1 MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 ANNUAL REPORT for the financial year ended to 30 June 2021 Page Corporate Directory ................................................................................................................................................................................................................................................................................................ 1 Chairman’s Letter ..................................................................................................................................................................................................................................................................................................... 2 Directors’ Report ...................................................................................................................................................................................................................................................................................................... 3 Independence Declaration to the Directors of Miramar Resources Limited ......................................................................................................................................................................... 19 Directors’ Declaration ......................................................................................................................................................................................................................................................................................... 20 Independent Auditor’s Report to the Members of Miramar Resources Limited ................................................................................................................................................................ 21 Consolidated Statement of Profit or Loss and Other Comprehensive Income ................................................................................................................................................................... 25 Consolidated Statement of Financial Position ....................................................................................................................................................................................................................................... 26 Consolidated Statement of Changes in Equity ..................................................................................................................................................................................................................................... 27 Consolidated Statement of Cash Flows .................................................................................................................................................................................................................................................... 28 Notes to the Consolidated Financial Statements ................................................................................................................................................................................................................................. 29 CORPORATE DIRECTORY Board of Directors Executive Chairman Technical Director Non-Executive Director Mr Allan Kelly Ms Marion Bush Mr Terry Gadenne Principal Office Unit 1, 22 Hardy Street, South Perth, Western Australia 6151 Registered Office Unit 1, 22 Hardy Street, South Perth, Western Australia 6151 Postal Address PO Box 810, South Perth, Western Australia 6951 Contact Details +61 8 6166 6302 (Telephone) info@miramarresources.com.au (Email) www.miramarresources.com.au (Website) ABN 34 635 359 965 1 MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 Company Secretary Company Secretary Mrs Mindy Ku Auditors RSM Australia Partners Level 32, Exchange Tower 2 The Esplanade Perth, Western Australia, 6000 Share Registry Automic Level 2/267 St George’s Terrace Perth, Western Australia, 6000 1300 288 664 (Telephone) www.automicgroup.com.au (Website) Lawyers Steinepreis Paganin Level 4, The Read Buildings 16 Milligan Street, Perth, Western Australia, 6000 DIRECTORS’ REPORT CHAIRMAN’S LETTER Dear Shareholder, On behalf of the Board of Miramar Resources Limited (Miramar or the Company), it gives me great pleasure to present the Company’s first Annual Report since listing on the ASX in October 2020. Late in the reporting period, Miramar commenced the first drilling campaigns at the Company’s second flagship project, Glandore, located approximately 40km east of Kalgoorlie. The Company compiled a portfolio of highly prospective exploration projects throughout Western Australia last year and completed a heavily oversubscribed Initial Public Offering (IPO) raising $8 million before listing on the ASX on 22 October 2020 at a significant premium to the IPO price. I would like to take the opportunity to thank Shaw and Partners for managing the IPO process. Soon after listing, Miramar commenced work on the Gidji JV Project, located approximately 15km north of Kalgoorlie. The Company believes the Gidji Project is very poorly explored despite its close proximity to a number of existing gold mining and/or processing operations. The Company’s view of the prospectivity of Gidji was confirmed with high- grade gold results coming from the first aircore drilling programme, specifically from the newly defined “Marylebone” target. Miramar soon recognised several similarities between the geology, structure and scale of Marylebone and the nearby Paddington deposit, which produced approximately 4 million ounces of gold. Subsequent aircore drilling and ground magnetic surveys have expanded and upgraded the Marylebone target and reinforced its likeness to Paddington. In addition, results released after the end of the reporting period have now outlined gold mineralisation over at least 2 kilometres of strike. As of the date of this letter, the target remains open along strike in both directions and virtually untested at depth. Further aircore and deeper drilling is planned for the upcoming year and the Company is excited about the opportunity to make a large new gold discovery at Marylebone, in close proximity to Kalgoorlie. Glandore has some significant historical drill results that have only been sporadically followed up, andMiramar believes it has the potential to host a significant new gold discovery. The Company looks forward to results of the first drilling programmes including drilling on Lake Yindarlgooda. In parallel to the systematic exploration at Gidji and preparations for drilling at Glandore, the Company has been busy behind the scenes across several other projects. Miramar sold the Garden Gully Project to Sipa Resources for cash and shares and applied for new tenements to add to its strategic landholding in the Bangemall region, an emerging Ni-Cu-PGE province whose prospectivity has been recognised both by Geoscience Australia and the Geological Survey of Western Australia. Just after the end of the reporting period, the Company completed a surface geochemical survey over the Whaleshark Project near Onslow, and the Company is planning to complete aircore drilling at the Lang Well Project, located in a prime position between the Deflector and Rothsay gold mines in the Murchison region. I would like to take the opportunity to thank our Board members, employees, contractors and consultants for their contribution to the Company so far, and to thank our shareholders for their ongoing support and belief in the Company’s projects and people. Allan Kelly Executive Chairman MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 2 DIRECTORS’ REPORT OPERATIONAL REVIEW EASTERN GOLDFIELDS PROJECTS Miramar has three projects in the Eastern Goldfields with the potential for new gold discoveries within proximity to existing mining and/or processing operations (Figure 1). GIDJI JV PROJECT (Miramar 80%) Figure 1. Eastern Goldfields Projects showing proximity to existing gold operations. The Gidji JV Project is located approximately 15km north of Kalgoorlie and is located within a major regional structure, the “Boorara Shear Zone”, which hosts gold mineralisation at Paddington, approximately 10km to the northwest, and Horizon Minerals’ “Boorara” gold operation to the southeast (Figure 1). The project has been poorly explored despite its location in proximity to these major gold deposits. Soon after listing on the ASX in October 2020, Miramar conducted an initial aircore drilling campaign at Gidji which outlined four new targets and returned results up to 2m @ 7.69g/t Au in quartz vein material from the Marylebone target. The Company quickly recognised several apparent similarities between Marylebone and the Paddington deposit to the northwest. Marylebone is related to an apparent dilational jog in the Boorara Shear Zone crosscut by a series of N-S trending structures. The local geology is characterised by a sequence of NW-trending mafic and ultramafic rocks within the Boorara Shear Zone, adjacent to volcaniclastic rocks of the Black Flag Beds. The footprint of the anomalism at Marylebone is also similar to that of the Paddington deposit. The Phase 2 aircore campaign was completed in April and aimed to infill the drill spacing to 150-200m x 50m over key areas identified by the Phase 1 drilling. The results of the Phase 2 drilling campaign extended and upgraded the four main targets at Gidji, including Marylebone. 3 MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 Given the increasing similarities between the Marylebone target and Paddington, a detailed ground magnetic survey was completed during May/June with 25m-spaced lines oriented perpendicular to the NW trending stratigraphy. The survey helped refine the local geology and structure and reinforced the similarities between Marylebone and Paddington. Further aircore drilling was completed at Marylebone during June and results were pending at the end of the year. Miramar aims to complete further exploration at Gidji including the following: Further aircore drilling to define the lateral extents of Marylebone Extending the existing ground magnetic survey along strike Deeper testing of Marylebone with RC and/or diamond drilling In addition, the Company is working towards the granting of several tenements which will almost double the total area of the Gidji JV Project. The applications contain several additional targets to those already tested, including an obvious dilational jog in the Boorara Shear Zone. DIRECTORS’ REPORT Figure 2. Gidji JV Project showing location in relation to nearby deposits. MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 4 DIRECTORS’ REPORT Figure 3. Marylebone Prospect showing all drilling to date. 5 MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 RC Drilling Following completion of the Phase 2 aircore programme, a series of RC holes were planned to test the Marylebone target where aircore drilling was ineffective due to a silcrete layer. A RC rig was secured at short notice and an initial programme of 6 holes, totalling 900m, was the Piccadilly, testing Marylebone and Railway targets. completed Results were pending at the end of the year. Diamond Drilling During March/April, three diamond holes were drilled at the 8-Mile target to test for a potential northern extension to the adjacent Runway deposit (7Mt @ 1.39g/t Au for 313koz Au). Two holes, GJDD001 and GJDD002, were drilled approximately 60m north of the northernmost KCGM drill holes, EMD0028 and 29 which had sporadic high-grade gold mineralisation in quartz veins in the hanging wall sediments but no significant mineralisation in the Runway “porphyry” itself. The two new diamond holes intersected the same geological sequence seen at Runway, along with a sulphidised quartz breccia, and established the prospective “porphyry” unit. the dip of GJDD002 intersected coarse visible gold in a thin quartz-sulphide veinlet in the hanging wall sandstone at 121m downhole. This vein returned a result of 1m @ 2.79g/t Au. A similar vein was observed in GJDD001 which returned a result of 1m @ 0.53g/t Au. The Runway “porphyry” itself was only weakly mineralised on this section. Given the observations from the first two holes, and the shorter than expected hole depths, a third hole completed (GJDD003) was approximately 50m north of GJDD001 and GJDD002. GJDD003 intersected a similar sequence of rocks and confirmed the strike of the west dipping “porphyry”, however no significant results were obtained from this hole. As a result, no further work is planned for the 8- Mile target at this stage. GLANDORE The Glandore Project is located within the Eastern Goldfields, approximately 40km east of Kalgoorlie, Western Australia and covers approximately 42 square km. The project consists of 10 Prospecting Licences and one Exploration Licence, all of which are granted. The highest priority western part of the project is underlain by a layered mafic sill intruding into basalt and sedimentary rocks. The sill comprises varieties of dolerite and gabbro analogous to the Golden Mile Dolerite. The local geology has been folded into a north-plunging antiform with the project located on the eastern limb, southeast of the hinge zone which has been intruded by a granodiorite and felsic porphyry dykes. The prospective geology is overlain by up to 50m of recent playa lake sediments which thin towards the west. Exploration has been mostly limited to the western part of the project, within the Prospecting Licences, and has been sporadic since the late 1980’s. Previous exploration including aircore drilling outlined a significant area of anomalous gold on the eastern side of the late granite pluton (Figure 4). Limited diamond drilling returned significant results including 8m @ 22.5g/t Au, however most sections have no systematic bedrock testing. The western side of the granite pluton has not been tested for over 2.5km of strike despite significant aircore results to the south of Lake Yindarlgooda and apparent similarities to the eastern target. Final planning for the first phase of exploration was completed during the June 2021 Quarter, including pegging and clearing of a series of aircore holes to be completed south of the lake. The Company commenced a gravity survey and this continued in-between periods of wet weather which restricted access to the lake surface. The Company’s maiden land and lake aircore drilling campaigns are scheduled to commence early in the September 2021 Quarter. DIRECTORS’ REPORT Figure 4. Glandore Project showing significant historical drill results. MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 6 DIRECTORS’ REPORT RANDALLS The Randalls Project is located immediately east of Silver Lake Resources Limited’s Maxwells and Cockeyed Bob gold mines, approximately 70km east of Kalgoorlie (Figure 5). The project consists of a single Exploration Licence Application (E25/596) and covers the same folded Banded Iron Formation and sediments that host the gold mineralisation currently being mined by Silver Lake. No work was completed during the Quarter as the Company waits for the tenement to be granted. Figure 5. Randalls Project showing proximity to Silver Lake Resources gold operations. 7 MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 DIRECTORS’ REPORT MURCHISON REGION PROJECTS Miramar has two under-explored projects in the Murchison region Lang Well Lakeside LANG WELL LAKESIDE The Lang Well Project consists of a single Exploration Licence covering a large, remnant greenstone belt located between the Deflector, Golden Grove and Rothsay gold operations (Figure 6). No work was completed as the Company waits for this tenement to be granted. Historical rock chip sampling returned results from 0.10g/t up to 16g/t Au whilst auger drilling in 2010 identified several large +5km long gold +/-pathfinder anomalies which have not been drill tested. The Company plans to complete aircore drilling at Lang Well within the second half of 2021. GARDEN GULLY The Company completed the sale of the three tenements that make up the Garden Gully Project (see ASX Announcement dated 22 June 2021). to Sipa Resources Figure 6. Lang Well Project location and regional geology. MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 8 DIRECTORS’ REPORT GASCOYNE REGION PROJECTS Miramar has two projects within the Proterozoic Capricorn Orogen, in the Gascoyne region of Western Australia (Figure 7): Whaleshark – folded BIF complex under Carnarvon Basin sediments Bangemall – multiple applications over areas prospective for Ni-Cu-PGE mineralisation Figure 7. Location map for Miramar’s Gascoyne region projects. WHALESHARK The Whaleshark Project is located 40km east of Onslow, WA, and consists of a single Exploration Licence, E08/3166. The project is located within the north-western extension of the Proterozoic Capricorn Orogen and is characterised by a folded Banded Iron Formation (BIF) complex under approximately 100m of Carnarvon Basin sediments (Figure 8). Previous exploration included limited diamond drilling which intersected anomalous gold in the BIF. The project has potential for Proterozoic BIF-hosted Au and Iron Oxide Cu-Au mineralisation. At the end of the June 2021 Quarter, the Company commenced a programme of surface geochemical sampling over the BIF. 9 MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 DIRECTORS’ REPORT Figure 8. Magnetic image for Whaleshark Project showing geological interpretation and previous drilling. BANGEMALL (NI-CU-PGE) The Bangemall Project covers a series of major crustal-scale structures in the Capricorn Orogen between the Yilgarn and Pilbara cratons (Figure 9). The area has been highlighted by both the GSWA and Geoscience Australia as having high prospectivity for Proterozoic craton margin Ni-Cu-PGE mineralisation like that seen in the Albany-Fraser Province (e.g. Nova- Bollinger), the West Musgraves (e.g. Nebo-Babel) and the giant Voisey Bay and Norilsk deposits. The project consists of several Exploration Licence applications that cover areas with: proximity to major crustal-scale faults - confirmed by seismic traverses numerous Proterozoic-aged dolerite dykes/sills with the same age as the West Musgraves regional-scale stream sediment Ni-Cu-Pt-Pd anomalism from GSWA sampling regional-scale airborne EM conductors The area has seen substantial exploration for Cu-Pb-Zn but minimal exploration for Ni-Cu-PGE’s. The Company is planning to conduct an airborne EM survey over the Mt Vernon target as soon as practicable following discussions with the local pastoralist. Figure 9. Regional geological setting for the Bangemall Project tenements. MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 10 DIRECTORS’ REPORT CORPORATE REVIEW IPO AND ASX LISTING Miramar Resources Limited (“Miramar” or “the Company”) listed on the ASX on 22 October 2020 following a heavily oversubscribed $8 million Initial Public Offering. CAPITAL STRUCTURE AS OF 30 JUNE 2021 Description Fully paid ordinary shares Unlisted options exercisable at $0.20 on or before 22 October 2022 Unlisted options exercisable at $0.48 on or before 6 January 2023 Unlisted options exercisable at $0.25 on or before 9 October 2023 Unlisted options exercisable at $0.20 on or before 26 June 2025 MARKETING During the Year, the Company attended and/or presented at a number of events including: • • AMEC Investor Briefing; RIU Sydney Resources Roundup; • Gold Coast Investment Showcase; and • Resources Roadhouse Investor Afternoon. Numbers 55,060,100 8,210,000 50,000 6,000,000 3,000,000 11 MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 DIRECTORS’ REPORT BOARD OF DIRECTORS The names and particulars of the Directors of the Company during the financial year and until the date of the report are: Mr Allan Kelly, Executive Chairman (Appointed 6 August 2019) Ms Marion Bush, Technical Director (Appointed 3 March 2020) Mr Kelly is a geologist and manager with over 25 years’ experience in mineral exploration, development and production throughout Australia and the Americas. Mr Kelly graduated in 1994 with a Bachelor of Science (with honours) in Applied Geology from Curtin University. He has been involved in targeting early stage exploration of gold, nickel and copper deposits in Australia, Alaska and Canada and has previously held senior exploration positions within Western Mining Corporation and Avoca Resources Limited. He has also served as an Executive Director of Riversgold Ltd and a non-executive director of Alloy Resources Ltd. In 2009, Mr Kelly founded Doray Minerals Limited, which listed on the ASX in early 2010. Under Mr Kelly’s management, Doray discovered the high- grade Wilber Lode gold deposit within the Andy Well Project in the Murchison Region of Western Australia, which moved from discovery to production within three and a half years, and subsequently funded, constructed and commissioned the Deflector Gold-Copper Project within 14 months of completing the takeover of Mutiny Gold Limited in 2014. In 2014, Mr Kelly was awarded the Association of Mining and Exploration Companies (AMEC) ‘Prospector Award’, along with Doray’s co-founder Mr Heath Hellewell, for the discovery of the Wilber Lode and Andy Well gold deposits. Mr Kelly is a Fellow and Former Councillor of the Association of Applied Geochemistry (AAG), a Member of the Australian Institute of Geoscientists (AIG) and a Member of the of the Institute of Brewing and Distilling (IBD). Mr Kelly is responsible for the day-to-day management of the Company and is the Chairman of the Board. During the past 3 years Mr Kelly has also served as a director of the following other listed companies: Alloy Resources limited (10 February 2017 – 1 May 2019) Riversgold Limited (24 February 2017 – 26 March 2019) COMPANY SECRETARY Mrs Mindy Ku (Appointed 26 June 2020) Ms Bush is a geologist with over 25 years’ in experience senior management, directorship, commercial management, analyst and marketing roles within the UK, Australia, Africa, and South America. She was the former CEO of TSX-V listed Cassidy Gold Corp and a former Mining Analyst. She holds a Bachelor of Science (Geology) from Curtin University, a Master of Science (Mineral Project Appraisal) the University of London (Imperial College), and is Member of the Australian Institute of Geoscientists (AIG). from During the past 3 years Ms Bush did not serve as a director on other listed companies. Mr Terry Gadenne, Non-Executive Director (Appointed 3 March 2020) Mr Gadenne has over 30 years’ experience in the military and civilian aviation, agriculture and mining management roles. He was the Chief Pilot of Mackay Helicopters Pty Ltd and Managing Director of Mining Logic Pty Ltd located in Queensland. He has also held various board positions in not-for-profit organisations. He holds a Bachelor of Aviation Studies the University of (Management) from the Western Sydney, has completed Company Directors Course with AICD and was a former army and navy pilot. During the past 3 years Mr Gadenne did not serve as a director on other listed companies. Mrs Ku has over 15 years’ international experience in financial analysis, financial reporting, management accounting, compliance reporting, board reporting, company secretarial services and office management across multiple jurisdictions (Australia, Malaysia, UK, Sweden and Norway) including ASX listed public and private companies. She holds a Bachelor of Science in Computing from the University of Greenwich, United Kingdom, is a Member of Certified Practising Accountant Australia and a Fellow Member of the Governance Institute of Australia. DIRECTORS’ RELEVANT INTEREST IN SHARES AND OPTIONS At the date of this report the following table sets out the current Directors’ relevant interests in shares and options of Miramar Resources Limited and the changes since 30 June 2021. Director Allan Kelly Marion Bush Terry Gadenne Ordinary Shares Options over Ordinary Shares Current Holding 6,707,293 435,000 200,000 Net Increase/ (decrease) – 75,000 – Current Holding 2,000,000 1,360,000 1,200,000 Net Increase/ (decrease) – – – MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 12 DIRECTORS’ REPORT REMUNERATION REPORT (AUDITED) The remuneration report is set out under the following main headings: A. B. C. D. E. Principles used to determine the nature and amount of remuneration Details of remuneration Service agreements Share–based compensation Additional information The information provided in this remuneration report has been audited as required by section 308(3C) of the Corporations Act 2001. A. Principles used to determine the nature and amount of remuneration The whole Board forms the Remuneration Committee. The remuneration policy has been designed to align director and executive objectives with shareholder and business objectives by providing a fixed remuneration component with the flexibility to offer specific long term incentives based on key performance areas affecting the Group’s financial results. The Board believes the remuneration policy to be appropriate and effective in its ability to attract and retain the best directors and executives to manage the Group. The Board’s policy for determining the nature and amount of remuneration for Board members and senior executives is as follows: The remuneration policy, setting the terms and conditions for the executive directors and other senior executives, was developed by the Board. All executives receive a base salary (which is based on factors such as length of service and experience) and superannuation. The Board reviews executive packages annually and determines policy recommendations by reference to executive performance and comparable information from industry sectors and other listed companies in similar industries. The Board may exercise discretion in relation to approving incentives, bonuses and options. The policy is designed to attract and retain the highest calibre of executives and reward them for performance that results in long term growth in shareholder wealth. The Executive Director and executives receive a superannuation guarantee contribution required by the government where applicable, which is currently 10.0% (30 June 2021: 9.5%) of base salary and do not receive any other retirement benefits. All remuneration paid to directors and executives is valued at the cost to the Group and expensed. Options are valued using the Black–Scholes methodology where relevant. The Board policy is to remunerate non–executive directors at market rates for comparable companies for time, commitment and responsibilities. The Board determines payments to the non–executive directors and reviews the remuneration annually, based on market practice, duties and accountability. Independent external advice is sought when required. No independent external advice was sought during the year. The maximum aggregate amount of fees that can be paid to Non–Executive Directors is subject to approval by shareholders at the Annual General Meeting. The Company intends to seek shareholder approval at the Annual General Meeting for the maximum aggregate amount that may be paid to Non- Executive Directors as remuneration for each financial year which may be divided among the Non-Executive Directors in the manner determined by the Board and Company from time to time. Fees for Non–Executive Directors are not linked to the performance of the Company. The remuneration policy has been tailored to increase the direct positive relationship between shareholders investment objectives and directors and executive performance. The Company facilitates this through the issue of options from time to time to the directors and executives to encourage the alignment of personal and shareholder interests. The Company believes this policy will be effective in increasing shareholder wealth. The Company currently has no performance based remuneration component built into director and executive remuneration packages. The Board does not consider earnings during the current and previous financial years when determining, and in relation to, the nature and amount of directors’ remuneration. Refer below for a summary of the Group’s earnings and the Company’s market performance for the past 2 years. Summary of 2 Years earnings and market performance as at 30 June Profit/(Loss) ($) Share price ($) Market capitalisation (Undiluted) ($) 2021 2020 (1,019,910) (189,516) 0.18 9,910,818 – – 13 MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 DIRECTORS’ REPORT REMUNERATION REPORT (AUDITED) (cont’d) B. Details of remuneration Details of remuneration of the Directors and key management personnel (as defined in AASB 124 Related Party Disclosures) of Miramar are set out in the table below. The key management personnel of Miramar and the Group are listed on pages 12. Given the size and nature of operations of Miramar, there are no other employees who are required to have their remuneration disclosed in accordance with the Corporations Act 2001. Short Term Post-employment Equity Salary & fees Other benefits(i) D&O(ii) insurance Superan- nuation Other benefits Options(iii) Long term benefits Other benefits Value options as proportion of remuneration % Total $ $ $ 2021 Directors A Kelly M Bush T Gadenne Total 2020 Directors A Kelly M Bush T Gadenne Total $ $ $ $ $ 191,465 16,513 86,971 16,786 6,091 – 7,050 7,050 7,050 18,304 8,308 1,595 295,222 22,604 21,150 28,207 – – – – – – – – – – – – – – – – – – – – – – – – $ – – – – 26,493 26,493 26,493 79,479 – – – – – – – – – – – – – – – – 233,332 108,420 25,431 367,183 26,493 26,493 26,493 79,479 0.0% 0.0% 0.0% 0.0% 100% 100% 100% 100% Short Term Other benefits include car allowance and annual leave accrued during the year. (i) (ii) For accounting purposes Directors & Officers Indemnity Insurance is required to be recorded as remuneration. No director receives any cash benefits, simply the benefit of the insurance coverage for the financial year. (iii) The amounts included are under Miramar’s Employee Share Option Plan (ESOP) and are non-cash items that are subject to vesting conditions. Refer to Section D for more information. C. Service agreements Executive Directors A Kelly Mr Allan Kelly was appointed a Director on 6 August 2019. He entered into an Executive Services Agreement as Executive Chairman of the Company on 21 August 2020, rendering a salary of $275,000 per annum plus superannuation which commenced on 22 October 2020 upon the Company’s admission to the official list of the ASX. The remuneration package includes statutory superannuation entitlements and provision of leave in accordance to the National Employment Standards. Mr Kelly’s salary will be reviewed by the Company in accordance with the policy of the Company for the annual review of salaries. Any salary increase will be backdated to 1 July of the relevant year. The Company may at any time during the term of appointment pay Mr Kelly a performance-based bonus over and above his salary. In determining the extent of any performance-based bonus, the Company shall take into consideration the key performance indicators of Mr Kelly and the Company, as the Company may set from time to time, and any other matter that it deems appropriate. M Bush Ms Marion Bush was appointed a Director on 3 March 2020. She entered into a Consultancy Services Agreement as a Technical Director of the Company on 21 August 2020, rendering a fee of $120,000 per annum (excluding GST) which commenced on 22 October 2020 upon the Company’s admission to the official list of the ASX. Ms Bush’s fees will be reviewed annually by the Company in accordance with the policy of the Company for the annual review of salaries or fees paid to consultants and directors of the Company. The Company may pay Ms Bush a performance-based bonus over and above the consultancy fee in cash or non-cash form at any time during the engagement term subject to obtaining any applicable regulatory approvals. In determining the extent of any performance-based bonus, the Company shall take into consideration the key performance indicators Ms Bush and the Company, as the Company may set from time to time, and any other matter that it deems appropriate. Remuneration and other terms of employment for the executive are formalised in an employment agreement. The executives are employed on a rolling basis with no specified fixed terms. Major provisions of the agreements relating to the executives are set out below. MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 14 DIRECTORS’ REPORT REMUNERATION REPORT (AUDITED) (cont’d) Name Engagement By MIRAMAR By Director Executive Chairman | Allan Kelly Executive Chairman Technical Director | Marion Bush Consultant 6 months 1 month 6 months 1 month Termination Notice Period Termination payments* 6 months 1 month * Termination payments (other than for gross misconduct) are calculated on current remuneration at date of termination and are inclusive of the notice period. Non-Executive Director Mr Terry Gadenne was appointed a Director on 3 March 2020. Mr Gadenne’s appointment as a Non-Executive Director commenced on 22 October 2020 upon the Company’s admission to the official list of the ASX. Mr Gadenne is entitled to a base fee of $26,400 per annum (excluding GST) including superannuation entitlements, subject to annual review by the Board and approval by the shareholders of the Company (if required). Major provisions of the agreements relating to the Non-Executive Director are set out below. Name Non-Executive Director Terry Gadenne Termination Notice Period By MIRAMAR By Director Termination payments* 6 months Immediately N/A * Termination payments (other than for gross misconduct) are calculated on current remuneration at date of termination and are inclusive of the notice period. D. Share–based compensation If approved by shareholders, options are issued to directors and executives as part of their remuneration. The options are not based on performance criteria, but are issued to align the interests of directors, executives and shareholders. There were no options issued to the directors and executives during the year. As at 30 June 2021, 4,560,000 options (2020: 4,560,000) were held by directors and non-executives. Options issued during the year No of options No. No. Issue date Fair value per options at issue date Vesting date Vested during the year Expired/ Exercised during the year Exercise price Expiry date No. No. – – – – – – – – – – – – – – – 1,000,000 26 Jun 20 $0.026 26 Jun 20 $0.20 26 Jun 25 1,000,000 26 Jun 20 – – – – 26 Jun 20 $0.20 22 Oct 22 – – – 1,000,000 26 Jun 20 $0.026 26 Jun 20 $0.20 26 Jun 25 360,000 26 Jun 20 – – – – 26 Jun 20 $0.20 22 Oct 22 – – – 1,000,000 26 Jun 20 $0.026 26 Jun 20 $0.20 26 Jun 25 200,000 26 Jun 20 – 26 Jun 20 $0.20 22 Oct 22 – – – – – – – – – – – – – – – – – – Directors A Kelly M Bush T Gadenne Financial year 2021 2020 2020 2021 2020 2020 2021 2020 2020 E. Additional information Performance income as a proportion of total compensation No performance based bonuses have been paid to directors or executives during the financial year. Key management personnel (KMP) equity holdings Fully paid ordinary shares of Miramar Resources Limited Key management personnel 2021 Allan Kelly Marion Bush Terry Gadenne Total Balance at 1 July No. 2,000,100 360,000 200,000 2,560,100 Granted as remuneration No. Received on exercise of options No. – – – – – – – – Net other change No. 4,707,193 – – Balance at 30 June No. 6,707,293 360,000 200,000 4,707,193 7,267,293 15 MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 DIRECTORS’ REPORT REMUNERATION REPORT (AUDITED) (cont’d) Options of Miramar Resources Limited Key management personnel Balance at July No. Granted as remuneration No. Options exercised No. Net other change No. Balance at 30 June No. Exercisable No. Not exercisable No. Vested at 30 June 2021 Allan Kelly Marion Bush Terry Gadenne Total 2,000,000 1,360,000 1,200,000 4,560,000 – – – – – – – – – – – – 2,000,000 2,000,000 1,360,000 1,360,000 1,200,000 1,200,000 4,560,000 4,560,000 – – – – The options include those held directly, indirectly and beneficially by KMP. Loans to KMP and their related parties There were no loans to KMP and their related parties during the year. Other transactions and balances with KMP and their related parties Directors transactions XGS Exploration Geochemistry Services (XGS), of which Mr Allan Kelly is a Director, provided consulting services in relation to the IPO and ASX listing of the Company to October 2020 amounting to $35,200. The services provided were on arms-length commercial terms. At 30 June 2021 the Company did not owe XGS. The Company entered in a lease agreement with XGS on 15 July 2020. The lease commenced from 1 July 2020 to 31 October 2020 amounting to $7,040. At 30 June 2021 the Company did not owe XGS. The Company entered into a Sales and Purchase Agreement (S&P Agreement) with Debnal Pty Limited (Debnal), of which Mr Allan Kelly is a Director, for mineral tenements and applications for mineral tenements in Whaleshark, Bangemall, Garden Gully, Lakeside, Lang Well and Randalls (Tenements). On 8 June 2020 the Company made a non-refundable cash payment of $25,000 to Debnal for a 6-month exclusion option to purchase the Tenements (Option). On 7 October 2020 the Company elected to exercise the Option and made a final payment of $75,000 and issued 4,500,000 fully paid ordinary share at fair value of $0.20 per share to Debnal. Ms Marion Bush provided geological services in relation to the IPO and ASX listing of the Company to October 2020 amounting to $18,500. The services provided were on arms-length commercial terms. At 30 June 2021 the Company did not owe Ms Bush. End of Remuneration Report DIRECTORS MEETINGS The following tables set information in relation to Board meetings held during the financial year. Board Member Held while Director Attended Board Meetings A Kelly M Bush T Gadenne 8 8 8 8 8 8 Circular resolutions passed 5 7 7 Total 13 15 15 MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 16 DIRECTORS’ REPORT PRINCIPAL ACTIVITIES The principal activities of the Group during the year were the exploration and evaluation of mining tenements with the objectives of identifying economic mineral deposits. FINANCIAL REVIEW The Group began the financial year with cash reserves of $327,771. During the year total exploration expenditure expensed by the Group amounted to $114,132 (2020: to $64,758). The exploration expenditures relate to non granted tenements and this has been expensed in accordance with the Group’s accounting policy. Administrative expenditure incurred amounted to $824,381 (2020: $124,758). Operating loss after income tax for the year ended 30 June 2021 amounted to $1,019,910 (2020: $189,516 loss). As at 30 June 2021 cash and cash equivalents totalled $5,055,388. Summary of 2 Year Financial Information as at 30 June Cash and cash equivalents ($) Net assets/equity ($) Exploration expenditure expensed ($) Exploration and evaluation expenditure capitalised ($) No of issued shares No of options Share price ($) Market capitalisation (Undiluted) ($) Summary of Share Price Movement to the date of this report Highest Lowest Latest Share Price ($) Date $0.415 $0.170 $0.190 22 October 2020 28-29 July 2021 13 September 2021 2021 5,055,388 7,812,145 (114,132) 3,038,658 55,060,100 17,260,000 0.180 9,910,818 2020 327,771 299,424 (64,758) – 9,010,100 11,010,000 – – CORPORATE GOVERNANCE STATEMENT The Company is committed to high standards of corporate governance designed to enable the Company to meet its performance objectives and better manage its risks. The Company has adopted a comprehensive governance framework in the form of a formal corporate governance charter together with associated policies, protocols and related instruments (together Charter). The Charter was formally adopted by the board on 19 December 2019. The Company’s Charter is based on a template which has been professionally verified to be complementary to and in alignment with the ASX Corporate Governance Council Principles and Recommendations 4th Edition 2019 (ASX CGCPR) in all material respects. The Charter also substantially addresses the suggestions of good corporate governance mentioned in the ‘Commentary’ sections of the ASX CGCPR. The Board is responsible for the overall corporate governance of the Group. The Board has governance oversight of all matters relating to the strategic direction, corporate governance, policies, practices, management and operations of the Group with the aim of delivering value to its Shareholders and respecting the legitimate interest of its other valued stakeholders, including employees, suppliers and joint venture partners. Under ASX Listing Rule 4.10.3, the Company is required to provide in its annual report details of where shareholders can obtain a copy of its corporate governance statement, disclosing the extent to which the Company has followed the ASX Corporate Governance Council Principles and Recommendations in the reporting period. The corporate governance statement is published on the Company’s website: https://www.miramarresources.com.au/corporate/corporate-governance/ 17 MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 DIRECTORS’ REPORT Significant changes in state of affairs Insurance of directors and officers Other than those disclosed in this annual report no significant changes in the state of affairs of the Group occurred during the financial year. Significant events after the balance date No other matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the Group, the results of those operations, or state of affairs of the Group in future financial years other than those stated below: (a) On 13 September 2021 the Company advised that several key tenements within the 80% Gidji JV Project were granted. Pursuant to the agreement disclosed in the Prospectus dated 4 September 2020, 1,250,000 fully paid ordinary shares will be issued when more than 51% of the total area of ungranted project area are granted. The issue of shares has not occurred on the date of this report. COVID-19 The COVID-19 pandemic continues to pose a global socio-political, economic and health risk. The potential for the pandemic to have both lasting and unforeseen impacts is high. At this point in time the Group is experiencing minor delays in project timelines as a result of the pandemic. These delays are not expected to be significant. As a Group, we adhere to the changes in government policies and changed the way we work to protect the wellbeing of our people and ensure business continuity. We continue to maintain a state of response readiness commensurate with the risks and in accordance with Government recommendations and health advice. During or since the end of the financial year, the Company has paid premiums insuring all the Directors of Miramar Resources Limited against costs incurred in defending conduct involving: (a) (b) a wilful breach of duty, and a contravention of sections 182 or 183 of the Corporations Act 2001, as permitted by section 199B of the Corporations Act 2001. The total amount of insurance contract premiums paid was $21,150. Indemnification of auditors To the extent permitted by law, the Company has agreed to indemnify its auditors, RSM Australia Partners, as part of the terms of its audit engagement agreement against claims by third parties arising from the audit (for an unspecified amount). No payment has been made to indemnify RSM during or since the financial year. Dividends No dividends were paid or declared during the financial year and no recommendation for payment of dividends has been made. Non–audit services During the year the associate of RSM Australia Partners, RSM Australia Pty Ltd performed non-audit services to the Group. Refer to note 9 for further information. Likely developments and expected results Auditor’s independence declaration The Group expects to maintain the present status and level of operations and hence there are no likely developments in the Group’s operations. The auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is included on page 19. Signed in accordance with a resolution of the Directors made pursuant to s.298(2) of the Corporations Act 2001. Environmental regulation and performance The Group is subject to significant environmental regulation in respect to its exploration activities. The Group aims to ensure the appropriate standard of environmental care is achieved, and in doing so, that is aware of and is in compliance with all environmental legislation. The Directors of the Group are not aware of any breach of environmental legislation for the year under review. Share options As at the date of this report, there were 17,260,000 options on issue to purchase ordinary shares at a range of exercise prices (17,260,000 at 30 June 2021). Option holders do not have any right, by virtue of the option, to participate in any share issue of the Company or any related body corporate. On behalf of the Directors Allan Kelly Executive Chairman Perth, Western Australia this 15th of September 2021 MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 18 INDEPENDENCE DECLARATION TO THE DIRECTORS OF MIRAMAR RESOURCES LIMITED 19 MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 DIRECTORS’ DECLARATION The Directors declare that: (a) (b) in the Directors’ opinion, there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable; in the Directors’ opinion, the attached financial statements and notes thereto are in accordance with the Corporations Act 2001, including compliance with Australian Accounting Standards and International Financial Reporting Standards as disclosed in note 2 to the financial report and giving a true and fair view of the financial position and performance of the Group for the financial year ended 30 June 2021; and (c) the Directors have been given the declarations required by section 295A of the Corporations Act 2001 for the financial year ended 30 June 2021. Signed in accordance with a resolution of the Directors made pursuant to section 295(5) of the Corporations Act 2001. On behalf of the Directors Allan Kelly Executive Chairman Perth, Western Australia this 15th of September 2021 MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 20 INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF MIRAMAR RESOURCES LIMITED 21 MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF MIRAMAR RESOURCES LIMITED MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 22 INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF MIRAMAR RESOURCES LIMITED 23 MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF MIRAMAR RESOURCES LIMITED MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 24 CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME for the financial year ended 30 June 2021 Continuing operations Revenue Other income Employee expenses Depreciation expense Consultants expenses Interest expense Occupancy expenses Marketing expenses Exploration and evaluation expenses Write off exploration and evaluation expenses Fair value changes in financial assets designated at fair value through P&L Other expenses Loss from continuing operations before income tax benefit Income tax expense Loss attributable to members of the parent entity Other comprehensive income for the year/period Total comprehensive loss for the year/period Net loss attributable to the parent entity Total comprehensive loss attributable to the parent entity Loss per share: Basic (cents per share) Diluted (cents per share) The accompanying notes form part of the financial statements. Note 5(a) 5(b) 5(c) 5(d) 5(e) 14 6 2021 $ 150,000 1,716 (139,628) (30,647) (331,047) (1,638) (26,926) (82,790) (114,132) (219,554) (13,559) (211,705) (1,019,910) – 6 August 2019 to 30 June 2020 $ – – (79,479) – (44,899) – – – (64,758) – – (380) (189,516) – (1,019,910) (189,516) – – (1,019,910) (189,516) (1,019,910) (1,019,910) (189,516) (189,516) 21 21 (2.39) (2.39) (192.28) (192.28) 25 MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 CONSOLIDATED STATEMENT OF FINANCIAL POSITION as at 30 June 2021 Current assets Cash and cash equivalents Trade and other receivables Other financial assets at fair value through profit and loss Total current assets Non–current assets Other receivables Plant and equipment Right-of-use asset Capitalised exploration and evaluation expenditure Total non–current assets TOTAL ASSETS Current liabilities Trade and other payables Provisions Lease liability Total current liabilities Non-current liabilities Lease liability Total non-current liabilities TOTAL LIABILITIES NET ASSETS Equity Issued capital Reserves Accumulated losses TOTAL EQUITY The accompanying notes form part of the financial statements. Note 27(a) 10 11 12 13 17 14 15 16 17 17 18 19 20 2021 $ 5,055,388 71,313 86,441 5,213,142 56,000 149,129 62,518 3,038,658 3,306,305 8,519,447 376,704 266,957 51,473 695,134 12,168 12,168 707,302 7,812,145 8,268,845 752,726 (1,209,426) 7,812,145 2020 $ 327,771 2,968 – 330,739 – – – – – 330,739 31,315 – – 31,315 – – 31,315 299,424 409,461 79,479 (189,516) 299,424 MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 26 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY for the financial year ended 30 June 2021 Attributable to equity holders For the year ended 30 June 2021 Balance as at 1 July 2021 Total comprehensive income Loss for the year Other comprehensive loss for the year Total comprehensive loss for the year Transactions with owners recorded direct to equity Issue of shares Share based payments Share issue costs Total transactions with owners Balance as at 30 June 2021 For the period ended 30 June 2020 Balance as at 6 August 2019 Total comprehensive income Loss for the period Other comprehensive loss for the period Total comprehensive loss for the period Transactions with owners recorded direct to equity Issue of shares Shared based payments Share issue costs Total transactions with owners Balance as at 30 June 2020 Issued Capital $ 409,461 – – – 9,180,000 – (1,320,616) 7,859,384 8,268,845 – – – – 410,600 – (1,139) 409,461 409,461 Reserves $ 79,479 – – – – 673,247 – 673,247 752,726 – – – – – 79,479 – 79,479 79,479 Accumulated Losses $ (189,516) Total Equity $ 299,424 (1,019,910) (1,019,910) – – (1,019,910) (1,019,910) – – – – (1,209,426) 9,180,000 673,247 (1,320,616) 8,532,631 7,812,145 – – (189,516) – (189,516) – – – – (189,516) (189,516) – (189,516) 410,600 79,479 (1,139) 488,940 299,424 The accompanying notes form part of the financial statements. 27 MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 CONSOLIDATED STATEMENT OF CASH FLOWS for the financial year ended 30 June 2021 Note 2021 $ 6 August 2019 to 30 June 2020 $ Cash flows from operating activities Payments for exploration and evaluation Payments to suppliers and employees Interest received Net cash used in operating activities 27(b) Cash flows from investing activities Payment for acquisition of tenements Payments for exploration and evaluation Payment for plant and equipment Proceeds from sale of tenements Net cash used in investing activities Cash flows from financing activities Proceeds from issues of equity securities Payment for share issue costs Repayment of lease liabilities Net cash received in financing activities 21,606 (680,722) 1,488 (657,628) (291,970) (1,530,142) (179,776) 50,000 (1,951,888) 8,010,000 (650,135) (22,732) 7,337,133 (59,758) (23,071) – (82,829) – – – – 410,600 – – 410,600 Net increase in cash and cash equivalents 4,727,617 327,771 Cash and cash equivalents at the beginning of the financial period Cash and cash equivalents at the end of the financial period 27(a) 327,771 5,055,388 – 327,771 The accompanying notes form part of the financial statements. MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 28 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the financial year ended 30 June 2021 1. General Information Miramar Resources Limited (Miramar or the Company) is a company limited by shares, incorporated and domiciled in Australia, and whose shares are publicly traded on the Australian Securities Exchange. The consolidated financial report of the Group as at year ended 30 June 2021 comprises the Company and its subsidiaries (together referred to as the Group). Miramar is a for profit company limited by shares incorporated and domiciled in Australia whose shares are publicly traded on the Australian Securities Exchange. The nature of the operations and principal activities of the Group are mineral exploration and project development which is further described in the Directors’ Report. Information on other related party relationships is provided in note 25. 2. Summary of significant accounting policies The financial report is a general purpose financial report, which has been prepared in accordance with the requirements of the Corporations Act 2001, Australian Accounting Standards and other authoritative pronouncements of the Australian Accounting Standards Board. The financial report includes the financial statements of Miramar Resources Limited and its subsidiaries. The financial report also complies with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board. (a) Basis of preparation The financial report has been prepared on an accruals basis and is based on historical cost, except for certain financial assets and liabilities which are carried at fair value. Cost is based on the fair values of the consideration given in exchange for assets. All amounts are presented in Australian dollars, unless otherwise noted. Separate financial statements for Miramar as an individual entity are no longer presented as the consequence of a change to the Corporations Act 2001, however, required financial information for Miramar as an individual entity is included in note 30. The accounting policies set out below have been applied in preparing the financial statements for the year ended 30 June 2021 and the comparative information presented in these financial statements for the year ended 30 June 2020. (b) New Accounting Standards for Application in the Current Financial Year and Future Periods The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the preparation of the Company’s annual financial statements for the year ended 30 June 2020 except for the new accounting standards stated below. New and Amended Standards Adopted by the Group The Group has considered the implications of new and amended Accounting Standards which have become applicable for the current financial reporting period. Initial adoption of AASB 2020-04: COVID-19-Related Rent Concessions AASB 2020-4: Amendments to Australian Accounting Standards – COVID-19-Related Rent Concessions amends AASB 16 by providing a practical expedient that permits lessees to assess whether rent concessions that occur as a direct consequence of the COVID-19 pandemic and, if certain conditions are met, account for those rent concessions as if they were not lease modifications. (b) New Accounting Standards for Application in the Current Financial Year and Future Periods (cont’d) Initial adoption of AASB 2018-6: Amendments to Australian Accounting Standards – Definition of a Business AASB 2018-6 amends and narrows the definition of a business specified in AASB 3: Business Combinations, simplifying the determination of whether a transaction should be accounted for as a business combination or an asset acquisition. Entities may also perform a calculation and elect to treat certain acquisitions as acquisitions of assets. Initial adoption of AASB 2018-7: Amendments to Australian Accounting Standards – Definition of Material This amendment principally amends AASB 101 and AASB 108 by refining the definition of material by improving the wording and aligning the definition across the standards issued by the AASB. Initial adoption of AASB 2019-1: Amendments to Australian Accounting Standards – References to the Conceptual Framework This amendment amends Australian Accounting Standards, Interpretations and other pronouncements to reflect the issuance of Conceptual Framework for Financial Reporting by the AASB. The standards listed above did not have any impact on the amounts recognised in prior periods and are not expected to significantly affect the current or future periods. New Accounting Standards and Interpretations not yet mandatory or early adopted Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory, have not been early adopted by the Group for the annual reporting period ended 30 June 2021. The Group has not yet assessed the impact of these new or amended Accounting Standards and Interpretations. (c) Cash and cash equivalents Cash and cash equivalents comprise cash on hand, cash in banks and investments in money market instruments that are readily convertible to known amount of cash which are subject to an insignificant risk of change in value , net of outstanding bank overdrafts. (d) Employee benefits Provision is made for benefits accruing to employees in respect of wages and salaries and annual leave when it is probable that settlement will be required and they are capable of being measured reliably. Liabilities recognised in respect of employee benefits expected to be settled within 12 months, are measured at their nominal values using the remuneration rate expected to apply at the time of settlement. Liabilities recognised in respect of employee benefits which are not expected to be settled within 12 months are measured as the present value of the estimated future cash outflows to be made by the Group in respect of services provided by employees up to reporting date. 29 MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the financial year ended 30 June 2021 2. Statement of significant accounting policies (cont’d) (e) Financial assets (f) Financial instruments issued by the Company Financial assets are recognised and derecognised on trade date where purchase or sale of an investment is under a contract whose terms require delivery of the investment within the timeframe established by the market concerned, and are initially measured at fair value, net of transaction costs. Subsequently measured at fair value through profit or loss (FVPL), amortised cost, or fair value through other comprehensive income (FVOCI). The classification is based on two criteria: the Group’s business model for managing the assets; and whether the instruments’ contractual cash flows represent ‘solely payments of principal and interest’ (SPPI) on the principal amount outstanding (SPPI criterion). The SPPI test is applied to the entire financial asset, even if it contains an embedded derivative. Consequently, a derivative embedded in a debt instrument is not accounted for separately. Trade and other receivables Trade receivables are initially recognised at their transaction price and other receivables at fair value. Receivables that are held to collect contractual cash flows and are expected to give rise to cash flows representing solely payments of principal and interest are classified and subsequently measured at amortised cost. Receivables that do not meet the criteria for amortised cost are measured at FVPL. The Group assesses on a forward-looking basis the ECL associated with its debt instruments carried at amortised cost. The amount of ECL is updated at each reporting date to reflect changes in credit risk since initial recognition of the respective financial instrument. The Group always recognises the lifetime ECL for trade receivables carried at amortised cost. The ECL on these financial assets are estimated based on the Group’s historic credit loss experience, adjusted for factors that are specific to the debtors, general economic conditions and an assessment of both the current as well as forecast conditions at the reporting date. For all other receivables measured at amortised cost, the Group recognises lifetime ECL when there has been a significant increase in credit risk since initial recognition. If the credit risk on the financial instrument has not increased significantly since initial recognition, the Group measures the loss allowance for that financial instrument at an amount equal to ECL within the next 12 months. The Group considers an event of default has occurred when a financial asset is more than 90 days past due or external sources indicate that the debtor is unlikely to pay its creditors, including the Group. A financial asset is credit impaired when there is evidence that the counterparty is in significant financial difficulty or a breach of contract, such as a default or past due event has occurred. The Group writes off a financial asset when there is information indicating the counterparty is in severe financial difficulty and there is no realistic prospect of recovery. Equity instruments Shares and options held by the Group are classified as equity instruments and are stated at FVPL. Gains and losses arising from changes in fair value are recognised directly to profit or loss for the period. Loans receivables Loans receivables are classified, at initial recognition, and subsequently measured at amortised cost, FVOCI, or FVPL. Loan receivables that are held to collect contractual cash flows and are expected to give rise to cash flows representing solely payments of principal and interest are classified and subsequently measured at amortised cost. Loan receivables that do not meet the criteria for amortised cost are measured at FVPL. Debt and equity instruments Debt and equity instruments are classified as either liabilities or equity in accordance with the substance of the contractual arrangement. Transaction costs on the issue of equity instruments Transaction costs arising on the issue of equity instruments are recognised directly in equity as a reduction of the proceeds of the equity instruments to which the costs relate. Transaction costs are the costs that are incurred directly in connection with the issue of those equity instruments and which would not have been incurred had those instruments not been issued. (g) Goods and services tax Revenues, expenses and assets are recognised net of the amount of goods and services tax (GST), except: i. where the amount of GST incurred is not recoverable from the taxation authority, it is recognised as part of the cost of acquisition of an asset or as part of an item of expense; or ii. for receivables and payables which are recognised inclusive of GST. The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables. Cash flows are included in the statement of cash flows on a gross basis. The GST component of cash flows arising from investing and financing activities which is recoverable from, or payable to, the taxation authority is classified as operating cash flows. (h) Impairment of non-financial assets At each reporting date, the Group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. Where the asset does not generate cash flows that are independent from other assets, the Group estimates the recoverable amount of the cash–generating unit to which the asset belongs. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any), being the higher of the asset’s fair value less costs to sell and value in use to the asset’s carrying value. Excess of the asset’s carrying value over its recoverable amount is expensed to the consolidated statement of profit or loss and other comprehensive income. Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually and whenever there is an indication that the asset may be impaired. Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre–tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. Where an impairment loss subsequently reverses, the carrying amount of the asset (cash–generating unit) is increased to the revised estimate of its recoverable amount, but only to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the cash–generating unit in prior years. A reversal of an impairment loss is recognised in profit or loss immediately, unless the relevant asset is carried at fair value, in which case the reversal of the impairment loss is treated as a revaluation increase. MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 30 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the financial year ended 30 June 2021 2. Statement of significant accounting policies (cont’d) (i) Tax Current tax Current tax is calculated by reference to the amount of income taxes payable or recoverable in respect of the taxable profit or tax loss for the period. It is calculated using tax rates and tax laws that have been enacted or substantively enacted by reporting date. Current tax for current and prior periods is recognised as a liability (or asset) to the extent that it is unpaid (or refundable). Deferred tax Deferred tax is accounted for using the full liability method in respect of temporary differences arising from differences between the carrying amount of assets and liabilities in the financial statements and the corresponding tax base of those items. Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries, branches, associates and joint ventures except where the entity is able to control the reversal of the temporary differences and it is probable that the temporary differences will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with these investments and interests are only recognised to the extent that it is probable that there will be sufficient taxable profits against which to utilise the benefits of the temporary differences and they are expected to reverse in the foreseeable future. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period(s) when the asset and liability giving rise to them are realised or settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by reporting date. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the entity expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities. Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same taxation authority and the entity intends to settle its current tax assets and liabilities on a net basis. Current and deferred tax for the period Current and deferred tax is recognised as an expense or income in the statement of profit or loss and other comprehensive income, except when it relates to items credited or debited directly to equity, in which case the deferred tax is also recognised directly in equity, or where it arises from the initial accounting for a business combination, in which case it is taken into account in the determination of goodwill or excess. Tax consolidation Legislation to allow groups, comprising a parent entity and its Australian resident wholly owned entities, to elect to consolidate and be treated as a single entity for income tax purposes was substantively enacted on 21 October 2002. The Company and its 100% owned Australian resident subsidiaries implemented the tax consolidation legislation on 28 May 2020 with Miramar as the head entity. (j) Government grants Government grants are recognised where there is reasonable assurance that the grant will be received and all attached conditions will be complied with. When the grant relates to an expense item, it is recognised as income on a systematic basis over the periods that the related costs, for which it is intended to compensate, are expensed. When the grant relates to an asset, it is recognised as income in equal amounts over the expected useful life of the related asset. 31 MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 (j) Government grants (cont’d) When the Group receives grants of non-monetary assets, the asset and the grant are recorded at nominal amounts and released to profit or loss over the expected useful life of the asset, based on the pattern of consumption of the benefits of the underlying asset by equal annual instalments. (k) Plant and equipment Plant and equipment are stated at cost less accumulated depreciation and impairment loss. Cost includes expenditure that is directly attributable to the acquisition of the item. Depreciation is provided on plant and equipment. Depreciation is calculated on a straight line or diminishing value basis so as to write off the net cost of each asset over its expected useful life to its estimated residual value. The estimated useful lives, residual values and depreciation method are reviewed at the end of each annual reporting period. The depreciation rates used for each class of depreciable assets are: Class of fixed asset Depreciation rate (%) Office furniture Office equipment Motor vehicles 25.0 – 33.33 25.0 – 33.33 25.00 (l) Exploration and evaluation expenditure Exploration and evaluation expenditure in relation to each separate area of interest are recognised as capitalised exploration and evaluation asset in the year in which they are incurred where the following conditions are satisfied: i. the right to tenure of the area of interest are current; and ii. at least once of the following conditions is also met: the exploration and evaluation expenditures are expected to be recouped through successful development and exploration of the area of interest, or alternatively, by its sale; or exploration and evaluation activities in the area of interest have not, at the reporting date, reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves, and active operations in, or relating to, the area are continuing. Capitalised exploration costs for each area of interest (considered to be the cash generating unit) are reviewed each reporting date to test whether an indication of impairment exists. If any such indication exists, the recoverable amount of the capitalised exploration costs is estimated to determine the extent of the impairment loss (if any). The recoverable amount for capitalised exploration costs has been determined as the fair value less costs to sell by reference to an active market. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but only to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in previous years. Where a decision is made to proceed with development, accumulated expenditure is tested for impairment and transferred to capitalised development and then amortised over the life of the reserves associated with the area of interest once mining operations have commenced. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the financial year ended 30 June 2021 2. Statement of significant accounting policies (cont’d) (m) Joint arrangements Joint ventures A joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint venture. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require unanimous consent of the parties sharing control. The considerations made in determining significant influence or joint control is similar to those necessary to determine control over subsidiaries. The Group’s investments in joint ventures are accounted for using the equity method. Under the equity method, the investment in a joint venture is initially recognised at cost. The carrying amount of the investment is adjusted to recognise changes in the Group’s share of net assets of the joint venture since the acquisition date. Goodwill relating to the joint venture is included in the carrying amount of the investment and is neither amortised nor individually tested for impairment. The statement of profit or loss and other comprehensive income reflects the Group’s share of the results of operations of the joint venture. Any change in OCI of those investees is presented as part of the Group’s OCI. In addition, when there has been a change recognised directly in the equity of the joint venture, the Group recognises its share of any changes, when applicable, in the statement of changes in equity. Unrealised gains and losses resulting from transactions between the Group and joint venture are eliminated to the extent of the interest in the joint venture. The aggregate of the Group’s share of profit or loss of a joint venture is shown on the face of the statement of profit or loss and other comprehensive income outside operating profit and represents profit or loss after tax and non-controlling interests in the subsidiaries of the joint venture. The financial statements of the joint venture are prepared for the same reporting period as the Group. When necessary, adjustments are made to bring the accounting policies in line with those of the Group. After application of the equity method, the Group determines whether it is necessary to recognise an impairment loss on its investment in its joint venture. At each reporting date, the Group determines whether there is objective evidence that the investment in the joint venture is impaired. If there is such evidence, the Group calculates the amount of impairment as the difference between the recoverable amount of the joint venture and its carrying value, then recognises the loss as ‘Share of profit of a joint venture’ in the statement of profit or loss and other comprehensive income. Upon loss of joint control over the joint venture, the Group measures and recognises any retained investment at its fair value. Any difference between the carrying amount of the joint venture upon loss of joint control and the fair value of the retained investment and proceeds from disposal is recognised in profit or loss. Joint operations The Group recognises its interest in joint operations by recognising its: Assets, including its share of any assets held jointly Liabilities, including its share of any liabilities incurred jointly Revenue from the sale of its share of the output arising from the joint operation Share of the revenue from the sale of the output by the joint operation Expenses, including its share of any expenses incurred jointly (n) Principles of consolidation The consolidated financial statements comprise the financial statements of the Group as at and for the period ended 30 June 2021. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically, the Group controls an investee if and only if the Group has: Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee); Exposure, or rights, to variable returns from its involvement with the investee; and The ability to use its power over the investee to affect its returns. When the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including: The contractual arrangement with the other vote holders of the investee; Rights arising from other contractual arrangements; and The Group’s voting rights and potential voting rights. The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the year are included in the statement of profit or loss and other comprehensive income from the date the Group gains control until the date the Group ceases to control the subsidiary. Profit or loss and each component of other comprehensive income (OCI) are attributed to the equity holders of the parent of the Group and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with the Group’s accounting policies. All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation. A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction. If the Group loses control over a subsidiary, it: De-recognises the assets (including goodwill) and liabilities of the subsidiary; De-recognises the carrying amount of any non-controlling interests; De-recognises the cumulative translation differences recorded in equity; Recognises the fair value of the consideration received; Recognises the fair value of any investment retained; Recognises any surplus or deficit in profit or loss; and Reclassifies the parent’s share of components previously recognised in OCI to profit or loss or retained earnings, as appropriate, as would be required if the Group had directly disposed of the related assets or liabilities. A list of subsidiaries appears in note 4 to the financial statements. (o) Operating cycle The operating cycle of the Group coincides with the annual reporting cycle. MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 32 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the financial year ended 30 June 2021 2. Statement of significant accounting policies (cont’d) (p) Payables (u) Leases Trade payables and other accounts payable are recognised when the Group becomes obliged to make future payments resulting from the purchase of goods and services. (q) Provisions Provisions are recognised when the Group has a present obligation, the future sacrifice of economic benefits is probable, and the amount of the provision can be measured reliably. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation as a result of a past event at reporting date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cashflows estimated to settle the present obligation, its carrying amount is the present value of those cashflows. When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the receivable is recognised as an asset if it is virtually certain that recovery will be received and the amount of the receivable can be measured reliably. (r) Share–based payments Equity–settled share–based payments are measured at fair value at the date of grant. Fair value is measured by use of the Black and Scholes model or Monte-Carlo simulation model. The expected life used in the model has been adjusted, based on management’s best estimate, for the effects of non–transferability, exercise restrictions, and behavioural considerations. The fair value determined at the grant date of the equity–settled share–based payments is expensed on a straight–line basis over the vesting period, based on the entity’s estimate of shares that will eventually vest. For cash–settled share–based payments, a liability equal to the portion of the goods or services received is recognised at the current fair value determined at each reporting date. (s) Revenue recognition Revenue is recognised when or as the Group transfers control of goods or services to a customer at the amount to which the Group expects to be entitled. If the Group estimates the amount of consideration promised includes a variable amount, the Group estimates the amount of consideration to which it will be entitled. Dividend and interest revenue Dividend revenue is recognised on a receivable basis. Interest revenue is recognised on a time proportionate basis that takes into account the effective yield on the financial asset. (t) Segment reporting policy Operating segments are identified and segment information disclosed on the basis of internal reports that are regularly provided to, or reviewed by the Group’s chief operating decision maker which, for the Group, is the Board of Directors. In this regard, such information is provided using similar measures to those used in preparing the statement of profit or loss and other comprehensive income and statement of financial position. The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration Group as a lessee The Group applies a single recognition and measurement approach for all leases, except for short-term leases (i.e., leases with a lease term of 12 months or less) and leases of low-value assets. The Group recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets. (i) Right-of-use assets The Group recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any re-measurement of lease liabilities. The cost of right-of- use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Unless the Group is reasonably certain to obtain ownership of the leased asset at the end of the lease term, the recognised right-of-use assets are depreciated on a straight-line basis over the shorter of its estimated useful life and the lease term (where the Group does not have a purchase option at the end of the lease term). Right- of-use assets are subject to impairment assessment. (ii) Lease Liabilities At the commencement date of the lease, the Group recognises lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in-substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Group and payments of penalties for terminating a lease, if the lease term reflects the Group exercising the option to terminate. The variable lease payments that do not depend on an index or a rate are recognised as expense in the period on which the event or condition that triggers the payment occurs. In calculating the present value of lease payments, the Group uses the incremental borrowing rate at the lease commencement date if the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the in-substance fixed lease payments or a change in the assessment to purchase the underlying asset. (iii) Short-term leases and Low Value Assets The Group applies the short-term lease recognition exemption to its short-term leases of their Office Spaces (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption (i.e. below $5,000). Lease payments on short-term leases and leases of low- value assets are expensed on a straight-line basis over the lease term. 33 MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the financial year ended 30 June 2021 2. Statement of significant accounting policies (cont’d) (v) Fair value measurement The Group measures equity instrument at fair value and receivables are measured at amortised costs at each reporting date. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either: In the principal market for the asset or liability; or In the absence of a principal market, in the most advantageous market for the asset or liability. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole: Level 1: Quoted (unadjusted) market prices in active markets for identical assets or liabilities; Level 2: Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable; or Level 3: Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable. (w) Issued capital Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds. (x) Earnings per share Basic earnings per share Basic earnings per share is calculated by dividing the profit attributable to the owners of Miramar Resources Limited, excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the financial year. Diluted earnings per share Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted average number of shares assumed to have been issued for no consideration in relation to dilutive. 3. Critical accounting estimates and judgements In the application of the Group’s accounting policies, which are described in note 2, management is required to make judgments, estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstance, the results of which form the basis of making the judgments. Actual results may differ from these estimates. The 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. The key estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of certain assets and liabilities within the next annual reporting period are: Key judgements — capitalised exploration and evaluation expenditure The future recoverability of exploration and evaluation expenditure capitalised on the acquisition of areas of interest and/or capitalised JORC compliant mineral resource expenditure are dependent on a number of factors, including whether the Group decides to exploit the related lease itself or, if not, whether it successfully recovers the related exploration and evaluation asset through sale. To the extent that capitalised acquisition costs and/or capitalised JORC compliant mineral resource expenditure are determined not to be recoverable in the future, profits and net assets will be reduced in the period in which this determination is made. Key judgements — share–based payments The Group measures the cost of equity settled transactions with employees by reference to the fair value of the equity instruments at the date at which they are granted. The fair value is determined using a Black Scholes model. The related assumptions detailed in note 8. The accounting estimates and assumptions relating to equity-settled share-based payments would have no impact on the carrying amount of assets and liabilities within the next annual reporting period but may impact expenses and equity. MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 34 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the financial year ended 30 June 2021 4. Subsidiary Name of entity Parent entity: Miramar Resources Limited (i) Subsidiary: Miramar (Goldfields) Pty Ltd (ii) Country of incorporation Australia Australia Ownership Interest 2021 % 100 MQ Minerals Pty Ltd (iii) (i) Miramar Resources Limited (previously Miramar Holdings Pty Ltd) is the ultimate parent entity. (ii) The 100% interest in Miramar (Goldfields) Pty Ltd is held by the parent entity. The company was incorporated on 28 May 2020. (iii) The 100% interest in MQ Minerals Pty Ltd is held by the parent entity. The company was incorporated on 26 October 2020. Australia 100 5. Income/expenses from operations (a) Revenue Proceeds from sale of tenements (i) Total revenue (i) The Company sold its 100% owned Garden Gully Project to Sipa Resources Limited (Sipa) for $150,000 which consists of $50,000 cash and $100,000 worth of fully paid ordinary shares in Sipa. Refer note 11 for further information. (b) Interest income Bank Total interest income (c) Employee expenses Salaries and wages Post-employment benefits Defined contribution plans Share-based payments Equity settled share-based payments Total employee expenses (d) Depreciation of non-current assets (e) Occupancy expenses Rent Depreciation of right-of-use assets Total occupancy expenses The Group has a lease of office space with lease terms of 12 months or less and is a lease of low- value asset. The Group applies the ‘short-term lease’ and ‘lease of low-value assets’ recognition exemption for the lease. 2021 $ 150,000 150,000 1,716 1,716 95,864 40,999 2,765 139,628 30,647 4,710 22,216 26,926 35 MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 2020 % 100 100 2020 $ – – – – – – 79,479 79,479 – – – – NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the financial year ended 30 June 2021 6. Income taxes Income tax recognised in consolidated profit or loss Current income tax Current income tax charged Tax not recognised Deferred income tax Relating to origination and reversal of temporary differences Deferred tax not recognised Total tax benefit Reconciliation of income tax expense/(benefit) applicable to accounting profit before income tax at the statutory income tax rate to income tax expense at the Company’s effective income tax rate for the period ended 30 June 2021 is as follows: Loss from operations Income tax expense calculated at 30% (2020: 27.5%) Effect of expenses that are not deductible in determining taxable loss Temporary differences not recognised Unused tax losses not recognised as deferred tax assets Income tax benefit Unrecognised deferred tax assets 2021 $ 2020 $ 840,293 (840,293) 703,809 (703,809) – (1,019,910) (305,973) 1,260 (535,580) 840,293 – 4,834 (4,834) 31,949 (31,949) – (189,516) (52,117) 21,856 25,427 4,834 – Deferred tax assets have not been recognised in respect of the following items Trade and other receivables Other financial assets Plant & equipment Right of use asset Capitalised exploration and evaluation expenditure Trade and other payables Provisions Lease liability - current Lease liability - non-current Business related costs - equity Business related costs - P&L Tenement acquisition Revenue losses Deferred tax assets not recognised Deferred tax (income)/expense Consolidated Statement of Financial Position Consolidated Statement of Profit or Loss and Other Comprehensive Income 2021 $ 2020 $ 2021 $ 2020 $ (2,210) 4,068 (44,739) (18,755) (431,034) 19,988 7,712 15,442 3,650 317,153 3,775 16,671 844,037 735,758 – – – – – 7,014 – – – 250 4,569 15,282 4,834 31,949 (2,210) 4,068 (44,739) (18,755) (431,034) 12,974 7,712 15,442 3,650 316,903 (794) 1,389 839,203 – – – – – 7,014 – – – 250 4,569 15,282 4,834 703,809 31,949 The tax losses do not expire under current legislation. Deferred tax assets have not been recognised in respect of these items because it is not probable that future taxable profit will be available against which the Group can utilise the benefits. Tax consolidation Relevance of tax consolidation to the Group Legislation to allow groups, comprising a parent entity and its Australian resident wholly owned entities, to elect to consolidate and be treated as a single entity for income tax purposes was substantively enacted on 21 October 2002. The Company and its 100% owned Australian resident subsidiaries have implemented the tax consolidation legislation. MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 36 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the financial year ended 30 June 2021 7. Key management personnel disclosures Details of key management personnel compensation are set out on pages 12 to 16 of the Directors’ Report. The aggregate compensation made to key management personnel is set out below: Short-term employee benefits Post-employment benefits Share-based payment Total 8. Share-based payments 2021 $ 338,976 28,207 – 367,183 2020 $ – – 79,479 79,479 The Company has an ownership based compensation arrangement for employees of the Group. Each option issued under the arrangement converts into one ordinary share on exercise. No amounts are paid or payable by the recipient on receipt of the option. Options neither carry rights to dividends nor voting rights. Options may be exercised at any time from the date of vesting to the date of their expiry. The number of options granted is at the sole discretion of the Directors. Incentive options issued to Directors (executive and non–executive) are subject to approval by shareholders and attach vesting conditions as appropriate. Details of options over ordinary shares in the Company provided as remuneration to each Director during the year are set out on pages 13 to 16 of the Remuneration Report. The following share–based payment arrangements were in existence during the current and comparative reporting periods: Options series Number Grant date Expiry date Exercise price OPT001 OPT002 OPT003 OPT004 3,000,000 8,210,000 26 June 2020 26 June 2025 26 June 2020 22 October 2022 6,000,000 9 October 2020 9 October 2023 50,000 7 January 2021 6 January 2023 $0.20 $0.20 $0.25 $0.48 The following unlisted options were issued during the period and are not share–based payment to employees. Options series OPT003 OPT004 Number Grant date Expiry date Exercise price 6,000,000 9 October 2020 9 October 2023 50,000 7 January 2021 6 January 2023 Expenses arising from share-based payment transactions Options issued to key management personnel Options issued to non-employees Options issued to employees Total Unlisted options The following table summarise the share options during the period. 2021 $ – 670,482 2,765 673,247 $0.25 $0.48 2020 $ 79,479 – – 79,479 Exercise price Balance at 1 Jul No. Granted No. Exercised No. Forfeited No. Balance at 30 Jun No. Vested and exercisable at 30 Jun No. Grant date Expiry date 2021 19 Jun 20 26 Jun 25 26 Jun 20 22 Oct 22 9 Oct 20 (i) 9 Oct 23 7 Jan 21 (i) 6 Jan 23 $0.20 $0.20 $0.25 $0.48 3,000,000 8,210,000 – – – – 6,000,000 50,000 Total 11,210,000 6,050,000 Weighted average exercise price $0.20 $0.25 37 MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 – – – – – – – – – – – – 3,000,000 8,210,000 6,000,000 50,000 17,260,000 $0.22 – – – – – – NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the financial year ended 30 June 2021 8. Share-based payments (cont’d) Unlisted options (cont’d) Exercise price Balance at 1 Jul No. Granted No. Exercised No. Forfeited No. Balance at 30 Jun No. Vested and exercisable at 30 Jun No. Grant date Expiry date 2020 19 Jun 20 26 Jun 25 26 Jun 20 22 Oct 22 $0.20 $0.20 Total Weighted average exercise price – – – – 3,000,000 8,210,000 11,210,000 $0.20 – – – – – – – – 3,000,000 3,000,000 8,210,000 8,210,000 11,210,000 11,210,000 $0.20 $0.20 The weighted average remaining contractual life of options outstanding at the end of the financial year was 2.11 years (2020: 4.99 years). (i) Issued during the financial year For the options granted during the current financial year, the valuation model inputs used to determine the fair value at the grant date, are as follows: Grant date Expiry date 9 Oct 20 7 Jan 21 9 Oct 23 6 Jan 23 Share price at grant date Exercise price $0.20 $0.34 $0.25 $0.48 Expected volatility 97.78% 82.60% 9. Remuneration of auditors Audit or review of the financial report RSM Australia Partners Other services – Investigative Accountant’s Report RSM Australia Pty Ltd Total 10. Current trade and other receivables Net goods and services tax (GST) receivable Other receivables Total 11. Other financial assets at fair value through profit and loss Current Available-for-sale investments Quoted equity shares (i) Total (i) The Company sold its 100% owned Garden Gully Project to Sipa Resources Limited (Sipa) for $150,000 which consists of $50,000 cash and $100,000 worth of fully paid ordinary shares in Sipa. The Company holds 1,694,915 shares in Sipa as a result of the sale. Refer note 5(a) for further information. Dividend yield Risk-free interest rate Fair value at grant date Nil Nil 0.15% 0.08% 2021 $ 32,000 10,000 42,000 59,464 11,849 71,313 $0.11 $0.12 2020 $ 5,000 – 5,000 2,968 – 2,968 86,441 86,441 – – MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 38 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the financial year ended 30 June 2021 12. Other receivables Non-current Other receivables – bond Total 13. Plant and equipment Cost Balance at 1 July 2020 Additions Balance at 30 June 2021 Accumulated depreciation Balance at 1 July 2020 Additions Balance at 30 June 2021 Net book value As at 30 June 2020 As at 30 June 2021 14. Capitalised exploration and evaluation expenditure Balance at beginning of financial year Capitalised acquisition costs (i) Exploration expenditure during the period LESS: Disposal of assets (ii) Balance at end of financial year 2021 $ 56,000 56,000 Motor vehicle $ Furniture and equipment $ – 110,209 110,209 – 9,085 9,085 – 101,124 – 69,567 69,567 – 21,562 21,562 – 48,005 2021 $ – 1,703,220 1,554,992 (219,554) 3,038,658 2020 $ – – Total $ – 179,776 179,776 – 30,647 30,647 – 149,129 2020 $ – – – – – (i) The Company exercised the options to purchase tenements during the period. Payment was made by cash and issue of shares in accordance with the respective agreements. (ii) The Company sold its 100% owned Garden Gully Project to Sipa Resources Limited (Sipa) for $150,000 which consists of $50,000 cash and $100,000 worth of fully paid ordinary shares in Sipa. Refer note 5(a) and note 11 for further information. The recoverability of the carrying amount of the exploration and evaluation assets is dependent on the continuance of the Group’s right to tenure of the interest, the results of future exploration and the successful development and commercial exploration, or alternatively, sale of the respective area of interest. 39 MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the financial year ended 30 June 2021 15. Current trade and other payable Trade payable Accruals Other payables Total 16. Provision Current Employee benefits Other (i) Total (i) On 23 July 2020 the Company executed a Tenement Sale Agreement with Thunder Metals Pty Ltd (Thunder Metals) to acquire 80% legal and beneficial interest in the Tenements. On 7 October 2020 the Company elected to exercise the Option and made a cash payment of $57,500 and issued 1,250,000 fully paid ordinary share to Thunder Metals. The Company will issue a further 1,250,000 fully paid shares upon grant of the presently ungranted Tenements representing not less than 51% of the total area and a final cash payment of $50,000 for the balance 49% of the total area. 2021 $ 185,069 119,592 72,043 376,704 25,707 241,250 266,957 Balance at 1 July 2020 Movement in provision Balance at 30 June 2021 17. Leases Right-of-use asset Non-current Total Balance at 1 July 2020 Additions Depreciation expense Balance at 30 June 2021 Employee benefits $ – 25,707 25,707 Other $ – 241,250 241,250 2021 $ 62,518 62,518 Building $ – 84,734 (22,216) 62,518 2020 $ 5,815 25,500 – 31,315 – – – Total $ – 266,957 266,957 2020 $ – – Total $ – 84,734 (22,216) 62,518 MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 40 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the financial year ended 30 June 2021 17. Leases (cont’d) Lease liability Current Non-current Total Amounts recognised in profit or loss Depreciation expense on right-of-use asset Interest expense on lease liabilities Total 18. Issued capital 55,060,100 fully paid ordinary shares (2020: 9,010,100) Total 2021 $ 51,473 12,168 63,641 22,216 1,638 23,854 2021 $ 8,268,845 8,268,845 2021 No. $ Balance at beginning of financial period 9,010,100 409,461 Issue of shares – incorporation Issue of shares – Founder shares Issue of shares – Seed investors (i) Issue of shares – IPO (ii) Issue of shares – Vendors for acquisition of tenements (iii) – – 200,000 40,000,000 5,850,000 – – 10,000 8,000,000 1,170,000 Share issue costs – (1,320,616) 2020 No. – 100 1,000,000 8,010,000 – – – Balance at end of financial year 55,060,100 8,268,845 9,010,100 Fully paid ordinary shares carry one vote per share and carry the right to dividends. (i) On 2 July 2020 the Company received a late application for the seed raising of $10,000. (ii) On 7 October 2020 the Company completed the IPO raising. (iii) On 8 October 2020 the Company completed the acquisition of tenements. 19. Reserves Option reserve Balance at the beginning of the financial period Share-based payment expense Balance at end of financial year Nature and purpose The option reserve recognises the fair value of options issued and valued using the Black- Scholes model. 2021 $ 79,479 673,247 752,726 41 MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 2020 $ – – – – – – 2020 $ 409,461 409,461 $ – 100 10,000 400,500 – – (1,139) 409,461 2020 $ – 79,479 79,479 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the financial year ended 30 June 2021 19. Reserves (cont’d) Share options As at 30 June 2021, options over 17,260,000 (2020: 11,010,000) ordinary shares in aggregate are as follow: Issuing entity Miramar Resources Limited Miramar Resources Limited Miramar Resources Limited Miramar Resources Limited No of shares under options Class of shares Options exercise price Option expiry date 8,210,000 6,000,000 3,000,000 50,000 Ordinary Ordinary Ordinary Ordinary $0.20 each 22 Oct 2022 $0.25 each 9 Oct 2023 $0.20 each 26 Jun 2025 $0.48 each 6 Jan 2023 Share options are all unlisted, carry no rights to dividends and no voting rights. No options were exercised during the period. The balance of reserves is made up as follows: Option reserve Total reserves 20. Accumulated losses Balance at the beginning of the financial period Loss attributable to members of the parent entity Balance at end of financial year 21. Loss per share Basic Diluted Basic and diluted loss per share 2021 $ 752,726 752,726 2020 $ 79,479 79,479 (189,516) (1,019,910) (1,209,426) – (189,561) (189,516) 2021 cents per share 2020 cents per share (2.39) (2.39) (192.28) (192.28) The loss and weighted average number of ordinary shares used in the calculation of basic and diluted loss per share are as follows. Loss for the year/period Weighted average number of ordinary shares for the purpose of basic loss per share Effects of dilution from share options Weighted average number of ordinary shares adjusted for the effect of dilution loss per share 2021 $ 2020 $ (1,019,910) (189,516) 2021 No. 42,599,826 – 42,599,826 2020 No. 98,560 – 98,560 MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 42 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the financial year ended 30 June 2021 22. Commitments for expenditure Exploration, evaluation & development (expenditure commitments) Not longer than 1 year (i) Longer than 1 year and not longer than 5 years Longer than 5 years Total 2021 $ 2020 $ 529,410 29,417 – – – – 529,410 29,417 (i) Due to the nature of this expenditure, in that the expenditure commitments may be reduced by the relinquishment of tenements, estimates for the commitment have not been forecast beyond June 2021. However, should the Group continue to hold the tenements beyond this date additional expenditure commitments would arise. 23. Joint operations Name of project Gidji (i) Principal activity Exploration Interest 2021 % 80 2020 % 0 (i) The Company entered into a joint venture agreement with Thunder Metals Pty Ltd whereby Miramar (Goldfields) Pty Ltd retained a 80% interest in the Gidji Project. 24. Segment reporting The Group operates in the mineral exploration industry in Australia. For management purposes, the Group is organised into one main operating segment which involves the exploration of minerals in Australia. All of the Group’s activities are interrelated and discrete financial information is reported to the Board as a single segment. Accordingly, all significant operating decisions are based upon analysis of the Group as one segment. Operating segments are identified and segment information disclosed on the basis of internal reports that are regularly provided to, or reviewed by, the Group’s Chief Operating Decision Maker which, for the Group, is the Board of Directors. In this regard, such information is provided using similar measures to those used in preparing the statement of profit or loss and comprehensive income and statement of financial position. 25. Related party disclosure (a) Equity interests in related parties Equity interests in subsidiaries Details of the percentage of ordinary shares held in subsidiaries are disclosed in note 4 to the financial statements. Equity interests in joint operations Details of the interests in joint operations are disclosed in note 23 to the financial statements. (b) Key management personnel (KMP) remuneration Details of KMP remuneration are disclosed in pages 13 to 16 and note 7 to the financial statements. (c) Transactions with other related parties Director transactions XGS Exploration Geochemistry Services (XGS), of which Mr Allan Kelly is a Director, provided consulting services in relation to the IPO and ASX listing of the Company to October 2020 amounting to $35,200. The services provided were on arms-length commercial terms. At 30 June 2021 the Company did not owe XGS. The Company entered in a lease agreement with XGS on 15 July 2020. The lease commenced from 1 July 2020 to 31 October 2020 amounting to $7,040. At 30 June 2021 the Company did not owe XGS. The Company entered into a Sales and Purchase Agreement (S&P Agreement) with Debnal Pty Limited (Debnal), of which Mr Allan Kelly is a Director, for mineral tenements and applications for mineral tenements in Whaleshark, Bangemall, Garden Gully, Lakeside, Lang Well and Randalls (Tenements). On 8 June 2020 the Company made a non-refundable cash payment of $25,000 to Debnal for a 6-month exclusion option to purchase the Tenements (Option). On 7 October 2020 the Company elected to exercise the Option and made a final payment of $75,000 and issued 4,500,000 fully paid ordinary share at fair value of $0.20 per share to Debnal. Ms Marion Bush provided geological services in relation to the IPO and ASX listing of the Company to October 2020 amounting to $18,500. The services provided were on arms-length commercial terms. At 30 June 2021 the Company did not owe Ms Bush. 43 MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the financial year ended 30 June 2021 25. Related party disclosure (cont’d) (d) Parent entity The ultimate parent entity in the Group is Miramar Resources Limited. 26. Subsequent events On 13 September 2021 the Company advised that several key tenements within the 80% Gidji JV Project were granted. Pursuant to the agreement disclosed in the Prospectus dated 4 September 2020, 1,250,000 fully paid ordinary shares will be issued when more than 51% of the total area of ungranted project area are granted. The issue of shares has not occurred on the date of this report. COVID-19 The COVID-19 pandemic continues to pose a global socio-political, economic and health risk. The potential for the pandemic to have both lasting and unforeseen impacts is high. At this point in time the Group is experiencing minor delays in project timelines as a result of the pandemic. These delays are not expected to be significant. As a Group, we adhere to the changes in government policies and changed the way we work to protect the wellbeing of our people and ensure business continuity. We continue to maintain a state of response readiness commensurate with the risks and in accordance with Government recommendations and health advice. No other matters or circumstances have arisen since 30 June 2021 that may significantly affect the operations of the Company, the results of those operations, or the state of affairs of the Group in future financial years. 27. Notes to the statement of cash flows (a) Reconciliation of cash and cash equivalents For the purposes of the statement of cash flows, cash and cash equivalents includes cash on hand and in banks and investments in money market instruments, net of outstanding bank overdrafts. Cash and cash equivalents at the end of the financial period as shown in the statement of cash flows is reconciled to the related items in the consolidated statement of financial position as follows: Cash and cash at bank Term deposit Total (b) Reconciliation of loss for the year to net cash flows used in operating activities Loss for the year/period Sale of tenements Equity settled share-based payments Depreciation of non–current assets Depreciation of right of use assets Write off exploration and evaluation expenses Changes in fair value of financial assets designated at fair value through profit or loss Interest expense Changes in net assets and liabilities Trade and other receivables Trade and other payables and provisions Net cash used in operating activities (c) Non-cash financing and investing activities 2021 $ 2020 $ 2,805,388 2,250,000 5,055,388 (1,019,910) (150,000) 2,765 30,647 22,216 219,554 13,559 1,638 (124,344) 346,247 (657,628) 327,771 – 327,771 327,771 – 79,479 – – – – – (2,968) 30,176 (82,829) During the current period, the Group did not enter into any non-cash investing and financing activities which are not reflected in the consolidated statement of cash flows. MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 44 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the financial year ended 30 June 2021 28. Financial risk management objectives and policies (a) Financial risk management objectives The Group manages the financial risks relating to the operations of the Group. The Group does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes although it holds, at 30 June 2021, shares in other listed mining companies. The use of financial derivatives is governed by the Group’s Board of Directors. The Group’s activities expose it primarily to the financial risks of changes in interest rates, but at 30 June 2021 it is also exposed to market price risk. The Group does not enter into derivative financial instruments to manage its exposure to interest rate. (b) Significant accounting policies Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument are disclosed in note 2 to the financial statements. (c) Interest rate risk management The Group is exposed to interest rate risk as it places funds at both fixed and floating interest rates. The risk is managed by maintaining an appropriate mix between fixed and floating rate products which also facilitate access to money. Cash flow sensitivity analysis for variable rate instruments A change of 1 per cent in interest rates at the reporting date would have increased profit or loss by the amounts shown below. This analysis assumes that all other variables remain constant. The analysis is performed on the same basis for 2020: 2021 Variable rate instruments Cash flow sensitivity 2020 Variable rate instruments Cash flow sensitivity Profit of loss Equity 1% increase 1% decrease 1% increase 1% decrease 37,501 37,501 (37,501) (37,501) – – – – – – – – – – – – The following table details the Group’s exposure to interest rate risk. Weighted average effective interest rate % Fixed maturity dates Variable interest rate $ Less than 1 year $ 1 – 5 years $ 5+ years $ Non-interest bearing $ Total $ 2021 Financial assets Cash and cash equivalent Trade and other receivables Other financial assets Other receivables – non-current Total Financial liabilities Trade and other payables Total 0.05% 3,750,125 0.00% 0.00% – – 0.06% 50,000 3,800,125 – – – – – – – – – – – – – – – – – – – – – – – – 1,305,263 5,055,388 71,313 86,441 71,313 86,441 6,000 56,000 1,469,017 5,269,142 376,704 376,704 376,704 376,704 45 MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the financial year ended 30 June 2021 28. Financial risk management objectives and policies (cont’d) (c) Interest rate risk management Weighted average effective interest rate % 0.00% 0.00% 0.00% 2020 Financial assets Cash and cash equivalent Trade and other receivables Total Financial liabilities Trade and other payables Total (d) Liquidity risk Fixed maturity dates Variable interest rate $ Less than 1 year $ 1 – 5 years $ 5+ years $ Non-interest bearing $ Total $ – – – – – – – – – – – – – – – – – – – – 327,771 327,771 2,968 2,968 330,739 330,739 31,315 31,315 31,315 31,315 The Group manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities. The following table details the Group’s non-derivative financial instruments according to their contractual maturities. The amounts disclosed are based on contractual undiscounted cash flows. 2021 Trade and other payables Total 2020 Trade and other payables Total (e) Credit risk Less than 6 months $ 6 – 12 months $ 1 – 2 years $ 2+ years $ 376,704 376,704 31,315 31,315 – – – – – – – – – – – – Total $ 376,704 376,704 31,315 31,315 Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. The Group has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral where appropriate, as a means of mitigating the risk of financial loss from defaults. The Group’s exposure and the credit ratings of its counterparties are continuously monitored. The Group measures credit risk on a fair value basis. The Group does not have any significant credit risk exposure to any single counterparty or any group of counterparties having similar characteristics. The credit risk on liquid funds is limited because the counterparties are banks with high credit–ratings assigned by international credit–rating agencies. (f) Market risk Market risk is the potential for loss arising from adverse movements in the level and volatility of equity prices. The Group’s listed equity investments are as detailed in note 11. A 5 per cent increase at reporting date in the equity prices would increase the market value of the securities by $4,322 (2020: Nil) and an equal change in the opposite direction would decrease the value by the same amount. The increase/decrease would be reflected in equity as these financial instruments are classified as available–for–sale. The increase/decrease net of deferred tax would be $3,025 (2020: Nil). (g) Capital risk management The Group’s policy is to endeavour to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. The Group sources any additional funding requirements from either debt or equity markets depending on the market conditions at the time the funds are sourced and the purpose for which the funds are to be used. The Group is not subject to externally imposed capital requirements. MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 46 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the financial year ended 30 June 2021 29. Financial instruments The fair value of financial assets and financial liabilities of the Group approximated their carrying amount. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value. The table below analyses financial instruments carried at fair value by value measurement hierarchy. Quantitative disclosures fair value measurement hierarchy as at 30 June 2021 Assets measured at fair value Available-for-sale financial assets (note 11): Quoted equity shares (i) Total Quoted prices in active market (Level 1) $ Significant observable inputs (Level 2) $ Significant unobservable inputs (Level 3) $ Total $ 86,441 86,441 – – – – 86,441 86,441 The management assessed that cash and short-term deposits, trade receivables, trade payables and other current liabilities approximate their carrying amounts largely due to the short term maturities of these instruments. The fair value of the financial assets is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair value: (i) Fair value of equity instruments and financial assets is derived from quoted market prices in active markets. Refer note 28(f) for market price risk impact. 30. Parent entity disclosures The following details information related to the parent entity, Miramar Resources Ltd. The information presented here has been prepared using consistent accounting policies as presented in note 2. Results of the parent entity Loss for the year/period Other comprehensive income Total comprehensive loss for the year/period Financial position of parent entity at period end Current assets Non–current assets Total assets Current liabilities Total liabilities Total equity of the parent entity comprising of: Share capital Reserves Accumulated losses Total equity 2021 $ (3,234,720) – (3,234,720) 4,909,650 1,169,163 6,078,813 481,378 481,378 8,268,845 752,726 (3,424,136) 5,597,435 2020 $ (189,416) – (189,416) 330,739 100 330,839 31,315 31,315 409,461 79,479 (189,416) 299,524 (a) Guarantees entered into by the parent entity in relation to the debts of its subsidiary The parent entity had not entered into any guarantees in relation to the debts of its subsidiary as at 30 June 2021 (30 June 2020: Nil). (b) Parent entity contingencies The parent entity had no contingent liabilities as at 30 June 2021 (30 June 2020: Nil) other than disclosed in this financial report. (c) Commitments for the acquisition of property, plant and equipment by the parent entity The parent entity had no capital commitments for property, plant and equipment as at 30 June 2021 (30 June 2020: Nil) other than disclosed in this financial report. 47 MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 ADDITIONAL SHAREHOLDER INFORMATION CAPITAL as at 13 September 2021 Miramar Resources Limited issued capital is as follows: Ordinary fully paid shares Number of ordinary fully paid shares at the date of this report are: Quoted ordinary fully paid shares Restricted fully paid shares until 22 October 2021 Restricted fully paid shares until 22 October 2022 Ordinary fully paid shares at 30 June 2021 Ordinary fully paid shares at the date of this report End of escrow period Number of shares N/A 22 October 2021 22 October 2022 47,215,020 6,495,080 1,350,000 55,060,100 55,060,100 At a general meeting of shareholders: (a) on a show of hands, each person who is a member or sole proxy has one vote; and (b) on a poll, each shareholder is entitled to one vote for each fully paid share. SUBSTANTIAL SHAREHOLDERS Miramar Resources Limited has the following substantial shareholders: Name XGS Pty LtdTOP 20 HOLDERS OF ORDINARY SHARES Number of shares Percentage of issued capital 5,813,716 10.56% Rank Name Units % of Issued Capital 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 XGS Pty Ltd Faraday Nominees Pty Limited Thunder Metals Pty Ltd Retzos Executive Pty Ltd Lesamourai Pty Ltd Mr Toby Peter Jefferis XGS Pty Ltd Gurravembi Investments Pty Ltd Mr James McAuliffe BT Portfolio Services Limited Boonwarry Pty Ltd LL&P Pty Ltd TT Nicholls Pty Ltd Buprestid Pty Ltd Mr Viking Wai Kin Kwok Mr Carlo Chiodo Gary Judy Holland Super Fund Pty Ltd Monex Boom Securities (HK) Ltd Mr Edmund Boon Chun Chan Mr Clifford Leslie Strahan 5,813,716 1,350,000 1,250,000 1,000,000 1,000,000 920,000 893,577 800,000 750,000 750,000 700,000 661,829 625,000 600,000 550,000 525,000 500,000 436,785 425,000 425,000 10.56% 2.45% 2.27% 1.82% 1.82% 1.67% 1.62% 1.45% 1.36% 1.36% 1.27% 1.20% 1.14% 1.09% 1.00% 0.95% 0.91% 0.79% 0.77% 0.77% Total of Top 20 holders of ORDINARY SHARES 19,975,907 36.27% MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 48 ADDITIONAL SHAREHOLDER INFORMATION RANGE OF SHARES Range 1 – 1,000 1,001 – 5,000 5,001 – 10,000 10,001 – 100,000 100,001 – 9,999,999 Total UNMARKETABLE PARCELS Minimum $500.00 parcel at $0.190 per unit Options Total Holders 20 191 126 383 113 833 Minimum parcel size 2,632 Units 8,229 554,971 1,011,228 14,800,050 38,685,622 55,060,100 Holders 112 % Issued Capital 0.01% 1.01% 1.84% 26.88% 70.26% 100.00% Units 183,126 At the date of this report there are a total of 41 unlisted option holders holding 17,260,000 unissued ordinary shares in respect of which options are outstanding. The unlisted options do not carry voting rights at a general meeting of shareholders. Balance at the beginning of the year Movements of share options during the year Issued at $0.25 expiring 9 October 2023 Issued at $0.48 expiring 7 January 2023 Balance at 30 June 2021 Total number of options outstanding at the date of this report RESTRICTED OPTIONS Restricted unlisted options exercisable at $0.20 expiring 22 October 2022 Restricted unlisted options exercisable at $0.25 expiring 9 October 2023 Restricted unlisted options exercisable at $0.20 expiring 26 June 2025 On-market buy-back There is no current on-market buy-back. Securities Exchange Listing Number of option holders Number of options 26 13 2 41 11,210,000 6,000,000 50,000 17,260,000 17,260,000 End of escrow period Number of options 22 October 2022 22 October 2022 22 October 2022 1,560,000 6,000,000 3,000,000 The Company’s ordinary shares are listed on the Australian Securities Exchanger. The Company’s ASX code for quoted ordinary shares is M2R. ASX Admission Statement Use of Funds Since its admission to the ASX’s official list on 21 October 2020 until 30 June 2021, the Company has used the cash and assets in a form readily convertible to cash that it had at the time of admission in a way consistent with its business objectives. 49 MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 ADDITIONAL SHAREHOLDER INFORMATION TENEMENTS The projects are constituted by the following tenements: Tenement Number Project: Gidji JV Interest % Status Tenement Number Project: Glandore Interest % Status E26/214 P26/4221 P26/4222 E24/225 E26/219 E26/221 E26/225 P24/5439 P26/4527 P26/4528 P26/4529 P26/4530 P26/4531 P26/4532 P26/4533 P26/4534 Project: Lakeside E21/212 Project: Lang Well E59/2377 Project: Whaleshark 80 80 80 0 0 0 80 80 80 80 80 80 80 0 0 80 0 Live Live Live Pending Pending Pending Live Live Live Live Live Live Live Pending Pending Live Pending E25/544 P25/2381 P25/2382 P25/2383 P25/2384 P25/2385 P25/2386 P25/2387 P25/2430 P25/2431 P25/2465 Project: Bangemall E08/3176 E08/3177 E08/3195 E08/3196 E08/3284 E09/2484 E52/3893 100 Live Project: Randalls E25/596 E08/3166 100 Live 100 100 100 100 100 100 100 100 100 100 100 0 0 0 0 0 0 Live Live Live Live Live Live Live Live Live Live Live Pending Pending Pending Pending Pending Pending 100 Live 0 Pending MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021 50 ADDITIONAL SHAREHOLDER INFORMATION 51 MIRAMAR RESOURCES LIMITED ANNUAL REPORT 2021