND PTY LTD

19
20

MRS BROOKE LAUREN PICKEN
EST MR MALCOLM THOM
Total Top 20 Listed Option Holders

VOTING RIGHTS
The voting rights attached to ordinary shares are set out below:

No. of shares % Units
7.49

55,400,000

49,469,548

6.69

Units % Units

14,438,358

11,950,000
7,635,909
7,000,000

6,000,000
5,000,000
5,000,000
4,500,000

3,592,371

3,500,000

3,024,566

3,000,000

3,000,000
2,575,375
2,542,616
2,000,000
2,000,000

2,000,000

8.91

7.38
4.71
4.32

3.70
3.09
3.09
2.78

2.22

2.16

1.87

1.85

1.85
1.59
1.57
1.23
1.23

1.23

1,600,000
1,575,375
91,934,570

0.99
0.97
56.74

Ordinary shares
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each
share shall have one vote.

Other annual reports

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