LACHLAN STAR LIMITED ABN 88 000 759 535 Annual Report 30 June 2024 LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 PAGE 1 CORPORATE DIRECTORY DIRECTORS Gary Steinepreis (Non-Executive Chairman) Daniel Smith (Non-Executive Director) Stacey Apostolou (Non-Executive Director) Brendan Bradley (Non-Executive Director) CHIEF EXECUTIVE OFFICER Andrew Tyrrell COMPANY SECRETARY Daniel Smith AUDITORS Hall Chadwick WA Audit Pty Ltd 283 Rokeby Road Subiaco WA 6008 BANKERS Westpac Banking Corporation Level 13 109 St Georges Terrace Perth, WA, 6000 REGISTERED OFFICE Level 2, 1292 Hay Street West Perth WA 6005 Telephone: +61 8 6556 8880 Facsimile: +61 8 6556 8881 SHARE REGISTRY Computershare Investor Services Pty Limited Level 17 221 St Georges Terrace Perth WA 6000 Investor Enquiries: 1300 850 505 (within Australia) Investor Enquiries: +61 3 9415 4000 (outside Australia) Facsimile: +61 3 9473 2500 SECURITIES EXCHANGE LISTING Securities of Lachlan Star Limited are listed on ASX Limited. ASX Code: LSA - ordinary shares LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 PAGE 2 CONTENTS Operating and Financial Review 3-12 Directors’ Report 13-22 Auditor’s Independence Declaration 23 Consolidated Statement of Profit or Loss and Other Comprehensive Income 24 Consolidated Statement of Financial Position 25 Consolidated Statement of Changes in Equity 26 Consolidated Statement of Cash Flows 27 Notes to the Consolidated Financial Statements 28-44 Consolidated Entity Disclosure Statement 45 Directors’ Declaration 46 Independent Auditor’s Report to the Members 47-52 Additional Shareholder Information 53-55 LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 | DIRECTORS’ REPORT LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 PAGE 3 OPERATING AND FINANCIAL REVIEW FINANCIAL PERFORMANCE The consolidated entity’s loss after tax for the year ended 30 June 2024 was $1,779,323 (2023: loss of $374,421) after recognising impairment expenses of $850,000 (2023: nil) corporate compliance and management costs of $378,946 (2023: $264,085) and other expenses of $287,503 (2023: $147,948). FINANCIAL POSITION An analysis of the significant movements in Statement of Financial Position line items is provided below: CASH AND CASH EQUIVALENTS As at 30 June 2024 the Group had cash reserves of $1,614,668, a decrease of $1,753,091 from 30 June 2023. TRADE AND OTHER RECEIVABLES Trade and other receivables have increased by $56,685 since 30 June 2023. EXPLORATION AND EVALUATION Exploration and evaluation expenditure has increased by $6,797,776 due in the main to the acquisition of DevEx Resources Limited’s copper and gold New South Wales portfolio for consideration of $7,500,000 (satisfied by the issue of 75,672,720 ordinary shares) plus a 2% net smelter royalty (refer note 7). This increase is net of an impairment of $850,000 against the Company’s Killaloe project. TOTAL LIABILITIES Total liabilities have increased by $386,608 since 30 June 2023. CONTRIBUTED EQUITY The movement in contributed equity since 30 June 2023 is shown below: 30 June 2024 $ No. Ordinary shares 1 July 2023 9,822,599 1,319,012,709 Consolidation 10:1 - (1,187,112,234) Acquisition of shares – TRK Resources Pty Ltd 6,810,545 75,672,720 30 June 2024 16,633,144 207,573,195 RESERVES Reserves at 30 June 2024 were $932,787 (2023: $886,202). REVIEW OF OPERATIONS Lachlan Star Limited (the “Company” or “Lachlan Star”) is an active explorer focused on world-class copper and gold discoveries within the Lachlan Fold Belt, New South Wales. Lachlan Star’s portfolio includes district scale opportunities and drill ready targets within the Macquarie Arc and Cobar Basin, both premier destinations for discovery and mining operations. Lachlan Star’s strategy is to enhance shareholder value through the discovery and delineation of economic gold and copper deposits, within a sustainable exploration portfolio located in mineral endowed and favourable mining jurisdictions. LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 | DIRECTORS’ REPORT LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 PAGE 4 This strategy is supported by the Company’s approach to exploration through effective target identification, delineation and testing aimed at economic discovery. Lachlan Star’s portfolio comprises early-stage high-potential exploration projects including Basin Creek, North Cobar, Bauloora North and Junee, acquired through a corporate transaction with DevEx Resources Limited (Transaction) and completed on 25 October 2023. The Company also has the Koojan Joint Venture with Minerals 260 Limited in the northern Julimar Province of Western Australia, the Princhester Magnesite Project in the New England Orogen of Queensland and the Killaloe Gold and Nickel Project in the Eastern Goldfields of Western Australia. Following the Transaction, the Company completed a review of the portfolio, assessing prospectivity, history of exploration activity, access agreements, and target generative activities to build a project pipeline. The project pipeline ensures disciplined allocation of capital to progress only the highest quality targets across all stages of the pipeline to discovery. During 2024, Lachlan Star continued to build around its core tenement holdings with the application of additional Exploration Licences within the central Cobar Basin over key prospective areas aligned to the corporate strategy. NEW SOUTH WALES JUNEE PROJECT (100% LACHLAN STAR) At the Junee Project, the Company is exploring for porphyry copper-gold, low sulphidation gold and volcanic massive sulphide mineralisation within a district that is seeing renewed interest from explorers and gold major, Newmont Corporation. This renewed interest is a result of recent work conducted by the Geological Survey of New South Wales, which demonstrated the Cooba Monzonite intrusive rocks, within the Junawarra Volcanics of the Junee Project area, as being equivalent in age (438.2Ma +/- 2Ma) and chemistry to the copper-gold mineralised intrusions of the Cadia-Ridgeway and Northparkes mining operations to the north. Lachlan Star believes this information validates the Company’s interpretation that the geology within its northern Junee Project tenure has the potential to host equivalent intrusive complex porphyry gold and copper and epithermal gold systems. To date, several prospects within the northern Junee Project area (Figure 1) demonstrate comparable intrusive rocks, alteration indicators and elevated gold and copper geochemistry in surface rock chips, soils and drilling, completed by previous explorers. Evaluation of the exploration data across the northern Junee Project tenements continues, with a focus on the Billabong Creek and Nangus prospects. Figure 1 – Map showing location of Lachlan Star’s Exploration Licences and key prospects within the northern Junee Project area including key geological features over Digital Elevation Model (DEM). LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 | DIRECTORS’ REPORT LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 PAGE 5 At the southern Junee Project area (Figure 2), a review of historic exploration data is underway with an emphasis on the Basin Creek Prospect and the high-grade copper intersections reported in diamond drilling by past explorers. The tenements of the southern Junee Project area straddle the metalliferous Gilmore Suture (Fault) Zone. A regionally strike extensive, first order structure that is spatially associated with several significant metal deposits along its length. Basin Creek is located approximately 12 kilometres south of the town of Tumut, in central New South Wales, and overlies the southern extensions of the Silurian-aged Jackalass Slate of the Tumut Trough. Anomalous surficial copper and base metal geochemistry was first identified in 1972 by Australian Oil & Gas Minerals Pty Ltd (AOG), which completed diamond drilling over the prospect, defining significant copper mineralisation within bedrock for over 250 metres of strike, 150 metres in width and to a depth of 200 metres. Better intercepts reported by AOG include: • 4.6 metres at 18.54 % copper from 57.9 metres (TDH01) • 4.6 metres at 3.09 % copper from 74.7 metres (TDH08) • 1.5 metres at 6.40 % copper from 205.7 metres (TDH09) • 3.1 metres at 5.50 % copper from 59.4 metres (TDH13) • 3.1 metres at 2.04 % copper from 94.48 metres (TDH15) A program of relogging of the historic drill core was completed by Lachlan Star, to delineate controls on the high-grade mineralisation. Relogging has recognised that the high- grade copper mineralisation (Figure 3) occurs as accumulations of semi-massive chalcopyrite, within a halo of lower grade, veined to fracture fill and disseminated sulphides (Figure 4), including chalcopyrite and lesser pyrite. More broadly the mineralisation is enclosed within an envelope of chlorite + magnetite alteration and hosted within a volcano-sedimentary sequence of andesitic volcaniclastics, felsic welded tuffs, conglomerates and phyllitic sediments. The relogging exercise also identified that only discrete intervals of drill core were selectively sampled by AOG and assayed for copper, lead, zinc and silver, with over 85 % of the core remaining unsampled and unassayed. A sampling program was completed by Lachlan Star, across sections immediately adjacent to existing high-grade intercepts and of other zones containing chalcopyrite, confirming the presence of copper sulphides beyond the historically reported intersections, and returning significant results of up to 1.35 % copper Encouragingly, the mineralisation intersected within historic drilling is interpreted to be open along strike and down-plunge. Figure 2 – Map showing location of Lachlan Star’s Exploration Licences and key prospects within the southern Junee Project area including key geological features over Digital Elevation Model (DEM). Priority Basin Creek Prospect LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 | DIRECTORS’ REPORT LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 PAGE 6 Figure 3 – Photo of diamond core completed by Australian Oil & Gas Minerals Pty Ltd (1970’s). Sample interval of 4.6 metres at 18.54 % Cu from 57.9 metres in TDH01 containing massive chalcopyrite (copper sulphide). Core diameter is BQ (36.4mm) with quarter core retained as a representative sample. Chalcopyrite is tarnished brown by length of time in core tray. Figure 4 – Schematic long section (30 metre window looking east-northeast towards 080o) of the mineralised zone at Basin Creek showing pierce points of AOG diamond holes and significant intersections highlighted. LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 | DIRECTORS’ REPORT LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 PAGE 7 Furthermore, existing anomalous copper surface geochemistry extends beyond the drilling and contains assays up to 2,100 ppm (0.2 % Cu) copper-in-soils (Figure 5). The total strike length of the surface copper anomaly is approximately 1,400 metres, with the scale and tenor of this footprint indicating the potential of the project to host further significant high- grade copper mineralisation along strike. NORTH COBAR PROJECT (100% LACHLAN STAR) The North Cobar Project lies immediately north of the Cobar mining centre in central New South Wales (Figure 6) and straddles the northern extension to the Rookery and Buckwaroon Fault systems, a metalliferous fault network which is associated with several significant gold-base metal mines in the district. The Project overlies the northeastern margins of the Cobar Basin and comprises sedimentary units of the Siluro-Devonian Kopyje, Nurri and Amphitheatre Groups. Regionally, the strike extensive Buckwaroon and Rookery Fault Zone intersect within the project area. Providing a complex and favourable structural environment for the deposition of economic mineralisation. Following completion of the Transaction, the Company prioritised exploration activities at North Cobar that included geological mapping, surface geochemical sampling, ground geophysics, and 3D inversion modelling and interpretation. In total, 45 rock chip and 436 soils samples were collected and assayed, while 2252 gravity stations were acquired over a 120 square kilometre survey area. Funding for the geophysical survey was supported by the New South Wales Government New Frontiers Exploration Program (Round 5), which contributed a $50,000 grant towards the program. 3D modeling and interpretation of the acquired data has generated priority drill targets, Knights Tanks and Galahad (Figures 6). These targets are characterised as discrete gravity anomalies coincident with magnetic features (Figures 7 and 8), within an interpreted complex structural corridor. Supported by weakly elevated, but coherent, soil geochemical anomalies of gold, arsenic, antimony (Au, As, Sb) and lead, zinc, silver (Pb, Zn, Ag). The priority targets are well positioned at the intersection of the Rookery and Buckwaroon Fault systems, major first order growth structures within the Cobar Basin which are interpreted to control ore deposition at the CSA and Endeavor mine’s, respectively. Additional work is scheduled at North Cobar, including gridded soil surface geochemical sampling, ground based Induced Polarisation geophysics, and reverse circulation drilling. Figure 5 – Isometric plan view looking towards the northeast (GDA94 MGA zone 55), showing distribution of surface geochemical samples (soils and rock chips) with copper assay results (in ppm) shown. Area of historic AOG drilling and significant surface assays also shown. Note, 1000 ppm Cu is equivalent to 0.1 % Cu. LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 | DIRECTORS’ REPORT LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 PAGE 8 NEW COBAR EXPLORATION LICENCE APPLICATIONS (100% LACHLAN STAR) Lachlan Star successfully lodged applications for four new Exploration Licences within the highly competitive and endowed Cobar region (Figure 6). The four new applications, totalling 1,215 square kilometres, are well located within the central Cobar Basin, sit directly adjacent to existing mines and infrastructure (CSA and Peak Mine), and overlie favourable structures and prospective geology. A mineral systems prospectivity review of the Cobar Basin highlighted the importance of structure in the emplacement of economic deposits within the region, with the new applications overlaying major faults and fault intersections, interpreted as prospective for hosting significant copper- gold and lead-zinc-silver mineralisation. This targeting rationale will drive the focus of exploration activity when tenements are granted. The Cobar region remains a premier location for gold and base metal discovery, with increasing interest from industry peers, underpinned by the acquisition of the CSA Mine in June 2023 by Metals Acquisition Limited (ASX: MAC) for US$1.1 billion. Figure 6 – Map showing location of Lachlan Star’s Exploration Licences and key prospects within the Cobar Basin, central New South Wales including key geological features over Digital Elevation Model (DEM). LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 | DIRECTORS’ REPORT LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 PAGE 9 Figure 7 – Isometric geophysical block model mages showing ground gravity 3D density contrast Iso-Shells (up to 0.14 g/cc) on magnetic 3D inversion (SIx10-6) model. Geophysical and structural features annotated, and priority drill target areas highlighted. LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 | DIRECTORS’ REPORT LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 PAGE 10 BAULOORA NORTH PROJECT (100% LACHLAN STAR) At Bauloora North, the Company is exploring for low-sulphidation epithermal gold mineralisation. The project is situated east of the township of Temora in central New South Wales, immediately north and contiguous to ground being actively explored by gold major Newmont Corporation (ASX: NEM) in joint venture with Legacy Minerals Holdings Limited (ASX: LGM), where significant epithermal alteration and veining have been mapped and is interpreted to extend into Lachlan Star’s tenement (Figure 8). The Bauloora North tenement overlies the same geological sequence which hosts mineralisation immediately to the south and is extensively overlain by a thin layer of transported alluvial material. Prior to Lachlan Star’s exploration activities, the project area had not seen any modern systematic exploration. Reconnaissance mapping and rock chip sampling completed by the Company have identified extensive areas of significant argillic-to-phyllic alteration, interpreted to represent the upper, shallow expression of a low sulphidation hydrothermal system. In total, 36 rock chip samples were collected and assayed with results returning elevated gold-arsenic- antimony (Au-As-Sb) and copper-lead- zinc (Cu-Pb-Zn) coincident with the observed alteration. These multi-element geochemical pathfinders and alteration minerals and textures provide encouraging vectors for further focused exploration activity. Additional fieldwork including gridded surface geochemical sampling and ground based Induced Polarisation geophysics, is now planned across these areas of extensive alteration and elevated geochemistry aiming at delineating drill targets. WESTERN AUSTRALIA KOOJAN PROJECT (45% LACHLAN STAR) The Koojan Project is under a farm out arrangement with Minerals Limited (Minerals 260) where Minerals 260 have the option to earn a 51% interest in the Project through a total expenditure of $4 million within 5 years. At the end of the reporting period, Minerals 260 had met the Stage 1 expenditure requirements of the farm-in agreement and are currently earning into Stage 2. During the reporting period, Minerals 260 completed a Dipole-Dipole Induced Polarisation (DDIP) geophysical survey across the Mallory prospect which defined several coincident chargeable and conductive anomalies, interpreted as sulphide mineralisation associated with regional structures. Figure 8 – Map showing location of Lachlan Star’s Exploration Licences and key prospects within the Bauloora North Project area including key mapped alteration and geological features over greyscale 1VD RTP magnetics. LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 | DIRECTORS’ REPORT LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 PAGE 11 Minerals 260 subsequently tested the strongest coincident chargeability-conductivity anomaly generated from the DDIP survey across the Mallory prospect, with two reverse circulation holes completed for a total of 336 metres. Both holes intersected predominately unmineralised Proterozoic dolerite units. No further work is currently planned on these targets. KILLALOE PROJECT (80-100% LACHLAN STAR) During the reporting period no work was conducted on this project. QUEENSLAND PRINCHESTER MAGNESITE PROJECT (100% LACHLAN STAR) The Company has submitted mining lease licence renewal applications for ML5831 and ML5832. During the reporting period no work was conducted on this project. CORPORATE Annual General Meeting At the Company’s Annual General Meeting held on 29 November 2023 all resolutions were passed by way of a poll. Acquisition of TRK Resources Pty Ltd On 2 August 2023, the Company announced it had entered into an agreement with DevEx Resources Limited (ASX: DEV; DevEx) to acquire a substantial and highly prospective portfolio of copper and gold exploration tenements in the world- class Lachlan Fold Belt of New South Wales, for consideration of $7.5 million to be satisfied by the issue of Lachlan Star shares plus a 2% Net Smelter Royalty (Transaction). The Agreement covered 11 granted tenements which comprise the Junee, North Cobar, Bauloora North and Basin Creek Projects, with a combined area of 1,956 square kilometres. On 25 October 2023, the Company announced the Transaction had completed with 75,672,720 ordinary shares issued and consequently Mr Brendan Bradley and Ms Stacey Apostolou joined the board as non-executive directors, with Mr Bernard Aylward resigning at the same time. Consolidation of Capital On 17 October 2023, the Company announced completion of the consolidation of issued capital on the basis of 1 ordinary shares for every 10 ordinary shares on issue. CEO Appointment Highly experienced mining executive and geologist Andrew Tyrrell was appointed as Chief Executive Officer of the Company. Mr Tyrrell commenced his role with the Company on 1 February 2024. Option and Performance Rights Expiry During the period, 1,700,000 unlisted options exercisable at $0.22 each and 1,000,000 performance rights expired. LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 | DIRECTORS’ REPORT LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 PAGE 12 ANNUAL STATEMENT OF MINERAL RESOURCES AND ORE RESERVES The Company does not have any Mineral Resources or Ore Reserves. Competent Person’s Statement – Exploration Results The Information in this Report that relates to Exploration Results for the Company’s NSW projects is extracted from: • “Initial field exploration programs commence at NSW gold-copper projects”, released 17 April 2024; • “Positive start to exploration in NSW and acquisition of priority ground in Cobar”, released 17 June 2024; and • “High-grade copper drill targets defined at Basin Creek – Junee Project, NSW”, released 13 August 2024, all of which are available at www.lachlanstar.com. The Information in this report that relates to Exploration Results for the Koojan JV Project is extracted from the ASX announcements of Minerals 260 Limited titled: • “Further high-grade copper-gold intercepts expand scale of Mynt, additional targets identified at Moora”, released 4 April 2024; and • the December 2023 quarterly activities report, dated 29 January 2024, which are available at www.minerals260.com.au. The Company confirms that it is not aware of any new information or data that materially affects the information included in the above original market announcements 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 that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement. Forward Looking Statement This report contains forward-looking statements which involve a number of risks and uncertainties. These forward-looking statements are expressed in good faith and believed to have a reasonable basis. These statements reflect current expectation, intentions or strategies regarding the future and assumptions based on currently available information. Should one or more of the risks or uncertainties materialise, or should underlying assumptions provide incorrect, actual results may vary from the expectations, intentions and strategies described in this report. No obligation is assumed to update forward looking statements if these beliefs, opinions and estimates should change or to reflect other future developments. LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 | DIRECTORS’ REPORT LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 PAGE 13 DIRECTORS’ REPORT The directors present their report together with the financial report of the consolidated entity, being Lachlan Star Limited (Company or Lachlan) and its subsidiaries (consolidated entity or group), at the end of and for the year ended 30 June 2024. Lachlan Star Limited is a listed public company incorporated and domiciled in Australia. DIRECTORS The names and details of the Company’s directors in office at any time during the financial year and up to the date of this report are as follows. Directors were in office for this entire period unless otherwise stated. Gary Steinepreis – Non-executive Chairman Appointed 18 January 2018 Mr Steinepreis holds a Bachelor of Commerce degree from the University of Western Australia and is a Chartered Accountant. He provides corporate, management and accounting advice to a number of companies involved in the resource, technology and manufacturing industries. Directorships held in listed entities Company Name Appointed Resigned CFOAM Limited 30 March 2016 - Taruga Minerals Limited 15 July 2016 - Former directorships over the past 3 years Nil Interest in Shares and Options Fully Paid Shares – 11,638,235 (adjusted for 10:1 share consolidation) Performance Rights – Nil Options – Nil Brendan Bradley – Non-executive Director Appointed 25 October 2023 Mr Bradley is a geologist with over 20 years of mineral exploration, mining and resource development experience in a broad range of geological settings. Prior to his appointment as Managing Director of DevEx Resources Limited in 2017, Mr Bradley was working in the Asian region in a variety of business development roles for mid-tier gold miners Kingsgate Consolidated and Dominion Mining. Mr Bradley holds a Bachelor of Applied Science with Honours and is a Member of the Australian Institute of Geoscientists. Directorships held in listed entities Company Name Appointed Resigned DevEx Resources Limited 1 June 2017 - Former directorships over the past 3 years Nil Interest in Shares and Options Nil Stacey Apostolou – Non-executive Director Appointed 25 October 2023 Ms Apostolou is a Finance Executive with over 30 years’ experience in the Australian resources sector. Ms Apostolou has previously held a range of senior positions as CFO and Company Secretary of listed resources companies. LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 | DIRECTORS’ REPORT LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 PAGE 14 Prior to her role at DevEx Resources Limited, she was Chief Financial Officer for EMR Capital’s Golden Grove and Capricorn Copper operations prior to the listing of 29 Metals in July 2021, where she then held the role of Group Manager, Commercial and Finance. Ms Apostolou has significant experience in corporate and financial matters, holds a Bachelor of Business degree and is a member of CPA Australia. Directorships held in listed entities Company Name Appointed Resigned DevEx Resources Limited 26 April 2022 - Former directorships over the past 3 years Nil Interest in Shares and Options Nil Daniel Smith – Non-executive Director Appointed 18 January 2018 Mr Smith is a Fellow of the Governance Institute of Australia and has over 16 years’ primary and secondary capital markets expertise. As a director of corporate consulting firm Minerva Corporate, he has advised on, and been involved in, over a dozen IPOs, RTOs and capital raisings on both the ASX, AIM and NSX. His key focus is on corporate governance and compliance, commercial due diligence and transaction structuring, as well as ongoing investor and stakeholder engagement. Directorships held in listed entities Company Name DY6 Metals Ltd Nelson Resources Limited Alien Metals Ltd Appointed 3 November 2022 15 August 2022 27 February 2019 Resigned - - 6 September 2023 Artemis Resources Limited White Cliff Minerals Limited QX Resources Limited Europa Metals Ltd 5 February 2019 14 December 2018 13 June 2018 16 January 2018 31 October 2023 - - - Former directorships over the past 3 years Alien Metals Ltd. Artemis Resources Limited. Interest in Shares and Options Fully Paid Shares – 960,000 (adjusted for 10:1 share consolidation) Options – Nil Bernard Aylward – Non-executive Director Appointed 18 January 2018; resigned 25 October 2023 Mr Aylward is a geologist with over 20 years’ experience as a manager and exploration geologist in the mining and exploration industry in a variety of commodities. COMPANY SECRETARY Mr Daniel Smith was appointed Company Secretary on 19 March 2018. LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 | DIRECTORS’ REPORT LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 PAGE 15 DIRECTORS’ MEETINGS During the financial year, the Board conducted the majority of its formal business via director’s resolutions. The following table sets out the number of meetings of the Company’s Directors held during the year ended 30 June 2024, and the number of meetings attended by each Director. Number eligible to attend Number attended G Steinepreis 2 2 D Smith 2 1 B Bradley 2 2 S Apostolou 2 2 PRINCIPAL ACTIVITIES The Company’s principal activities revolve around mineral resource exploration in Australia. Refer to the events subsequent to reporting date detailed below. ENVIRONMENTAL REGULATION AND PERFORMANCE The consolidated entity’s exploration and mining activities were concentrated in Australia. Environmental obligations are regulated under both State and Federal Laws. No environmental breaches have been notified to the Company by government agencies during the year ended 30 June 2024. DIVIDENDS No dividends were paid during the year and the directors do not recommend payment of a dividend in respect of the reporting period (2023: Nil). AUDIT COMMITTEE The Board considers that the Company is not currently of a size to justify an Audit Committee. The whole board act as the audit committee. AUDITOR’S INDEPENDENCE DECLARATION The auditor’s independence declaration under Section 307C of the Corporations Act 2001 is set out on page 20 and forms part of the directors’ report for the financial year ended 30 June 2024. REMUNERATION COMMITTEE The Board considers that the Company is not currently of a size to justify a Remuneration Committee. The whole board act as the remuneration committee. NON-AUDIT SERVICES The auditors did not provide any non-audit services during either the period under review or the corresponding period. 30-Jun-24 $ 30-Jun-23 $ Amounts received or due and receivable by Hall Chadwick WA Audit Pty Ltd for: An audit or review of the financial report of the entity 33,604 26,859 Total audit services provided to the Group 33,604 26,859 LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 | DIRECTORS’ REPORT LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 PAGE 16 EVENTS SUBSEQUENT TO REPORTING DATE On 15 August 2024, the Company announced that it had identified an exciting new high-grade copper sulphide drill target at the Basin Creek prospect, within its 100%-owned southern Junee Project in the Lachlan Fold belt of NSW. On 26 September 2024, the Company announced it had received commitments to raise $4.5 million through the issue of 45 million ordinary shares at $0.10 per share. No other matter or circumstance has arisen since 30 June 2024 that in the opinion of the directors has significantly affected, or may significantly affect in future financial years (i) the consolidated entity’s operations, or (ii) the results of those operations, or (iii) the consolidated entity’s state of affairs. INDEMNITY OF DIRECTORS AND COMPANY SECRETARY Deeds of Access and Indemnity have been executed by the parent entity with each of the current directors and Company Secretary. The deeds require the Company to indemnify each director and the Company Secretary against any legal proceedings, to the extent permitted by law, made against, suffered, paid or incurred by the director or Company Secretary pursuant to, or arising from or in any way connected with the director or Company Secretary being an Officer of the Company or its subsidiaries. REMUNERATION REPORT The Remuneration Report is set out on pages 19 to 22 and forms part of this Directors’ Report. INSURANCE OF DIRECTORS AND OFFICERS During the financial year the Company paid a premium to insure the directors and officers of the Company and its controlled entities. The policy prohibits the disclosure of the nature of the liabilities covered and the amount of the premium paid. LIKELY DEVELOPMENTS The Company has allocated part of its working capital budget to the identification and evaluation of new mineral resource opportunities in Australia and overseas, undertaking a review of a range of opportunities during the year. Refer to the events subsequent to reporting date detailed below. OPERATING AND FINANCIAL REVIEW An operating and financial review for the period is set out on pages 3 to 12 and forms part of this Directors’ Report. DIRECTORS’ INTERESTS At the date of this report, the relevant interests of the directors in securities of the Company are as follows: 20241 2023 Ordinary shares Share Options Performance Rights Ordinary shares Share Options Performance Rights G Steinepreis 11,638,235 - - 116,382,352 - - D Smith 960,000 - - 9,600,000 7,000,000 - S Apostolou - - - - - - B Bradley - - - - - - 1 Adjusted for 10:1 share consolidation LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 | DIRECTORS’ REPORT LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 PAGE 17 SHARES UNDER OPTION The following unissued ordinary shares of the Company are under option: Expiry Date Exercise price Balance at start of year Issued during the year Expired during the year Balance at the end of the year 27 Nov 2023 2.2 cents 1,700,0001 - (1,700,000) - 1 Feb 2028 7.5 cents - 5,000,000 - 5,000,000 1 March 2028 7.5 cents - 1,000,000 - 1,000,000 1 Adjusted for 10:1 share consolidation PERFORMANCE RIGHTS The following performance rights of the Company are on issue: Expiry Date Balance at start of year Issued during the year Converted during the year Cancelled/ lapsed during the year Balance at the end of the year 1 April 2024 1,000,0001 - - (1,000,000) - 1 Adjusted for 10:1 share consolidation. PROCEEDINGS ON BEHALF OF THE CONSOLIDATED ENTITY No person has applied for leave to the Court to bring proceedings on behalf of the Company or intervene in any proceedings to which the Company is a party for the purpose of taking responsibility on behalf of the Company for all or any part of those proceedings. The Company was not a party to any such proceedings during the year. RISK MANAGEMENT The Board of Directors review the key risks associated with conducting exploration and evaluation activities in Australia and steps to manage those risks. The key material risks faced by the Company include: Exploration and development The future value of the Company will depend on its ability to find and develop resources that are economically recoverable. Mineral exploration and development is a speculative undertaking that may be impeded by circumstances and factors beyond the control of the Company. Success in this process involves, amongst other things; discovery and proving-up an economically recoverable resources or reserves, access to adequate capital throughout the project development phases, securing and maintaining title to mineral exploration projects, obtaining required development consents and approvals, access to competent management and appropriately skilled personnel and environmental risks. The Company is entirely dependent upon its projects, which are the sole potential source of future revenue, and any adverse development affecting these projects would have a material adverse effect on the Company, its business, prospects, results of operations and financial condition. Economic Conditions Factors such as (but not limited to) political movements, stock market fluctuations, interest rates, inflation levels, commodity prices, industrial disruption, taxation changes and legislative or regulatory changes, may all have an adverse impact on the Company’s projects, availability of commercial opportunties and the Company’s share price. LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 | DIRECTORS’ REPORT LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 PAGE 18 Future funding risk Continued exploration and evaluation is dependent on the Company being able to secure future funding from equity markets as required. There can be no assurance that such funding will be available on satisfactory terms or at all at the relevant time. Any inability to obtain sufficient financing for the Company’s activities and future projects may result in the delay or cancellation of certain activities or projects, which would likely adversely affect the potential growth of the Company. Regulatory and permitting Delays in obtaining exploration permits or changes in regulatory requirements can hinder exploration progress and increase costs. Land access There is a substantial level of regulation and restriction on the ability of exploration and mining companies to have access to land in Australia. Negotiation with land owners/occupiers are generally required before a company can access land for exploration activities LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 | DIRECTORS’ REPORT LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 PAGE 19 REMUNERATION REPORT (AUDITED) The information provided in this remuneration report has been audited as required by section 308 (3C) of the Corporations Act 2001. Principles used to determine the nature and amount of compensation The objective of the Company’s executive reward framework is to ensure reward for performance is competitive and appropriate for the results delivered. The framework aligns executive reward with achievement of strategic objectives and the creation of value for shareholders, and conforms to market best practice for delivery of reward. The Board ensures that executive reward satisfies the following key criteria for good reward governance practices: (i) competitiveness and reasonableness; (ii) acceptability to shareholders; (iii) performance linkage / alignment of executive compensation; (iv) transparency; and (v) capital management. The Company has structured an executive remuneration framework that is market competitive and complimentary to the reward strategy of the organisation. Alignment to shareholders’ and program participants’ interests: (i) focuses on sustained growth in shareholder wealth; (ii) attracts and retains high calibre executives; (iii) rewards capability and experience; and (iv) provides a clear structure for earning rewards. Use of remuneration consultants The Company did not engage remuneration consultants during the current or prior financial year. Voting and comments made at the Company’s Annual General Meeting The Company received 96.26% of “yes” proxy votes on its remuneration report for the 2023 financial year, inclusive of discretionary proxy votes. The Company did not receive any specific feedback at the AGM or throughout the year on its remuneration practices. AGREEMENTS IN RESPECT OF CASH REMUNERATION OF DIRECTORS: Non-executive Directors The Company’s constitution provides that the Non-executive Directors may collectively be paid as remuneration for their services a fixed sum not exceeding the aggregate sum determined by a general meeting. The aggregate remuneration has been set at an amount of $325,000 per annum. Mr Gary Steinepreis is on a contract dated 7 August 2018, which provides for a fixed fee of $4,000 per month. Mr Daniel Smith (through Minerva Corporate Pty Ltd) is on a contract dated 7 August 2018 which provides for a fixed fee of $4,000 per month. Ms Stacey Apostolou is on a contract commencing 24 October 2023, which provides for a fixed fee of $3,000 per month. Mr Brendan Bradley is on a contract commencing 24 October 2023, which provides for a fixed fee of $3,000 per month. LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 | DIRECTORS’ REPORT LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 PAGE 20 Loans to and other transactions with key management personnel Company director and company secretary, Mr Daniel Smith, is a director of Minerva Corporate Pty Ltd. Minerva Corporate Pty Ltd provided accounting consultancy and company secretarial services to Lachlan Star Limited. Payments to Minerva Corporate Pty Ltd during the period total $74,500 (2023: $72,000). The transactions with key management personnel have been entered into under terms and conditions no more favourable than those the Company would have adopted if dealing at arm's length. Current trade and other payables include $18,150 (2023: $27,400) to key management personnel at reporting date in respect of outstanding fees. The consolidated entity did not have any other loans or transactions with related parties during the current year. Directors’ and other key management personnel remuneration, Company and consolidated entity Details of the nature and amount of each major element of the remuneration of each director of the Company and each of the named Company and consolidated entity key management personnel receiving the highest remuneration are as follows: 2024 Name Short term salary and fees ($) Share based payments - options ($) Share based payments – performance rights ($) Post- employment (superannuation contributions) ($) Total ($) Proportion of remuneration performance related (%) Value of options as a % of remuneration (%) Directors Mr G Steinepreis 48,000 - - - 48,000 - - Mr B Aylward1 16,000 - - - 16,000 - - Mr D Smith 48,000 - - - 48,000 - - Ms S Apostolou2 22,232 - - 2,446 24,678 - - Mr B Bradley2 23,124 - - 1,554 24,678 - - Other KMP Mr A Tyrrell - CEO 121,591 39,766 - 13,375 174,732 - - Company Secretary Mr D Smith 30,000 - - - 30,000 - - Total 308,947 39,766 - 17,375 366,088 - - 1 Resigned 25 October 2023 2 Appointed 25 October 2023 2023 Name Short term salary and fees ($) Share based payments - options ($) Share based payments – performance rights ($) Post- employment (superannuation contributions) ($) Total ($) Proportion of remuneration performance related (%) Value of options as a % of remuneration (%) Directors Mr G Steinepreis 48,000 - - - 48,000 - - Mr B Aylward 48,000 - - - 48,000 - - Mr D Smith 48,000 - - - 48,000 - - Company Secretary Mr D Smith 30,000 - - - 30,000 - - Total 174,000 - - - 174,000 - - Notes Director and other key management personnel fees are paid to the individual or their related entity LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 | DIRECTORS’ REPORT LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 PAGE 21 Share options The movement during the reporting period in the number of options in the Company held, directly, indirectly or beneficially by each key management person are as follows: 2024 Opening Balance1 Received as Remuneration Vested Exercised/ Expired Closing Balance Vested and Exercisable Unvested Directors G Steinepreis - - - - - - B Aylward 1,000,000 - - (1,000,000) - - D Smith 700,000 - - (700,000) - - S Apostolou - - - - - - B Bradley - - - - - - Other KMP A Tyrrell - CEO - 5,000,0002 - - - 5,000,000 Total 1,700,000 5,000,000 - (1,700,000) - 5,000,000 1 Adjusted for 10:1 Consolidation 2 See note 19 - Share Based Payments 2023 Opening Balance Received as Remuneration Received During Year on Exercise of Options Net Change Other Closing Balance Directors G Steinepreis - - - - - B Aylward 10,000,000 - - - 10,000,000 D Smith 7,000,000 - - - 7,000,000 Total 17,000,000 - - - 17,000,000 No options have been granted since the end of the financial year, nor have any options held by key management personnel been exercised during or since the end of the reporting period. During the reporting period there was no forfeiture or vesting of options granted in previous periods. Ordinary Shares The movement during the reporting period in the number of ordinary shares in the Company held, directly, indirectly or beneficially, by each key management person, including their related parties, is as follows: LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 | DIRECTORS’ REPORT LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 PAGE 22 2024 Directors Opening Balance1 Net acquired / (disposed) Granted as compensation Net Change Other Closing Balance G Steinepreis 11,638,235 - - - 11,638,235 B Aylward 525,000 - - (525,000)2 - D Smith 960,000 - - - 960,000 S Apostolou - - - - - B Bradley - - - - - Other KMP - - - - - A Tyrrell - CEO - 100,000 - - 100,000 Total 13,123,235 100,000 - (525,000) 12,698,235 1 Adjusted for 10:1 Consolidation 2 Resigned 25 October 2023 2023 Directors Opening Balance Net acquired / (disposed) Granted as compensation Net Change Other Closing Balance G Steinepreis 116,382,352 - - - 116,382,352 B Aylward 4,500,000 750,000 - - 5,250,000 D Smith 9,600,000 - - - 9,600,000 Total 130,482,352 750,000 - - 131,232,352 No ordinary shares were granted to key management personnel during the current or prior periods. End of Audited Remuneration Report Signed in accordance with a resolution of the directors. Mr Gary Steinepreis Perth, Western Australia 27 September 2024 To the Board of Directors, AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE CORPORATIONS ACT 2001 As lead audit director for the audit of the financial statements of Lachlan Star Limited for the financial year ended 30 June 2024, I declare that to the best of my knowledge and belief, there have been no contraventions of: • the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and • any applicable code of professional conduct in relation to the audit. Yours Faithfully HALL CHADWICK WA AUDIT PTY LTD MARK DELAURENTIS CA Director Dated this 27th day of September 2024 Perth, Western Australia LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 PAGE 24 CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2024 Note 30-Jun-24 $ 30-Jun-23 $ Revenue from continuing operations Finance income 36,299 37,643 Expenses Corporate compliance and management (378,946) (264,085) Depreciation (36,302) - Exploration and evaluation expense (35,000) - Impairment expense (850,000) - Share based payment expense 19 (46,585) - Employment expense (166,859) - Other expenses 5 (287,503) (147,958) Finance expense (14,427) (21) Loss from continuing operations before income tax (1,779,323) (374,421) Income tax expense 3 - - Loss from continuing operations after income tax 17(c) (1,779,323) (374,421) Other comprehensive loss for the year, net of tax - - Total comprehensive loss for the year (1,779,323) (374,421) Loss per share from continuing operations attributable to the ordinary equity holders of the Company: Cents Cents Basic and diluted loss per share 2 (0.97) (0.28) The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes to the financial statements. LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 PAGE 25 CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2024 Current Assets Note 30-Jun-24 $ 30-Jun-23 $ Cash & cash equivalents 13(b) 1,614,668 3,367,759 Trade & other receivables 6 81,081 24,396 Total Current Assets 1,695,749 3,392,155 Non-Current Assets Plant and equipment 39,043 - Exploration & Evaluation 7 9,970,770 3,172,994 Right-of-use asset 8 175,163 - Other assets 9 183,839 35,000 Total Non-Current Assets 10,368,815 3,207,994 TOTAL ASSETS 12,064,564 6,600,149 Current Liabilities Trade & other payables 10 277,373 74,583 Lease liabilities 8 33,661 - Total Current Liabilities 311,034 74,583 Non-current Liabilities Lease liabilities 8 150,157 - 150,157 - TOTAL LIABILITIES 461,191 74,583 NET ASSETS 11,603,373 6,525,566 Equity Issued capital 17(a) 16,633,144 9,822,599 Reserves 17(b) 932,787 886,202 Accumulated losses 17(c) (5,962,558) (4,183,235) TOTAL EQUITY 11,603,373 6,525,566 The above consolidated statement of financial position should be read in conjunction with the accompanying notes to the financial statements. LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 PAGE 26 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Issued Capital $ Share- based Payment Reserve $ Options Premium Reserve $ Accumulated Losses $ Total $ At 1 July 2022 9,822,599 487,202 399,000 (3,808,814) 6,899,987 Loss for the year - - - (374,421) (374,421) Total comprehensive loss for the year - - - (374,421) (374,421) Transactions with owners in their capacity as owners: Shares issued (net of costs) – exercise of options - - - - - At 30 June 2023 9,822,599 487,202 399,000 (4,183,235) 6,525,566 Loss for the year - - - (1,779,323) (1,779,323) Total comprehensive loss for the year - - - (1,779,323) (1,779,323) Transactions with owners in their capacity as owners: Shares issued (net of costs) – exercise of options - - - - - Acquisition of shares – TRK Resources Pty Ltd (Note 7) 6,810,545 - - - 6,810,545 Options issued (Note 19) - 46,585 - - 46,585 At 30 June 2024 16,633,144 533,787 399,000 (5,962,558) 11,603,373 The consolidated statement of changes in equity should be read in conjunction with the accompanying notes to the financial statements. LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 PAGE 27 CONSOLIDATED STATEMENT OF CASH FLOWS For the year ended 30 June 2024 Note 30-Jun-24 $ 30-Jun-23 $ Cash Flows from Operating Activities Payments to Suppliers and Employees (825,916) (426,259) Interest Received 36,299 37,643 Net Cash Outflow used in Operating Activities 13 (789,617) (388,616) Cash Flow from Investing Exploration and Evaluation expenditure (739,297) (571,333) Payments for plant and equipment (44,434) - Payments to acquire tenements (30,904) - Payments to acquire other assets (148,839) - Net Cash Outflow used in Investing Activities (963,474) (571,333) Cash Flows from Financing Activities Issued capital - - Net Cash Inflow from Financing Activities - - Net Decrease in Cash and Cash Equivalents (1,753,091) (959,949) Cash and Cash Equivalents at beginning of Year 3,367,759 4,327,708 Cash and Cash Equivalents at end of Year 13 1,614,668 3,367,759 The above consolidated statement of cash flows should be read in conjunction with the accompanying notes to the financial statements. LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 PAGE 28 1. MATERIAL ACCOUNTING POLICIES The principal accounting policies adopted in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. The financial statements are for the consolidated entity consisting of Lachlan Star Limited and its subsidiaries. (A) BASIS OF PREPARATION These general-purpose financial statements have been prepared in accordance with Australian Accounting Standards (“AASs”) (including Australian Accounting Interpretations), as adopted by the Australian Accounting Standards Board (“AASB”), other authoritative pronouncements of the AASB, Urgent Issues Group Interpretations, and the Corporations Act 2001. Lachlan Star Limited is a for-profit entity for the purposes of preparing the financial statements. Compliance with Australian Accounting Standards ensures that the consolidated financial report of Lachlan Star Limited complies with International Financial Reporting Standards as issued by the International Accounting Standards Board. The functional and presentation currency of the Company is Australian dollars. The financial report was authorised for issue by the board of on 27 September 2024. Lachlan Star Limited is a company limited by shares, incorporated and domiciled in Australia. BASIS OF MEASUREMENT The financial report is prepared on a historical cost basis as modified by the revaluation of financial assets and liabilities (including derivative instruments) at fair value through profit and loss. GOING CONCERN The financial report has been prepared on the going concern basis, which contemplates the continuity of normal business activity and the realisation of assets and the settlement of liabilities in the ordinary course of business. The Company incurred a loss for the year of $1,779,323 (2023: $374,421) and net cash outflows from operating and investing activities of $1,753,091 (2023: $959,949). As at 30 June 2024, the Company has a working capital surplus of $1,384,715 (2023: $3,317,572). These conditions indicate there is a material uncertainty over the ability of the Group to continue as a going concern. The Group’s ability to continue as a going concern is dependent upon it maintaining sufficient funds for its operations and commitments. The Board believes that it has sufficient funding in place to meet its operating objectives. The directors consider the basis of going concern to be appropriate for the following reasons: • the cash balance of the Company relative to its fixed and discretionary expenditure commitments; • given the Company’s market capitalisation and the underlying prospects for the Company to raise further funds from the capital markets; • the fact that future exploration and evaluation expenditure is generally discretionary in nature (i.e. at the discretion of the directors having regard to an assessment of the Company’s eligible expenditure to date and the timing and quantum of its remaining earn-in expenditure requirements). Subject to meeting certain minimum expenditure commitments, further exploration activities may be slowed or suspended as part of the management of the Company’s working capital; and • on 26 September 2024, the Company announced it had received commitments to raise $4.5 million through the issue of 45 million ordinary shares at $0.10 per share. Based on the cashflow forecasts prepared and other factors referred to above, the directors are satisfied the Company can continue to pay its debts as and when they fall due for at least the next twelve months. In particular, given the Company's history of raising capital to date, the directors are satisfied of the Company's ability to raise additional funds as and when they are required. Should the Group be unable to continue as a going concern it may be required to realise its assets and extinguish its liabilities other than in the normal course of business and at amounts different to those stated in the financial statements. The financial statements do not include any adjustments relating to the recoverability and classification of LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 PAGE 29 asset carrying amounts or to the amount and classification of liabilities that might result should the Group be unable to continue as a going concern and meet its debts as and when they fall due. 1. MATERIAL ACCOUNTING POLICIES (CONTINUED) (A) BASIS OF PREPARATION (CONTINUED) Use of estimates and judgements The preparation of the financial report requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year and judgments, apart from those involving estimations, which have the most significant effect on the amounts recognised in the financial statements, are: (B) PRINCIPLES OF CONSOLIDATION Subsidiaries The consolidated financial report comprises the financial statements of the Company and its controlled entities. The group controls an entity when the group 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. All inter- company balances and transactions between entities in the consolidated entity, including any unrealized profits or losses, have been eliminated on consolidation. Where a subsidiary enters or leaves the consolidated entity during the year, its operating results are included or excluded from the date control was obtained or until the date control ceased. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with those applied by the parent entity. (C) EARNINGS PER SHARE The consolidated entity presents basic and diluted earnings per share (“EPS”) for its ordinary shares. Basic EPS is calculated by dividing the result attributable to equity holders of the Company by the weighted number of shares outstanding during the period. Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding for the effects of all potential ordinary shares, which comprise share options granted. Fair value of shares and share options granted as compensation is recognised as an expense with a corresponding increase in equity. Fair value is measured at grant date and recognised over the period during which the grantees become unconditionally entitled to the shares or share options. Fair value of share grants at grant date is determined by the share price at that time. The fair value of share options at grant date is determined using a Black-Scholes option pricing model that takes into account the exercise price, the term of the option, any vesting and performance criteria, the share price at grant date, the expected price volatility of the underlying share, the expected dividend yield and the risk-free rate for the term of the option. Upon the exercise of the option, the balance of the share-based payments reserve relating to the option is transferred to contributed equity. There are no non-market conditions attached to share options granted. The fair value of performance rights at grant date is determined using a Monte Carlo simulation model that takes into account the exercise price, the term of the right, any vesting and performance criteria, the share price at grant date, the expected price volatility of the underlying share, the expected dividend yield and the risk-free rate for the term of the right. Upon the vesting of the right, the balance of the share-based payments reserve relating to the right is transferred to contributed equity. There are no non-market conditions attached to performance rights granted. LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 PAGE 30 1. MATERIAL ACCOUNTING POLICIES (CONTINUED) (D) SHARE BASED PAYMENTS Fair value of shares and share options granted as compensation is recognised as an expense with a corresponding increase in equity. Fair value is measured at grant date and recognised over the period during which the grantees become unconditionally entitled to the shares or share options. Fair value of share grants at grant date is determined by the share price at that time. The fair value of share options at grant date is determined using a Black-Scholes option pricing model that takes into account the exercise price, the term of the option, any vesting and performance criteria, the share price at grant date, the expected price volatility of the underlying share, the expected dividend yield and the risk-free rate for the term of the option. Upon the exercise of the option, the balance of the share-based payments reserve relating to the option is transferred to contributed equity. There are no non-market conditions attached to share options granted. The fair value of performance rights at grant date is determined using a Monte Carlo simulation model that takes into account the exercise price, the term of the right, any vesting and performance criteria, the share price at grant date, the expected price volatility of the underlying share, the expected dividend yield and the risk-free rate for the term of the right. Upon the vesting of the right, the balance of the share-based payments reserve relating to the right is transferred to contributed equity. There are no non-market conditions attached to performance rights granted. (E) INCOME TAX The charge for current income tax expense is based on the result for the year adjusted for any non-assessable or disallowed items. It is calculated using tax rates that have been enacted or are substantively enacted by balance date. Deferred tax is accounted for using the balance sheet liability method in respect of temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. No deferred income tax will be recognised from the initial recognition of an asset or liability, excluding a business combination, where there is no effect on accounting or taxable profit or loss. Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or liability is settled. Deferred tax is recognised in the profit or loss except where it relates to items recognised directly in equity, in which case it is recognised in equity. Deferred income 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 tax losses. Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same taxation authority and the consolidated entity intends to settle its current tax assets and liabilities on a net basis. The amount of benefits brought to account or which may be realised in the future is based on the assumption that no adverse change will occur in income taxation legislation and the anticipation that the economic entity will derive sufficient future assessable income to enable the benefit to be realised and comply with the conditions of deductibility imposed by the law. The carrying amount of deferred tax assets is reviewed at each balance date and only recognised to the extent that sufficient future assessable income is considered probable. Tax consolidation The Company and its wholly-owned Australian resident-controlled entities have formed a tax-consolidated group and are therefore taxed as a single entity. Lachlan Star Limited is the head entity of the tax-consolidated group. In future periods the members of the group will, if required, enter into a tax sharing agreement whereby each company in the group contributes to the income tax payable in proportion to their contribution to the net profit before tax of the tax consolidated group. (F) GOODS AND SERVICES TAX Revenues, expenses and assets are recognised net of the amount of goods and services tax (“GST”) except where the amount of GST incurred is not recoverable from the Australian Tax Office. In these circumstances the GST is recognised LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 PAGE 31 as part of the cost of acquisition of the asset or as part of the expense. Receivables and payables in the statement of financial position are shown inclusive of GST. The cash flow statement discloses the GST component of investing and financing activities as operating cash flows. 1. MATERIAL ACCOUNTING POLICIES (CONTINUED) (G) EMPLOYEE BENEFITS Provision is made for the consolidated entity’s liability for employee benefits and termination indemnities arising from services rendered by employees to balance date. (i) Share-based payments Share-based compensation in the form of options is measured using an option pricing model and is expensed or charged to contributed equity over the vesting period of the options with a corresponding credit to the share-based payments reserve. (H) CASH AND CASH EQUIVALENTS Cash and cash equivalents include cash on hand, deposits held at call with financial institutions, other short-term, and 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. (I) CONTRIBUTED EQUITY Ordinary shares are classified as equity. Incremental costs directly attributable to an equity transaction are shown as a deduction from equity, net of any recognised income tax benefit. (J) TRADE AND OTHER PAYABLES Trade and other payables are initially stated at fair value and subsequently measured at amortised cost. The amounts are unsecured and usually paid within 90 days of recognition. (K) COMPARATIVE FIGURES When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial period. (L) NEW AND AMENDED STANDARDS ADOPTED BY THE GROUP No new and/or revised Standards and Interpretations have been required to be adopted, and/or are applicable in the current year by/to the Group, as standards, amendments and interpretations which are effective for the financial year beginning on 1 July 2023 are not material to the Group. (P) PARENT ENTITY FINANCIAL INFORMATION The financial information for the parent entity, Lachlan Star Limited, disclosed in Note 14 has been prepared on the same basis as the consolidated financial statements, except as set out below. (i) Investments in subsidiaries, associates and joint venture entities Investments in subsidiaries, associates and joint venture entities are accounted for at cost in the financial statements of Lachlan Star Limited. Dividends received from associates are recognised in the parent entity’s profit or loss, rather than being deducted from the carrying amount of these investments. LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 PAGE 32 1. MATERIAL ACCOUNTING POLICIES (CONTINUED) (P) PARENT ENTITY FINANCIAL INFORMATION (Q) SEGMENT REPORTING The Company identifies 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 information presented in the financial report is the same information that is reviewed by the directors. The Company has currently no identifiable operating segments, other than exploration in Australia. (R) PROVISIONS Provisions are recognised when the consolidated entity has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured. Provisions are determined by discounting the expected future cash flows at a pre-tax discount rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. (S) CONTINGENCIES Contingent liabilities are defined as possible obligations resulting from past events whose existence depends on future events, obligations that are not recognised because it is not probable that they will lead to an outflow of resources, or obligations that cannot be measured with sufficient reliability. Contingent liabilities are not recognised in the statement of financial position other than as part of a business combination, but are disclosed in the notes to the financial statements, with the exception of contingent liabilities where the probability of the liability occurring is remote. (T) EXPLORATION AND EALUATION EXPENDITURE Exploration and evaluation costs are capitalised as exploration and evaluation assets on a project by project basis pending determination of the technical feasibility and commercial viability of the project. The capitalised costs are presented as either tangible or intangible exploration and evaluation assets according to the nature of the assets acquired. When a licence is relinquished or a project abandoned, the related costs are recognised in the Statement of profit or loss and other comprehensive Income immediately. Exploration and evaluation assets shall be assessed for impairment when facts and circumstances suggest that the carrying amount of an exploration and evaluation asset may exceed its recoverable amount. When facts and circumstances suggest that the carrying amount exceeds the recoverable amount an impairment loss is recognised in the Statement of Comprehensive Income. 2. EARNINGS PER SHARE 30-Jun-24 $ 30-Jun-23 $ Loss attributable to ordinary shareholders (929,323) (374,421) Weighted average number of ordinary shares 183,731,1051 1,319,012,709 Basic loss per share (cents per share) (0.51) (0.03) 1 Adjusted for 10:1 Consolidation All potential ordinary shares, being options to acquire ordinary shares, are not considered dilutive in the calculation of the diluted loss per share as the exercise of the options would not increase the loss per share. LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 PAGE 33 3. INCOME TAX BENEFIT (a) Income tax expense: 30-Jun-24 $ 30-Jun-23 $ Current income tax - - Deferred income tax - - - - (b) Reconciliation of Income tax expense to prima facie tax payable: Loss before income tax (1,779,323) (374,421) Prima facie income tax at 30% (2023: 30%) (533,797) (112,326) Non-deductible expenses 13,976 - Revenue losses not recognised 647,364 325,095 Other deferred tax balances not recognised (127,543) (212,769) Income tax expense - - (c) Unrecognised deferred tax assets at 30% (2023: 30%): Carry forward revenue losses 1,865,512 1,215,072 Blackhole expenditure 41,588 - Provisions and accruals 6,000 8,550 Superannuation payable 6,728 - Right-of-use asset 55,146 - Deferred tax assets not recognised (1,327,147) (789,478) 647,827 434,144 (d) Deferred tax liabilities comprise: Exploration expenditure (491,301) (348,958) Project acquisitions (103,977) (85,186) Right-of-use asset (52,549) - (647,827) (434,144) (e) Income tax not recognised directly in equity 30-Jun-24 $ 30-Jun-23 $ Share issue costs 12,927 27,698 Deferred tax assets not recognised (12,927) (27,698) - - The tax benefits of the above deferred tax assets will only be obtained if: (a) the Company derives future assessable income of a nature and of an amount sufficient to enable the benefits to be utilised; (b) the Company continues to comply with the conditions for deductibility imposed by law; and (c) no changes in income tax legislation adversely affect the company in utilising the benefits. LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 PAGE 34 4. AUDITORS’ REMUNERATION 30-Jun-24 $ 30-Jun-23 $ Amounts received or due and receivable by Hall Chadwick WA Audit Pty Ltd for: An audit or review of the financial report of the entity 33,604 26,859 Total audit services provided to the Group 33,604 26,859 5. EXPENSES 30-Jun-24 $ 30-Jun-23 $ Other expenses Accounting and Audit 78,104 68,859 Insurance 28,665 18,976 Office rental, communications and consumables 46,137 49,182 Professional fees 33,773 - Legal fees 22,809 8,131 Other expenses 78,015 2,810 287,503 147,958 6. TRADE AND OTHER RECEIVABLES 30-Jun-24 $ 30-Jun-23 $ Current Other receivables and prepayments - third parties 81,081 24,396 81,081 24,396 Trade and other receivables are non-interest-bearing and are not past due. 7. EXPLORATION AND EVALUATION 30-Jun-24 $ 30-Jun-23 $ Opening balance 3,172,994 2,634,875 Capitalised exploration 806,327 538,119 Acquisition – TRK Resources Pty Ltd 6,841,449 - Impairment expense1 (850,000) - Closing balance 9,970,770 3,172,994 1The Company carried out a review of the carrying value of its projects and as a result has recognised an impairment of $850,000 against the Killaloe project. LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 PAGE 35 7. EXPLORATION AND EVALUATION (CONTINUED) On 2 August 2023, the Company announced it had entered into an agreement with DevEx Resources Limited (ASX: DEV; DevEx) to acquire a substantial and highly prospective portfolio of copper-gold exploration tenements within the world-class Lachlan Fold Belt of New South Wales (NSW), for consideration of $7,500,000 ((which was satisfied by the issue of 75,672,720 LSA shares on 24 October 2023) ($6,810,545)) plus a 2% Net Smelter Royalty (Transaction) and repayment of exploration expenses totalling $30,904 and the assumption of security deposits of $129,000. The Transaction was completed on 25 October 2023. During the previous year, the Company submitted license renewal application for ML5831 and ML5832 at its Princhester project. It is anticipated that the licences will be renewed in the H2 calendar 2024. No on- ground work was undertaken at the Princhester project during the year. The recoverability of deferred project acquisition costs is dependent upon the successful development and commercial exploitation, or alternately the sale of the areas of interest. 8. RIGHT-OF USE ASSETS AND LEASE LIABILITIES 30-Jun-24 $ 30-Jun-23 $ Right-of-use assets Right-of-use assets – office leases 206,074 - Accumulated depreciation (30,911) - 175,163 - Lease liabilities Current 33,661 - Non-current 150,157 - 183,818 - 9. OTHER ASSETS 30-Jun-24 $ 30-Jun-23 $ Non-current assets Security bonds and deposits 183,839 35,000 183,839 35,000 10. TRADE AND OTHER PAYABLES 30-Jun-24 $ 30-Jun-23 $ Current Trade payables – third parties 152,101 46,083 Non-trade payables and accrued expenses – third parties 125,272 28,500 277,373 74,583 LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 PAGE 36 10. TRADE AND OTHER PAYABLES (CONTINUED) Trade and other payables are non-interest-bearing liabilities stated at cost and are predominantly settled within 30 days. The carrying amounts of trade and other payables are assumed to be the same as their fair values, due to their short- term nature. 11. RELATED PARTY DISCLOSURES Lachlan Star Limited is the ultimate parent entity. TRANSACTIONS WITH OTHER RELATED PARTIES Lachlan Star Limited director and company secretary, Mr Daniel Smith, is a director of Minerva Corporate Pty Ltd. Minerva Corporate Pty Ltd provided accounting consultancy and company secretarial services to Lachlan Star Limited. Payments to Minerva Corporate Pty Ltd during the year totalled $74,500 (2023: $72,000). Current trade and other payables include $18,150 (2023: $27,400) to key management personnel at reporting date in respect of outstanding fees. Refer to note 20 for key management personnel compensation which is further disclosed in the remuneration report. The transactions with key management personnel have been entered into under terms and conditions no more favourable than those the Company would have adopted if dealing at arm's length. 12. CAPITAL COMMITMENTS In order to maintain current rights of tenure to exploration tenements, the consolidated entity undertakes exploration activities to meet expenditure requirements specified by various State governments. These amounts are subject to work programs specified by the Company from time to time. These commitments are not provided for in the financial report and are payable as follows: 30-Jun-24 $ 30-Jun-23 $ Within 1 year 668,333 - Within 2 – 5 years 1,278,333 - 1,946,666 - To the extent that expenditure commitments are not met, tenement areas may be reduced and other arrangements made in negotiation with the relevant government department on renewal of tenements to defer expenditure commitments or partially exempt the Company. Where the consolidated entity decides to relinquish a tenement the commitment will be reduced accordingly. LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 PAGE 37 13. RECONCILIATION OF (LOSS) AFTER INCOME TAX TO NET CASH FLOWS USED IN OPERATING ACTIVITIES 30-Jun-24 $ 30-Jun-23 $ (a) Cash flows generated used in operating activities Net loss after income tax (1,779,323) (374,421) Non- Cash Items adjustment Share-based payments 46,585 - Impairment expense 850,000 - Depreciation 36,302 - Interest 14,427 - Changes in assets and liabilities: (Increase) / decrease in receivables (56,684) (19,613) Increase / (decrease) in payables 99,076 5,418 Net cash outflow from operating activities (789,617) (388,616) (b) Reconciliation of cash and cash equivalents Cash at bank and at call 1,614,668 3,367,759 (c) Non-cash financing and investing activities The consolidated entity’s exposure to interest rate risk is discussed in Note 21. The maximum exposure to credit risk at the reporting date is the carrying amount of each class of cash and cash equivalents mentioned above. LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 PAGE 38 14. PARENT ENTITY FINANCIAL INFORMATION The individual financial statements for the parent entity show the following aggregate amounts: 30-Jun-24 $ 30-Jun-23 $ Current Assets 1,695,749 3,426,382 Non-current Assets 10,368,815 3,173,767 Total Assets 12,064,564 6,600,149 Current Liabilities 311,034 74,583 Non-current liabilities 150,157 - Total liabilities 461,191 74,583 Net assets 11,603,373 6,525,566 Contributed equity 16,633,144 9,822,599 Reserves 932,787 886,202 Accumulated losses (5,962,558) (4,183,235) Total equity 11,603,373 6,525,566 Profit/(Loss) for the year (1,779,324) (374,421) Total comprehensive profit/(loss) for the year (1,779,324) (374,421) The parent entity did not have any contingent liabilities or capital commitments as at 30 June 2024 or 30 June 2023 other than disclosed in Note 12. The Company and its wholly-owned Australian resident-controlled entities have formed a tax-consolidated group and are therefore taxed as a single entity. Lachlan Star Limited is the head entity of the tax-consolidated group. In future periods the members of the group will, if required, enter into a tax sharing agreement whereby each company in the group contributes to the income tax payable in proportion to their contribution to the net profit before tax of the tax consolidated group. 15. CONSOLIDATED ENTITIES Name Country of incorporation 2024 2023 Legal Parent Lachlan Star Limited Australia Legal Subsidiaries Ord Investments Pty Ltd Australia 100% 100% Midland Minerals Pty Ltd Australia 100% 100% Coobaloo Minerals Pty Ltd Australia 50% 50% TRK Resources Pty Ltd Australia 100% - LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 PAGE 39 16. EVENTS SUBSEQUENT TO REPORTING DATE On 15 August 2024, the Company announced that it had identified an exciting new high-grade copper sulphide drill target at the Basin Creek prospect, within its 100%-owned southern Junee Project in the Lachlan Fold belt of NSW. On 26 September 2024, the Company announced it had received commitments to raise $4.5 million through the issue of 45 million ordinary shares at $0.10 per share. No other matter or circumstance has arisen since 30 June 2024 that in the opinion of the directors has significantly affected, or may significantly affect in future financial years (i) the consolidated entity’s operations, or (ii) the results of those operations, or (iii) the consolidated entity’s state of affairs. 17. CAPITAL AND RESERVES (A) ISSUED CAPITAL: 30-Jun-24 Number 30-Jun-24 $ 30-Jun-23 Number 30-Jun-23 $ Ordinary shares Balance at the beginning of the year 1,319,012,709 9,822,599 1,319,012,709 9,822,599 Consolidation 10:1 (1,187,112,234) - Acquisition of shares – TRK Resources Pty Ltd 75,672,720 6,810,545 - - Balance at the end of the year 207,573,195 16,633,144 1,319,012,709 9,822,599 Ordinary shares have the right to one vote per share at meetings of the Company, to receive dividends as declared and in the event of a winding-up of the Company, to participate in the proceeds from the sale of all surplus assets in proportion to the number of, and amounts paid up on, shares held. Ordinary shares have been fully paid, have no par value, and the Company does not have a limited amount of authorised capital. (B) OPTIONS PREMIUM RESERVE Movements in the options premium reserve are set out in the statement of changes in equity on page 26. This reserve represents the fair value at grant of share options issued. The fair value is recognised as an expense over the vesting period. The reserve is reversed to contributed equity when shares are issued on exercise of the options or when the options are cancelled or expire. Refer to note 19 for details of these plans. (C) ACCUMULATED LOSSES 30-Jun-24 $ 30-Jun-23 $ Accumulated losses at the beginning of the financial year (4,183,235) (3,808,814) Loss for the period (1,779,323) (374,421) Accumulated losses at the end of the financial year (5,962,558) (4,183,235) LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 PAGE 40 18. CONTINGENT ASSETS AND LIABILITIES KOOJAN NI-PGE PROJECT – WESTERN AUSTRALIA (LSA 45%) On 26 June 2020, the Company announced that it had entered into a 6 month Option Agreement, in which Lachlan can purchase an initial 50% interest (and up to 75%) in Coobaloo Minerals Pty Ltd (Coobaloo) and its Koojan Copper-Nickel- PGE Project (Koojan Project) located approximately 80km north of Chalice Gold Mines Ltd’s Julimar Ni-PGE project and approximately 130km north of Perth. Lachlan Star paid a fee of $50,000 on signing the Option Agreement. On 8 September 2021, Lachlan Star announced that it had satisfied the expenditure commitment to earn the additional 25% thereby becoming a 75% shareholder in Coobaloo with the balance of 25% owned by Wavetime Nominees Pty Ltd. On 27 January 2021, the Company announced that it had entered into a binding term sheet with Liontown Resources Limited (later assigned to Minerals 260 Limited (MI6)), in relation to a joint-venture whereby MI6 (via its subsidiary, ERL (Aust) Pty Ltd) could earn a 51% interest in the Koojan Project, thereby reducing Lachlan Star’s interest to 24%. Additionally, pursuant to the agreement between Lachlan Star and MI6, the parties to the joint-venture have the following obligations: (a) Performance Milestone: Following delineating a JORC Indicated Resource (as defined in JORC 2012) of 50,000t of greater than 2.5% Ni Equivalent (Ni, Cu, Co) at the Project, the JV parties (in accordance with their respective holdings) will make a milestone payment to the vendors of A$600,000 which may be paid in cash or Ordinary Fully Paid Shares at the 14-day VWAP of Lachlan Star’s Share price as traded on the ASX; (b) Free-Carry: The JV parties will free-carry the Vendor’s 25% retained interest through to the completion of a Bankable Feasibility Study (Free Carried Period); and (c) Conversion of retained interest: Following completion of the Free Carried Period, the Vendor will have a one-time right to elect to convert their retained interest to an additional 1% NSR. If the Vendor decides not to convert their retained interest to an NSR, they shall co-fund their portion of Project expenditure or dilute using the AMPLA standard dilution clause. Royalty The JV parties and the Vendors executed an NSR agreement on the exercise of the Option, pursuant to which the JV parties will pay the Vendors a 1% NSR in respect of all precious, industrial minerals and base metals produced, sold and proceeds received from the Project. Lachlan Star has the first right of refusal to purchase the Royalty in the event that the Vendors seek to sell their rights. KILLALOE GOLD PROJECT – WESTERN AUSTRALIA (80-100%) On 27 January 2021, the Company and Liontown Resources Limited signed a binding term sheet for the acquisition by the Company of Liontown’s Killaloe Gold Project, in the Eastern Goldfields, WA. Under the terms of the agreement, Lachlan Star will pay Liontown a 1% NSR for all minerals produced by Lachlan Star. There were no other contingent assets or contingent liabilities at 30 June 2024 or 30 June 2023. LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 PAGE 41 19. SHARE BASED PAYMENTS OPTIONS GRANTED DURING THE YEAR The following options were granted during the year (2023: nil): Management Options Grant Date 1 Feb 24 1 Mar 24 Issue Date 28 Feb 24 28 Feb 24 Share Price $0.042 $0.044 Exercise Price $0.075 $0.075 Term (years) 4.0 4.0 Risk-free rate 3.80% 3.80% Volatility 100% 100% Fair value of options $127,252 $27,276 Number of options 5,000,000 1,000,000 Vesting period 2,500,000 12 months 2,500,000 24 months 500,000 12 months 500,000 24 months Expensed during the current year $39,766 $6,819 The number and weighted average exercise price of share options is as follows: 2024 2024 2024 2023 2023 2023 Weighted average exercise price Number of Options Expiry date Weighted average exercise price Number of Options Expiry date Outstanding 1 July 2.2 cents 17,000,000 27 Nov 2023 2.2 cents 17,000,000 27 Nov 2023 Consolidation 10:1 (15,300,000) Exercised/expired 22 cents (1,700,000) 27 Nov 2023 - - - Issued during the period 7.5 cents 7.5 cents 5,000,000 1,000,000 1 Feb 2028 1 Mar 2028 - - - Outstanding at 30 June 7.5 cents 6,000,000 - 2.2 cents 17,000,000 27 Nov 2023 There are no other options on issue at 30 June 2024. 20. KEY MANAGEMENT PERSONNEL DISCLOSURES KEY MANAGEMENT PERSONNEL COMPENSATION The key management personnel compensation is as follows: 30-Jun-24 $ 30-Jun-23 $ Short-term benefits 308,947 174,000 Share based payments – options 39,766 - Post-employment - (superannuation contributions) 17,375 - 366,088 174,000 Current trade and other payables of $18,150 (2023: $27,400) were payable to key management personnel at reporting date in respect of outstanding fees and expenses. LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 PAGE 42 21. FINANCIAL RISK MANAGEMENT The consolidated entity’s activities expose it to credit risk, market risk (including interest rate risk, foreign exchange risk and price risk), and liquidity risk. This note presents qualitative and quantitative information about the consolidated entity’s exposure to each of the above risks, its objectives, policies and procedures for managing risk, and the management of capital. The Board of Directors has overall responsibility for the establishment and oversight of the risk management framework. The consolidated entity’s overall risk management approach focuses on the unpredictability of financial markets and seeks to minimize the potential adverse effects on the financial performance of the consolidated entity. The consolidated entity does not currently use derivative financial instruments to hedge financial risk exposures and therefore it is exposed to daily movements in interest rates and exchange rates, however these risks are currently negligible. The consolidated entity uses various methods to measure different types of risk to which it is exposed. These methods include sensitivity analysis in the case of interest rates and ageing analysis for credit risk. There are no formal targets set for return on capital. There were no changes to the consolidated entity’s approach to capital management during the year. Neither the Company nor any of its subsidiaries are subject to externally imposed capital requirements. (A) CREDIT RISK Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the consolidated entity. Exposure to credit risk is considered minimal but is monitored on an ongoing basis. Cash transactions are limited to financial institutions considered to have a suitable credit rating. The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the statement of financial position at balance date. The carrying amount of the consolidated entity’s financial assets represents the maximum credit exposure. None of the receivables as at 30 June 2024 are past due or impaired. The consolidated entity’s maximum exposure to credit risk at the reporting date was: 30-Jun-24 $ 30-Jun-23 $ Carrying amount: Cash and cash equivalents 1,614,668 3,367,759 Trade and other receivables 81,081 24,396 1,695,749 3,392,155 (B) MARKET RISK (i) Cash flow and fair value interest rate risk The significance and management of the risks to the consolidated entity is dependent on a number of factors including (i) interest rates (current and forward) and the currencies that are held; (ii) level of cash and liquid investments and borrowings; (iii) maturity dates of investments and loans; and (iv) proportion of investments and borrowings with fixed rate or floating rates. The risk is managed by the consolidated entity maintaining an appropriate mix between fixed and floating rate investments. The consolidated entity’s exposure to interest rate risk is considered minimal. The effective interest rates of financial assets and financial liabilities with interest obligations at the reporting date are as follows. LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 PAGE 43 21. FINANCIAL RISK MANAGEMENT (CONTINUED) Variable rate instruments at call Fixed rate instruments Weighted average interest rate Variable rate instruments at call Fixed rate instruments Weighted average interest rate 2024 $ 2024 $ 2024 % 2023 $ 2023 $ 2023 % Financial assets Cash and cash equivalents 1,614,668 - 1.28% 3,367,759 - 1.54% Trade & other receivables 81,081 - - 24,396 - - Financial liabilities Trade & other payables 277,373 - - 74,583 - - Lease liabilities 183,818 - - - - - The values above were the carrying amount of the consolidated entity’s interest-bearing financial instruments at 30 June 2024 and 30 June 2023. (ii) Price risk There was no price risk in the current or prior period. The consolidated entity is not exposed to equity securities price risk at 30 June 2024 or 30 June 2023. (C) LIQUIDITY RISK The following are the contractual maturities of consolidated financial liabilities: 30-Jun-24 $ 30-Jun-23 $ Trade and other payables: Carrying amounts 277,373 74,583 Contractual cashflows 277,373 74,583 Payable 6 months or less 277,373 74,583 Lease liabilities: - Carrying amounts 183,818 - Contractual cashflows 183,818 - Payable 6 months or less 16,040 - LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 PAGE 44 21. FINANCIAL RISK MANAGEMENT (CONTINUED) (D) FAIR VALUES The carrying amounts of consolidated financial assets and financial liabilities shown in the statement of financial position approximate their fair values. AASB 13 Fair Value Measurement requires disclosure of fair value measurements by level of the following fair value measurement hierarchy: • quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1); • inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices) (level 2); and • inputs for the asset or liability that are not based on observable market data (unobservable inputs) (level 3). There were no financial assets and liabilities measured and recognised at fair value at 30 June 2024 or 30 June 2023. LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 | CONSOLIDATED ENTITY DISCLOSURE STATEMENT LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 PAGE 45 CONSOLIDATED ENTITY DISCLOSURE STATEMENT Name Type of entity % of share Country of incorporation Australian resident or foreign resident Foreign jurisdiction(s) of foreign residents Legal Parent Lachlan Star Limited Body Corporate - Australia Australian n/a Legal Subsidiaries Ord Investments Pty Ltd Body Corporate 100% Australia Australian n/a Midland Minerals Pty Ltd Body Corporate 100% Australia Australian n/a Coobaloo Minerals Pty Ltd Body Corporate 50% Australia Australian n/a TRK Resources Pty Ltd Body Corporate 100% Australia Australian n/a Basis of preparation This consolidated entity disclosure statement (CEDS) has been prepared in accordance with the Corporations Act 2001 and includes information for each entity that was part of the consolidated entity as at the end of the financial year in accordance with AASB 10 Consolidated Financial Statements. LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 | DIRECTORS’ REPORT LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 PAGE 46 DIRECTORS’ DECLARATION 1. In the opinion of the directors of Lachlan Star Limited: (a) the financial statements and notes set out on pages 24 to 44 are in accordance with the Corporations Act 2001, including: (i) giving a true and fair view of the consolidated entity’s financial position as at 30 June 2024 and of its performance for the financial year ended on that date; (ii) complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements; (b) subject to Note 1(a) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable; and (c) the consolidated entity disclosure statement on page 45 is true and correct as at 30 June 2024. This declaration has been made after receiving the declarations required to be made to the directors in accordance with section 295A of the Corporations Act 2001. Note 1(a) confirms that the financial statements also comply with International Financial Reporting Standards as issued by the International Accounting Standards Board. Signed in accordance with a resolution of the directors. Mr Gary Steinepreis Perth, Western Australia 27 September 2024 INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LACHLAN STAR LIMITED Report on the Audit of the Financial Report Opinion We have audited the financial report of Lachlan Star Limited (“the Company”) and its subsidiaries (“the Consolidated Entity”), which comprises the consolidated statement of financial position as at 30 June 2024, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the financial statements, including material accounting policy information, the consolidated entity disclosure statement and the director’s declaration. In our opinion: a. the accompanying financial report of the Consolidated Entity is in accordance with the Corporations Act 2001, including: (i) giving a true and fair view of the Consolidated Entity’s financial position as at 30 June 2024 and of its financial performance for the year then ended; and (ii) complying with Australian Accounting Standards and the Corporations Regulations 2001. b. the financial report also complies with International Financial Reporting Standards as disclosed in Note 1(a). 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 Consolidated Entity in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Material Uncertainty Related to Going Concern We draw attention to Note 1(a) in the financial report which indicates that the Consolidated Entity incurred a net loss of $1,779,324 during the year ended 30 June 2024. As stated in Note 1(a), these events or conditions, along with other matters as set forth in Note 1(a), indicate that a material uncertainty exists that may cast significant doubt on the Consolidated Entity’s ability to continue as a going concern. Our opinion is not modified in this respect of this matter. Key Audit Matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Key Audit Matter How our audit addressed the Key Audit Matter Exploration and Evaluation As disclosed in note 7 to the financial statements, as at 30 June 2024, the Group’s capitalised exploration and evaluation expenditure was carried at $9,970,770. The recognition and recoverability of exploration and evaluation expenditure was considered a key audit matter due to: • The significance of the balance to the Group’s financial position; • The level of judgement required in evaluating management’s application of the requirements of AASB 6 Exploration for and Evaluation of Mineral Resources (“AASB 6”). AASB 6 is an industry specific accounting standard requiring the application of significant judgements, estimates and industry knowledge. This includes specific requirements for expenditure to be capitalised as an asset and subsequent requirements which must be complied with for capitalised expenditure to be carried as an asset; and • The assessment of impairment of exploration and evaluation expenditure The following procedures were performed: • Assessing management’s determination of its areas of interest for consistency with the definition in AASB 6 Exploration and Evaluation of Mineral Resources (“AASB 6”); • Assessing the Group’s rights to tenure for a sample of tenements; • Testing the Group’s additions to capitalised exploration costs for the year by evaluating a sample of recorded expenditure for consistency to underlying records, the capitalisation requirements of the Group’s accounting policy and the requirements of AASB 6; • By testing the status of the Group’s tenure and planned future activities, reading board minutes and enquiries with management we assessed each area of interest for one or more of the following circumstances that may indicate impairment of the capitalised exploration costs: o The licenses for the rights to explore expiring in the near future or are not Key Audit Matter How our audit addressed the Key Audit Matter being inherently difficult. expected to be renewed; o Substantive expenditure for further exploration in the area of interest is not budgeted or planned; o Decision or intent by the Group to discontinue activities in the specific area of interest due to lack of commercially viable quantities of resources; and o Data indicating that, although a development in the specific area is likely to proceed, the carrying amount of the exploration asset is unlikely to be recovered in full from successful development or sale. We assessed the appropriateness of the related disclosures in note 7 to the financial report. Acquisition of TRK Resources Pty Ltd • As disclosed in note 7 to the financial statements, on 2 August 2023, the Company announced it had entered into an agreement with DevEx Resources Limited to acquire a substantial and highly prospective portfolio of copper-gold exploration tenements within the world-class Lachlan Fold Belt of New South Wales, for consideration of 75,672,720 LSA shares issued on 24 October 2023 ($6,810,545) plus a 2% Net Smelter Royalty (Transaction) and repayment of exploration expenses totaling $30,904 and the assumption of security deposits totaling $129,000. The Transaction was completed on 25 October 2023. • The acquisition constituted an asset acquisition with the fair value of the consideration issued measured in accordance with the requirements of AASB 2 Share Based Payments. The following procedures were performed: • Reviewing the Tenement Sale Agreement (“the agreement”) to obtain an understanding of the key terms and conditions; • Assessing the Group’s rights to tenure for a sample of tenements; • Critically evaluating the accounting treatment in accordance with the relevant Australian Accounting Standards; • Assessing management’s valuation of the consideration issued including relevant assumptions; • Review of management’s memorandum assessing the acquisition accounting treatment; • Assessment of the adequacy of the disclosures in Note 7 of the financial statements. Other Information The directors are responsible for the other information. The other information comprises the information included in the Consolidated Entity’s annual report for the year ended 30 June 2024, but does not include the financial report and our auditor’s report thereon. Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Directors for the Financial Report The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error, and the consolidated entity disclosure statement that is true and correct and is free of misstatement, whether due to fraud or error. In Note 1(a), the directors also state in accordance with Australian Accounting Standard AASB 101 Presentation of Financial Statements, that the financial report complies with International Financial Reporting Standards. In preparing the financial report, the directors are responsible for assessing the Consolidated Entity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Consolidated Entity or to cease operations, or has no realistic alternative but to do so. Auditor’s Responsibilities for the Audit of the Financial Report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Consolidated Entity’s internal control. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. • Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Consolidated Entity’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Consolidated Entity to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation. • Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Consolidated Entity to express an opinion on the financial report. We are responsible for the direction, supervision and performance of the Consolidated Entity audit. We remain solely responsible for our audit opinion. We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with the directors, we determine those matters that were of most significance in the audit of the financial report of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. Report on the Remuneration Report We have audited the Remuneration Report included in the directors’ report for the year ended 30 June 2024. The directors of the Company are responsible for the preparation and presentation of the remuneration report in accordance with s 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the remuneration report, based on our audit conducted in accordance with Australian Auditing Standards. Auditor’s Opinion In our opinion, the Remuneration Report of Lachlan Star Limited, for the year ended 30 June 2024, complies with section 300A of the Corporations Act 2001. HALL CHADWICK WA AUDIT PTY LTD MARK DELAURENTIS CA Director Dated this 27th day of September 2024 Perth, Western Australia LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 | ADDITIONAL SHAREHOLDER INFORMATION LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 PAGE 53 ADDITIONAL SHAREHOLDER INFORMATION Additional information required by the ASX Limited (“ASX”) Listing Rules and not disclosed elsewhere in this report is set out below. (A)SHAREHOLDINGS AS AT 25 SEPTEMBER 2024 SUBSTANTIAL SHAREHOLDERS The following shareholders have lodged substantial shareholder notices with ASX: Name of Shareholder Number of shares % held DevEx Resources Limited 77,672,720 36.46 Oakhurst Enterprises Pty Ltd, LeisureWest Consulting Pty Ltd, Gary Steinepreis, Jacqueline Steinepreis 11,638,235 5.61 Timothy RB Goyder, Lotaka Pty Ltd, Plato Prospecting Pty Ltd 10,533,605 5.07 VOTING RIGHTS The voting rights attaching to Ordinary Shares are governed by the Constitution. On a show of hands every person present who is a member or representative of a member shall have one vote and on a poll, every member present in person or by proxy or by attorney or duly authorised representative shall have one vote for each share held. No options have any voting rights. LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 | ADDITIONAL SHAREHOLDER INFORMATION LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 PAGE 54 (A)SHAREHOLDINGS AS AT 25 SEPTEMBER 2024 TWENTY LARGEST SHAREHOLDERS Rank Name Units % Units 1 DEVEX RESOURCES LIMITED 75,672,720 36.46 2 LOTAKA PTY LTD 7,533,605 3.63 3 OAKHURST ENTERPRISES PTY LTD 4,888,235 2.35 4 MR ANDREW NIXON 4,545,500 2.19 5 CITICORP NOMINEES PTY LIMITED 4,190,576 2.02 6 LIONTOWN RESOURCES LIMITED 4,000,000 1.93 7 LEISUREWEST CONSULTING PTY LTD 3,000,000 1.45 8 PLATO PROSPECTING PTY LTD 3,000,000 1.45 9 MOUTIER PTY LTD 2,500,000 1.20 10 NETWEALTH INVESTMENTS LIMITED 2,293,913 1.11 11 DR ADRIAN ODONNELL 2,000,000 0.96 12 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED 1,704,473 0.82 13 RANCHLAND HOLDINGS PTY LTD 1,700,000 0.82 14 DHALIWAL SUPER PTY LTD 1,500,000 0.72 15 MR ARTHUR BROMIDIS 1,450,000 0.70 16 GECKO RESOURCES PTY LTD 1,330,000 0.64 17 MR KENDY KWAN + MRS XIONG HUI KWAN 1,260,320 0.61 18 LEISUREWEST CONSULTING PTY LTD 1,250,000 0.60 19 BNP PARIBAS NOMS PTY LTD 1,200,416 0.58 20 FINCLEAR SERVICES PTY LTD 1,135,923 0.55 Totals: Top 20 holders of ORDINARY FULLY PAID SHARES (Total) 126,155,681 60.78 Total Remaining Holders Balance 81,417,514 39.22 LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 | ADDITIONAL SHAREHOLDER INFORMATION LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 PAGE 55 (A)SHAREHOLDINGS AS AT 125 SEPTEMBER 2024 (CONTINUED) Distribution of equity security holders Size of Holding Number of shareholders Number of fully paid shares 1 to 1,000 779 104,799 1,001 to 5,000 633 1,791,528 5,001 to 10,000 369 2,942,705 10,001 to 100,000 783 26,336,355 100,001 and over 196 176,397,808 2,760 207,573,195 The number of shareholdings held in less than marketable parcels is 1,257 (based on $0.13 per unit). (B)UNLISTED INCENTIVE OPTIONS AS AT 25 SEPTEMBER 2024 5,000,000 Options Exercisable at $0.075 expiring 01/02/2028 % Interest Gillian Tyrrell 100% 1,000,000 Options Exercisable at $0.075 expiring 01/03/2028 % Interest Justine Felicity Hawkins 100% (C)ON-MARKET BUYBACK There is no current on-market buyback. (D)INTEREST IN MINING AND EXPLORATION PERMITS Tenements Held at 30 June 2024 State EL8939 (Basin Creek) 100% New South Wales EL9013 (Basin Creek) 100% New South Wales EL9049 (Basin Creek) 100% New South Wales EL9461 (Basin Creek) 100% New South Wales EL8622 (Junee) 100% New South Wales EL8767 (Junee) 100% New South Wales EL8835 (Junee) 100% New South Wales EL8851 (Junee) 100% New South Wales EL9448 (Bauloora North) 100% New South Wales LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 | ADDITIONAL SHAREHOLDER INFORMATION LACHLAN STAR LIMITED | ANNUAL REPORT 30 JUNE 2024 PAGE 56 Tenements Held at 30 June 2024 State EL9051 (North Cobar) 100% New South Wales EL9520 (North Cobar) 100% New South Wales ELA6759 (North Cobar) 100% - Application New South Wales ELA6760 (Cobar) 100% - Application New South Wales ELA6761 (Cobar) 100% - Application New South Wales ELA6762 (Cobar) 100% - Application New South Wales E70/5337 (Koojan) 45% Western Australia E70/5312 (Koojan) 45% Western Australia E70/5429 (Koojan) 45% Western Australia E70/5515 (Koojan) 45% Western Australia E70/5450 (Koojan) 45% Western Australia P70/1743 (Koojan) 45% Western Australia M63/177 (Killaloe) 100% Western Australia E63/1018 (Killaloe) 80% Western Australia E63/1713 (Killaloe) 100% Western Australia ML5831 (Princhester) 100% Queensland ML5832 (Princhester) 100% Queensland EL5574 (Bushranger) Nil (Company retains a 2% NSR) New South Wales