Montrose Environmental Group
Annual Report 2023

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Annual Report 31 December 2023 ABN 74 632 150 817 Annual Report31 December 2021 Revision: 1 Date Issued: 00/00/ TABLE OF CONTENTS Corporate Directory ...................................................................................................................................................... 2 Director’s Report .......................................................................................................................................................... 3 Consolidated Statement of Profit and Loss and Other Comprehensive Income ........................................................ 20 Consolidated Statement of Financial Position ............................................................................................................ 21 Consolidated Statement of Changes in Equity ........................................................................................................... 22 Consolidated Statement of Cash Flows ...................................................................................................................... 23 Notes to the Consolidated Financial Statements ....................................................................................................... 24 Directors’ Declaration ................................................................................................................................................. 40 Auditor’s Independence Declaration .......................................................................................................................... 41 Independent Auditor’s Report .................................................................................................................................... 42 ASX Additional Information ........................................................................................................................................ 46 Important Information and Disclaimers .................................................................................................................... 48 | 1 | Annual Report - 31 December 2023 CORPORATE DIRECTORY DIRECTORS AND OFFICERS Bradley Drabsch (Non-Executive Chairman) Ben Pearson (Managing Director & CEO) Aaron Bertolatti (Finance Director and Company Secretary) REGISTERED OFFICE & PRINCIPAL PLACE OF BUSINESS Level 12, 197 St Georges Terrace PERTH WA 6000 SHARE REGISTRY Computershare Investor Services Pty Ltd Level 17, 221 St Georges Terrace PERTH WA 6000 AUDITORS BDO Audit (WA) Pty Ltd Level 9, Mia Yellagonga Tower 2, 5 Spring Street PERTH WA 6000 STOCK EXCHANGE Australian Securities Exchange (ASX) (Home Exchange: Perth, Western Australia) ASX Code: MEG WEBSITE www.megadominerals.com | 2 | Annual Report - 31 December 2023 DIRECTORS REPORT The Directors present their report for Megado Minerals Limited (“Megado” or “the Company”) and its subsidiaries (“the Group”) for the financial year ended 31 December 2023. DIRECTORS The names of the Directors of Megado during the financial year and to the date of this report are: ▪ Bradley Drabsch (Non-Executive Chairman) ▪ Ben Pearson (Managing Director & CEO) - appointed 16 February 2023 ▪ Aaron Bertolatti (Finance Director and Company Secretary) ▪ Michael Gumbley (Non-Executive Director) - resigned 5 December 2023 ▪ Chris Bowden (Non-Executive Director) - resigned 16 February 2023 ▪ Greg Schifrin (Non-Executive Director) - resigned 16 February 2023 Directors have been in office since the start of the financial year to the date of this report unless otherwise stated. DIRECTORS’ INFORMATION Bradley Drabsch - BSc (Hons), FSEG, MAIG Non-Executive Chairman – appointed 1 February 2020 Brad is a qualified geologist with over 21 years’ experience in the mineral exploration industry. Brad has acted as Managing Director, Director and Exploration Manager along with technical roles in his earlier career. Mr Drabsch has previously acted as Managing Director of DiscovEx Resources Limited (ASX:DCX) and Trek Metals Ltd (ASX:TKM) and was a founding Director of Centrepeak Resources Group Pty Ltd (CRG). Ben Pearson - MAppSc Managing Director & CEO – appointed CEO on 13 June 2022, appointed Managing Director on 16 February 2023 Ben has 18 + years’ experience in industry specialising in ESG, environmental and social impact assessment, pollution control and environmental remediation. His management experience involves senior positions with non-government organisations, environmental regulators, consultancy, academia, and private industry. Ben has project managed several large-scale infrastructure projects throughout his environmental career including regional water supply schemes, open cut and underground coal mines, wastewater treatment facilities and major road projects. In 2018, Ben established Oteba Pty Ltd to provide specialist ESG advice for junior mining companies. Aaron Bertolatti - B.Com, CA, ACG Finance Director and Company Secretary – appointed 8 March 2019 Aaron is a qualified Chartered Accountant and Company Secretary with over 17 years’ experience in the mining industry and accounting profession. Aaron has both local and international experience and provides assistance to a number of resource companies with financial accounting and stock exchange compliance. Aaron has significant experience in the administration of ASX listed companies, corporate governance and corporate finance. Michael Gumbley - B.Com, B.S.F.S, M.Sc. Managing Director – appointed 8 March 2019, resigned 5 December 2023 Michael has over 19 years’ international finance experience as Chief Financial Officer and Operations Financial Manager with aid and not-for-profit organisations. Michael has a deep understanding and experience in negotiating, collaborating and delivering projects in developing nations in Africa and Asia, where he collaborated with local partners, government, and other institutions to successfully deploy over US$60 million in developing more than 6,000 charitable water projects. Chris Bowden - PhD, GCMEE, FAusIMM(CP), FSEG Executive Director – appointed 1 February 2020, resigned 16 February 2023 Chris is a geologist with over 25 years working globally, throughout Asia, Africa, and the Americas. Chris is focused on front end discovery and definition and has been involved in a number of successful mineral deposit discoveries, generating positive value growth for stakeholders. | 3 | Annual Report - 31 December 2023 Greg Schifrin Non-Executive Director – appointed 15 June 2022, resigned 16 February 2023 Greg has extensive experience in the North American exploration and mining space having led numerous listed and private ventures over his extensive career. Greg has worked as a geologist and manager for over 30 years in the mining and mineral exploration industry and has provided technical services and project management for major and junior mining companies. He is a registered professional geologist in the State of Washington. DIRECTORSHIPS OF OTHER LISTED COMPANIES Directorships of other listed companies held by current directors in the 3 years immediately before the end of the financial year are as follows: Director Company Period of Directorship Bradley Drabsch Aaron Bertolatti Jade Gas Holdings Limited (ASX: JGH) Discovex Resources Limited (ASX: DCX) Future Metals NL (ASX: FME) Fin Resources Limited (ASX: FIN) Director from April 2019 to January 2022 Director from December 2019 to April 2021 Director from June 2018 to July 2022 Director since February 2023 INTERESTS IN THE SECURITIES OF THE COMPANY As at the date of this report, the interests of the Directors in the securities of Megado are: Director Ordinary Shares Bradley Drabsch Ben Pearson Aaron Bertolatti1 1,302,778 222,222 3,218,056 Options –$0.10 each, expiring 1-Mar-2027 1,200,000 1,000,000 1,200,000 Options –$0.20 each, expiring 27-Oct-2024 750,000 - 400,000 Options –$0.15 each, expiring 30-Jun-2027 - 2,500,000 - 1 Aaron Bertolatti is Director and minority shareholder (<3.5%) of Profusion Discovery Fund Limited which holds 3,500,000 Ordinary Shares. RESULTS OF OPERATIONS The Company loss after providing for income tax amounted to $1,365,163 for the year ended 31 December 2023 (31 December 2022: $7,761,851). DIVIDENDS No dividends were paid or declared. The directors do not recommend the payment of a dividend. CORPORATE STRUCTURE Megado is a company limited by shares, which is incorporated and domiciled in Australia. NATURE OF OPERATIONS AND PRINCIPAL ACTIVITIES Megado is an ASX listed mineral exploration company with a portfolio of exploration assets that underpin growth and provide exceptional opportunities for the Company with a focus on adding value through cost effective exploration and discovery. Concurrent with progressing its North American projects, the Company is continually evaluating additional exploration and development projects globally to add to its current portfolio. REVIEW OF OPERATIONS North Fork Rare Earth Project The North Fork Rare Earth Project is in Lemhi County, Idaho (USA) approximately 40 km north-west of Salmon in the Salmon-Challis National Forest (Figure 1). The project contains multiple carbonatite-hosted, high-grade, REE mineralised veins observed at surface across several prospects. During the reporting period, the company acquired 22 new claims for the North Fork Project and 48 new claims in the vicinity of Johnson Creek, Montana (USA). The Johnson Creek claims were subsequently dropped following receipt of laboratory assay results. The 22 new claims at North Fork included extensions to land surrounding prospect areas Radiant (17 new claims) and Jackpot (5 new claims). New claims at Jackpot were supported by historical surface sampling with results up to 23.56% TREE (refer to ASX Announcement dated 17 January 2023). New claims at Radiant provided additional coverage over historically mapped carbonatites. Carbonatites are known to host REE mineralisation. | 4 | Annual Report - 31 December 2023 Following acquisition of new ground, the total number of claims at North Fork increased to 526 claims and encompasses an area of approximately 45km2. Assay results were received from 27 rock samples collected from the North Fork Project and from initial reconnaissance sampling at Johnson Creek. Selected sampling results (TREE >1%) are shown in Table 1. Highlights include two (2) high-grade rock samples from the Silver King prospect which returned up to 15.85% TREE (2.79% Nd-Pr) and 12.81% TREE (2.22% Nd-Pr). These represent the highest TREE results reported from Silver King to date. Table 1: Selected Rock Sample Assays for North Fork Rare Earth Project Collected in October- November 2022 (Sample assays < 1.0 % TREE are excluded). Sample # Easting Northing TREE (%) Nd-Pr (%) 253504 253505 253503 253511 253506 715504 715495 715504 718082 715498 5036855 5036845 5036866 5032222 5036750 15.85 12.81 5.07 5.00 3.79 2.79 2.22 0.82 0.82 0.62 Prospect Silver King Silver King Silver King Jackpot Silver King Note: Coordinates system WGS84 Zone 11N Figure 1: North Fork Rare Earth Project, located within the highly prospective REE belt in Idaho. | 5 | Annual Report - 31 December 2023 The Company later acquired historical geophysics data from a 2011 survey of the North Fork project area. Geophysics provided a level of detail not previously seen and strongly supported field observations. Carbonatite source intrusive bodies are generally non-magnetic in relation to their host rocks, as such show low Total Magnetic Index (TMI) values (Figure 2). Interpretation of the TMI data appears to show several possible carbonatite intrusive centres in the project. These centres occur in known prospect areas and also at several new prospect areas (Figure 2). Several structural trends are observed in conjunction with the carbonatite intrusive centres. These structures appear to either radiate from the centres and/or occur in parallel with them and where they have been mapped and sampled, appear coincident with REE mineralised carbonatite dykes at surface. The geophysics clearly shows multiple, parallel, and radiating structures with significant combined strike extent throughout the North Fork property, and these will form the focus for upcoming field work to ground truth these structures more completely. Figure 2: Total magnetic intensity for the bulk of the North Fork Project area showing several magnetic lows (possible carbonatite intrusive centres) within a broader strong north-west dominant structural fabric that hosts known REE mineralisation. Geophysics data for North Fork was supported by a detailed airborne hyperspectral survey (undertaken by Theia-X). The survey revealed several previously unidentified carbonatite outcrops (see Figure 3). Most new outcrops appeared to be coincident with the geophysics targets (see ASX Release 29 March 2023). The majority of the newly identified carbonatites remain unsampled; and where sampled show high grades for REE’s (see Figure 3). | 6 | Annual Report - 31 December 2023 Figure 3: Results of hyperspectral survey conducted over the North Fork project area.White pixels represent areas of carbonatite determination with major trends highlighted in white ovals. Megado continues to progress permitting activities for an inaugural drill program at the Silver King prospect, with a permit anticipated ahead of the 2024 field season. Cyclone Lithium Project The Cyclone Lithium Project in the James Bay region, Quebec includes 302 claims and encompasses 130km2 (Figure 4). Cyclone is centered on the Aquilon Greenstone Belt and is prospective for lithium, massive nickel sulphides, and orogenic gold. Figure 4: Location of Megado’s Cyclone Project and K Lithium Project in the James Bay region, Quebec, Canada | 7 | Annual Report - 31 December 2023 Prior to commencing fieldwork, two independent remote sensing investigations were undertaken to identify possible pegmatite occurrences and prioritize areas for ground-truthing. Remote sensing included a detailed interpretation of hyperspectral imagery (undertaken by Terra Resources) and a structural/topographic analysis (undertaken by Geosense). Several pegmatites interpreted by Geosense overlapped with spectral targets identified by Terra Resources. A compilation of the combined datasets was used to identify priority targets for ground truthing (see Figure 5). Based on these results, Megado planned 60 field-based traverses for the 2023 field season. Figure 5: Cyclone Project with multiple targeting datasets, highlighting priority areas for follow-up fieldwork. Fieldwork for the Cyclone Project was originally due to commence in mid-June 2023. However, extensive wildfires throughout Quebec resulted in a 6-week delay. Fieldwork eventually commenced in late August 2023 and was led by Dahrouge Geological Consulting (DGC). Logistical constraints arising from the fires curtailed initial exploration efforts and as a result, only 18 of the planned 60 traverses (30%) were completed. Despite this, 41 pegmatite targets were discovered. Where pegmatites were observed, they were sampled and dispatched for laboratory analysis. Sixty-three (63) rock samples were analysed for a multi-element suite with a focus on Fertility Ratios (K/Rb, Nb/Ta, and Zr/Hf). Ratios of these elements are known to indicate magmatic fractionation and hydrothermal alteration processes and are used to determine which rocks have potential to host incompatible elements (e.g. lithium). An analysis of these geochemical ratios for all 63 rock chip samples is shown in Figure 6. | 8 | Annual Report - 31 December 2023 Figure 6: (Top Left) K/Rb vs Nb/Ta fertility ratios. Samples with <270 K/Rb and <5 Nb/Ta are indicative of hydrothermally altered granites/pegmatites (fertile samples in orange box). (Top Right) K/Rb vs Li2O fertility ratios. Samples with <270 K/Rb are prospective for lithium mineralisation (samples below orange line). Peak lithium result = 0.018% Li2O. (Bottom Left) K/Rb vs Ta fertility ratio. Samples show a downward trend to lower K/Rb ratios vs higher Ta values, indicating increasing fractionation trend - higher the fractionation, higher the prospectivity for lithium mineralisation. (Bottom Right) Nb/Ta vs Zr/Hf fertility ratios. Samples that show <18 Zr/Hf and <5 Nb/Ta ratios have higher prospectivity for lithium mineralisation (fertile samples in orange box). Of the 63 rock samples collected, 29 samples (46%) show a fertility ratio of <5 Nb/Ta – this is a primary Fertility Ratio indicative of mineralised versus barren granites for lithium mineralisation. Eight (8) samples (13%) show a combined <270 K/Rb, and <5 Nb/Ta, and <18 Zr/Hf ratios. These 8 samples with prospective combined Fertility Ratios highlight the prospectivity for lithium potential in the project area. These 8 samples cluster in the northwest and in the southeast of the Cyclone property, presenting two distinct areas (of the 30% currently traversed) for potential drill targeting lithium pegmatites (see Figure 7). It is anticipated that additional traverses (ca. 70% of the remaining project area) are statistically likely to also identify additional fertile areas for possible drill targeting. Exploring these remaining areas is a priority in 2024. | 9 | Annual Report - 31 December 2023 Figure 7: Map of Cyclone Project, highlighting the two distinct areas in the NW and SE that geochemically show highly prospective Fertility Ratios for lithium mineralisation (blue). Map also showing overlay of DGC traverses completed (18 of 60 planned), and areas remaining with numerous targets yet to be ground-truthed and sampled. K Lithium Project The K Lithium Project is in Quebec’s James Bay region 10 km east of the James Bay Road / Billy-Diamond Highway, ca. 90km south of Raddison, on Lac Kaychikutinaw (see Figure 4). The Project initially included 35 claims (16km2) within the La Grande Sub province. Locally, rocks are granitic intrusions of the ‘Vieux Comptoir Granitic Suite’. This suite comprises 3 subdivisions including ‘Suite 3: Spodumene Granite’ – the exact host rock (nAvcr3) for lithium mineralisation on several known deposits/occurrences in James Bay region including Corvette (TSXV: PMET), Cancet, Adina (ASX: WR1), Mia 1&2 (TSXV: QTWO). Megado later sought to add to its initial 35 claims by adding an additional 37 non-contiguous claims to the project representing an area of approximately 9 km2 (see Figure 8). Field work at the K Lithium Project was undertaken in mid-October 2023 and consisted of helicopter reconnaissance and field traverses, with rock sampling, focusing on historical occurrences of lithium bearing pegmatites. Fifty-five (55) surface-based rock samples were collected. The lithologies noted in the area ranged from intrusive felsic rocks (alkali-feldspar granite, granite, granodiorite, and pegmatite) to metamorphic rocks (amphibolite and paragneiss), with one occurrence of wacke. Forty-nine (49) samples were collected from pegmatite outcrops, and the remainder of the samples were collected from pegmatitic zones within heterogeneous granite or granodiorite. One (1) pegmatite outcrop contained 5% amazonite, three (3) contained trace tourmaline, and eight (8) contained trace muscovite. | 10 | Annual Report - 31 December 2023 Figure 8: K Lithium Project – Initial 35 claims (central area) and subsequent 37 claims.With historical work (dataset from SIGEOM). Corporate Cyclone Lithium Project Acquisition Completed Megado completed its acquisition of 100% of the Cyclone Lithium Project in Quebec, Canada in April 2023. The consideration paid by the Company for the acquisition included: • A cash payment of CA$250,000 (excluding GST). • 45,000,000 fully paid ordinary shares (Consideration Shares) subject to the following escrow restrictions: a. 10% of the Consideration Shares (4,500,000 Shares) will be freely tradeable from the date of issue. b. 45% of the Consideration Shares (20,250,000 Shares) will be subject to 6 months escrow from the date of issue. c. 45% of the Consideration Shares (20,250,000 Shares) will be subject to 12 months escrow from the date of issue. • 7,000,000 options to acquire fully paid ordinary shares in the capital of the Company, exercisable at AUD$0.10 on or before the date that is three (3) years after the date of issue; and • A 2% net smelter royalty over minerals extracted from the Project. K Lithium Project Acquisition Completed Megado completed its acquisition of 100% of the K Lithium Project in Quebec, Canada in September 2023. The consideration paid by the Company for the acquisition included: • A cash payment of CAD$30,000 (excluding any applicable excise taxes). • 6,000,000 options to acquire fully paid shares in the capital of the Company, exercisable at AUD$0.08 on or before the date that is three (3) years from the date of issue. • A 2% net smelter royalty over all minerals extracted from the Project other than lithium and lithium products which will attract a 2% gross overriding royalty. | 11 | Annual Report - 31 December 2023 Capital Raising The Company conducted a capital raising through a conditional placement to professional and sophisticated investors of 60,000,000 shares at an issue price of $0.045 per share to raise $2.7m (before costs) (Placement). CPS Securities Limited (CPS) acted as Lead Manager to the Placement. The Company paid CPS the following capital raising fees: 1. A management fee of 2% for managing the placement, to be paid in cash (A$54,000 plus GST); and 2. A placement fee of 4% for funds raised via the placement, to be paid in shares (2,400,000 shares). In consideration for the provision of corporate advisory services associated with facilitating the acquisition, Megado entered into a mandate with Corporate Advisory Pty Ltd, a non-related party of the Company, pursuant to which the Company issued 4,000,000 fully paid ordinary shares in the Company (“Corporate Advisory Shares”). Board and Management Changes Managing Director Appointment Ben Pearson, was appointed Managing Director of the Company on 16 February 2023. The key terms of remuneration were as follows: 1. Base salary of A$264,000 per annum. 2. Termination notice period of 3 months by either party or by the Company paying the equivalent of 3 months' notice in lieu of service; and 3. The issue of 1,000,000 unlisted incentive options, exercisable at $0.10 and with an expiry date of 1 March 2027. Director Resignations On 16 February 2023, Chris Bowden resigned as a Non-Executive Director. Chris remains with the Company on a full-time basis as Chief Geologist. He will be responsible for advancing all aspects of the Company’s technical operations including exploration, development of existing projects and identification of new project opportunities. On the same day Gregory Schifrin stepped back from his role as a Non-Executive Director but remains engaged with Megado as a consultant on an as needs basis. In December 2023, the Company announced the retirement of Michael Gumbley from the Board, reducing the composition of the Board to the statutory minimum of three directors. Director and Employee Incentive Securities As a result of a remuneration review for the 2023 calendar year, the Megado board resolved to complete an issue of incentive options to key personnel and employees. The Company issued 5,000,000 unlisted incentive options (Incentive Options) which will comprise of the following: 1. 1,350,000 Incentive Options, exercisable at $0.10 and with an expiry date of 1 March 2027, issued under the Company’s Incentive Option Plan (refer to ASX release dated 23 October 2020 for full terms of the plan); and 2. 3,650,000 Incentive Options, exercisable at $0.10 and with an expiry date of 1 March 2027, issued to Directors (approved by shareholders at a general meeting held on 19 April 2023). Share Issue On 21 February 2023, the Company issued 5,555,555 shares as consideration for digital marketing services to be provided over a period of 30 months. Option Expiry The following unlisted options expired unexercised on 30 June 2023: Number Exercise Price $ Expiry Date 1,000,000 unlisted options over fully paid ordinary shares (ASX: MEGAK) A$0.25 per option 30 June 2023 1,000,000 unlisted options over fully paid ordinary shares (ASX: MEGAL) A$0.30 per option 30 June 2023 SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS There have been no significant changes in the state of affairs of the Group during the financial year, other than as set out in this report. | 12 | Annual Report - 31 December 2023 SIGNIFICANT EVENTS AFTER THE REPORTING DATE Director Resignations On 16 February 2024, the Company advised the impending departure of Managing Director & Chief Executive Officer (CEO), Ben Pearson. Mr Pearson provided the Company with 3 months’ notice and will step down from his role on 16 May 2024. Mr. Pearson continues to assist with the execution of the Company’s exploration strategy during his notice period. No other matter or circumstance has arisen since 31 December 2023 that has significantly affected, or may significantly affect the consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial years. ENVIRONMENTAL ISSUES The Group is not subject to any significant environmental regulation under Australian Commonwealth or State Law. The operations of the Group are presently subject to environmental regulation under the laws of the USA, Canada and Ethiopia. The Group is, to the best of its knowledge, at all times in full environmental compliance with the conditions of its licences. INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS The Company has made an agreement indemnifying all the Directors and officers of the Company against all losses or liabilities incurred by each Director or officer in their capacity as Directors or officers of the Company to the extent permitted by the Corporations Act 2001. The indemnification specifically excludes wilful acts of negligence. INDEMNIFICATION AND INSURANCE OF AUDITOR The Company has not, during or since the end of the financial period, indemnified or agreed to indemnify the auditor of the Company or any related entity against a liability incurred by the auditor. During the financial year, the Company has not paid a premium in respect of a contract to insure the auditor of the company or related entity. PROCEEDINGS ON BEHALF OF COMPANY No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of the Company, or to intervene in any proceedings to which the Company is a party for the purpose of taking responsibility on behalf of the company for all or part of those proceedings. LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS The Directors have excluded from this report any further information on the likely developments in the operations of the Company and the expected results of those operations in future financial years, as the Directors believe that it would be speculative and prejudicial to the interests of the Company. MATERIAL BUSINESS RISKS The Group considers the following to be the key material business risks: (i) Access to and dependence on capital raisings (ii) Exploration risks (iii) Geopolitics (Canada) (iv) Environmental Future capital requirements Mineral exploration companies (including the Company) do not generate cash revenue. The Company's ability to meet its on-going operating costs and expenditure requirements will ultimately involve expenditure that exceeds the estimated cash resources. Accordingly, the Company will be required to raise new equity capital or access debt funding. There can be no assurance as to the levels of future borrowings or further capital raisings that will be required to meet the aims of the Company to explore and develop its projects or otherwise for the Company to undertake its business. No assurance can be given that the Company will be able to procure sufficient funding at the relevant times on the terms acceptable to it. Any additional equity financing will dilute Shareholders, and debt financing, if available, may involve restrictions on financing and operating activities. If the Company is unable to obtain additional financing as needed, it may be required to reduce the scope of its operations and scale back its exploration programmes as the case may be. There is no guarantee that the Company will be able to secure any additional funding or be able to secure funding on terms favourable to the Company. | 13 | Annual Report - 31 December 2023 Risk of failure in exploration, development or production Payment of compensation is ordinarily necessary to acquire participating interests. Also, surveying and exploratory drilling expenses (exploration expenses) become necessary at the time of exploration activities for the purpose of discovering resources. When resources are discovered, it is necessary to further invest in substantial development expenses. There is, however, no guarantee of discovering resources on a scale that makes development and production feasible. The probability of such discoveries is considerably low despite various technological advances in recent years, and even when resources are discovered the scale of the resource does not necessarily make commercial production feasible. For this reason, the Company conservatively recognizes expenses related to exploration investment in our consolidated financial statements. To increase recoverable resources and production, the Company plans to always take an interest in promising properties and plans to continue exploration investment. Although exploration and development (including the acquisition of interests) are necessary to secure the resources essential to the Company’s future sustainable business development, each type of investment involves technological and economic risks, and failed exploration or development could have an adverse effect on the results of the Company’s operations. Overseas business activities and country risk (geopolitical risk) The Company engages in exploration activities outside of Australia, mainly in North America. The success of the Company’s operation depends on the political stability in this country and the availability of qualified and skilled workforce to support operations. While the operations of the Company in this country is currently very stable, a change in the government may result in changes to the foreign investment laws and these assets could have an adverse effect on the Company’s operational results. To manage this risk, the Company ensures that all significant transactions in these countries are supported by robust contracts between the company and third parties. We have a system in place for parent company level to continuously check the country risk management before any significant investment is made. Furthermore, we have developed a mechanism to counter legal risk, where foreign subsidiaries and management can receive appropriate legal guidance regarding matters such as important agreements and lawsuits in foreign locations. Environmental The minerals and mining industry has become subject to increasing environmental regulations and liability. The potential for liability is an ever-present risk. The operations and proposed activities of the Company are subject to State and Federal laws, regulations and permits concerning the environment. If such laws are breached or modified, the Company could be required to cease its operations and/or incur significant liabilities including penalties, due to past or future activities. As with most exploration operations, the Company’s activities are expected to have an impact on the environment. There are certain risks inherent in the Company’s activities which could subject the Company to extensive liability. The cost and complexity in complying with the applicable environmental laws and regulations may affect the viability of potential developments of the Company's projects, and consequently the value of those projects, and the value of the Company's assets. It may be required for the Company to conduct baseline environmental studies prior to certain exploration or mining activities, so that environmental impact can be monitored and minimised where ever possible. No baseline studies have been done to date, and a discovery of endangered flora or fauna could, for example, prevent exploration and mining activity in certain areas. MEETINGS OF DIRECTORS During the year, in addition to frequent Board discussions, the Directors met regularly to discuss all matters associated with the Company’s Projects, and other Company matters on an informal basis. Circular resolutions were passed as necessary to execute formal Board decisions. Name Bradley Drabsch Aaron Bertolatti Ben Pearson1 Michael Gumbley2 Chris Bowden3 Greg Schifrin4 Number Eligible to Attend 4 4 4 4 - - Number Attended 4 4 4 3 - - 1 Ben Pearson was appointed as Managing Director on 16 February 2023. 2 Michael Gumbley resigned on 5 December 2023. 3 Chris Bowden resigned on 16 February 2023. 4 Greg Schifrin resigned on 16 February 2023. | 14 | Annual Report - 31 December 2023 CORPORATE GOVERNANCE In recognising the need for the highest standards of corporate behaviour and accountability, the Directors of Megado support and adhere to the principles of sound corporate governance. The Board recognises the recommendations of the Australian Securities Exchange Corporate Governance Council, and considers that Megado complies to the extent possible with those guidelines, which are of importance and add value to the commercial operation of an ASX listed resources company. The Company has established a set of corporate governance policies and procedures and these can be found on the Company’s website: www.megadominerals.com. AUDITORS INDEPENDENCE DECLARATION Section 307C of the Corporations Act 2001 requires the Company’s auditors to provide the Directors of Megado with an Independence Declaration in relation to the audit of the financial report. A copy of that declaration is included within the annual report. There were no non-audit services provided by the Company’s auditor. Officers of the Company who are Former Partners of BDO Audit There are no officers of the company who are former partners of BDO Audit (WA) Pty Ltd Auditor BDO Audit (WA) Pty Ltd continues in office in accordance with section 327 of the Corporations Act 2001. AUDITED REMUNERATION REPORT This report, which forms part of the Directors’ report, outlines the remuneration arrangements in place for the key management personnel of Megado for the financial year ended 31 December 2023. The information provided in this remuneration report has been audited as required by Section 308(3C) of the Corporations Act 2001. The remuneration report details the remuneration arrangements for KMP who are defined as those persons having authority and responsibility for planning, directing and controlling the major activities of the Group, directly or indirectly, including any Director (whether executive or otherwise) of the Group. Details of Directors and Key Management Personnel ▪ Bradley Drabsch (Non-Executive Chairman) ▪ Ben Pearson (Managing Director & CEO) appointed as Managing Director 16 February 2023 ▪ Aaron Bertolatti (Finance Director & Company Secretary) ▪ Michael Gumbley (Non-Executive Director) - resigned 5 December 2023 ▪ Chris Bowden (Executive Director) - resigned 16 February 2023 ▪ Greg Schifrin (Non-Executive Director) - resigned 16 February 2023 Remuneration Policy The Board is responsible for determining and reviewing compensation arrangements for the Directors. The Board assesses the appropriateness of the nature and amount of emoluments of such officers on a yearly basis by reference to relevant employment market conditions with the overall objective of ensuring maximum stakeholder benefit from the retention of a high-quality board and executive team. The expected outcome of this remuneration structure is to retain and motivate Directors. As part of its Corporate Governance Policies and Procedures, the board has adopted a formal Remuneration Committee Charter and Remuneration Policy. The Board has elected not to establish a remuneration committee based on the size of the organisation and has instead agreed to meet as deemed necessary and allocate the appropriate time at its board meetings. Fees and payments to non‑executive directors reflect the demands which are made on, and the responsibilities of, the directors. Non‑executive directors’ fees and payments are reviewed annually by the Board. The Chair’s fees are determined independently to the fees of non‑executive directors based on comparative roles in the external market. Non‑executive directors do not receive performance- based pay. Level Chairman Managing Director & CEO Executive Director’s Non-Executive Director Cash Remuneration $60,000 $264,000 Up to $230,000 $30,000 - - - - FY2023 Short Term Incentive Long Term Incentive 1,200,000 options 1,000,000 options Up to 1,200,000 options 250,000 options | 15 | Annual Report - 31 December 2023 Additional Fees A Director may also be paid fees or other amounts as the Directors determine if a Director performs special duties or otherwise performs services outside the scope of the ordinary duties of a Director. A Director may also be reimbursed for out-of-pocket expenses incurred as a result of their directorship or any special duties. Details of Remuneration Details of the nature and amount of each element of the remuneration of each Director and Officer of the Group for the year ended 31 December 2023 are as follows: Name Directors Bradley Drabsch Aaron Bertolatti Michael Gumbley1 Chris Bowden2 Greg Schifrin3 Ben Pearson 4 Total Directors’ Fees $ Short term Consulting Fees $ Incentive Award $ Share -Based Payments Equity $ Options $ Total $ Performance related % 60,000 - 27,500 3,750 - - 91,250 - 150,000 - - 5,000 242,000 397,000 - - - - - - - - - - - - - - 40,017 40,017 8,337 93,482 181,853 - - 100,017 190,017 35,837 3,750 5,000 335,482 670,103 40.0 21.1 23.3 - - 27.9 27.1 1 Michael Gumbley resigned on 5 December 2023. 2 Chris Bowden resigned on 16 February 2023. 3 Greg Schifrin resigned on 16 February 2023. 4 Ben Pearson was appointed as Managing Director on 16 February 2023. There were no other executive officers of the Company during the financial year ended 31 December 2023. Details of the nature and amount of each element of the remuneration of each Director of the Group for the year ended 31 December 2022 are as follows: Name Directors Michael Gumbley Bradley Drabsch Chris Bowden Aaron Bertolatti Greg Schifrin1 Marta Ortiz2 Officer Ben Pearson3 Total Directors’ Fees $ Short term Consulting Fees $ Incentive Award $ Share -Based Payments Equity $ Options $ Total $ Performance related % 10,000 60,000 15,000 - - 12,500 - 97,500 166,667 - 108,500 150,000 17,500 - 66,000 508,667 - - - - - - - - - - - - - - - - - - - - - - 176,667 60,000 123,500 150,000 17,500 12,500 - - - - - - 105,661 105,661 171,661 711,828 61.6 14.8 1 Greg Schifrin was appointed on 15 June 2022 2 Marta Ortiz resigned on 31 May 2022 3 Ben Pearson was appointed as CEO on 13 June 2022 There were no other executive officers of the Company during the financial year ended 31 December 2022. Shareholdings of Directors and Officers The number of shares in the Company held during the financial year by Directors of the Group, including their personally related parties, is set out below. | 16 | Annual Report - 31 December 2023 Name Directors Bradley Drabsch Aaron Bertolatti Ben Pearson Michael Gumbley1 Chris Bowden2 Greg Schifrin3 Balance at the start of the year Granted during the year as compensation On exercise of share options Other changes during the year Balance at the end of the year 725,000 2,595,834 - 2,800,834 835,000 1,041,108 - - - - - - - - - - - - 577,7781 622,2221 222,2221 (2,800,834)2 (835,000)3 (1,041,108)4 1,302,778 3,218,056 222,222 - - - 1 Participation in $0.045 share placement. 2 Michael Gumbley resigned on 5 December 2023. 3 Chris Bowden resigned on 16 February 2023. 4 Greg Schifrin resigned on 16 February 2023. All equity transactions with Directors and Officers other than those arising from the exercise of remuneration options have been entered into under terms and conditions no more favourable than those the Company would have adopted if dealing at arm’s length. Option Holdings of Directors and Officers The numbers of options over ordinary shares in the Company held during the financial year by each Director and Officer of the Group, including their personally related parties, are set out below: Name Directors Bradley Drabsch Aaron Bertolatti Ben Pearson Michael Gumbley1 Chris Bowden2 Greg Schifrin3 Balance at the start of the year Granted during the year as compensation Exercised during the year Other changes during the year Balance at the end of the year Exercisable Un- exercisable 750,000 400,000 2,500,000 1,400,000 2,500,000 - 1,200,000 1,200,000 1,000,000 250,000 1,000,000 250,000 - - - - - - - (1,650,000) - (3,500,000) (250,000) - 1,950,000 1,600,000 3,500,000 - - - 1,950,000 1,600,000 3,500,000 - - - - - - - - - 1 Michael Gumbley resigned on 5 December 2023. 2 Chris Bowden resigned on 16 February 2023. 3 Greg Schifrin resigned on 16 February 2023. No option holder has any right under the options to participate in any other share issue of the Company or any other entity. Options granted as part of remuneration have been valued using the Black Scholes option pricing model that takes into account the exercise price, the term of the option, the impact of dilution, the share price at grant date and expected price volatility of the underlying share and the risk-free interest rate for the term of the option. Options granted under the plan carry no dividend or voting rights. For details on the valuation of options, including models and assumptions used, please refer to note 16. Options Affecting Remuneration The terms and conditions of Options affecting remuneration in the current or future reporting years are as follows: Grant Date Grant Number Expiry date/last exercise date Exercise price $ Value at grant date1 $ Vested % Number vested Value vested during the year $ Max value yet to vest Officer Ben Pearson Bradley Drabsch Aaron Bertolatti Michael Gumbley 14/06/22 19/04/23 19/04/23 19/04/23 19/04/23 2,500,000 30/06/27 1,000,000 01/03/27 1,200,000 01/03/27 1,200,000 01/03/27 250,000 01/03/27 $0.15 $0.10 $0.10 $0.10 $0.10 165,796 33,347 40,017 40,017 8,337 2,500,000 1,000,000 1,200,000 1,200,000 250,000 100 100 100 100 100 60,135 33,347 40,017 40,017 8,337 - - - - - | 17 | Annual Report - 31 December 2023 1 The value at grant date has been calculated in accordance with AASB 2 Share based payments. The model inputs, not included in the table above, for options granted during the year included: a) b) c) d) e) f) options issue price was nil; expected lives of the options was 3.9 years; share price at grant date was $0.056; expected volatility of 100%; expected dividend yield of nil; and a risk-free interest rate of 3.0%. Refer to note 16(b) for further details of the unlisted options issued during the financial year ended 31 December 2023. Service Agreements Managing Director and CEO, Ben Pearson, is engaged under the terms of a Consultancy Agreement dated 16 February 2023. Under the agreement Ben is paid an annual fee of $264,0000 (inclusive of pension contributions). Ben also has the opportunity to participate in long-term incentive schemes that the Company may put in place in the future. The Agreement may be terminated by either party by providing three months’ notice in writing or payment in lieu of notice. Finance Director, Aaron Bertolatti, is engaged under an Executive Consulting Agreement dated 8 March 2019. Under the agreement Mr. Bertolatti is paid an annual fee of $150,000. Mr. Bertolatti also has the opportunity to participate in short term and long-term incentive schemes that the Company may put in place in the future. The Agreement may be terminated by either party by providing three months’ notice in writing or payment in lieu of notice. Non-Executive Directors On appointment to the Board, all non-executive directors enter into a service agreement with the Group in the form of a letter of appointment. The letter summarises the Board policies and terms, including compensation, relevant to the Director. The aggregate remuneration for Non-Executive Directors has been set at an amount not to exceed $500,000 per annum. This amount may only be increased with the approval of Shareholders at a general meeting. Loans to Directors and Executives There were no loans to Directors and key management personnel during the financial year ended 31 December 2023. Additional Information The earnings of the consolidated entity since incorporation to 31 December 2023 are summarised below: Interest income Loss after income tax 2023 $25,504 ($1,365,163) 2022 $3,849 ($7,761,851) 2021 $6,644 ($1,024,923) 2020 $1,488 ($1,217,535) 2019 $48 ($1,390,118) The factors that are considered to affect total shareholders return (“TSR”) are summarised below: Share price at financial year end ($) Total dividends declared (cents per share) Basic earnings per share (cents per share) 2023 $0.035 - (0.63) 2022 $0.045 - (7.21) 2021 $0.083 - (1.43) 2020 $0.205 - (3.59) 20191 - - - 1 Megado was incorporated in Australia on 8 March 2019 and commenced trading on the Australian Securities Exchange on 27 October 2020. Voting and comments made at the Company's 2022 Annual General Meeting Megado received 100% of “yes” votes on its remuneration report for the 2022 financial year. The Company did not receive any specific feedback at the AGM or throughout the year on its remuneration practices. END OF AUDITED REMUNERATION REPORT | 18 | Annual Report - 31 December 2023 This report is made in accordance with a resolution of directors, pursuant to section 298(2)(a) of the Corporations Act 2001. Signed on behalf of the Directors. Bradley Drabsch Managing Director Brisbane, QLD 27 March 2024 | 19 | Annual Report - 31 December 2023 CONSOLIDATED STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME For the year ended 31 December 2023 31-Dec-23 31-Dec-22 Note $ $ Continuing Operations Interest income Expenses Professional and consulting fees Director and employee costs Other expenses Share-based payments expense Travel and accommodation Impairment of exploration expenditure Loss before income tax Income tax expense Net loss for the year Other comprehensive income Items that may be reclassified to profit and loss Exchange differences on translation of foreign operations Other comprehensive income for the year, net of tax Total comprehensive loss for the year Loss for the year attributable to: Members of the parent entity Non-controlling interests Total comprehensive loss for the year attributable to: Members of the parent entity Non-controlling interests 16(a) 7 3 25,504 3,849 (221,232) (479,500) (428,486) (219,285) (10,311) (31,853) (1,365,163) (303,671) (482,667) (127,206) (563,312) (63,298) (6,225,546) (7,761,851) - (1,365,163) - (7,761,851) - - (1,365,163) 136,884 136,884 (7,624,967) (1,365,163) - (1,365,163) (7,761,851) (436,730) (8,198,581) (1,365,163) - (1,365,163) (7,622,534) (2,433) (7,624,967) Loss per share Basic and diluted loss per share (cents) 13 (0.63) (7.21) The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes. | 20 | Annual Report - 31 December 2023 CONSOLIDATED STATEMENT OF FINANCIAL POSITION As at 31 December 2023 Current Assets Cash and cash equivalents Other assets Receivables Total Current Assets Non-Current Assets Exploration and evaluation expenditure Total Non-Current Assets Total Assets Current Liabilities Trade and other payables Total Current Liabilities Total Liabilities Net Assets Equity Issued capital Reserves Accumulated losses Capital and Reserves Attributable to Owners of the parent entity Non-controlling interest Total Equity 31-Dec-23 31-Dec-22 Note $ $ 4 5 6 7 8 9 10 11 1,141,759 43,681 27,345 1,212,785 853,119 45,952 23,385 922,456 7,786,751 7,786,751 8,999,536 3,992,667 3,992,667 4,915,123 47,371 47,371 47,371 244,331 244,331 244,331 8,952,165 4,670,792 19,647,993 2,063,762 (12,759,590) 8,952,165 - 8,952,165 14,474,747 1,590,472 (11,394,427) 4,670,792 - 4,670,792 The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes. | 21 | Annual Report - 31 December 2023 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY For the year ended 31 December 2023 Balance at 1 January 2022 Total comprehensive loss for the year Loss for the period Foreign currency translation Total comprehensive loss for the year Transactions with owners in their capacity as owners Shares issued during the year Proceeds of issue of options Cost of issue Share-based payments (note 16(a)) Balance at 31 December 2022 Balance at 1 January 2023 Total comprehensive loss for the year Loss for the period Foreign currency translation Total comprehensive loss for the year Transactions with owners in their capacity as owners Shares issued during the year Cost of issue Share-based payments (note 16(a)) Balance at 31 December 2023 Foreign exchange translation reserve $ (84,491) Total attributable to owners of the parent entity $ Share option reserve $ 1,055,810 6,728,002 Non-controlling interest $ 439,163 Total $ 7,167,165 - - - (7,761,851) 139,317 (7,622,534) (436,730) (2,433) (439,163) (8,198,581) 136,884 (8,061,697) Issued capital $ Accumulated losses $ 9,389,259 (3,632,576) - - - (7,761,851) - (7,761,851) 5,280,000 - - (194,512) 14,474,747 - - - - (11,394,427) - 139,317 139,317 - - - - 54,826 - 5 54,512 425,319 1,535,646 5,280,000 5 54,512 230,807 4,670,792 14,474,747 (11,394,427) 54,826 1,535,646 4,670,792 - - - (1,365,163) - (1,365,163) - - - - - - (1,365,163) - (1,365,163) 5,335,222 (161,976) - 19,647,993 - - - (12,759,590) - - - 54,826 - - 473,290 2,008,936 5,335,222 (161,976) 473,290 8,952,165 - - - - - - - - - - - - - 5,280,000 5 54,512 230,807 4,670,792 4,670,792 (1,365,163) - (1,365,163) 5,335,222 (161,976) 473,290 8,952,165 The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes. | 22 | Annual Report - 31 December 2023 CONSOLIDATED STATEMENT OF CASH FLOWS For the year ended 31 December 2023 Cash flows from operating activities Payments to suppliers and employees Interest received Net cash used in operating activities Cash flows from investing activities Payments for exploration expenditure Proceeds from acquisition of subsidiary Net cash used in investing activities Cash flows from financing activities Proceeds from issue of shares Proceeds from issue of options Payments for share issue costs Net cash provided by financing activities Net decrease in cash and cash equivalents Cash and cash equivalents at the beginning of the year Effect of exchange rate fluctuations on cash Cash and cash equivalents at the end of the year 31-Dec-23 31-Dec-22 Note $ $ (899,997) 25,504 (874,493) (972,155) 3,849 (968,306) (1,482,877) - (1,482,877) (1,724,845) 47,964 (1,676,881) 2,700,024 - (54,001) 2,646,023 288,653 853,119 (13) 1,141,759 2,400,000 5 (140,000) 2,260,005 (385,182) 1,238,301 - 853,119 4 4 The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes. | 23 | Annual Report - 31 December 2023 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 1. Corporate Information The financial report of Megado Minerals Limited (“Megado” or “the Company”) for the year ended 31 December 2023 was authorised for issue in accordance with a resolution of the Directors on 27 March 2024. Megado is a company limited by shares incorporated in Australia whose shares trade on the Australian Securities Exchange. The nature of the operations and the principal activities of the Company are described in the Directors’ Report. 2. Summary of material accounting policies The principal accounting policies adopted in the preparation of the financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. a) Basis of Preparation The financial statements are general-purpose financial statements, which have 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 statements have also been prepared on a historical cost basis. The presentation currency is Australian dollars. b) Compliance Statement The financial report complies with Australian Accounting Standards, which include Australian equivalents to International Financial Reporting Standards (AIFRS). Compliance with AIFRS ensures that the financial report, comprising the financial statements and notes thereto, complies with International Financial Reporting Standards (IFRS). c) Basis of Consolidation The consolidated financial statements comprise the financial statements of Megado Minerals Limited (‘the Company’) and its subsidiaries (‘the Group’). Subsidiaries are those entities over which the Company has the power to govern the financial and operating policies so as to obtain benefits from their activities. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether a Company controls another entity. In preparing the consolidated financial statements, all intercompany balances and transactions, income and expenses and profit and losses resulting from intra-company transactions have been eliminated in full. Unrealised losses are also eliminated unless costs cannot be recovered. Non-controlling interests in the results and equity of subsidiaries are shown separately in the Statement of Profit or Loss and Other Comprehensive Income and Consolidated Statement of Financial Position respectively. d) Going Concern As disclosed in the financial statements, the Company incurred a loss of $1,365,163 (2022: $7,761,851) and had net cash outflows from operating and investing activities of $874,493 (2022: $968,306) and $1,482,877 (2022: $1,676,881) respectively for year ended 31 December 2023. As at that date, the Company had net current assets of $1,165,414 (2022: $678,125). The Group is dependent upon raising capital to meet its planned and budgeted exploration activities as well as corporate overheads requirements in the next 12 months. The Group's capacity to raise additional funds will be impacted by the success of the ongoing exploration activities and market conditions. These conditions indicate a material uncertainty that may cast significant doubt about the Group's ability to continue as a going concern. Should the entity not be able to continue as a going concern, it may be required to realise its assets and discharge its liabilities other than in the ordinary course of business, and at amounts that differ from those stated in the financial statements. The financial report does not include any adjustments relating to the recoverability and classification of recorded asset amounts or liabilities that might be necessary should the entity not continue as a going concern. e) Foreign Currency Translation (i) Functional and presentation currency Items included in the financial statements of each of the Company’s controlled entities are measured using the currency of the primary economic environment in which the entity operates (‘the functional currency’). The functional and presentation currency of Megado is Australian dollars. The functional currency of the US subsidiary is the US Dollar. The functional currency of the Canadian subsidiary is the Canadian dollar. The functional currency of the Ethiopian subsidiaries is the Ethiopian Birr. | 24 | Annual Report - 31 December 2023 (ii) Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the statement of profit or loss and other comprehensive income. (iii) Group entities The results and financial position of all the Group entities (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows: ▪ assets and liabilities for each statement of financial position presented are translated at the closing rate at the date of that statement of financial position; ▪ ▪ income and expenses for each statement of profit or loss and other comprehensive income are translated at average exchange rates (unless this is not a reasonable approximation of the rates prevailing on the transaction dates, in which case income and expenses are translated at the dates of the transactions); and all resulting exchange differences are recognised as a separate component of equity. On consolidation, exchange differences arising from the translation of any net investment in foreign entities are taken to shareholders’ equity. When a foreign operation is sold or any borrowings forming part of the net investment are repaid, a proportionate share of such exchange differences are recognised in the statement of profit or loss and other comprehensive income, as part of the gain or loss on sale where applicable. f) Segment Reporting 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 different measures to those used in preparing the Statement of Profit or Loss and Other Comprehensive Income and Statement of Financial Position. Reconciliations of such management information to the statutory information contained in the annual financial report have been included. g) Changes in accounting policies and disclosures The Directors have reviewed all of the new and revised Standards and Interpretations issued by the AASB that are relevant to the Company’s operations and effective for future reporting periods. It has been determined by the Directors that there is no impact, material or otherwise, of the new and revised Standards and Interpretations on the Company and therefore, no change will be necessary to Company accounting policies. h) Exploration and evaluation expenditure Exploration and evaluation expenditures in relation to each separate area of interest are recognised as an exploration and evaluation asset in the year in which they are incurred where the following conditions are satisfied: (i) the rights to tenure of the area of interest are current; and (ii) at least one of the following conditions is also met: (a) (b) 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 balance date reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves, and active and significant operations in, or in relation to, the area of interest are continuing. Exploration and evaluation assets are initially measured at cost and include acquisition of rights to explore, studies, exploratory drilling, trenching and sampling and associated activities and an allocation of depreciation and amortisation of assets used in exploration and evaluation activities. General and administrative costs are only included in the measurement of exploration and evaluation costs where they are related directly to operational activities in a particular area of interest. Exploration and evaluation assets are assessed for impairment when facts and circumstances suggest that the carrying amount of an exploration and evaluation asset may exceed its recoverable amount. The recoverable amount of the exploration and evaluation asset (for the cash generating unit(s) to which it has been allocated being no larger than the relevant area of interest) is estimated to determine the extent of the impairment loss (if any). | 25 | Annual Report - 31 December 2023 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 has been made to proceed with development in respect of a particular area of interest, the relevant exploration and evaluation asset is tested for impairment and the balance is then reclassified to development. Where an area of interest is abandoned, any expenditure carried forward in respect of that area is written off. i) Income Tax The income tax expense or benefit for the year is the tax payable on the current year’s taxable income based on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary difference and to unused tax losses. The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting year. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities. Current tax assets and liabilities for the current and prior years are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the balance date. Deferred income tax is provided on all temporary differences at the balance date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. Deferred income tax liabilities are recognised for all taxable temporary differences except when: ▪ ▪ the deferred income tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; or the taxable temporary difference is associated with investments in subsidiaries, associates or interests in joint ventures, and the timing of the reversal of the temporary difference can be controlled and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax assets and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and the carry-forward of unused tax credits and unused tax losses can be utilised, except when: ▪ ▪ the deferred income tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; or the deductible temporary difference is associated with investments in subsidiaries, associates or interests in joint ventures, in which case a deferred tax asset is only recognised to the extent that it is probable that the temporary difference will reverse in the foreseeable future and taxable profit will be available against which the temporary difference can be recognised. The carrying amount of deferred income tax assets is reviewed at each balance date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be recognised. Unrecognised deferred income tax assets are reassessed at each balance date and are recognised to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered. Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is recognised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the balance date. Income taxes relating to items recognised directly in equity are recognised in equity and not in profit or loss. Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred tax assets and liabilities relate to the same taxable entity and the same taxation authority. j) Other taxes Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Government. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the statement of financial position are shown inclusive of GST. The net amount of GST recoverable from, or payable to, the Government is included as part of receivables or payables in the statement of financial position. Cash flows are presented in the statement of cash flows on a gross basis, except for the GST component of investing and financing activities, which is receivable from or payable to the Government, are disclosed as operating cash flows. | 26 | Annual Report - 31 December 2023 k) Impairment of non-financial assets other than goodwill The Company assesses at each balance date whether there is an indication that an asset may be impaired. If any such indication exists, or when annual impairment testing for an asset is required, the Company makes an estimate of the asset’s recoverable amount. An asset’s recoverable amount is the higher of its fair value less costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or Company of assets and the asset’s value in use cannot be estimated to be close to its fair value. In such cases the asset is tested for impairment as part of the cash-generating unit to which it belongs. When the carrying amount of an asset or cash-generating unit exceeds its recoverable amount, the asset or cash-generating unit is considered impaired and is written down to its recoverable amount. 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. Impairment losses relating to continuing operations are recognised in those expense categories consistent with the function of the impaired asset unless the asset is carried at revalued amount (in which case the impairment loss is treated as a revaluation decrease). An assessment is also made at each balance date as to whether there is any indication that previously recognised impairment losses may no longer exist or may have decreased. If such indication exists, the recoverable amount is estimated. A previously recognised impairment loss is reversed only if there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognised. If that is the case the carrying amount of the asset is increased to its recoverable amount. That increased amount cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years. Such reversal is recognised in profit or loss unless the asset is carried at revalued amount, in which case the reversal is treated as a revaluation increase. After such a reversal the depreciation charge is adjusted in future years to allocate the asset’s revised carrying amount, less any residual value, on a systematic basis over its remaining useful life. l) Cash and cash equivalents Cash comprises cash at bank and in hand. Cash equivalents are short term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Bank overdrafts are shown within borrowings in current liabilities in the statement of financial position. For the purposes of the statement of cash flows, cash and cash equivalents consist of cash and cash equivalents as defined above, net of outstanding bank overdrafts. m) Financial Instruments Recognition, initial measurement and derecognition Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of the financial instrument. Financial instruments (except for trade receivables) are measured initially at fair value adjusted by transactions costs, except for those carried “at fair value through profit or loss”, in which case transaction costs are expensed to profit or loss. Where available, quoted prices in an active market are used to determine the fair value. In other circumstances, valuation techniques are adopted. Subsequent measurement of financial assets and financial liabilities are described below. Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire, or when the financial asset and all substantial risks and rewards are transferred. A financial liability is derecognised when it is extinguished, discharged, cancelled or expires. Financial assets Except for those trade receivables that do not contain a significant financing component and are measured at the transaction price in accordance with AASB 15, all financial assets are initially measured at fair value adjusted for transaction costs (where applicable). For the purpose of subsequent measurement, financial assets other than those designated and effective as hedging instruments, are classified into the following categories upon initial recognition: ▪ ▪ ▪ amortised cost; fair value through other comprehensive income (FVOCI); and fair value through profit or loss (FVPL). Classifications are determined by both: ▪ ▪ the contractual cash flow characteristics of the financial assets; and the entities business model for managing the financial asset. | 27 | Annual Report - 31 December 2023 Financial assets at amortised cost Financial assets are measured at amortised cost if the assets meet the following conditions (and are not designated as FVPL): ▪ ▪ they are held within a business model whose objective is to hold the financial assets and collect its contractual cash flows; and the contractual terms of the financial assets give rise to cash flows that are solely payments of principal and interest on the principal amount outstanding. After initial recognition, these are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial. The Group’s cash and cash equivalents, trade and most other receivables fall into this category of financial instruments. Financial liabilities Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. Financial liabilities are initially measured at fair value, and, where applicable, adjusted for transaction costs unless the Group designated a financial liability at fair value through profit or loss. Subsequently, financial liabilities are measured at amortised cost using the effective interest method except for derivatives and financial liabilities designated at FVPL, which are carried subsequently at fair value with gains or losses recognised in profit or loss. All interest-related charges and, if applicable, gains and losses arising on changes in fair value that are recognised in profit or loss. Impairment The Group assesses on a forward-looking basis the expected credit losses associated with its debt instruments carried at amortised cost and FVOCI. The impairment methodology applied depends on whether there has been a significant increase in credit risk. n) Current and Non-Current Classification Assets and liabilities are presented in the statement of financial position based on current and non-current classification. An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the Group's normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within 12 months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current. A liability is classified as current when: it is either expected to be settled in the Group's normal operating cycle; it is held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities are classified as non-current. o) Issued capital Ordinary shares are classified as equity. p) Other Income Interest income Interest income is recognised on a time proportionate basis that takes into account the effective yield on the financial asset. q) Earnings per share Basic earnings/loss per share is calculated as net profit/loss attributable to members, adjusted to exclude any costs of servicing equity (other than dividends) and preference share dividends, divided by the weighted average number of ordinary shares, adjusted for any bonus element. Diluted earnings per share is calculated as net profit/loss attributable to members, adjusted for: ▪ ▪ ▪ costs of servicing equity (other than dividends) and preference share dividends; the after-tax effect of dividends and interest associated with dilutive potential ordinary shares that have been recognised as expenses; and other non-discretionary changes in revenues or expenses during the year that would result from the dilution of potential ordinary shares; divided by the weighted average number of ordinary shares and dilutive potential ordinary shares, adjusted for any bonus element. r) Share-based payment transactions (i) Equity settled transactions: The Company provides benefits to individuals acting as, and providing services similar to employees (including Directors) of the Company in the form of share-based payment transactions, whereby individuals render services in exchange for shares or rights over shares (‘equity settled transactions’). | 28 | Annual Report - 31 December 2023 There is currently an Employee Share Option Plan (ESOP) in place, which provides benefits to Directors and individuals providing services similar to those provided by an employee. The cost of these equity settled transactions with employees is measured by reference to the fair value at the date at which they are granted. The fair value is determined by using the Black Scholes formula. The cost of the equity settled transactions is recognised, together with a corresponding increase in equity, over the year in which the performance conditions are fulfilled, ending on the date on which the relevant employees become fully entitled to the award (‘vesting date’).The cumulative expense recognised for equity settled transactions at each reporting date until vesting date reflects (i) the extent to which the vesting year has expired and (ii) the number of awards that, in the opinion of the Directors of the Company, will ultimately vest. This opinion is formed based on the best available information at balance date. No adjustment is made for the likelihood of the market performance conditions being met as the effect of these conditions is included in the determination of fair value at grant date. The Statement of Profit or Loss and Other Comprehensive Income charge or credit for a year represents the movement in cumulative expense recognised at the beginning and end of the year. No expense is recognised for awards that do not ultimately vest, except for awards where vesting is conditional upon a market condition. Where the terms of an equity settled award are modified, as a minimum an expense is recognised as if the terms had not been modified. In addition, an expense is recognised for any increase in the value of the transaction as a result of the modification, as measured at the date of the modification. Where an equity settled award is cancelled, it is treated as if it had vested on the date of the cancellation, and any expense not yet recognised for the award is recognised immediately. However, if a new award is substituted for the cancelled award, and designated as a replacement award on the date that it is granted, the cancelled and new award are treated as if they were a modification of the original award, as described in the previous paragraph. The cost of equity-settled transactions with non-employees is measured by reference to the fair value of goods and services received unless this cannot be measured reliably, in which case the cost is measured by reference to the fair value of the equity instruments granted. The dilutive effect, if any, of outstanding options is reflected in the computation of loss per share. (ii) Cash settled transactions: The Company may also provide benefits to employees in the form of cash-settled share-based payments, whereby employees render services in exchange for cash. The cost of cash-settled transactions is measured initially at fair value at the grant date using the Black-Scholes formula taking into account the terms and conditions upon which the instruments were granted. This fair value is expensed over the year until vesting with recognition of a corresponding liability. The liability is remeasured to fair value at each balance date up to and including the settlement date with changes in fair value recognised in profit or loss. s) Asset acquisition In determining when an acquisition is determined to be an asset acquisition and not a business, significant judgement is required to access whether the assets acquired constitute a business in accordance with AASB 3 Business Combinations. Under AASB 3 a business is an integrated set of activities and assets that is capable of being conducted or managed for the purpose of providing a return, and consists of inputs and processed, which when applied to those has the ability to create outputs. When an asset acquisition does not constitute a business combination, the assets and liabilities are assigned a carrying amount based on their relative fair values in an asset purchase transaction and no deferred tax will arise in relation to the acquired assets and assumed liabilities as the initial recognition exemption for deferred tax under AASB 112 applies. No goodwill will arise on the acquisition and transaction costs of the acquisition will be included in the cost of the acquisition. Where the value of the assets acquired are unable to be reliably measured, the cost of the acquisition will be measured at the fair value of consideration transferred. t) Critical accounting estimates and judgements The application of accounting policies requires the use of judgements, estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions are recognised in the year in which the estimate is revised if it affects only that year, or in the year of the revision and future years if the revision affects both current and future years. Share-based payment transactions The Company measures the cost of equity-settled transactions and cash-settled share-based payments with employees and third parties by reference to the fair value of the equity instruments at the date at which they are granted. | 29 | Annual Report - 31 December 2023 The fair value at the grant date is determined using the Black and Scholes option pricing model taking into account the terms and conditions upon which the instruments were granted. During the period the group issued performance options with non-market based vesting conditions. As such management have used significant judgement in assessing the probability of the performance criteria being met. Exploration and evaluation expenditure The Group capitalises expenditure relating to exploration and evaluation where it is considered likely to be recoverable or where the activities have not reached a stage which permits a reasonable assessment of the existence of reserves. While there are certain areas of interest from which no reserves have been extracted, directors are of the continued belief that such expenditure shouldn’t be written off since feasibility studies in such areas have not concluded. u) New and amended standards adopted by the Group The Group has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian Accounting Standards Board that are mandatory for the current reporting period. The impact on the financial performance and position of the Company from the adoption of the new or amended Accounting Standards and Interpretations was not material. Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted. 3. Income tax (a) Income tax expense Major component of tax expense for the year: Current tax Deferred tax Total income tax expense per income statement (b) Numerical reconciliation between aggregate tax expense recognised in the statement of profit or loss and other comprehensive income and tax expense calculated per the statutory income tax rate. A reconciliation between tax expense and the product of accounting loss before income tax multiplied by the Company’s applicable tax rate is as follows: Loss from continuing operations before income tax expense Tax at the Australian rate of 30% (2022: 30%) Increase/(decrease) in income tax due to tax effect of: Share Based Payments Non-deductible Expenses Deductible equity raising costs Movement in unrecognised temporary differences Current year tax losses not recognised Income tax expense attributable to entity (c) Unused tax losses and temporary differences for which no deferred tax asset has been recognised Deferred tax assets have not been recognised in respect of the following using corporate tax rates of: Deductible Temporary Differences Tax Revenue Losses Total unrecognised deferred tax assets 31-Dec-2023 $ 31-Dec-2022 $ - - - - - - (1,365,163) (341,291) (7,761,851) (2,328,555) 219,285 39,954 (28,332) (10,521) 120,904 - 168,994 1,904,991 (14,688) 10,050 259,208 - 45,614 1,282,812 1,328,426 65,822 949,667 1,015,489 The tax benefits of the above deferred tax assets will only be obtained if: a) the consolidated entity derives future assessable income of a nature and of an amount sufficient to enable the benefits to be utlised; b) the consolidated entity continues to comply with the conditions for deductiblity imposed by law; c) no changes in income tax legislation adversely affect the consolidated entity from utilising the benefits. | 30 | Annual Report - 31 December 2023 4. Cash and cash equivalents Reconciliation of cash Cash comprises of: Cash at bank Reconciliation of operating loss after tax to net cash flow from operations Loss after tax Non-cash items Exploration expenditure written off Foreign exchange loss Share based payments Change in assets and liabilities (Increase)/decrease in trade, other receivables and other assets Increase/(decrease) in trade and other payables Net cash flow used in operating activities 31-Dec-2023 $ 31-Dec-2022 $ 1,141,759 853,119 (1,365,163) (7,761,851) 31,855 13 541,507 (1,689) (81,016) (874,493) 6,225,546 - 563,312 (10,209) 14,896 (968,306) Non-cash investing and financing activities 45,000,000 fully paid ordinary shares were issued to DG Resource Management Ltd (DGRM) as consideration for the acquisition of the Cyclone Lithium Project (Acquisition) and 4,000,000 shares were issued to a corporate advisor as a facilitation fee for the Acquisition (refer note 7). 5. Other assets – current Prepayments - Insurance 6. Receivables GST receivable 43,681 45,952 27,345 23,385 Debtors, other debtors and GST receivable are non-interest bearing and generally receivable on 30-day terms. They are neither past due nor impaired. The amount is fully collectible. Due to the short-term nature of these receivables, their carrying value is assumed to approximate their fair value. 7. Exploration and evaluation expenditure Exploration and Evaluation phase - at cost Opening balance Acquisition of exploration tenements Exploration and evaluation expenditure incurred during the year Foreign exchange translation difference Exploration expenditure impairment Closing balance 3,992,667 2,806,5471,2,3 987,537 - - 7,786,751 6,034,352 3,142,217 844,465 197,179 (6,225,546)4 3,992,667 1 Megado completed its acquisition of 100% of the Cyclone Lithium Project in Quebec, Canada in April 2023. Due to the nature of the asset being an early-stage exploration project, the fair value could not be determined and the asset has been recognised at the fair value of the consideration paid, which included: 1. A cash payment of A$278,322 (CA$250,000 (excluding GST)); 2. A 2% net smelter royalty over minerals extracted from the project; 3. 45,000,000 fully paid ordinary shares; 4. 7,000,000 options to acquire fully paid ordinary shares in the capital of the Company, exercisable at AUD$0.10 on or before 28 April 2026. The value of the options issued to the vendor was $141,514 and has been valued using the Black- Scholes option pricing model. The model inputs included: a. expected life of 2.5 years; b. share price at grant date of $0.08; c. expected volatility of 100%; d. expected dividend yield of nil; and e. a risk-free interest rate of 3.29%. 2 4,000,000 shares were issued to a corporate advisor as a facilitation fee for the Cyclone Lithium Project acquisition. | 31 | Annual Report - 31 December 2023 3 Megado completed its acquisition of 100% of the K Lithium Project in Quebec, Canada in September 2023. Due to the nature of the asset being an early-stage exploration project, the fair value could not be determined and the asset has been recognised at the fair value of the consideration paid, which included: 1. A cash payment of $34,610 (CAD$30,000 (excluding GST)). 2. A 2% net smelter royalty over all minerals extracted from the Project other than lithium and lithium products which will attract a 2% gross overriding royalty; 3. 6,000,000 options to acquire fully paid ordinary shares in the capital of the Company, exercisable at AUD$0.08 on or before 3 October 2026. The value of the options issued to the vendor was $112,491 and has been valued using the Black- Scholes option pricing model. The model inputs included: a. expected life of 3.0 years; b. share price at grant date of $0.038; c. expected volatility of 100%; d. expected dividend yield of nil; and e. a risk-free interest rate of 4.0%. 4 Following a review by directors during the prior period, it was decided that exploration and evaluation expenditure in relation to the Company’s Ethiopian projects would be impaired in full. The impairment expense recognised during the year ending 31 December 2022 was $6,225,546. The Board took this approach as a result of the resumption of conflict in Northern Ethiopia, underwhelming exploration results received. The ultimate recoupment of costs carried forward for exploration expenditure is dependent on the successful development and commercial exploitation or sale of the respective mining areas. 8. Trade and other payables Trade payables Accruals 31-Dec-2023 $ 31-Dec-2022 $ 15,371 32,000 47,371 70,321 174,010 244,331 Trade creditors and other creditors are non-interest bearing and generally payable on 30-day terms. Due to the short-term nature of these payables, their carrying value is assumed to approximate their fair value. 9. Issued Capital (a) Issued and paid-up capital (b) Movements in ordinary shares on issue Opening balance Issue of shares - $0.08 placement Issue of shares – corporate advisor Shares issued as consideration for acquisition Issue of shares - $0.045 placement Issue of shares – lead managers Issue of shares – corporate advisor Shares issued as consideration for acquisition Issue of shares – marketing services Transaction costs on share issue Closing balance 19,647,993 14,474,747 31-Dec-2023 31-Dec-2022 No. shares 137,500,003 - - - 60,000,000 2,400,0001 4,000,0002 45,000,0003 5,555,5554 - 254,455,558 $ 14,474,747 - - - 2,700,000 108,000 180,000 2,025,000 322,222 (161,976) 19,647,993 No. shares 71,500,003 30,000,000 4,000,000 32,000,000 - - - - - - 137,500,003 $ 9,389,259 2,400,000 320,000 2,560,000 - - - - - (194,512) 14,474,747 1 2,400,000 shares were issued to the Lead Manager to the $0.045 Placement, CPS Securities Limited. The placement fee of 4% for funds raised via the placement, was paid in shares. 2 4,000,000 shares were issued to a corporate advisor as a facilitation fee for the Cyclone Lithium Project acquisition. The deemed issue price was $0.045 per share. | 32 | Annual Report - 31 December 2023 3 45,000,000 fully paid ordinary shares were issued to the vendors of the Cyclone Lithium Project in Quebec, Canada as consideration for the acquisition. The deemed issue price was $0.045 per share (refer note 7). 4 5,555,555 shares were issued as consideration for digital marketing services to be provided over a period of 30 months. The deemed issue price was $0.058 per share. (c) Ordinary shares Ordinary shares have the right to receive dividends as declared and, in the event of a winding up of the Company, to participate in the proceeds from sale of all surplus assets in proportion to the number of and amounts paid up on shares held. Ordinary shares entitle their holder to one vote, either in person or proxy, at a meeting of the Company. (d) Capital risk management The Company’s capital comprises share capital, reserves less accumulated losses amounting to a net equity of $8,952,165 at 31 December 2023 (2022: $4,670,792). The Company manages its capital to ensure its ability to continue as a going concern and to optimise returns to its shareholders. The Company was ungeared at year end and not subject to any externally imposed capital requirements. Refer to note 17 for further information on the Company’s financial risk management policies. (e) Share options as at 31 December 2023 Number 10,450,000 10,500,000 2,500,000 7,000,000 5,000,000 6,000,000 41,450,000 Exercise Price $ $0.20 $0.15 $0.15 $0.10 $0.10 $0.08 Expiry Date on or before 27 October 2024 on or before 31 December 2024 on or before 30 June 2027 on or before 28 April 2026 on or before 1 March 2027 on or before 3 October 2026 No option holder has any right under the options to participate in any other share issue of the Company or any other entity. 1,000,000 options expired unexercised during the reporting year. No options lapsed and no options were exercised during or since the year ended 31 December 2023. 10. Reserves Share based payment and option reserve Foreign exchange translation reserve Movements in Reserves Share based payment and option reserve Opening balance Share-based payments Proceeds from issue of options Transaction costs on share issue Closing balance 31-Dec-2023 $ 31-Dec-2022 $ 2,008,936 54,826 2,063,762 1,535,646 473,290 - - 2,008,936 1,535,646 54,826 1,590,472 1,055,810 425,319 5 54,512 1,535,646 The Share capital, share based payment and option reserve is used to record the value of equity benefits provided to Directors and executives as part of their remuneration and non-employees for their goods and services and to record the premium paid on the issue of unlisted options. Foreign exchange translation reserve Opening balance Foreign exchange translation difference Closing balance 54,826 - 54,826 (84,491) 139,317 54,826 The foreign exchange differences arising on translation of foreign controlled entities are taken to the foreign currency translation reserve. | 33 | Annual Report - 31 December 2023 11. Accumulated losses Movements in accumulated losses were as follows: Opening balance Loss for the period Closing balance 12. Auditor’s remuneration The auditor of Megado Minerals Limited is BDO Audit (WA) Pty Ltd. Amounts received or due and receivable by the parent auditor for: - Audit or review of the financial statements 31-Dec-2023 $ 31-Dec-2022 $ (11,394,427) (1,365,163) (12,759,590) (3,632,576) (7,761,851) (11,394,427) 55,000 49,000 13. Loss per Share Loss used in calculating basic and dilutive EPS (1,365,163) (7,761,851) Weighted average number of ordinary shares used in calculating basic loss per share: Effect of dilution: Share options Adjusted weighted average number of ordinary shares used in calculating diluted loss per share: Number of Shares Number of Shares 217,978,602 107,647,948 - - 217,978,602 107,647,948 There is no impact from 41,450,000 options outstanding at 31 December 2023 on the earnings per share calculation because they are anti-dilutive. These options could potentially dilute basic EPS in the future. There have been no transactions involving ordinary shares or potential ordinary shares that would significantly change the number of ordinary shares or potential ordinary shares outstanding between the reporting date and the date of completion of these financial statements. 14. Directors and Key Management Personnel Disclosures (a) Remuneration of Directors and Key Management Personnel Details of the nature and amount of each element of the emolument of each Director and key management personnel of the Company for the financial year are as follows: Short term employee benefits Share based payments Total remuneration 31-Dec-2023 $ 31-Dec-2022 $ 488,250 181,853 670,103 606,167 105,661 711,828 (b) Other transactions with key management personnel Geocopter Pty Ltd, a company in which Brad Drabsch is a director, charged consulting fees of $60,000. The consulting fee is included in note 14(a) “Compensation of key management personnel”. Nil was outstanding at year end (2022: $15,000). 1918 Consulting Pty Ltd, a company in which Aaron Bertolatti is a director, charged consulting fees of $150,000. The consulting fee is included in note 14(a) “Compensation of key management personnel”. Nil was outstanding at year end (2022: nil). Oteba Pty Ltd, a company in which Ben Pearson is a director, charged consulting fees of $242,000. The consulting fee is included in note 14(a) “Compensation of key management personnel”. Nil was outstanding at year end (2022: Nil). Keystone Resources Consulting Pty Ltd, a company in which Chris Bowden is a director, charged consulting fees of $223,025. Mr Bowden resigned as a Director on 16 February 2023 and was appointed as Chief Geologist on the same day. Fees of $3,750 are included in note 14(a) “Compensation of key management personnel”. Nil was outstanding at year end (2022: $10,750). Minex Corp, a company in which Greg Schifrin is a director, charged the Company exploration and geological fees of $135,890. Nil was outstanding at year end (2022: $116,510). Transactions with key management personnel were made at arm’s length at normal market prices and normal commercial terms. There were no other transactions with key management personnel for the year ended 31 December 2023. | 34 | Annual Report - 31 December 2023 15. Related Party Disclosures (a) Key management personnel For Director related party transactions please refer to note 14 “Key Management Personnel Disclosures”. (b) Subsidiaries The consolidated financial statements include the financial statements of Megado Minerals Limited and the subsidiaries listed in the following table: Name of Entity Megado Gold Inc. 9487-3700 Québec Inc. Felix Strategic Minerals Pty Ltd Felix Strategic Minerals LLC Babicho Mining Plc Chochi Mining Plc Country of Incorporation USA Canada Australia USA Ethiopia Ethiopia Equity Holding 31 December 2023 31 December 2022 100% 100% 100% 100% 80% 80% 100% - 100% 100% 80% 80% 1 9487-3700 Québec Inc. was incorporated on 23 March 2023. 16. Share based payments (a) Recognised share based payment transactions Share based payment transactions recognised either as operational expenses in the statement of profit or loss and other comprehensive income or as capital raising costs in the equity during the period were as follows: Employee and Director share based payments (note 16(a)) Reversal of share based payments following lapsing of options Share based payments to suppliers (note 16(b)) Options issued as consideration for acquisition Movement in share option reserve Shares issued to lead manager Shares issued to corporate advisors Share-based payments recognised 31-Dec-2023 $ 31-Dec-2022 $ 219,285 - - 254,0051,2 473,290 108,0003 - 581,290 105,661 (44,356) 236,519 182,007 479,831 - 320,000 799,831 1 7,000,000 options with an exercise price of $0.10 and expiring on 28 April 2026 were issued to the vendors of the Cyclone Lithium Project in Quebec, Canada as consideration for the acquisition. The fair value of options is calculated using the Black and Scholes option pricing model. The model inputs are detailed in note 7. 2 6,000,000 options with an exercise price of $0.08 and expiring on 3 October 2026 were issued to the vendors of the K Lithium Project in Quebec, Canada as consideration for the acquisition. The fair value of options is calculated using the Black and Scholes option pricing model. The model inputs are detailed in note 7. 3 2,400,000 shares were issued to the Lead Manager to the $0.045 Placement, CPS Securities Limited. The placement fee of 4% for funds raised via the placement, was paid in shares. Share-based payment transactions have been recognised within the consolidated statement of profit or loss and other comprehensive income and consolidated statement of financial positions as follows: Share-based payment expense Deferred exploration & evaluation expenditure Issued capital – transaction costs on share issue | 35 | Annual Report - 31 December 2023 31-Dec-2023 $ 31-Dec-2022 $ 219,285 254,005 108,000 581,290 563,312 182,007 54,512 799,831 (b) Employee and Director share based payments The fair value at grant date of options granted during the reporting period was determined using the Black Scholes option pricing model that takes into account the exercise price, the term of the option, the share price at grant date, the expected price volatility of the underlying share and the risk-free interest rate for the term of the option. The table below summarises options granted during the year ended 31 December 2023: Grant Date Expiry date Exercise price per option Balance at start of the year Number 15/02/23 01/03/27 19/04/23 01/03/27 $0.10 $0.10 - - - Granted during the year Number 1,350,000 3,650,000 5,000,000 Exercised during the year Number Expired during the year Number - - - - - - Balance at end of the year Number 1,350,000 3,650,000 5,000,000 Exercisable at the end of the year Number 1,350,000 3,650,000 5,000,000 The expense recognised in respect of the above options granted during the period was $159,150 which represents the fair value of the options. The expense recognised during the period on options granted in prior periods was $60,475. The weighted average fair value of options issued to employees and directors during the period was $0.032. The model inputs, not included in the table above, included: a) Options were issued for nil consideration; b) c) d) e) f) expected life of the options ranging from 3.9 to 4 years; share price at grant date ranging from $0.045 to $0.056; expected volatility of 100%; expected dividend yield of nil; and a risk-free interest rate of 3.0%. The table below summarises options granted during the year ended 31 December 2022: Grant Date Expiry date Exercise price per option Balance at start of the year Number 14/06/22 30/6/27 $0.15 - Granted during the year Number 2,500,000 Exercised during the year Number Expired during the year Number - - Balance at end of the year Number 2,500,000 Exercisable at the end of the year Number 1,250,0001 1 The options will vest in two tranches on the vesting dates set out below provided the option holder has remained continuously employed by the Company from the Commencement Date up to and on the vesting date: 1. Vesting Date 1: The first tranche (50%) will vest immediately following the Consultant’s formal appointment as CEO of the Company. 2. Vesting Date 2: The second tranche (50%) will vest to the Consultant on the earlier of the following: i. Inclusion of two additional stand-alone projects into the Company portfolio ii. 24 months from commencement. The model inputs, not included in the table above, included: a) Options were issued for nil consideration; b) expected life of the options is 5 years; c) share price at grant date was $0.091; d) expected volatility of 100%; e) expected dividend yield of nil; and (c) Share based payment to suppliers There were no unlisted options issued to suppliers during the year ended 31 December 2023. The Company issued unlisted options to provide consideration to brokers, consultants and corporate advisors for services rendered during the year ended 31 December 2022. These options were valued using the Black-Scholes option pricing model as the value of the work performed could not be reliably determined. | 36 | Annual Report - 31 December 2023 The table below summarises options granted during the year ended 31 December 2022: Grant Date Expiry date Exercise price per option Balance at start of the year Number 19/04/22 31/12/24 20/06/22 31/12/24 $0.15 $0.15 - - - Granted during the year Number 500,000 5,000,000 5,500,000 Exercised during the year Number Expired during the year Number Balance at end of the year Number Exercisable at the end of the year Number - - - - - - 500,000 5,000,000 5,500,000 500,000 5,000,000 5,500,000 The expense recognised in respect of the above options granted during the period was $236,519 which represents the fair value of the options. The weighted average fair value of options issued to suppliers during the period was $0.043. The model inputs, not included in the table above, included: a) b) c) d) e) f) Issue price of the options ranged from nil to $0.00001 per option; expected life of the options ranged from 2.5 to 2.7 years; share price at grant date ranging from $0.08 to $0.175; expected volatility of 100%; expected dividend yield of nil; and a risk-free interest rate of ranging from 0. 5% to 3.29%. 17. Financial Risk Management The Group’s activities expose it to a variety of financial risks including interest rate risk, price risk, credit risk and liquidity risk. The Group’s overall risk management program focuses on the unpredictability of the financial markets and seeks to minimise potential adverse effects on the financial performance of the Group. The Group does not use derivative financial instruments; however the Group uses different methods to measure different types of risk to which it is exposed. These methods include sensitivity analysis in the case of interest rate and other price risks and aging analysis for credit risk. Risk management is carried out by the Board of Directors with assistance from suitably qualified external and internal advisors. The Board provides written principles for overall risk management and further policies will evolve commensurate with the evolution and growth of the Group. (a) Liquidity Risk Prudent liquidity risk management implies maintaining sufficient cash and marketable securities, the availability of funding through an adequate amount of committed credit facilities and the ability to close out market positions. The Group manages liquidity risk by continuously monitoring forecast and actual cash flows and matching the maturity profits of financial assets and liabilities. As at the reporting date the Group had sufficient cash reserves to meet its requirements. The Group therefore had no credit standby facilities or arrangements for further funding in place. The financial liabilities of the Group at the reporting date were trade payables incurred in the normal course of business. These were non-interest bearing and were due within the normal 30-60 days terms of creditor payments. The Group does not consider this to be material to the Group and have therefore not undertaken any further analysis of risk exposure. (b) Interest Rate Risk Interest rate risk arises from the possibility that changes in interest rates will affect future cash flows or the fair value of financial instruments. The Company’s exposure to market risk for changes to interest rate risk relates primarily to its earnings on cash. The Company manages the risk by investing in short term deposits. Interest rate sensitivity The following table demonstrates the sensitivity of the Company’s Statement of Profit or Loss and Other Comprehensive Income to a reasonably possible change in interest rates, with all other variables constant. Change in Basis Points Increase 75 basis points Decrease 75 basis points Effect on equity including retained earnings ($) Increase / (Decrease) Effect on equity including retained earnings ($) Increase / (Decrease) Effect on Post Tax Loss ($) Effect on Post Tax Loss ($) 2023 8,563 (8,563) 8,563 (8,563) 2022 6,398 (6,398) 6,398 (6,398) A sensitivity of 75 basis points has been used as this is considered reasonable given the current level of both short term and long- term Australian Dollar interest rates. The change in basis points is derived from a review of historical movements and management’s judgement of future trends. | 37 | Annual Report - 31 December 2023 (c) Credit Risk Exposures 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 the policy of dealing with creditworthy counterparties and obtaining sufficient collateral or other security where appropriate, as a means of mitigating the risk of financial loss from defaults. The Group measures credit risk on a fair value basis. The Group does not have any significant credit risk exposure to a single counterparty or any group of counterparties having similar characteristics. The carrying amount of financial assets recorded in the financial statements, net of any provisions for losses, represents the Group’s maximum exposure to credit risk without taking account of the fair value of any collateral or other security obtained. Cash and cash equivalents Receivables (d) Capital Risk Management 2023 $ 1,141,759 27,345 2022 $ 853,119 23,385 The Group’s objectives when managing capital are to safeguard its ability to continue as a going concern, so that it can continue to provide returns to shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. The Group’s capital includes ordinary share capital, partly paid shares and financial liabilities, supported by financial assets. The Group’s capital includes mainly ordinary share capital and financial liabilities supported by financial assets. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt. Due to the nature of the Group’s activities, being mineral exploration, the Group does not have ready access to credit facilities, with the primary source of funding being equity raisings. Therefore, the focus of the Group’s capital risk management is the current working capital position against the requirements of the Group to meet exploration programmes and corporate overheads. The Group’s strategy is to ensure appropriate liquidity is maintained to meet anticipated operating requirements, with a view to initiating appropriate capital raisings as required. 18. Parent Entity Information The following details information related to the parent entity, Megado Minerals Limited, at 31 December 2023. The information presented here has been prepared using consistent accounting policies as presented in Note 2. Current assets Total assets Current liabilities Total liabilities Net assets Issued capital Reserves Accumulated losses Loss of the parent entity Total comprehensive loss of the parent entity 31-Dec-2023 $ 1,161,726 8,999,528 (47,371) (47,371) 8,952,157 19,647,993 2,008,936 (12,704,772) 8,952,157 (1,365,167) (1,365,167) 31-Dec-2022 $ 871,402 4,915,121 (244,331) (244,331) 4,670,790 14,474,747 1,535,646 (11,339,605) 4,670,788 (7,705,029) (7,705,029) Other Commitments and Contingent Liabilities The Company had no commitments and no contingent liabilities as at 31 December 2023. Guarantees entered into by the parent entity in relation to the debts of its subsidiaries The parent entity has not entered into any formal guarantees in relation to the debts of its subsidiaries. 19. Dividends No dividend was paid or declared by the Company in the year ended 31 December 2023 or the period since the end of the financial year and up to the date of this report. The Directors do not recommend that any amount be paid by way of dividend for the financial year ended 31 December 2023. | 38 | Annual Report - 31 December 2023 20. Segment Information The Group has identified its operating segments based on the internal reports that are reported to the Managing Director (the chief operating decision maker) in assessing performance and in determining the allocation of resources. The Board as a whole will regularly review the identified segments in order to allocate resources to the segment and to assess its performance. The Group operates predominately in one industry, being the exploration of critical minerals. The main geographic areas that the entity operates in are Australia, USA, Canada and Ethiopia. The parent entity is registered in Australia. The Group’s exploration assets are located in the USA, Canada and Ethiopia. The following table presents revenue, expenditure and certain asset and liability information regarding geographical segments for the year ended 31 December 2023 and 31 December 2022: Year ended 31 December 2023 Interest income Segment revenue Result Loss before tax Income tax expense Loss for the year Asset and liabilities Segment assets Segment liabilities Year ended 31 December 2022 Interest income Segment revenue Result Loss before tax Income tax expense Loss for the year Asset and liabilities Segment assets Segment liabilities Australia $ USA $ Canada $ Ethiopia $ Total 25,499 25,499 - - (1,333,314) - (1,333,314) (26,076) - (26,076) - - - - - - - 25,499 25,499 (5,773) - (5,773) (1,365,163) - (1,365,163) 1,206,154 47,371 4,609,263 - 3,177,488 - 6,631 - 8,999,536 47,371 3,846 3,846 (1,536,305) - (1,536,305) - - - - - 868,100 244,331 3,992,667 - - - - - - - - - - 3,846 3,846 (6,225,546) - (6,225,546) (7,761,851) - (7,761,851) 54,356 - 4,915,123 244,331 21. Contingent assets and liabilities As part consideration for the acquisition of the Cyclone Lithium Project, the Company, entered into a royalty agreement, whereby Megado granted DG Resource Management Ltd a 2% net smelter royalty return over minerals extracted from the project (2022: nil). As part consideration for the acquisition of the K Lithium Project, the Company, entered into a royalty agreement, whereby Megado granted DG Resource Management Ltd a 2% net smelter royalty over all minerals extracted from the Project other than lithium and lithium products which will attract a 2% gross overriding royalty (2022: nil). 22. Commitments There are no known commitments as at 31 December 2023 (2022: nil). 23. Significant events after the reporting date Director Resignations On 16 February 2024, the Company advised the impending departure of Managing Director & Chief Executive Officer (CEO), Ben Pearson. Mr Pearson provided the Company with 3 months’ notice and will step down from his role on 16 May 2024. Mr. Pearson continues to assist with the execution of the Company’s exploration strategy during his notice period. No other matter or circumstance has arisen since 31 December 2023 that has significantly affected, or may significantly affect the consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial years. | 39 | Annual Report - 31 December 2023 DIRECTORS’ DECLARATION In the directors' opinion: • • • • the attached financial statements and notes comply with the Corporations Act 2001, the Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements; the attached financial statements and notes comply with International Financial Reporting Standards as issued by the International Accounting Standards Board as described in note 1 to the financial statements; the attached financial statements and notes give a true and fair view of the consolidated entity's financial position as at 31 December 2023 and of its performance for the financial year ended on that date; and there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable. The directors have been given the declarations required by section 295A of the Corporations Act 2001. Signed in accordance with a resolution of directors made pursuant to section 295(5)(a) of the Corporations Act 2001. On behalf of the directors. Bradley Drabsch Managing Director Brisbane, QLD 27 March 2024 | 40 | Annual Report - 31 December 2023 Tel: +61 8 6382 4600 Fax: +61 8 6382 4601 www.bdo.com.au Level 9, Mia Yellagonga Tower 2 5 Spring Street Perth, WA 6000 PO Box 700 West Perth WA 6872 Australia DECLARATION OF INDEPENDENCE BY PHILLIP MURDOCH TO THE DIRECTORS OF MEGADO MINERALS LIMITED As lead auditor of Megado Minerals Limited for the year ended 31 December 2023, I declare that, to the best of my knowledge and belief, there have been: 1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and 2. No contraventions of any applicable code of professional conduct in relation to the audit. This declaration is in respect of Megado Minerals Limited and the entities it controlled during the period. Phillip Murdoch Director BDO Audit (WA) Pty Ltd Perth 27 March 2024 BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation. Tel: +61 8 6382 4600 Fax: +61 8 6382 4601 www.bdo.com.au Level 9, Mia Yellagonga Tower 2 5 Spring Street Perth, WA 6000 PO Box 700 West Perth WA 6872 Australia INDEPENDENT AUDITOR'S REPORT To the members of Megado Minerals Limited Report on the Audit of the Financial Report Opinion We have audited the financial report of Megado Minerals Limited (the Company) and its subsidiaries (the Group), which comprises the consolidated statement of financial position as at 31 December 2023, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the financial report, including material accounting policy information and the directors’ declaration. In our opinion the accompanying financial report of the Group, is in accordance with the Corporations Act 2001, including: (i) Giving a true and fair view of the Group’s financial position as at 31 December 2023 and of its financial performance for the year ended on that date; and (ii) Complying with Australian Accounting Standards and the Corporations Regulations 2001. Basis for opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the Financial Report section of our report. We are independent of the Group in accordance with the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor’s report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Material uncertainty related to going concern We draw attention to Note 1(d) in the financial report which describes the events and/or conditions which give rise to the existence of a material uncertainty that may cast significant doubt about the group’s ability to continue as a going concern and therefore the group may be unable to realise its assets and discharge its liabilities in the normal course of business. Our opinion is not modified in respect of this matter. BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation. Key audit matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. In addition to the matter described in the Material uncertainty related to going concern section, we have determined the matters described below to be the key audit matters to be communicated in our report. Carrying value of exploration and evaluation expenditure Key audit matter How the matter was addressed in our audit As disclosed in Note 7, the carrying value of Our procedures included, but were not limited to the following: capitalised exploration and evaluation expenditure represents a significant asset of the Group. • Obtaining a schedule of the areas of interest held by the Group and evaluating whether the rights to tenure of those areas of interest remained current at the balance Refer to Note 2(h) for a description of the date; accounting policy and significant judgments applied. • Reviewing the relevant acquisition agreements for Cyclone Lithium and K Lithium projects to obtain an In accordance with AASB 6 Exploration for understanding of the terms and conditions including and Evaluation of Mineral Resources (“AASB assessing management’s determination of the fair value 6”), the recoverability of exploration and of consideration paid; evaluation expenditure requires significant judgment by management in determining whether there are any facts or circumstances that exist to suggest that the carrying amount of this asset may exceed its recoverable amount. As a result, this is considered a key audit matter. • Recalculating the fair value of equity instruments issued in relation to the asset acquisition, including engaging our internal valuation experts to review the fair value of options issued; • Considering the Group’s intention to carry out ongoing exploration in the respective areas of interest by holding discussions with management, and reviewing the Group’s exploration budgets, ASX announcements and directors’ minutes; • Considering whether any such areas of interest had reached a stage where a reasonable assessment of economically recoverable reserves exist; • Considering whether any facts or circumstances existed to suggest impairment testing was required; and • Assessing the adequacy of the related disclosures in Notes 2(h), 2(t) and 7 to the Financial Report. Other information The directors are responsible for the other information. The other information comprises the information in the Group’s annual report for the year ended 31 December 2023, but does not include the financial report and the auditor’s report thereon. Our opinion on the financial report does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the directors for the Financial Report The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In preparing the financial report, the directors are responsible for assessing the ability of the group to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or has no realistic alternative but to do so. Auditor’s responsibilities for the audit of the Financial Report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance Standards Board website at: https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf This description forms part of our auditor’s report. Report on the Remuneration Report Opinion on the Remuneration Report We have audited the Remuneration Report included on pages 15 to 18 of the directors’ report for the year ended 31 December 2023. In our opinion, the Remuneration Report of Megado Minerals Limited, for the year ended 31 December 2023, complies with section 300A of the Corporations Act 2001. Responsibilities The directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards. BDO Audit (WA) Pty Ltd Phillip Murdoch Director Perth, 27 March 2024 ASX ADDITIONAL INFORMATION Additional information required by the Australian Stock Exchange Ltd and not shown elsewhere in this report is as follows. The information is current at 19 March 2024. Distribution of Share Holders 1 - 1,000 1,001 - 5,000 5,001 - 10,000 10,001 - 100,000 100,001 - and over TOTAL Number of Holders 25 65 107 372 308 877 Ordinary Shares Number of Shares 4,789 225,923 927,717 16,134,051 237,163,078 254,455,558 There were 421 holders of ordinary shares holding less than a marketable parcel. Top Twenty Share Holders The names of the twenty largest holders of quoted equity securities are listed below: % 0.00 0.09 0.36 6.34 93.21 100.00 Name DG RESOURCE MANAGEMENT LTD JAWAF ENTERPRISES PTY LTD S3 CONSORTIUM PTY LTD SOL SAL INVESTMENTS PTY LTD DC & PC HOLDINGS PTY LTD HARDY ROAD INVESTMENTS PTY LTD E & E HALL PTY LTD CORPORATE ADVISORY PTY LTD EVANS LEAP HOLDINGS PTY LTD HALE COURT HOLDINGS PTY LTD MRS MARTA LUISA ORTIZ ORTEGA PROFUSION DISCOVERY FUND LTD MR MICHAEL KENNETH FRANCIS GUMBLEY MR AARON DEAN BERTOLATTI MR PABLO ARTINANO DEL RIO BNP PARIBAS NOMINEES PTY LTD FLOURISH SUPER PTY LTD BLAMNCO TRADING PTY LTD S3 CONSORTIUM HOLDINGS PTY LTD UPSKY EQUITY PTY LTD Total top twenty share holders Total remaining holders balance Substantial Shareholders Name DG RESOURCE MANAGEMENT LTD | 46 | Annual Report - 31 December 2023 Quoted Shares 36,000,000 5,752,770 5,555,555 5,488,888 5,000,000 4,933,333 4,419,443 4,066,666 4,050,000 4,050,000 3,745,763 3,500,000 3,423,056 3,218,056 3,138,164 3,103,143 3,000,000 2,500,000 2,222,222 2,166,666 109,333,725 145,121,833 % 14.15 2.26 2.18 2.16 1.97 1.94 1.74 1.60 1.59 1.59 1.47 1.38 1.35 1.26 1.23 1.22 1.18 0.99 0.88 0.86 43.0 57.0 Shares 36,000,000 % 14.15 Unlisted Options Class Unlisted Options exercisable at $0.20 on or before 27 October 2024. Unlisted Options exercisable at $0.15 on or before 31 December 2024. Unlisted Options exercisable at $0.15 on or before 30 June 2027. Unlisted Options exercisable at $0.10 on or before 28 April 2026. Unlisted Options exercisable at $0.10 on or before 1 March 2027. Unlisted Options exercisable at $0.08 on or before 3 October 2026. On-Market Buy Back There is no current on-market buy back. Number 10,450,000 Holders with more than 20% Keystone Resources Pty Ltd 2,500,000 Options 10,500,000 Corporate Advisory Pty Ltd 5,000,000 Options 2,500,000 Benjamin Pearson 2,500,000 Options 7,000,000 DG Resource Management Ltd 5,600,000 Options 5,000,000 Mr Aaron Dean Bertolatti 1,200,000 Options Mr Bradley James Drabsch 1,200,000 Options 6,000,000 DG Resource Management Ltd 4,800,000 Options Voting Rights All ordinary shares carry one vote per share without restriction. Options have no voting rights. Use of Proceeds In accordance with listing rule 4.10.19, the Company confirms that it has used cash and assets in a form readily convertible to cash in a way consistent with its business objectives during the financial year ended 31 December 2023. | 47 | Annual Report - 31 December 2023 IMPORTANT INFORMATION AND DISCLAIMERS FORWARD LOOKING STATEMENTS This report contains ‘forward-looking information’ that is based on the Company’s expectations, estimates and projections as of the date on which the statements were made. This forward-looking information includes, among other things, statements with respect to the Company’s business strategy, plans, development, objectives, performance, outlook, growth, cash flow, projections, targets and expectations, mineral reserves and resources, results of exploration and related expenses. Generally, this forward-looking information can be identified by the use of forward-looking terminology such as ‘outlook’, ‘anticipate’, ‘project’, ‘target’, ‘potential’, ‘likely’, ‘believe’, ‘estimate’, ‘expect’, ‘intend’, ‘may’, ‘would’, ‘could’, ‘should’, ‘scheduled’, ‘will’, ‘plan’, ‘forecast’, ‘evolve’ and similar expressions. Persons reading this announcement are cautioned that such statements are only predictions, and that the Company’s actual future results or performance may be materially different. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, level of activity, performance, or achievements to be materially different from those expressed or implied by such forward-looking information. COMPETENT PERSON STATEMENT Information in this report relating to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves has been compiled by Dr Chris Bowden who is a Fellow & Chartered Professional of the Australian Institute of Mining and Metallurgy and is Chief Geologist of Megado Minerals Ltd. He has sufficient experience that is relevant to the types of deposits being explored for and qualifies as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (JORC Code 2012 Edition).Dr Bowden has consented to the release of the announcement. Dr Bowden has also obtained “Special Authorisation” from the Ordre des géologues du Québec to operate as a geologist in Quebec. SCHEDULE OF TENEMENTS Cyclone Project Claims Title Number NTS Sheet Area (ha) Acquisition Date Anniversary Date Registered Holder 2570967 2570968 2570969 2570970 2570971 2570972 2570973 2570974 2570975 2570976 2570977 2570978 2570979 2570980 2570981 2570982 2570983 2570984 2570985 2570986 2570987 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 50.66 50.66 50.66 50.66 50.66 50.66 50.66 50.65 50.65 50.65 50.65 50.65 50.65 50.65 50.65 50.65 50.64 50.64 50.64 50.64 50.64 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. | 48 | Annual Report - 31 December 2023 Title Number NTS Sheet Area (ha) Acquisition Date Anniversary Date Registered Holder 2570988 2570989 2570990 2570991 2570992 2570993 2570994 2570995 2570996 2570997 2570998 2570999 2571000 2571001 2571002 2571003 2571004 2571005 2571006 2571007 2571008 2571009 2571010 2571011 2571012 2571013 2571014 2571015 2571016 2571017 2571018 2571019 2571020 2571021 2571022 2571023 2571024 2571025 2571026 2571027 2571028 2571029 2571030 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 50.64 50.63 50.63 50.63 50.63 50.63 50.63 50.62 50.62 50.62 50.62 50.62 50.62 50.61 50.61 50.61 50.61 50.61 50.61 50.64 50.64 50.64 50.64 50.64 50.64 50.63 50.63 50.63 50.63 50.63 50.63 50.63 50.62 50.62 50.62 50.62 50.62 50.62 50.62 50.62 50.61 50.61 50.61 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. | 49 | Annual Report - 31 December 2023 Title Number NTS Sheet Area (ha) Acquisition Date Anniversary Date Registered Holder 2571031 2571032 2571033 2571034 2571035 2571036 2571037 2571038 2571039 2571040 2571041 2571042 2571043 2571044 2571045 2571046 2571047 2571048 2571049 2571050 2571051 2571052 2571053 2571054 2571055 2571056 2571057 2571058 2571059 2571060 2571061 2571062 2571063 2571064 2571065 2571066 2571067 2571068 2571069 2571070 2571071 2571072 2571073 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 50.61 50.61 50.61 50.61 50.61 50.61 50.61 50.61 50.61 50.61 50.61 50.61 50.61 50.60 50.60 50.60 50.60 50.60 50.60 50.60 50.60 50.60 50.60 50.60 50.60 50.60 50.60 50.60 50.60 50.60 50.60 50.60 50.60 50.60 50.60 50.60 50.60 50.60 50.59 50.59 50.59 50.59 50.59 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. | 50 | Annual Report - 31 December 2023 Title Number NTS Sheet Area (ha) Acquisition Date Anniversary Date Registered Holder 2571074 2571075 2571076 2571077 2571078 2571079 2571080 2571081 2571082 2571083 2571084 2571085 2571086 2571087 2571088 2571089 2571090 2571091 2571092 2571093 2571094 2571095 2571096 2571097 2571098 2571099 2571100 2571101 2571102 2571103 2571104 2571105 2571106 2571107 2571108 2571109 2571110 2571111 2571112 2571113 2571114 2571115 2571116 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 50.59 50.59 50.59 50.59 50.59 50.68 50.68 50.68 50.68 50.69 50.69 50.67 50.67 50.67 50.67 50.67 50.67 50.67 50.67 50.67 50.67 50.67 50.68 50.68 50.66 50.66 50.66 50.66 50.66 50.66 50.66 50.67 50.67 50.67 50.67 50.65 50.65 50.65 50.65 50.66 50.66 50.66 50.66 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. | 51 | Annual Report - 31 December 2023 Title Number NTS Sheet Area (ha) Acquisition Date Anniversary Date Registered Holder 2571118 2571119 2571120 2571121 2571122 2571123 2571124 2571125 2571126 2571127 2571128 2571129 2571130 2571131 2571132 2571133 2571134 2571135 2571136 2571137 2571138 2571139 2571140 2571141 2571142 2571143 2571144 2571145 2571146 2571147 2571148 2571149 2571150 2571151 2571152 2571153 2571154 2571155 2571156 2571157 2571158 2571159 2571160 33H16 33H16 33H16 33H16 33H16 33H16 33H16 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 50.71 50.71 50.70 50.70 50.70 50.70 50.70 50.65 50.65 50.65 50.65 50.64 50.64 50.63 50.62 50.62 50.62 50.62 50.62 50.62 50.61 50.61 50.61 50.60 50.60 50.60 50.60 50.60 50.60 50.59 50.59 50.59 50.59 50.59 50.59 50.59 50.59 50.59 50.59 50.58 50.58 50.58 50.65 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 | 52 | Annual Report - 31 December 2023 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. Title Number NTS Sheet Area (ha) Acquisition Date Anniversary Date Registered Holder 2571161 2571162 2571163 2571164 2571165 2571166 2571167 2571168 2571169 2571170 2571171 2571172 2571173 2571174 2571175 2571176 2571177 2571178 2571179 2571180 2571181 2571182 2571183 2571184 2571185 2571186 2571187 2571188 2571189 2571190 2571191 2571192 2571193 2571194 2571195 2571196 2571197 2571198 2571199 2571200 2571201 2571202 2571203 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33H16 33H16 33H16 33H16 33H16 33H16 33H16 33H16 33I01 50.64 50.64 50.64 50.64 50.64 50.64 50.64 50.64 50.65 50.65 50.65 50.65 50.63 50.63 50.63 50.63 50.63 50.63 50.63 50.63 50.63 50.64 50.64 50.62 50.62 50.62 50.62 50.62 50.62 50.62 50.62 50.61 50.61 50.61 50.71 50.71 50.71 50.71 50.70 50.70 50.70 50.70 50.68 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 | 53 | Annual Report - 31 December 2023 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. Title Number NTS Sheet Area (ha) Acquisition Date Anniversary Date Registered Holder 2571204 2571205 2571206 2571207 2571208 2571209 2571210 2571211 2571212 2571213 2571214 2571215 2571216 2571217 2571218 2571219 2571220 2571221 2571222 2571223 2571224 2571225 2571226 2571227 2689526 2689527 2689528 2689529 2689530 2689531 2689532 2689533 2689534 2689535 2689536 2689537 2689538 2689539 2689540 2689541 2689542 2689543 2689544 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 33I01 23E13 23E13 23E13 23E13 23E13 23E13 23E13 23E13 23E13 23E13 23E13 23E13 23E13 23E13 23E13 23E13 23E13 23E13 23E13 50.69 50.69 50.69 50.69 50.69 50.69 50.69 50.69 50.68 50.68 50.68 50.68 50.68 50.68 50.68 50.68 50.67 50.67 50.67 50.67 50.67 50.66 50.66 50.66 50.77 50.77 50.77 50.77 50.76 50.76 50.76 50.76 50.76 50.75 50.75 50.75 50.75 50.75 50.75 50.74 50.74 50.74 50.73 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 6/30/2020 11/16/2022 11/16/2022 11/16/2022 11/16/2022 11/16/2022 11/16/2022 11/16/2022 11/16/2022 11/16/2022 11/16/2022 11/16/2022 11/16/2022 11/16/2022 11/16/2022 11/16/2022 11/16/2022 11/16/2022 11/16/2022 11/16/2022 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 6/29/2036 9487-3700 Québec Inc. 11/15/2025 9487-3700 Québec Inc. 11/15/2025 9487-3700 Québec Inc. 11/15/2025 9487-3700 Québec Inc. 11/15/2025 9487-3700 Québec Inc. 11/15/2025 9487-3700 Québec Inc. 11/15/2025 9487-3700 Québec Inc. 11/15/2025 9487-3700 Québec Inc. 11/15/2025 9487-3700 Québec Inc. 11/15/2025 9487-3700 Québec Inc. 11/15/2025 9487-3700 Québec Inc. 11/15/2025 9487-3700 Québec Inc. 11/15/2025 9487-3700 Québec Inc. 11/15/2025 9487-3700 Québec Inc. 11/15/2025 9487-3700 Québec Inc. 11/15/2025 9487-3700 Québec Inc. 11/15/2025 9487-3700 Québec Inc. 11/15/2025 9487-3700 Québec Inc. 11/15/2025 9487-3700 Québec Inc. 11/15/2025 9487-3700 Québec Inc. | 54 | Annual Report - 31 December 2023 Title Number NTS Sheet Area (ha) Acquisition Date Anniversary Date Registered Holder 2689545 2689546 2689547 2633159 2633160 2633161 2633162 2688326 2688327 2688328 2688329 2688330 2688331 2688332 2688333 2688334 2688335 2688336 2688337 2688338 2688339 2688340 2688341 23E13 33H16 33H16 23E13 23E13 23E13 23E13 23E13 33H16 33H16 33H16 33H16 33H16 33H16 33H16 33H16 33H16 33H16 33H16 33H16 33I01 33I01 33I01 50.72 50.74 50.73 23.03 49.89 39.86 50.56 50.71 50.72 50.72 50.71 50.71 50.71 50.71 50.71 50.70 50.70 50.70 50.70 50.70 50.69 50.69 50.69 11/16/2022 11/16/2022 11/16/2022 1/14/2022 1/14/2022 1/14/2022 1/14/2022 11/13/2022 11/13/2022 11/13/2022 11/13/2022 11/13/2022 11/13/2022 11/13/2022 11/13/2022 11/13/2022 11/13/2022 11/13/2022 11/13/2022 11/13/2022 11/13/2022 11/13/2022 11/13/2022 11/15/2025 9487-3700 Québec Inc. 11/15/2025 9487-3700 Québec Inc. 11/15/2025 9487-3700 Québec Inc. 1/13/2025 9487-3700 Québec Inc. 1/13/2025 9487-3700 Québec Inc. 1/13/2025 9487-3700 Québec Inc. 1/13/2025 9487-3700 Québec Inc. 11/12/2025 9487-3700 Québec Inc. 11/12/2025 9487-3700 Québec Inc. 11/12/2025 9487-3700 Québec Inc. 11/12/2025 9487-3700 Québec Inc. 11/12/2025 9487-3700 Québec Inc. 11/12/2025 9487-3700 Québec Inc. 11/12/2025 9487-3700 Québec Inc. 11/12/2025 9487-3700 Québec Inc. 11/12/2025 9487-3700 Québec Inc. 11/12/2025 9487-3700 Québec Inc. 11/12/2025 9487-3700 Québec Inc. 11/12/2025 9487-3700 Québec Inc. 11/12/2025 9487-3700 Québec Inc. 11/12/2025 9487-3700 Québec Inc. 11/12/2025 9487-3700 Québec Inc. 11/12/2025 9487-3700 Québec Inc. * 9487-3700 Québec Inc. is a wholly owned subsidiary of Megado Minerals Limited K Lithium Project Claims Title Number NTS Sheet Area (ha) Anniversary Date Registered Holder 2668014 2668012 2668013 2668005 2668006 2668008 2668009 2668010 2667995 2667996 2667997 2667998 2668000 2668001 2668002 33F03 33F03 33F03 33C14 33C14 33C14 33C14 33C14 33C14 33C14 33C14 33C14 33C14 33C14 33C14 | 55 | Annual Report - 31 December 2023 51.85 51.87 51.86 51.88 51.88 51.88 51.88 51.88 51.90 51.90 51.90 51.90 51.89 51.89 51.89 20/09/2025 20/09/2025 20/09/2025 20/09/2025 20/09/2025 20/09/2025 20/09/2025 20/09/2025 20/09/2025 20/09/2025 20/09/2025 20/09/2025 20/09/2025 20/09/2025 20/09/2025 Jody Dahrouge Jody Dahrouge Jody Dahrouge Jody Dahrouge Jody Dahrouge Jody Dahrouge Jody Dahrouge Jody Dahrouge Jody Dahrouge Jody Dahrouge Jody Dahrouge Jody Dahrouge Jody Dahrouge Jody Dahrouge Jody Dahrouge Title Number NTS Sheet Area (ha) Anniversary Date Registered Holder 2668004 2667991 2667992 2667993 2667994 2667999 2668003 2668007 2668011 2689876 2689875 2689882 2689880 2689878 2689877 2689881 2689884 2689883 2689874 2689879 2795436 2808268 2808269 2808270 2808271 2808272 2808273 2808274 2808275 2808276 2808277 2808278 2808279 2808280 2808281 2808282 2808283 2808284 2808285 2808286 2808287 2808288 2808289 2808290 2808291 2808292 2808293 2808294 33C14 33C14 33C14 33C14 33C14 33C14 33C14 33C14 33C14 33C14 33C14 33C14 33C14 33C14 33C14 33C14 33F03 33F03 33C14 33C14 33C14 33C14 33C14 33C14 33F03 33F03 33F03 33F03 33F03 33F03 33F03 33F03 33F03 33F03 33F03 33F03 33F03 33F03 33F03 33F03 33C14 33C14 33C14 33C14 33C14 33C14 33C14 33C14 | 56 | Annual Report - 31 December 2023 51.89 51.92 51.91 51.91 51.90 51.89 51.89 51.88 51.87 47.55 17.79 34.19 25.70 18.58 33.25 42.42 51.74 32.56 21.18 27.40 51.97 1.22 0.83 2.04 7.55 15.37 8.6 31.05 41.07 3.71 33.62 4.2 22.89 51.4 20.04 29.37 32.12 26.06 27.86 43.27 6.36 25.94 42.03 11.31 39.62 43.2 15.01 9.73 20/09/2025 20/09/2025 20/09/2025 20/09/2025 20/09/2025 20/09/2025 20/09/2025 20/09/2025 20/09/2025 16/11/2025 16/11/2025 16/11/2025 16/11/2025 16/11/2025 16/11/2025 16/11/2025 16/11/2025 16/11/2025 16/11/2025 16/11/2025 02-10-2026 28-11-2026 28-11-2026 28-11-2026 28-11-2026 28-11-2026 28-11-2026 28-11-2026 28-11-2026 28-11-2026 28-11-2026 28-11-2026 28-11-2026 28-11-2026 28-11-2026 28-11-2026 28-11-2026 28-11-2026 28-11-2026 28-11-2026 28-11-2026 28-11-2026 28-11-2026 28-11-2026 28-11-2026 28-11-2026 28-11-2026 28-11-2026 Jody Dahrouge Jody Dahrouge Jody Dahrouge Jody Dahrouge Jody Dahrouge Jody Dahrouge Jody Dahrouge Jody Dahrouge Jody Dahrouge Jody Dahrouge Jody Dahrouge Jody Dahrouge Jody Dahrouge Jody Dahrouge Jody Dahrouge Jody Dahrouge Jody Dahrouge Jody Dahrouge Jody Dahrouge Jody Dahrouge Jody Dahrouge Jody Dahrouge Jody Dahrouge Jody Dahrouge Jody Dahrouge Jody Dahrouge Jody Dahrouge Jody Dahrouge Jody Dahrouge Jody Dahrouge Jody Dahrouge Jody Dahrouge Jody Dahrouge Jody Dahrouge Jody Dahrouge Jody Dahrouge Jody Dahrouge Jody Dahrouge Jody Dahrouge Jody Dahrouge Jody Dahrouge Jody Dahrouge Jody Dahrouge Jody Dahrouge Jody Dahrouge Jody Dahrouge Jody Dahrouge Jody Dahrouge 2808295 2808296 2808297 2808298 2808299 2808300 2808301 2808302 2808303 North Fork Claims Claim Name NF 1 NF 2 NF 3 NF 4 NF 5 NF 6 NF 7 NF 8 NF 9 NF 10 NF 11 NF 12 NF 13 NF 14 NF 15 NF 16 NF 17 NF 18 NF 19 NF 20 NF 21 NF 22 NF 23 NF 24 NF 25 NF 26 NF 27 NF 28 NF 29 NF 30 NF 31 NF 32 NF 33 NF 34 NF 35 NF 36 33C14 33C14 33F03 33F03 33F03 33F03 33F03 33F03 33F03 Serial # 327955 327956 327957 327958 327959 327960 327961 327962 327963 327964 327965 327966 327967 327968 327969 327970 327971 327972 327973 327974 327975 327976 327977 327978 327979 327980 327981 327982 327983 327984 327985 327986 327987 327988 327989 327990 | 57 | Annual Report - 31 December 2023 41.3 8.91 13.96 45.59 37 11.1 44.93 45.04 38.4 BLM Serial # ID105764982 ID105764983 ID105764984 ID105764985 ID105764986 ID105764987 ID105764988 ID105764989 ID105764990 ID105764991 ID105764992 ID105764993 ID105764994 ID105764995 ID105764996 ID105764997 ID105764998 ID105764999 ID105765000 ID105765001 ID105765002 ID105765003 ID105765004 ID105765005 ID105765006 ID105765007 ID105765008 ID105765009 ID105765010 ID105765011 ID105765012 ID105765013 ID105765014 ID105765015 ID105765016 ID105765017 28-11-2026 28-11-2026 28-11-2026 28-11-2026 28-11-2026 28-11-2026 28-11-2026 28-11-2026 28-11-2026 Jody Dahrouge Jody Dahrouge Jody Dahrouge Jody Dahrouge Jody Dahrouge Jody Dahrouge Jody Dahrouge Jody Dahrouge Jody Dahrouge Claim Name NF 37 NF 38 NF 39 NF 40 NF 41 NF 42 NF 43 NF 44 NF 45 NF 46 NF 47 NF 48 NF 49 NF 50 NF 51 NF 52 NF 53 NF 54 NF 55 NF 56 NF 57 NF 58 NF 59 NF 60 NF 61 NF 62 NF 63 NF 64 NF 65 NF 66 NF 67 NF 68 NF 69 NF 70 NF 71 NF 72 Serial # 327991 327992 327993 327994 327995 327996 327997 327998 327999 328000 328001 328002 328003 328004 328005 328006 328007 328008 328009 328010 328011 328012 328013 328014 328015 328016 328017 328018 328019 328020 328021 328022 328023 328026, 328025 328027 328028 BLM Serial # ID105765018 ID105765019 ID105765020 ID105765021 ID105765022 ID105765023 ID105765024 ID105765025 ID105765026 ID105765027 ID105765028 ID105765029 ID105765030 ID105765031 ID105765032 ID105765033 ID105765034 ID105765035 ID105765036 ID105765037 ID105765038 ID105765039 ID105765040 ID105765041 ID105765042 ID105765043 ID105765044 ID105765045 ID105765046 ID105765047 ID105765048 ID105765049 ID105765050 ID105765051 ID105765052 ID105765053 Claim Name NF 73 NF 74 NF 75 NF 76 NF 77 NF 78 NF 79 NF 80 NF 81 NF 82 NF 83 NF 84 NF 85 NF 86 NF 87 NF 88 NF 89 NF 90 NF 91 NF 92 NF 93 NF 94 NF 95 NF 96 NF 97 NF 98 NF 99 NF 100 NF 101 NF 102 NF 103 NF 104 NF 105 NF 106 NF 107 NF 108 NF 109 NF 110 NF 111 NF 112 NF 113 NF 114 NF 115 Serial # 328029 328030 328031 328032 328033 328034 328035 328036 328037 328038 328039 328040 328041 328042 328024, 328043 328044 328045 328046 328047 328048 328049 328050 328051 328052 328053 328054 328055 328056 328057 328058 328059 328060 328061 328062 328063 328064 328067 328068 328069 328070 328071 328072 328073 BLM Serial # ID105765054 ID105765055 ID105765056 ID105765057 ID105765058 ID105765059 ID105765060 ID105765061 ID105765062 ID105765063 ID105765064 ID105765065 ID105765066 ID105765067 ID105765068 ID105765069 ID105765070 ID105765071 ID105765072 ID105765073 ID105765074 ID105765075 ID105765076 ID105765077 ID105765078 ID105765079 ID105765080 ID105765081 ID105765082 ID105765083 ID105765084 ID105765085 ID105765086 ID105765087 ID105765088 ID105765089 ID105765090 ID105765091 ID105765092 ID105765093 ID105765094 ID105765095 ID105765096 | 58 | Annual Report - 31 December 2023 Claim Name NF 116 NF 117 NF 118 NF 119 NF 120 NF 121 NF 122 NF 123 NF 124 NF 125 NF 126 NF 127 NF 128 NF 129 NF 130 NF 131 NF 132 NF 133 NF 134 NF 135 NF 136 NF 137 NF 138 NF 139 NF 140 NF 141 NF 142 NF 143 NF 144 NF 145 NF 146 NF 147 NF 148 NF 149 NF 150 NF 151 NF 152 NF 153 NF 154 NF 155 NF 156 NF 157 NF 158 Serial # 328074 328075 328076 328077 328078 328079 328080 328081 328082 328083 328084 328085 328086 328087 328088 328089 328090 328091 328092 328093 328094 328095 328096 328097 328098 328099 328100 328101 328102 328103 328104 328105 328106 328107 328108 328109 328110 328111 328112 328113 328114 328115 328116 BLM Serial # ID105765097 ID105765098 ID105765099 ID105765100 ID105765101 ID105765102 ID105765103 ID105765104 ID105765105 ID105765106 ID105765107 ID105765108 ID105765109 ID105765110 ID105765111 ID105765112 ID105765113 ID105765114 ID105765115 ID105765116 ID105765117 ID105765118 ID105765119 ID105765120 ID105765121 ID105765122 ID105765123 ID105765124 ID105765125 ID105765126 ID105765127 ID105765128 ID105765129 ID105765130 ID105765131 ID105765132 ID105765133 ID105765134 ID105765135 ID105765136 ID105765137 ID105765138 ID105765139 Claim Name NF 159 NF 160 NF 161 NF 162 NF 163 NF 164 NF 165 NF 166 NF 167 NF 168 NF 169 NF 170 NF 171 NF 172 NF 173 NF 174 NF 175 NF 176 NF 177 NF 178 NF 179 NF 180 NF 181 NF 182 NF 183 NF 184 NF 185 NF 186 NF 187 NF 188 NF 189 NF 190 NF 191 NF 192 NF 193 NF 194 NF 195 NF 196 NF 197 NF 198 NF 199 NF 200 NF 201 Serial # 328118 328119 328120 328121 328122 328123 328124 328125 328126 328127 328128 328129 328130 328131 328132 328133 328134 328135 328136 328137 328139 328140 328141 328142 328143 328144 328145 328146 328147 328148 328149 328150 328151 328152 328153 328154 328155 328156 328157 328158 328159 328160 328161 BLM Serial # ID105765140 ID105765141 ID105765142 ID105765143 ID105765144 ID105765145 ID105765146 ID105765147 ID105765148 ID105765149 ID105765150 ID105765151 ID105765152 ID105765153 ID105765154 ID105765155 ID105765156 ID105765157 ID105765158 ID105765159 ID105765160 ID105765161 ID105765162 ID105765163 ID105765164 ID105765165 ID105765166 ID105765167 ID105765168 ID105765169 ID105765170 ID105765171 ID105765172 ID105765173 ID105765174 ID105765175 ID105765176 ID105765177 ID105765178 ID105765179 ID105765180 ID105765181 ID105765182 | 59 | Annual Report - 31 December 2023 Claim Name NF 202 NF 203 NF 204 NF 205 NF 206 NF 207 NF 208 NF 209 NF 210 NF 211 NF 212 NF 213 NF 214 NF 215 NF 216 NF 217 NF 218 NF 219 NF 220 NF 221 NF 222 NF 223 NF 224 NF 225 NF 226 NF 227 NF 228 NF 229 NF 230 NF 231 NF 232 NF 233 NF 234 NF 235 NF 236 NF 237 NF 238 NF 239 NF 240 NF 241 NF 242 NF 243 NF 244 Serial # 328162 328163 328164 328165 328166 328167 328168 328169 328170 328171 328172 328173 328174 328175 328176 328177 328178 328180 328181 328182 328183 328184 328185 328186 328187 328188 328189 328190 328191 328192 328193 328194 328195 328196 328197 328198 328199 328200 328201 328202 328203 328204 328205 BLM Serial # ID105765183 ID105765184 ID105765185 ID105765186 ID105765187 ID105765188 ID105765189 ID105765190 ID105765191 ID105765192 ID105765193 ID105765194 ID105765195 ID105765196 ID105765197 ID105765198 ID105765199 ID105765200 ID105765201 ID105765202 ID105765203 ID105765204 ID105765205 ID105765206 ID105765207 ID105765208 ID105765209 ID105765210 ID105765211 ID105765212 ID105765213 ID105765214 ID105765215 ID105765216 ID105765217 ID105765218 ID105765219 ID105765220 ID105765221 ID105765222 ID105765223 ID105765224 ID105765225 Claim Name NF 245 NF 246 NF 247 NF 248 NF 249 NF 250 NF 251 NF 252 NF 253 NF 254 NF 255 NF 256 NF 257 NF 258 NF 259 NF 260 NF 261 NF 262 NF 263 NF 264 NF 265 NF 266 NF 267 NF 268 NF 269 NF 270 NF 271 NF 272 NF 273 NF 274 NF 275 NF 276 NF 277 NF 278 NF 279 NF 280 NF 281 NF 282 NF 283 NF 284 NF 285 NF 286 NF 287 Serial # 328206 328207 328208 328209 328212 328213 328214 328215 328216 328217 328218 328219 328220 328221 328222 328223 328224 328225 328226 328227 328228 328229 328230 328231 328232 328233 328234 328235 328236 328237 328238 328239 328240 328241 328242 328243 328244 328245 328246 328247 328248 328249 328250 BLM Serial # ID105765226 ID105765227 ID105765228 ID105765229 ID105765230 ID105765231 ID105765232 ID105765233 ID105765234 ID105765235 ID105765236 ID105765237 ID105765238 ID105765239 ID105765240 ID105765241 ID105765242 ID105765243 ID105765244 ID105765245 ID105765246 ID105765247 ID105765248 ID105765249 ID105765250 ID105765251 ID105765252 ID105765253 ID105765254 ID105765255 ID105765256 ID105765257 ID105765258 ID105765259 ID105765260 ID105765261 ID105765262 ID105765263 ID105765264 ID105765265 ID105765266 ID105765267 ID105765268 | 60 | Annual Report - 31 December 2023 Claim Name NF 288 NF 289 NF 290 NF 291 NF 292 NF 293 NF 294 NF 295 NF 296 NF 297 NF 298 NF 299 NF 300 NF 301 NF 302 NF 303 NF 304 NF 305 NF 306 NF 307 NF 308 NF 309 NF 310 NF 311 NF 312 NF 313 NF 314 NF 315 NF 316 NF 317 NF 318 NF 319 NF 320 NF 321 NF 322 NF 323 NF 324 NF 325 NF 326 NF 327 NF 328 NF 329 NF 330 Serial # 328251 328252 328253 328254 328255 328256 328257 328258 328259 328260 328261 328262 328263 328264 328265 328266 328267 328268 328269 328270 328271 328277 328278 328279 328280 328281 328282 328283 328284 328285 328286 328287 328288 328289 328290 328291 328292 328293 328294 328295 328296 328297 328298 BLM Serial # ID105765269 ID105765270 ID105765271 ID105765272 ID105765273 ID105765274 ID105765275 ID105765276 ID105765277 ID105765278 ID105765279 ID105765280 ID105765281 ID105765282 ID105765283 ID105765284 ID105765285 ID105765286 ID105765287 ID105765288 ID105765289 ID105765290 ID105765291 ID105765292 ID105765293 ID105765294 ID105765295 ID105765296 ID105765297 ID105765298 ID105765299 ID105765300 ID105765301 ID105765302 ID105765303 ID105765304 ID105765305 ID105765306 ID105765307 ID105765308 ID105765309 ID105765310 ID105765311 Claim Name NF 331 NF 332 NF 333 NF 334 NF 335 NF 336 NF 337 NF 338 NF 339 NF 340 NF 341 NF 342 NF 343 NF 344 NF 345 NF 346 NF 347 NF 348 NF 349 NF 350 NF 351 NF 352 NF 353 NF 354 NF 355 NF 356 NF 357 NF 358 NF 359 NF 360 NF 361 NF 362 NF 363 NF 364 NF 365 NF 366 NF 367 NF 368 NF 369 NF 370 NF 371 NF 372 NF 373 Serial # 328299 328300 328301 328302 328303 328304 328305 328306 328307 328308 328309 328310 328311 328312 328313 328314 328315 328316 328317 328318 328319 328320 328321 328322 328323 328324 328325 328326 328327 328328 328329 328330 328331 328332 328333 328334 328335 328336 328337 328338 328339 328340 328341 BLM Serial # ID105765312 ID105765313 ID105765314 ID105765315 ID105765316 ID105765317 ID105765318 ID105765319 ID105765320 ID105765321 ID105765322 ID105765323 ID105765324 ID105765325 ID105765326 ID105765327 ID105765328 ID105765329 ID105765330 ID105765331 ID105765332 ID105765333 ID105765334 ID105765335 ID105765336 ID105765337 ID105765338 ID105765339 ID105765340 ID105765341 ID105765342 ID105765343 ID105765344 ID105765345 ID105765346 ID105765347 ID105765348 ID105765349 ID105765350 ID105765351 ID105765352 ID105765353 ID105765354 | 61 | Annual Report - 31 December 2023 Claim Name NF 374 NF 375 NF 376 NF 377 NF 378 NF 379 NF 380 NF 381 NF 382 NF 383 NF 384 NF 385 NF 386 NF 387 NF 388 NF 389 NF 390 NF 391 NF 392 NF 393 NF 394 NF 395 NF 396 NF 397 NF 398 NF 399 NF 400 NF 401 NF 402 NF 403 NF 404 NF 405 NF 406 NF 407 NF 408 NF 409 NF 410 NF 411 NF 412 NF 413 NF 414 NF 415 NF 416 Serial # 328342 328343 328344 328345 328346 328347 328348 328349 328350 328351 328352 328353 328354 328355 328356 328357 328358 328359 328360 328361 328362 328363 328364 328365 328366 328367 328368 328369 328370 328371 328372 328373 328374 328375 328376 328377 328378 328379 328380 328381 328382 328383 328384 BLM Serial # ID105765355 ID105765356 ID105765357 ID105765358 ID105765359 ID105765360 ID105765361 ID105765362 ID105765363 ID105765364 ID105765365 ID105765366 ID105765367 ID105765368 ID105765369 ID105765370 ID105765371 ID105765372 ID105765373 ID105765374 ID105765375 ID105765376 ID105765377 ID105765378 ID105765379 ID105765380 ID105765381 ID105765382 ID105765383 ID105765384 ID105765385 ID105765386 ID105765387 ID105765388 ID105765389 ID105765390 ID105765391 ID105765392 ID105765393 ID105765394 ID105765395 ID105765396 ID105765397 Claim Name NF 417 NF 418 NF 419 NF 420 NF 421 NF 422 NF 423 NF 424 NF 425 NF 426 NF 427 NF 428 NF 429 NF 430 NF 431 NF 432 NF 433 NF 434 NF 435 NF 436 NF 437 NF 438 NF 439 NF 440 NF 441 NF 442 NF 443 NF 444 NF 445 NF 446 NF 447 NF 448 NF 449 NF 450 NF 451 NF 452 NF 453 NF 454 NF 455 NF 456 NF 457 NF 458 NF 459 Serial # 328385 328386 328387 328388 328389 328390 328391 328392 328393 328394 328395 328396 328404 328405 328406 328407 328408 328409 328410 328411 328412 328413 328414 328415 328416 328417 328418 328419 328420 328421 328422 328423 328424 328425 328426 328427 328428 328429 328430 328431 328432 328433 328434 BLM Serial # ID105765398 ID105765399 ID105765400 ID105765401 ID105765402 ID105765403 ID105765404 ID105765405 ID105765406 ID105765407 ID105765408 ID105765409 ID105765410 ID105765411 ID105765412 ID105765413 ID105765414 ID105765415 ID105765416 ID105765417 ID105765418 ID105765419 ID105765420 ID105765421 ID105765422 ID105765423 ID105765424 ID105765425 ID105765426 ID105765427 ID105765428 ID105765429 ID105765430 ID105765431 ID105765432 ID105765433 ID105765434 ID105765435 ID105765436 ID105765437 ID105765438 ID105765439 ID105765440 | 62 | Annual Report - 31 December 2023 Claim Name NF 460 NF 461 NF 462 NF 463 NF 464 NF 465 NF 466 NF 467 NF 468 NF 469 NF 470 NF 471 NF 472 NF 473 NF 474 NF 475 NF 476 NF 477 NF 478 NF 479 NF 480 NF 481 NF 482 NF 483 NF 484 NF 485 NF 486 NF 487 NF 488 NF 489 NF 490 NF 491 NF 492 NF 493 NF 494 NF 495 NF 496 NF 497 NF 498 NF 499 NF 500 NF 501 NF 502 Serial # 328435 328436 328437 328438 328439 328440 328441 328442 328443 328445 328446 328447 328448 328449 328450 328451 328452 328453 328454 328455 328456 328457 328458 328459 328460 328461 328462 328463 328464 328465 328466 328467 328468 328469 328470 328471 328472 328473 328474 328475 311548 311550 311551 BLM Serial # ID105765441 ID105765442 ID105765443 ID105765444 ID105765445 ID105765446 ID105765447 ID105765448 ID105765449 ID105765450 ID105765451 ID105765452 ID105765453 ID105765454 ID105765455 ID105765456 ID105765457 ID105765458 ID105765459 ID105765460 ID105765461 ID105765462 ID105765463 ID105765464 ID105765465 ID105765466 ID105765467 ID105765468 ID105765469 ID105765470 ID105765471 ID105765472 ID105765473 ID105765474 ID105765475 ID105765476 ID105765477 ID105765478 ID105765479 ID105765480 ID101839578 ID101839579 ID101839580 Claim Name NF 503 NF504 NF 505 NF 506 NF 507 NF 508 NF 509 NF 510 NF 511 NF 512 NF 513 NF 514 NF 515 NF 516 NF 517 NF 518 NF 519 NF 520 NF 521 NF 522 NF 523 NF 524 NF 525 NF 526 Serial # 311552 311553 331547 331548 331549 331550 331551 331552 331553 331554 331555 331556 331557 331558 331559 331560 331561 331562 331563 331564 331565 331566 331567 331568 BLM Serial # ID101839581 ID101832756 ID105812008 ID105812009 ID105812010 ID105812011 ID105812012 ID105812013 ID105812014 ID105812015 ID105812016 ID105812017 ID105812018 ID105812019 ID105812020 ID105812021 ID105812022 ID105812023 ID105812024 ID105812025 ID105812026 ID105812027 ID105812028 ID105812029 | 63 | Annual Report - 31 December 2023 Land Area (Km2) Interest (%) 98.72 62.08 137.28 41.22 138.98 80% 100% 80% 100% 100% Ethiopian Tenements Tenements Licence Number Grant Date Regional State Babicho Chakata Chochi Dawa EL\00106\2019 MOM\EL\00556\2019 26/09/2019 19/08/2020 Oromia Oromia MOM\EL\2013\276 06/01/2014 Benishangul-Gumuz MOM\EL\00813\2019 19/08/2020 26/09/2019 Oromia Oromia Mormora EL\00313\2019 | 64 | Annual Report - 31 December 2023 megadominerals.com.au Level 12, 197 St Georges Terrace, Perth, Western Australia 6000 info@megadominerals.com.au

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