Nova Minerals Limited
Annual Report 2022

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Annual Report 2022 Corporate Directory Directors Anna Ladd-Kruger Chair of the Board Christopher Gerteisen CEO & Executive Director Louie Simens Executive Director Craig Bentley Non-Executive Director Rodrigo Pasqua Non-Executive Director Avi Geller Non-Executive Director Company Secretary Ian Pamensky Registered Office and Domicile Main Operations: Whiskey Bravo Airstrip Matanuska-Susitna Borough, Alaska, USA 1150 S Colony Way Suite 3-440, Palmer, AK 99645 Corporate: Suite 602 566 St Kilda Road Melbourne VIC 3004 Australia Telephone: +61 3 9537 1238 Internet: http://www.novaminerals.com.au Share Registry Link Market Services Limited Level 13, Tower 4 727 Collins Street Melbourne VIC 3000 Australia ASX: NVA OTC: NVAAF Auditors RSM Australia Partners Level 21, 55 Collins Street Melbourne VIC 3000 Australia Developing North America’s next major gold trend in Alaska Nova Minerals Ltd | Annual Report 2022 1 About Nova Minerals Nova Minerals Limited (ASX: NVA) vision is developing North America’s next major gold trend, Estelle, to become a world-class, tier-one, global gold producer. The company is focused on exploration in Alaska’s prolific Tintina Gold Belt, a province which hosts a 220 million ounce (Moz) documented gold endowment and some of the world’s largest gold mines and discoveries including Victoria Gold’s Eagle Mine and Kinross Gold Corporation’s Fort Knox Gold Mine. The Company’s Estelle Trend development is a 35km long corridor of 21 identified gold prospects bracketed by the Korbel Project in the north and the RPM Project in the south. Currently, these two flagship projects have a combined total estimated JORC gold resource of 9.6 Moz (3 Moz Indicated and 6.6 Moz Inferred) and are host to extensive resource development programs. Additionally, Nova holds a substantial interest in NASDAQ-listed lithium explorer Snow Lake Resources Ltd (NASDAQ: LITM) and a holding in Asra Minerals Limited (ASX: ASR), a gold exploration company based in Western Australia Contents Message from the CEO Highlights Review of Operations Directors’ Report Remuneration Report Auditors Independence Declaration Financial Statements Notes to the Financial Statements Director’s Declaration Independent Auditor’s Report ASX Additional Information 3 5 6 14 20 28 29 36 66 67 71 2 Nova Minerals Ltd | Annual Report 2022 Message from the CEO, Christopher Gerteisen The past year has been both exciting and a little frustrating for Nova. Exciting in that we have made substantial progress as we continue to further unlock the world-class Estelle Gold Trend in our drive to become one of the worlds most valued gold companies. And frustrating in that our share price has not reflected the enormous fundamental gains we have made throughout the year, including a substantial increase in our resources and the production of a positive phase 1 scoping study, which showed that Korbel Main was a viable stand- alone gold operation. However, with fundamentals this strong and growing every day I am confident our day will come! In 2022, we have continued to invest heavily in our future through the ongoing development of the Estelle Gold Project that will expand and enhance an operating platform which already holds some of the industry’s best and fastest growing gold resources. Our exploration programs are broadening our horizons by finding fresh targets across the entire project area, in addition to the major resources already defined, but still growing, at both Korbel and RPM. We have also sharpened our skills and nurtured a new generation of leaders while strengthening the many stakeholder partnerships that secure our social license with our local community support programs and our hire and buy Alaska policy. The creation of long-term value, which is Nova’s prime objective, requires a sustainable and innovative strategy with every dollar spent creating significant intrinsic value for all stakeholders. Our operation has a business plan for the next 10 years and beyond – plans based not on wishful thinking, but on geological, engineering and commercial fundamentals. Deeply embedded in those plans is our long-standing commitment to the principles of sustainability, innovations and a team driven like I have never witnessed in my career. The incredible synergies within the wider working group, which informs all our business decisions, has kept our discovery cost per ounce well below industry average and fast tracks our progress to becoming a world-class, tier-one, global gold producer. Now for the next step. Nova’s strong balance sheet and strategic investments enables us to continue building our future by investing in the development of the many growth prospects within the Estelle Gold Trend. In the last few weeks, the team has delivered more incredible drill results at RPM, and with an aggressive drilling program, updated mineral resource estimate, phase 2 scoping study and PFS level tradeoff activities all underway together, the future is looking very bright for Nova with another very exciting year ahead. Nova Minerals Ltd | Annual Report 2022 3 To achieve these outcomes, it takes a team who worked tirelessly, led by the group executive, all focused and dedicated to achieving the same goals and I would like to thank them all for their tremendous efforts and hard work during the year. I would also like to thank our Chairperson and the Board who have provided the guidance and governance we need on this journey, as well as the many stakeholders and business associates with whom we enjoy mutually rewarding partnerships. We are only just getting started at the Estelle Gold Project and I look forward to a rewarding year ahead and beyond as we continue full steam ahead on our path towards production. Thank you for your ongoing support. Christopher Gerteisen Executive Director and CEO 4 Nova Minerals Ltd | Annual Report 2022 Highlights – Delivering on our Vision to Develop the Major Estelle Gold Trend Discovered the exciting high-grade RPM Deposit New discoveries made at Train/Shoeshine and Stoney Grew the gold resource by 105% from 4.7Moz to 9.6Moz Produced a positive phase 1 scoping study which showed Korbel Main was a viable stand-alone gold operation and in advanced stages of the phase 2 scoping study which will also incorporate the high-grade RPM Deposit Ahead of the curve on environmental test work to fast track permitting Increased the breath and experience of the Board Expanded the winterized Bravo Whiskey camp and setup a sample preparation lab Listed and monetized some of our investment in the spin out of lithium explorer Snow Lake Resources Nova Minerals Ltd | Annual Report 2022 5 Review of Operations New Discoveries at the Estelle Gold Project Nova’s vision is to develop the Estelle Gold Trend into North America’s next major gold trend. With the discovery of the 2nd major deposit along the trend in October 2021, the high-grade RPM Deposit, and further exciting prospects at both the Train/Shoeshine and Stoney areas as well, the team has already proven that the Estelle Gold Trend is a multi-deposit project with a potentially massive resource endowment. Drill Program Results and Resource Upgrade During the past year, Nova has continued its fast-tracked exploration strategy. Drilling continued throughout the period with further higher-grade feeder zones discovered at the Korbel Main Deposit and a bonanza grade result at the RPM North Deposit of 3.5 g/t Au over 400m (1,400 gram meters), including 10.1 g/t Au over 132m. As a result of the 2021 drilling program, Nova released a maiden JORC compliant 1.5Moz Inferred Resource at its high-grade RPM North Deposit and significantly upgraded the resource at the Korbel Main Deposit to 8.1Moz, including 3Moz Indicated, which combined now gives the Estelle Gold Project a total mineral resource of 9.6Moz (Table 1 & Figure 1). Table 1. Global Mineral Resource Statement, Estelle Gold Trend 6 Nova Minerals Ltd | Annual Report 2022 Figure 1. Resource Growth In 2022, infill and step-out drilling continues to prove up and extend the high grade (+2g/t) material within and beyond the existing RPM North resource, to be included in the Phase 2 Scoping Study, with significant results since year end including; o RPM-015      161m @ 8.1 g/t Au from surface including; 117m @ 11.1 g/t Au 78m @ 16.0 g/t Au 45m @ 25.3 g/t Au 14m @ 51.2 g/t Au (RPM-015 returned an overall average grade of 5.1 g/t Au over 258m (1,316 gram meters) from surface within the RPM North mineralized zone at 0.1g/t cutoff) o RPM-008     140m @ 6.5 g/t Au from 44m including; 87m @ 10.1 g/t Au 56m @ 15.0 g/t Au 24m @ 24.7 g/t Au (RPM-008 returned an overall average grade of 3.6 g/t Au over 260m (936 gram meters) from surface within the RPM North mineralized zone at 0.1g/t cutoff) Nova Minerals Ltd | Annual Report 2022 7 Phase 1 Scoping Study – Korbel Stand-Alone Operation Commercially Viable On 28 February 2022, Nova released the Phase 1 Scoping Study , which while constrained by the amount of Indicated Resources available from a single ore source within a starter pit at Korbel Main, shows the potential for Korbel Main to support a commercially viable, large stand-alone, bulk tonnage open pit mining operation, with ideal ore body geometry that allows mining at a very low strip ratio. Conceptual Phase 1 Pit Option Potential location for the Korbel Central Processing Facility Figure 2. Conceptual Korbel Main phase 1 pit option & central processing facility location The Study provided a proof of concept for the proposed flow sheet (Figure 3) with the CAPEX for a Central Processing Facility to be located at Korbel (Figure 2), which is scaled to receive feed from multiple ore sources, including the high-grade RPM Deposit, and other ore sources as they come online across the entire Estelle Gold Trend in the future. Figure 3. Simplified Flow Sheet 8 Nova Minerals Ltd | Annual Report 2022 Key highlights from the Scoping Study include:  The Study confirms the viability of a stand-alone gold operation at the Korbel Main Deposit with a 15 year evaluation period.   Rapid payback period of 3 years production with years 1-3 all in sustaining costs (AISC) of USD$879/oz provide robust early project returns. Study forecasts over 200,000 oz in the first year of gold production. Low mine strip ratio of 0.76:1 with ore sorters delivering 1.0g/t average feed grade to mill producing within the first 3 years. Total gold produced 1,956,000 oz with 88% gold recovery over the evaluation period, using a conventional truck and shovel mining method (Figure 4) and mill operation.   Attractive financial outcomes with Pre-Tax NPV5% USD$381M, Pre-tax IRR 20.4% and total period revenue of USD$3.4B, based on a USD$1,750/oz gold price.  Average Cash Costs of USD$990/oz and AISC of USD$1,120/oz over the evaluation period.  Estimated pre-production capital cost of 6Mt pa plant and site infrastructure of approximately USD$424M, inclusive of USD$57M mining fleet equipment (“Yellow gear”) and contingencies. Figure 4. Animation of the conceptual truck and shovel mining fleet Importantly, the Scoping Study sensitivity analysis, in Figure 5 below, showed that the Project’s overall economics is highly sensitive to grade, as outlined at the high-grade RPM Gold Project, which was not included in the study results. Nova Minerals Ltd | Annual Report 2022 9 Figure 5. Sensitivity analysis shows the Project’s economics are highly sensitive to grade The Phase 1 Scoping Study has provided a solid platform for growth and has identified clear opportunities for improvement, the 1st of which is the inclusion of the high-grade RPM North Deposit, which has a current Inferred Resource of 23.1 Mt @ 2.0g/t Au for 1.5Moz of gold. Geophysics performed by Nova earlier in the year confirmed the extension of the RPM North Deposit by up to 1 km to the West which is the focus of the Company’s current drilling program, with the aim to increase both the size and confidence of the resource to the higher Indicated category for inclusion in the Phase 2 Scoping Study. Figure 6. Unlocking the wider Estelle Gold Trend 10 Nova Minerals Ltd | Annual Report 2022 Haulage studies investigating 4 options to haul high-grade RPM ore back to the Korbel Central Processing Facility (KCPF) have also commenced and significant further upside opportunities also remain as step out extensional drilling is performed over the wider Korbel and RPM Gold Projects for inclusion in the Pre-Feasibility Study which is anticipated to be delivered later in 2023. 2023 Financial Year Next Steps  Re-commenced drilling at Korbel, including the infill saddle area, and maiden drill test Cathedral  Continue drilling and evaluation at RPM  Continue the various mine, process optimisation and multiple trade off studies for the Phase 2 Scoping Study and PFS at Korbel and RPM  Upgrade the mineral resource estimate (MRE) for both Korbel and RPM to include the current drill program results  Complete the Phase 2 Scoping Study, which will include the high-grade RPM feed  Continue to unlock the Estelle Gold Trend, with ground truthing on the RPM surrounds and the Train/Shoeshine area, being the company’s prime focus Strategic Investments In addition to its flagship Estelle Gold Project in Alaska, Nova also owns investments in the following strategic assets which it will monetize over time to provide funding for the Estelle project. Snow Lake Resources Ltd 6.6 million shares | 37% owned | NASDAQ: LITM In November 2021, Nova spun off its Canadian lithium exploration company, Snow Lake Resources Ltd, and listed it on the US NASDAQ exchange (NASDAQ: LITM). Then on 11 April 2022, Nova completed the sale of 3,000,000 Snow Lake Resources Ltd shares in an underwritten secondary offering, which represented approximately 31% of its holding at the time, at a price per share of US$6.00, for total proceeds of US$18,000,000 (AUD$24,000,000) before underwriting fees and offering expenses. Subsequent to the transaction, Nova continues to hold 6,600,000 Snow Lake shares which under agreement are in escrow to 21 March 2023. Snow Lake Resources Ltd, is engaged in lithium exploration at the Thompson Brothers Lithium Project, located in Manitoba, Canada, which comprises of a dominant 56 km2 position located on Crown land and encompasses two lithium rich spodumene clusters known as the Thompson Brothers and Sherritt Gordan pegmatite dykes. The project presently has an SK-1300 compliant lithium mineral resource estimate of 9.08 Mt @ 1.00% Li2O indicated, and 1.97 Mt @ 0.98% Li2O inferred. Snow Lake is currently undertaking resource expansion drilling to significantly increase both the resource size and confidence and has initiated its feasibility studies, with an aim to be mining by 2024/25. For more information, see www.snowlakelithium.com Nova Minerals Ltd | Annual Report 2022 11 Asra Minerals Ltd 117.3 million shares | 8.76% owned | ASX: ASR Asra Resources Ltd is a highly active gold and rare earths exploration and development company with an extensive and strategic land holding comprising of six projects and over 400km² of tenure in the Goldfields Region of Western Australia. All projects are nearby to excellent infrastructure and lie within 50km of major mining towns. The Company is entering an exciting phase in its development as its exploration to date has already resulted in several gold discoveries, including its flagship Mt Stirling Project which neighbours Red 5’s King of the Hills mine. For more information, see www.asraresources.com.au Rotor X Aircraft Manufacturing 9.9% owned | Pre-Listing Rotor X Aircraft Manufacturing is a helicopter kit manufacturing company that produces the world’s most affordable and reliable 2 seat personal helicopter. Recently Rotor X also announced that it has entered the electric vertical take-off and landing (eVTOL) market, with the aim of developing innovative, low operating cost, heavy-lift electric helicopters and drones, to support mining and other industries, as well as the growing urban air taxi market. The unprecedented potential benefits for Nova’s mining operations through the innovative application of clean aircraft technology, which are expected to lower Nova’s estimated logistics costs by a third, have been the primary motive behind the Company’s investment in aerospace company Rotor X. For more information, see www.rotorxaircraft.com 12 Nova Minerals Ltd | Annual Report 2022 Financial Report Directors’ Report Remuneration Report Auditors Independence Declaration Consolidated Statement of Profit and Loss and Other Comprehensive Income Consolidated Balance Sheet Consolidated Statement of Changes in Equity Consolidated Statement of Cash Flows Notes to the Financial Statements Director’s Declaration Independent Auditor’s Report 14 20 28 31 32 33 35 36 66 67 Nova Minerals Ltd | Annual Report 2022 13 Directors’ Report The directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'consolidated entity') consisting of Nova Minerals Limited (referred to hereafter as the 'company' or 'parent entity') and the entities it controlled at the end of, or during, the year ended 30 June 2022. Directors The following persons were directors of Nova Minerals Limited during the whole of the financial year and up to the date of this report, unless otherwise stated: Anna Ladd-Kruger (appointed 29 June 2022) Christopher Gerteisen Louie Simens Craig Bentley (appointed 18 February 2022) Rodrigo Capel Pasqua (appointed 1 May 2022) Avi Geller Colin Belshaw (resigned 12 January 2022) David Hersham (resigned 11 March 2022) Dividends There were no dividends paid, recommended, or declared during the current or previous financial year. Review of Operations Statement of Profit or Loss and Other Comprehensive Income As an exploration company, Nova does not have an ongoing source of revenue. Its revenue stream is normally from interest received on cash at bank. Administration expenses increased from $1,693,195 in 2021 to $2,980,714 in 2022 primarily due to increases in director fees, legal fees, and marketing costs. Share based expense was $1,470,936 in 2021 compared to $1,200,053 in 2022. As a result of the IPO and deconsolidation of Snow Lake Resources in November 2021 the profit for the consolidated entity after providing for income tax and non-controlling interest in 2022 amounted to $34,684,554 (30 June 2021: loss of $3,127,870). Statement of Financial Position At 30 June 2022, the Company had cash at bank of $21,278,936 (2021: $15,516,112). During the year, trade and other receivables increased from $195,012 to $242,481 and capitalised exploration expenditure increased from $35,843,069 to $56,702,626 as result of expenditure incurred on the Estelle Gold project. At 30 June 2022, the Company had total liabilities of $3,999,582 (2021: $4,287,061). As a result, the Company had net assets of $104,329,326 on 30 June 2022 (2021: $52,580,191). Cashflow During the year, the Company paid $2,855,761 (2021: $2,138,336) for operating activities; paid $3,957,726 (2021: $21,055,527) for investing activities; and received $11,153,036 (2021: $34,883,982) from financing activities. Significant Changes in the State of Affairs There were no significant changes in the state of affairs of the consolidated entity during the financial year. 14 Nova Minerals Ltd | Annual Report 2022 Matters Subsequent to the End of the Financial Year The following events have occurred subsequent to the period end: On 5 September 2022, the Company announced that it has issued 3,458,990 fully paid shares (“Shares”) upon the exercise of 6,250,000 unlisted options (“Options”) issued under the Company’s Employee Share Option Plan (“ESOP Plan”) of which: NVAUOP4 (ASX: NVAAA) 3,303,372 Shares were issued on exercise of 6,000,000 Options pursuant to the cashless exercise facility under the ESOP Plan; and 100,000 Shares were issued on exercise of the same number of Options. NVAEIOPT (ASX: NVAAB) 55,618 Shares were issued on exercise of 150,000 Options pursuant to the cashless exercise facility under the ESOP Plan. COVID-19 Impact The impact of the Coronavirus (COVID-19) pandemic is ongoing and it is not practicable to estimate the potential impact, positive or negative, after the reporting date. The situation is rapidly developing and is dependent on measures imposed by the Australian Government and other countries, such as maintaining social distancing requirements, quarantine, travel restrictions and any economic stimulus that may be provided. No other matter or circumstance has arisen since 30 June 2022 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. Likely Developments and Expected Results of Operations Information on likely developments in the operations of the consolidated entity and the expected results of operations have not been included in this report because the directors believe it would be likely to result in unreasonable prejudice to the consolidated entity. Environmental Regulation The exploration activities of the Company are conducted in accordance with and controlled principally by government legislation in Alaska, United States of America. The Company has exploration land holdings in Alaska (USA). The Company employs a system for reporting incidents, establishing and communicating accountability, and rating environmental environmental performance. During the year, data on environmental performance was reported as part of the monthly exploration reporting regime. In addition, as required under various state and territory legislation, procedures are in place to ensure that the relevant authorities are notified prior to the commencement of ground disturbing exploration activities. The Company is committed to minimising the impact of its activities on the surrounding environment, while at the same time aiming to maximise the social, environmental and economic returns for the local community. To this end, the environment is a key consideration in our exploration activities and during the rehabilitation of disturbed areas. Generally, rehabilitation occurs immediately following the completion of a particular phase of exploration. In addition, the Company continues to develop and maintain mutually beneficial relationships with the local communities affected by its activities. Nova Minerals Ltd | Annual Report 2022 15 Information on Directors Name: Title: Age: Qualifications: Experience and expertise: Other current directorships: Anna Ladd-Kruger Chair of the Board 52 Certified Public Accountant (CPA, CMA) Ms. Ladd-Kruger was the former Chief Financial Officer (CFO) of McEwen Mining Inc. (TSX: MUX, NYSE: MUX) where she was brought in to strengthen the Company’s executive team leading financial and operational turnaround strategies. She was also key to the McEwen Copper Asset spin out and served as its CFO and director. Ms. Ladd-Kruger was also the previous CFO of Trevali Mining Corporation (TSX: TV), an international base metals mining company. She was part of Trevali’s original executive management team that grew the company from a junior exploration market capitalization of $30 million to a mid-tier base metals producer that reached over $1 billion on the TSX. She has raised over $1 billion US dollars in debt and equity throughout her career in the mining sector. Ms. Ladd-Kruger also served as the CFO and VP Corporate Development for a number of Canadian publicly listed junior mining companies and began her career working at Vale S.A.’s Thompson and Sudbury Canadian operations before joining Kinross Gold Corporation as their North American Group Controller. Ms. Ladd-Kruger currently sits on the board and serves as the Audit Chair of Integra Resources Corp. (TSX: ITR, NYSE: ITRG), and also sits on the board of SilverCrest Metals Inc. (TSX: SIL, NYSE: SILV). She is a Certified Public Accountant (CPA, CMA), holds the Canadian Institute of Corporate Directors designation (ICD.D), a Master’s in Economics from Queen’s University and a Bachelor of Commerce from the University of British Columbia. Integra Resources Corp. (TSX: ITR, NYSE: ITRG), and SilverCrest Metals Inc (TSX: SIL, NYSE: SILV) Former directorships (last 3 yr): Excellon Resources Inc. (TSX: EXN, NYSE: EXN). Interests in shares: Interests in options: Interests in rights: 0 0 0 16 Nova Minerals Ltd | Annual Report 2022 Name: Title: Age: Experience and expertise: Other current directorships: Former directorships (last 3 yr): None Interests in shares: Interests in options: Interests in rights: 200,000 500,000 800,000 Name: Title: Age: Experience and expertise: Christopher Gerstein Executive Director & CEO 49 Mr. Christopher Gerteisen as CEO controls all aspects of the Estelle Gold project while implementing efficiencies and savings to keep cost per discovery ounce well below industry average. Mr. Gerteisen has over 20 years of experience as a professional geologist with an extensive record of managing and advancing complex and challenging resource projects across North America, Australia, and Asia. His work experience spans greenfields from discovery through to production stage and other projects with a focus on commodities including gold and copper. He worked as a geologist on the Carlin Trend in Nevada and on exploration in Alaska with Newmont. He has held senior positions within several projects throughout the goldfields of Western Australia. As a research geologist with Newmont he worked on the Batu Hijau Porhryry Cu-Au deposit technical contributions and management skills, Mr. Gerteisen played a significant role in the successful start-up, operations, and exploration which resulted in further mine-life extending discoveries at several prominent projects in the Australasian region, including Oxiana’s Sepon and PanAust’s Phu Bia in Laos. Mr. Gerteisen holds a Bachelor of Geology from the University of Idaho and a Master’s Degree in Economic Geology from the Western Australia School of Mines. He is a dual USA and Australia Citizen based in Alaska and a member of the Australian Institute of Geoscientists. Viridis Mining and Minerals Limited (ASX: VMM) Indonesia. Most recently, through his in Louie Simens Executive Director 40 Louie Simens has been an Executive Director of Nova since 2017. Mr. Simens is responsible for managing the company’s core business operations which requires oversight of company-wide operational efficiencies and working with management and the board to review and implement strategic plans to facilitate growth. He has extensive experience in capital markets and running businesses, as well as in corporate restructuring, due diligence and mergers & acquisitions, where he utilizes his knowledge of corporate governance and project management. Mr. Simens has a successful track record spanning more than a decade, owning and operating contracting businesses in the fields of both civil and building construction. Mr. Simens is currently director of his family construction group. Mr Simens has also been a Director and Non-Executive Chairman of Snow Lake Resources Ltd. He has also served as Non-Executive Chairman of Asra Minerals Limited , and during his time at Asra, Mr. Simens was instrumental in the company’s recapitalization and turnaround. None Other current directorships: Former directorships (last 3 yr): Asra Minerals Limited (ASX: ASR), Snow Lake Resources Ltd (NASDAQ: Interests in shares: Interests in options: Interests in rights: LITM) 6,534,970 2,000,000 800,000 Nova Minerals Ltd | Annual Report 2022 17 Name: Title: Age: Qualifications: Experience and expertise: Rodrigo Capel Pasqua Non-Executive Director 32 BEng in Mining Engineering Mr Rodrigo Capel Pasqua is a Member of the AusIMM, holds a BEng in Mining Engineering from the University of São Paulo, a Western Australia First Class Mine Managers Certificate and specialisations in Corporate Leadership (University of Oxford), Corporate Strategy (London University) and Finance (University of Illinois and Harvard University). Technically, Mr Capel Pasqua skills encompass most aspects of underground and open pit engineering, going from mining studies, financial valuations and project execution technology implementation, operations management, and technical teams’ supervision. He has vast experience in unlocking the value of mining projects across the world, including specific expertise in large tonnage bulk mining operations and at his tenure at Evolution Mining Limited, as Group Head of Mining and Transformation, amongst many other projects and sites Mr Capel Pasqua was involved with the Cowal Open Pit project and was also instrumental in the Red Lake mine turnaround At Nova Mr Capel Pasqua will provide technical and corporate advice as the Company progresses the development of its flagship Estelle Gold Project in Alaska. Other current directorships: None Former directorships (last 3 yr): None Interests in shares: Interests in options: Interests in rights: to systems and new 0 0 0 Name: Title: Age: Qualifications: Experience and expertise: Craig Bentley Non-Executive Director 52 Bachelor of Commerce and Administration (BCA) degree, majoring in accountancy and commercial law. Mr Craig Bentley holds a Bachelor of Commerce and Administration degree, majoring in accountancy and commercial law. Mr Bentley held positions at Ernst and Young and worked internationally, including on the audit of the Bank of America and a special audit for an insurance company prior to IPO listing in the USA amongst others. In addition, he has over 30 years commercial and finance experience working in senior roles in multinational private enterprises. As part of his role with Nova, Mr Bentley will also be tasked with compliance and risk management, as well as assisting with the company’s strategy during Nova’s forecasted rapid growth period. None Other current directorships: Former directorships (last 3 yr): None Interests in shares: Interests in options: Interests in rights: 1,720,780 0 0 18 Nova Minerals Ltd | Annual Report 2022 Name: Title: Age: Experience and expertise: Avi Geller Non-Executive Director 34 Avi Geller has extensive investment experience and a deep knowledge of corporate finance, including capital markets, venture capital, hybrid, debt and private equity. He served as Chief Investment Officer of Leonite Capital, a family office he co-founded focusing on real estate and capital markets. Mr. Geller also serves as a director of the real estate company Parkit Enterprise Inc (TSX-V: PKT | OTCQX: PKTEF) and the events and technology company Dealflow Financial Products. He previously served as chairman of Axios Mobile Assets. Parkit Enterprise Inc (TSX-V: PKT | OTCQX: PKTEF) Other current directorships: Former directorships (last 3 yr): Interests in shares: Interests in options: Interests in rights: 1,618,985 1,000,000 0 'Other current directorships' quoted above are current directorships for listed entities only and excludes directorships of all other types of entities, unless otherwise stated. 'Former directorships (last 3 years)' quoted above are directorships held in the last 3 years for listed entities only and excludes directorships of all other types of entities, unless otherwise stated. Company Secretary Mr Ian Pamensky was appointed on 18 September 2019 and has over 25 years’ experience in the finance and secretarial sector for both SME and ASX-listed entities. Since 1997, Mr Pamensky has held various roles with ASX-listed companies in a number of sectors. Meetings of Directors The number of meetings of the company's Board of Directors ('the Board') held during the year ended 30 June 2022, and the number of meetings attended by each director were: C Bentley R Pasqua A Geller D Hersham L Simens C Gerteisen C Belshaw Full Board Held Attended 2 1 6 4 7 6 4 Audit and Risk Committee Held Nomination and Remuneration Committee Attended - - - - - - - - - - - - - - 2 1 7 5 7 7 4 Attended - - - - - - - Held - - - - - - - Held: represents the number of meetings held during the time the director held office. Nova Minerals Ltd | Annual Report 2022 19 Remuneration Report (Audited) The remuneration report details the key management personnel remuneration arrangements for the consolidated entity, in accordance with the requirements of the Corporations Act 2001 and its Regulations. Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including all directors. The remuneration report is set out under the following main headings: ● ● ● ● ● Principles used to determine the nature and amount of remuneration Details of remuneration Service agreements Additional information Additional disclosures relating to key management personnel Principles Used to Determine the Nature and Amount of Remuneration The objective of the consolidated entity's executive reward framework is to ensure reward for performance is competitive and appropriate for the results delivered. The framework aligns executive reward with the achievement of strategic objectives and the creation of value for shareholders, and it is considered to conform to the market best practice for the delivery of reward. The Board of Directors ('the Board') ensures that executive reward satisfies the following key criteria for good reward governance practices: ● ● ● ● Competitiveness and reasonableness Acceptability to shareholders Performance linkage / alignment of executive compensation Transparency The Board has not established a formal remuneration committee, having regard to the size of the consolidated entity and its operations. The Board acknowledges that when the size and nature of the Company warrants the necessity of a formal remuneration committee, such a committee will operate under a remuneration committee charter to be approved by the Board. Presently, the Board as a whole, excluding any relevant affected director, serves as a nomination committee to the Company. The reward framework is designed to align executive reward to shareholders' interests. The Board have considered that it should seek to enhance shareholders' interests by: ● Having economic profit as a core component of plan design ● Focusing on sustained growth in shareholder wealth, consisting of dividends and growth in share price, and delivering constant or increasing return on assets as well as focusing the executive on key non- financial drivers of value Attracting and retaining high calibre executives ● Additionally, the reward framework should seek to enhance executives' interests by: ● ● ● Rewarding capability and experience Reflecting competitive reward for contribution to growth in shareholder wealth Providing a clear structure for earning rewards In accordance with best practice corporate governance, the structure of non-executive director and executive director remuneration is separate. Non-Executive Directors Remuneration Fees and payments to non-executive directors reflect the demands and responsibilities of their role. Non- executive directors' fees and payments are reviewed annually by the Nomination and Remuneration Committee. The Nomination and Remuneration Committee may, from time to time, receive advice from independent remuneration consultants to ensure non-executive directors' fees and payments are appropriate and in line with the market. The chairman's fees are determined independently to the fees of other non- executive directors based on comparative roles in the external market. The chairman is not present at any discussions relating to the determination of her own remuneration. Non-executive directors do receive share options or other incentives 20 Nova Minerals Ltd | Annual Report 2022 ASX listing rules require the aggregate non-executive directors' remuneration be determined periodically by a general meeting. The most recent determination was at the Annual General Meeting held on 25 November 2021, where the shareholders approved a maximum annual aggregate remuneration for non-executive directors of $200,000. Executive Remuneration The consolidated entity aims to reward executives based on their position and responsibility, with a level and mix of remuneration which has both fixed and variable components. The executive remuneration and reward framework has four components: ● ● ● ● Base pay and non-monetary benefits Short-term performance incentives Share-based payments Other remuneration such as superannuation and long service leave The combination of these comprises the executive's total remuneration. Voting and comments made at the company's 25 November 2021 Annual General Meeting ('AGM') At the 25 November 2021 AGM, 90.19% of the votes received supported the adoption of the remuneration report for the year ended 30 June 2021. The company did not receive any specific feedback at the AGM regarding its remuneration practices. Details of Remuneration Amounts of remuneration Details of the remuneration of key management personnel of the consolidated entity are set out in the following tables. Short-Term Benefits Post- Employ- ment Long- Term Benefits Share- Based Payments Cash Salary Cash and Fees Bonus Long Service monetary annuation Leave Super- Non- 30 June 2022 $ $ $ $ $ Equity- Settled $ Total $ Non-Executive Directors: C Bentley * R Capel Pasqua * A Geller D Hersham A Ladd-Kruger * 18,000 10,000 60,000 54,000 - Executive Directors: L Simens C Gerteisen 229,400 226,273 597,673 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 48,550 46,705 - - 25,320 66,550 56,705 60,000 54,000 25,320 54,351 283,751 - 54,351 280,624 - - 229,277 826,950 * The options granted are subject to shareholder approval. Nova Minerals Ltd | Annual Report 2022 21 Short-Term Benefits Post- Employ- ment Long- Term Benefits Share- Based Payments Cash salary Cash and fees bonus Non- Super- monetary annuation 30 June 2021 $ $ $ $ Long service leave $ Equity- settled $ Total $ Non-Executive Directors: C Belshaw D Hersham A Geller 45,380 62,000 60,000 Executive Directors: L Simens C Gerteisen 176,000 182,804 526,184 - - - - - - - - - - - - - - - - - - - 45,380 - - 487,894 549,894 60,000 - - - - 176,000 - 487,894 670,698 - 975,788 1,501,972 The proportion of remuneration linked to performance and the fixed proportion are as follows: Name Non-Executive Directors: C Bentley R Capel Pasqua A Geller D Hersham A Ladd-Kruger Executive Directors: L Simens C Gerteisen Service Agreements Percentage Fixed Remuneration Percentage Share-Based Payments 30 June 30 June 30 June 30 June 2022 2021 2022 2021 27% 18% 100% 100% - - - 100% 11% - 73% 82% - - 100% 81% 81% 100% 27% 19% 19% - - - 89% - - 73% Remuneration and other terms of employment for key management personnel are formalised in service agreements. Details of these agreements are as follows: Name: Title: Agreement commenced: Term of agreement: Details: Anna Ladd Kruger Non-Executive Chairman 29 June 2022 The Company has entered into a Non-Executive Director letter agreement with Ms Ladd Kruger on ~ 20 June 2022 . The Company has agreed to pay Ms Ladd Kruger an annual fee of CAD$60,000 (inclusive of superannuation contributions, if applicable) for up to 20 hours per month. Any excess hours will be charged at AUD$185 per hour. Additional Benefits: 250,000 Unquoted Options each with an exercise price of $1.35 expiring 20 May 2023 (NVAUOP10) (Subject to shareholder approval) 22 Nova Minerals Ltd | Annual Report 2022 Name: Title: Agreement commenced: Term of agreement: Details: Name: Title: Agreement commenced: Term of agreement: Details: Rodrigo Capel Pasqua Non-Executive Director 1 May 2022 The Company has entered into a Non-Executive Director letter agreement with Mr Pasqua on ~ 2 May 2022 . The Company has agreed to pay Mr (inclusive of superannuation Pasqua an annual contributions, if applicable) for up to 20 hours per month. Any excess hours will be charged at AUD$300 per hour. Additional Benefits: 250,000 Unquoted Options each with an exercise price of $1.35 expiring 20 May 2023 (NVAUOP10) (Subject to shareholder approval) fee of A$60,000 Craig Bentley Non-Executive Director 18 February 2022 The Company has entered into a Non-Executive Director letter agreement with Mr Bentley on 18 February 2022 2022 . The Company has agreed to pay Mr Bentley an annual fee of A$72,000 (inclusive of superannuation contributions, if applicable). Additional Benefits: 200,000 Unquoted Options each with an exercise price of $2.20 expiring 07 October 2023 (NVAAL) (Subject to shareholder approval) Name: Title: Agreement commenced: Term of agreement: Avi Gellar Non-Executive Director 23 July 2020 The Company has entered into a Non-Executive Director letter agreement with Mr Gellar on ~ 23 July 20202 . The Company has agreed to pay Mr Gellar an annual fee of A$60,000 (inclusive of superannuation contributions, if applicable). Name: Title: Agreement commenced: Term of agreement: Chris Gerteisen Executive Director and CEO 20 April 2022 Mr Gerteisen will receive a salary of $252,000 p.a., which is inclusive of directors' fees and superannuation (if applicable). Termination by Company: The Company must either give Mr Gerteisen's twelve months’ written notice and, at the end of that notice period, make a payment to Mr Gerteisen's equal to his salary over a twelve month period; or otherwise may terminate Mr Gerteisen's employment with immediate effect by paying him the equivalent of his salary over a twelve month period. Termination by Mr Gerteisen Mr Gerteisen may terminate her employment if the Company commits a serious breach of the agreement and does not remedy that breach; or, otherwise, by providing twelve months written notice to the Company. Nova Minerals Ltd | Annual Report 2022 23 Name: Title: Agreement commenced: Term of agreement: Louie Simens Executive Directors 20 April 2022 Mr Simens will receive a salary of $228,000 p.a., which is inclusive of directors' fees and superannuation (if applicable). Termination by Company The Company must either give Mr Simens twelve months’ written notice and, at the end of that notice period, make a payment to Mr Simens equal to his salary over a twelve month period; or otherwise may terminate Mr Simens employment with immediate effect by paying him the equivalent of his salary over a twelve month period. Termination by Mr Simens Mr Simens may terminate her employment if the Company commits a serious breach of the agreement and does not remedy that breach; or, otherwise, by providing twelve months written notice to the Company. Key management personnel have no entitlement to termination payments in the event of removal for misconduct. Additional Information The earnings of the consolidated entity for the five years to 30 June 2022 are summarised below: 2022 $ 2021 $ 2020 $ 2019 $ 2018 $ Revenue Net assets Net profit/(loss) 20,000 11,850 104,329,326 52,580,191 18,036,550 11,119,277 7,428,055 38,097,293 (3,343,467) (4,276,995) (3,146,996) (1,370,786) 104,662 5,572 2,145 The factors that are considered to affect total shareholders return are summarised below: 2022 2021 2020 2019 2018 Basic earnings per share (cents per share) Diluted earnings per share (cents per share) 19.61 (0.20) (0.43) (0.34) (0.20) 19.61 (0.20) (0.43) (0.34) 0.20 Additional Disclosures Relating to Key Management Personnel Shareholding The number of shares in the company held during the financial year by each director and other members of key management personnel of the consolidated entity, including their personally related parties, is set out below: Balance at the Start of the year Received as Part of Remuneration Additions Disposals/ Other Balance at the End of the Year 1,220,780 1,404,615 1,490,312 5,894,370 100,000 10,110,077 - - - 500,000 - 500,000 214,370 143,357 140,600 100,000 500,000 1,098,327 - 1,720,780 - 1,618,985 - 1,633,669 - 6,534,970 - 200,000 - 11,708,404 Ordinary shares C Bentley ** A Geller * D Hersham * L Simens * C Gerteisen * 24 Nova Minerals Ltd | Annual Report 2022 Option Holding The number of options over ordinary shares in the company held during the financial year by each director and other members of key management personnel of the consolidated entity, including their personally related parties, is set out below: Balance at the Start of the Year Granted Balance at Expired/ Forfeited/ the End of Exercised Other the Year - - 1,000,000 - 2,000,000 500,000 3,500,000 200,000 250,000 - 250,000 - - 700,000 - - - - - - - 200,000 - - 250,000 - 1,000,000 - 250,000 - 2,000,000 - 500,000 - 4,200,000 Options over ordinary shares C Bentley ** *** R Pasqua ** *** A Geller * A Ladd-Kruger ** *** L Simens * C Gerteisen * Performance Rights Holding The number of performance rights over ordinary shares in the company held during the financial year by each director and other members of key management personnel of the consolidated entity, including their personally related parties, is set out below: Balance at the start of the year Granted Expired/ Balance at forfeited/ the end of Vested other the year Performance rights over ordinary shares L Simens C Gerteisen Colin Belshaw * 800,000 1,500,000 800,000 - 800,000 - 1,500,000 2,400,000 Opening balance - adjusted for 1:10 consolidation. * ** Opening balance at date of appointment. *** The options granted are subject to shareholder approval. This concludes the remuneration report, which has been audited. Shares Under Option (500,000) (1,000,000) - - 800,000 800,000 800,000 (500,000) (1,000,000) 2,400,000 - - There were no unissued ordinary shares of Nova Minerals Limited under option outstanding at the date of this report. Shares Under Performance Rights There were no unissued ordinary shares of Nova Minerals Limited under performance rights outstanding at the date of this report. Shares Issued on the Exercise of Options There were no ordinary shares of Nova Minerals Limited issued on the exercise of options during the year ended 30 June 2022 and up to the date of this report. Shares Issued on the Exercise of Performance Rights There were no ordinary shares of Nova Minerals Limited issued on the exercise of performance rights during the year ended 30 June 2022 and up to the date of this report. Nova Minerals Ltd | Annual Report 2022 25 Indemnity and Insurance of Officers The company has indemnified the directors and executives of the company for costs incurred, in their capacity as a director or executive, for which they may be held personally liable, except where there is a lack of good faith. During the financial year, the company paid a premium in respect of a contract to insure the directors and executives of the company against a liability to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits disclosure of the nature of the liability and the amount of the premium. Indemnity and Insurance of Auditor The company has not, during or since the end of the financial year, indemnified or agreed to indemnify the auditor of the company or any related entity against a liability incurred by the auditor. During the financial year, the company has not paid a premium in respect of a contract to insure the auditor of the company or any related entity. Proceedings on Behalf of the Company No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of the company, or to intervene in any proceedings to which the company is a party for the purpose of taking responsibility on behalf of the company for all or part of those proceedings. Non-Audit Services Details of the amounts paid or payable to the auditor for non-audit services provided during the financial year by the auditor are outlined in note 17 to the financial statements. The directors are satisfied that the provision of non-audit services during the financial year, by the auditor (or by another person or firm on the auditor's behalf), is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001. The directors are of the opinion that the services as disclosed in note 17 to the financial statements do not compromise the external auditor's independence requirements of the Corporations Act 2001 for the following reasons: ● all non-audit services have been reviewed and approved to ensure that they do not impact the integrity and objectivity of the auditor; and none of the services undermine the general principles relating to auditor independence as set out in APES 110 Code of Ethics for Professional Accountants issued by the Accounting Professional and Ethical Standards Board, including reviewing or auditing the auditor's own work, acting in a management or decision-making capacity for the company, acting as advocate for the company or jointly sharing economic risks and rewards. ● Officers of the Company Who are Former Partners of RSM Australia Partners There are no officers of the company who are former partners of RSM Australia Partners. Auditor's Independence Declaration A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out immediately after this directors' report. Auditor RSM Australia Partners continues in office in accordance with section 327 of the Corporations Act 2001. 26 Nova Minerals Ltd | Annual Report 2022 This report is made in accordance with a resolution of directors, pursuant to section 298(2)(a) of the Corporations Act 2001. On behalf of the directors ___________________________ Anna Ladd-Kruger Chairperson 20 September 2022 Nova Minerals Ltd | Annual Report 2022 27 Nova Minerals Ltd | Annual Report 2022 27 Auditor’s Independence Declaration 28 Nova Minerals Ltd | Annual Report 2022 Financial Statements Consolidated Statement of Profit and Loss and Other Comprehensive Income Consolidated Statement of Financial Position Consolidated Statement of Changes in Equity Consolidated Statement of Cash Flows Notes to the Financial Statements Director’s Declaration Independent Auditor’s Report 31 32 33 35 36 66 67 Nova Minerals Ltd | Annual Report 2022 29 General Information The financial statements cover Nova Minerals Limited as a consolidated entity consisting of Nova Minerals Limited and the entities it controlled at the end of, or during, the year. The financial statements are presented in Australian dollars, which is Nova Minerals Limited's functional and presentation currency. Nova Minerals Limited is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered office and principal place of business is: Suite 602 566 St Kilda Road Melbourne Victoria 3004 Australia A description of the nature of the consolidated entity's operations and its principal activities are included in the directors' report, which is not part of the financial statements. The financial statements were authorised for issue, in accordance with a resolution of directors. The directors have the power to amend and reissue the financial statements. 30 Nova Minerals Ltd | Annual Report 2022 Consolidated Statement of Profit and Loss and Other Comprehensive Income For the Year Ended 30 June 2022 Revenue Interest income Other income Fair value gain on investments Gain from sale of investment Gain from deconsolidation of Snow Lake Resources Loss on disposal on Snow Lake Resources Fair value gain/(loss) on derivative liabilities Impairment of Investment in Snow Lake Resources Foreign exchange gain Share of profits of associate accounted for using equity method Total revenue Expenses Administration expenses Contractors & consultants Share based payments Reclassification of exploration and evaluation assets Finance costs Total expenses Profit/(Loss) Before Income Tax Expense Income tax expense Consolidated 30 June 30 June Note 2022 $ 2021 $ 20,000 2,145 8 8 7 7 7 7 565,317 2,485,131 - 232,596 - 91,778,097 - (9,102,187) 133,649 (1,828,857) - - - 658,419 (45,556,885) 1,533,601 29,088 39,633,276 4 4 25 4 5 (907,623) (2,980,714) (1,693,195) (637,524) (1,200,053) (1,470,936) (98,221) - (102,010) (142,065) (5,230,455) (4,001,886) 34,402,821 (3,343,467) - - Profit/(Loss) After Income Tax Expense for the Year 34,402,821 (3,343,467) Other Comprehensive Income/(Loss) Items that may be reclassified subsequently to profit or loss Foreign currency translation 3,694,472 (957,107) Other comprehensive income/(loss) for the year, net of tax 3,694,472 (957,107) Total Comprehensive Income/(Loss) for the Year 38,097,293 (4,300,574) Profit/(loss) for the year is attributable to: Non-controlling interest Owners of Nova Minerals Limited Total comprehensive income/(loss) for the year is attributable to: Non-controlling interest Owners of Nova Minerals Limited Basic earnings/(loss) per share Diluted earnings/(loss) per share (281,733) (215,597) 34,684,554 (3,127,870) 34,402,821 (3,343,467) 272,558 (357,376) 37,824,735 (3,943,198) 38,097,293 (4,300,574) Cents Cents 24 24 19.61 18.35 (2.01) (2.01) The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes Nova Minerals Ltd | Annual Report 2022 31 Consolidated Statement of Financial Position For the Year Ended 30 June 2022 Assets Current Assets Cash and cash equivalents Trade and other receivables Total current assets Non-Current Assets Investment in associate Other financial assets Property, plant and equipment Exploration and evaluation Total non-current assets Total Assets Liabilities Current Liabilities Trade and other payables Convertible notes Total current liabilities Total Liabilities Net Assets Consolidated 30 June 30 June Note 2022 $ 2021 $ 6 21,278,936 15,516,112 195,012 21,521,417 15,711,124 242,481 7 8 9 10 23,022,266 - 3,963,791 2,942,087 3,118,808 2,370,972 56,702,626 35,843,069 86,807,491 41,156,128 108,328,908 56,867,252 3,999,582 3,424,690 862,371 - 3,999,582 4,287,061 3,999,582 4,287,061 104,329,326 52,580,191 Equity Issued capital Foreign currency reserves Share based-payment reserves Accumulated losses Equity attributable to the owners of Nova Minerals Limited Non-controlling interest 11 12 13 2,226,051 7,309,323 125,713,259 114,922,698 (816,390) 6,733,118 (38,500,932) (74,055,061) 96,747,701 46,784,365 5,795,826 7,581,625 Total Equity 104,329,326 52,580,191 The above consolidated statement of financial position should be read in conjunction with the accompanying notes 32 Nova Minerals Ltd | Annual Report 2022 Consolidated Statement of Changes in Equity For the Year Ended 30 June 2021 Share Based Payment Foreign Currency Reserves Reserves Issued Capital Consolidated $ $ $ Non- Controll- ing Interest $ Accumulated Losses $ Total Equity $ Balance at 1 July 2020 78,401,191 4,468,607 28,854 (67,386,819) 2,528,017 18,039,850 Loss after income tax expense for the year Other comprehensive income/(loss) for the year, net of tax Total comprehensive income/(loss) for the year Movement in non- controlling interest due to increase in issued capital of AKCM Pty Ltd Transactions with owners in their capacity as owners: Share issued for cash (Note 11) Options converted (Note 11) Issue of shares as part of derivative security (Note 11) Share issue costs (Note 11) Convertible (Note19) Share-based payments (Note 19) Share buy back - - - - - - (3,127,870) (215,597) (3,343,467) - (815,328) - (141,779) (957,107) - (815,328) (3,127,870) (357,376) (4,300,574) - (29,916) (3,540,372) 3,625,185 54,897 21,000,000 15,441,257 - - 3,142,857 (2,065,589) - - - 81,031 - (997,018) 2,183,480 - - - - - - - - - - - - - - - - 21,000,000 - 15,441,257 - 3,142,857 - (2,065,589) 81,031 - - - 2,183,480 (997,018) Balance at 30 June 2021 114,922,698 6,733,118 (816,390) (74,055,061) 5,795,826 52,580,191 The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes Nova Minerals Ltd | Annual Report 2022 33 Consolidated Statement of Changes in Equity (Continued) For the Year Ended 30 June 2022 Share Based Payments Foreign Currency Reserves Reserves Issued Capital Consolidated $ $ $ Accumulate d Losses $ Non- Controll- ing Interest $ Total Equity $ Balance at 1 July 2021 114,922,698 6,733,118 (816,390) (74,055,061) 5,795,826 52,580,191 Profit/(loss) after income tax expense for the year Other comprehensive income/(loss) for the year, net of tax Total comprehensive income/(loss) for the year Movement in non- controlling interest due to increase in issued capital of AKCM Pty Ltd Movement in equity of Snow Lake Resources due to loss of control - - - - - - 34,684,554 (281,733) 34,402,821 - 3,140,181 - 554,291 3,694,472 - 3,140,181 34,684,554 272,558 38,097,293 - 144,086 (3,029,107) 2,897,325 12,304 - (1,043,848) (241,826) 3,898,683 (1,384,085) 1,228,924 12,000,000 Transactions with owners in their capacity as owners: Issue of shares for cash (Note 11) Exercise of performance rights (Note 11) Share issue costs (Note 11) Share options expense for period (Note 25) Performance rights granted (Note 25) 312,000 (1,521,439) - - 1,457,000 163,053 - - - - - - - - - - - - - - 12,000,000 - - 312,000 (1,521,439) - - 1,457,000 163,053 Balance at 30 June 2022 125,713,259 7,309,323 2,226,051 (38,500,931) 7,581,624 104,329,326 The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes 34 Nova Minerals Ltd | Annual Report 2022 Consolidated Statement of Cash Flows For the Year Ended 30 June 2022 Consolidated 30 June 30 June Note 2022 $ 2021 $ Cash Flows from Operating Activities Payments to suppliers and employees (inclusive of GST) Interest received Interest and other finance costs paid (2,849,722) (2,161,971) 26,957 - (3,322) (6,039) Net cash used in operating activities 23 (2,855,761) (2,138,336) Cash Flows from Investing Activities Payments for property, plant and equipment Payments for exploration and evaluation Loans to Snow Lake Resources Loans to other entity Loans to related party Payments to acquire investments Proceeds from disposal of Investments Loss of cash due to deconsolidation of Snow Lake Resources (1,055,878) (1,028,055) (24,799,177) (20,015,645) - - (219,052) (200,000) 407,225 - 274,342 10,000 41,814 (648,988) 22,279,880 (59,719) Net cash used in investing activities (3,957,726) (21,055,527) Cash Flows from Financing Activities Proceeds from issue of shares Proceeds from Issue of derivative financial liability Proceeds from exercise of options Payments for share buy-backs Share issue transaction costs Net cash from financing activities Net increase in cash and cash equivalents Cash and cash equivalents at the beginning of the financial year Effects of exchange rate changes on cash and cash equivalents 11 12,000,000 21,110,883 - 805,000 - 15,446,247 (997,018) - (846,964) (1,481,130) 11,153,036 34,883,982 4,339,549 11,690,119 15,516,112 4,197,220 (371,227) 1,423,275 Cash and Cash Equivalents at the End of the Financial Year 21,278,936 15,516,112 The above consolidated statement of cash flows should be read in conjunction with the accompanying notes Nova Minerals Ltd | Annual Report 2022 35 Notes to the Financial Statements Note 1: Significant Accounting Policies Note 2: Critical Accounting Judgements, Estimates and Assumptions Note 3: Operating Segments Note 4: Expenses Note 5: Income Tax Expense Note 6: Current Assets – Trade and Other Receivables Note 7: Non-Current Assets – Investment in Associate Note 8: Non-Current Assets – Other Financial Assets Note 9: Non-Current Assets – Property, Plant and Equipment Note 10: Non-Current Assets – Exploration and Evaluation Note 11: Equity – Issued Capital Note 12: Equity – Share Based-Payment Reserves Note 13: Equity – Non-Controlling Interest Note 14: Financial Instruments Note 15: Fair Value Measurements Note 16: Key Management Personnel Disclosures Note 17: Remuneration of Auditors Note 18: Contingent Liabilities Note 19: Related Party Transactions Note 20: Parent Entity Information Note 21: Interests in Subsidiaries Note 22: Events After the Reporting Period Note 23: Reconciliation of Profit/(Loss) After Income Tax to Net Cash Used in Operating Activities Note 24: Earnings/(Loss) Per Share Note 25: Share-Based Payments 37 45 46 47 47 48 48 49 50 51 51 52 52 53 55 55 56 56 56 57 58 59 60 61 61 36 Nova Minerals Ltd | Annual Report 2022 Notes to the Consolidated Financial Statements For the Year Ended 30 June 2022 Note 1 Significant 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. New or Amended Accounting Standards and Interpretations Adopted The consolidated entity has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period. Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted. The adoption of these Accounting Standards and Interpretations did not have any significant impact on the financial performance or position of the consolidated entity. The following Accounting Standards and Interpretations are most relevant to the consolidated entity: AASB 10 Consolidated Financial Statements The consolidated entity has applied AASB 10 from 1 January 2013, which has a new definition of 'control'. Control exists when the reporting entity is exposed, or has the rights, to variable returns from its involvement with another entity and has the ability to affect those returns through its 'power' over that other entity. A reporting entity has power when it has rights that give it the current ability to direct the activities that significantly affect the investee's returns. The consolidated entity not only has to consider its holdings and rights but also the holdings and rights of other shareholders in order to determine whether it has the necessary power for consolidation purposes. Basis of Preparation These general-purpose financial statements have been prepared in accordance with Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') and the Corporations Act 2001, as appropriate for for-profit oriented entities. These financial statements also comply with International Financial Reporting Standards as issued by the International Accounting Standards Board ('IASB'). Historical Cost Convention The financial statements have been prepared under the historical cost convention, except for, where applicable, the revaluation of financial assets and liabilities at fair value through profit or loss, financial assets at fair value through other comprehensive income, investment properties, certain classes of property, plant and equipment and derivative financial instruments. Critical Accounting Estimates The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the consolidated entity's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in note 2. Parent Entity Information In accordance with the Corporations Act 2001, these financial statements present the results of the consolidated entity only. Supplementary information about the parent entity is disclosed in note 20. Nova Minerals Ltd | Annual Report 2022 37 Principles of Consolidation The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Nova Minerals Limited ('company' or 'parent entity') as at 30 June 2022 and the results of all subsidiaries for the year then ended. Nova Minerals Limited and its subsidiaries together are referred to in these financial statements as the 'consolidated entity'. Subsidiaries are all those entities over which the consolidated entity has control. The consolidated entity controls an entity when the consolidated entity is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the consolidated entity. They are de-consolidated from the date that control ceases. Intercompany transactions, balances, and unrealised gains on transactions between entities in the consolidated entity are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the consolidated entity. The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in ownership interest, without the loss of control, is accounted for as an equity transaction, where the difference between the consideration transferred and the book value of the share of the non-controlling interest acquired is recognised directly in equity attributable to the parent. Non-controlling interest in the results and equity of subsidiaries are shown separately in the statement of profit or loss and other comprehensive income, statement of financial position and statement of changes in equity of the consolidated entity. Losses incurred by the consolidated entity are attributed to the non-controlling interest in full, even if that results in a deficit balance. Where the consolidated entity loses control over a subsidiary, it derecognises the assets including goodwill, liabilities, and non-controlling interest in the subsidiary together with any cumulative translation differences recognised in equity. The consolidated entity recognises the fair value of the consideration received and the fair value of any investment retained together with any gain or loss in profit or loss. Operating Segments Operating segments are presented using the 'management approach', where the information presented is on the same basis as the internal reports provided to the Chief Operating Decision Makers ('CODM'). The CODM is responsible for the allocation of resources to operating segments and assessing their performance. Foreign Currency Translation The financial statements are presented in Australian dollars, which is Nova Minerals Limited's functional and presentation currency. Foreign Currency Transactions Foreign currency transactions are translated into Australian dollars 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 financial year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss. Foreign Operations The assets and liabilities of foreign operations are translated into Australian dollars using the exchange rates at the reporting date. The revenues and expenses of foreign operations are translated into Australian dollars using the average exchange rates, which approximate the rates at the dates of the transactions, for the period. All resulting foreign exchange differences are recognised in other comprehensive income through the foreign currency reserve in equity. The foreign currency reserve is recognised in profit or loss when the foreign operation or net investment is disposed of. 38 Nova Minerals Ltd | Annual Report 2022 Revenue Recognition The consolidated entity recognises revenue as follows: Interest Interest revenue is recognised as interest accrues using the effective interest method. This is a method of calculating the amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net carrying amount of the financial asset. Income Tax The income tax expense or benefit for the period is the tax payable on that period's taxable income based on the applicable income tax rate for each jurisdiction, adjusted by the changes in deferred tax assets and liabilities attributable to temporary differences, unused tax losses and the adjustment recognised for prior periods, where applicable. Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to be applied when the assets are recovered or liabilities are settled, based on those tax rates that are enacted or substantively enacted, except for: ● When the deferred income tax asset or liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting nor taxable profits; or When the taxable temporary difference is associated with interests in subsidiaries, associates or joint ventures, and the timing of the reversal can be controlled, and it is probable that the temporary difference will not reverse in the foreseeable future. ● Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses. The carrying amount of recognised and unrecognised deferred tax assets are reviewed at each reporting date. Deferred tax assets recognised are reduced to the extent that it is no longer probable that future taxable profits will be available for the carrying amount to be recovered. Previously unrecognised deferred tax assets are recognised to the extent that it is probable that there are future taxable profits available to recover the asset. Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current tax assets against current tax liabilities and deferred tax assets against deferred tax liabilities; and they relate to the same taxable authority on either the same taxable entity or different taxable entities which intend to settle simultaneously. Nova Minerals Limited (the 'head entity') and its wholly owned Australian subsidiaries have formed an income tax consolidated group under the tax consolidation regime. The head entity and each subsidiary in the tax consolidated group continue to account for their own current and deferred tax amounts. The tax consolidated group has applied the 'separate taxpayer within group' approach in determining the appropriate amount of taxes to allocate to members of the tax consolidated group. In addition to its own current and deferred tax amounts, the head entity also recognises the current tax liabilities (or assets) and the deferred tax assets arising from unused tax losses and unused tax credits assumed from each subsidiary in the tax consolidated group. Assets or liabilities arising under tax funding agreements with the tax consolidated entities are recognised as amounts receivable from or payable to other entities in the tax consolidated group. The tax funding arrangement ensures that the intercompany charge equals the current tax liability or benefit of each tax consolidated group member, resulting in neither a contribution by the head entity to the subsidiaries nor a distribution by the subsidiaries to the head entity. Current and Non-Current Classification Assets and liabilities are presented in the statement of financial position based on current and non-current classification. Nova Minerals Ltd | Annual Report 2022 39 An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the consolidated entity's normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within 12 months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current. A liability is classified as current when: it is either expected to be settled in the consolidated entity's normal operating cycle; it is held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities are classified as non-current. Deferred tax assets and liabilities are always classified as non-current. Cash and Cash Equivalents Cash and cash equivalents include cash on hand, deposits held at call with financial institutions, other short- term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. For the statement of cash flows presentation purposes, cash and cash equivalents also includes bank overdrafts, which are shown within borrowings in current liabilities on the statement of financial position. Cash and cash equivalents include cash on hand, deposits held at call with financial institutions, other short- term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Trade and Other Receivables Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less any allowance for expected credit losses. Trade receivables are generally due for settlement within 30 days. Other receivables are recognised at amortised cost, less any allowance for expected credit losses. Derivative Financial Instruments Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured to their fair value at each reporting date. The accounting for subsequent changes in fair value depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged. Associates Associates are entities over which the consolidated entity has significant influence but not control or joint control. Investments in associates are accounted for using the equity method. Under the equity method, the share of the profits or losses of the associate is recognised in profit or loss and the share of the movements in equity is recognised in other comprehensive income. Investments in associates are carried in the statement of financial position at cost plus post-acquisition changes in the consolidated entity's share of net assets of the associate. Goodwill relating to the associate is included in the carrying amount of the investment and is neither amortised nor individually tested for impairment. Dividends received or receivable from associates reduce the carrying amount of the investment. When the consolidated entity's share of losses in an associate equal or exceeds its interest in the associate, including any unsecured long-term receivables, the consolidated entity does not recognise further losses, unless it has incurred obligations or made payments on behalf of the associate. The consolidated entity discontinues the use of the equity method upon the loss of significant influence over the associate and recognises any retained investment at its fair value. Any difference between the associate's carrying amount, fair value of the retained investment and proceeds from disposal is recognised in profit or loss. 40 Nova Minerals Ltd | Annual Report 2022 Investments and Other Financial Assets Investments and other financial assets are initially measured at fair value. Transaction costs are included as part of the initial measurement, except for financial assets at fair value through profit or loss. Such assets are subsequently measured at either amortised cost or fair value depending on their classification. Classification is determined based on both the business model within which such assets are held and the contractual cash flow characteristics of the financial asset unless an accounting mismatch is being avoided. Financial assets are derecognised when the rights to receive cash flows have expired or have been transferred and the consolidated entity has transferred substantially all the risks and rewards of ownership. When there is no reasonable expectation of recovering part or all of a financial asset, it's carrying value is written off. Financial Assets at Amortised Cost A financial asset is measured at amortised cost only if both of the following conditions are met: (i) it is held within a business model whose objective is to hold assets in order to collect contractual cash flows; and (ii) the contractual terms of the financial asset represent contractual cash flows that are solely payments of principal and interest. Financial Assets at Fair Value Through Profit or Loss Financial assets not measured at amortised cost or at fair value through other comprehensive income are classified as financial assets at fair value through profit or loss. Typically, such financial assets will be either: (i) held for trading, where they are acquired for the purpose of selling in the short-term with an intention of making a profit, or a derivative; or (ii) designated as such upon initial recognition where permitted. Fair value movements are recognised in profit or loss. Impairment of Financial Assets The consolidated entity recognises a loss allowance for expected credit losses on financial assets which are either measured at amortised cost or fair value through other comprehensive income. The measurement of the loss allowance depends upon the consolidated entity's assessment at the end of each reporting period as to whether the financial instrument's credit risk has increased significantly since initial recognition, based on reasonable and supportable information that is available, without undue cost or effort to obtain. Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12-month expected credit loss allowance is estimated. This represents a portion of the asset's lifetime expected credit losses that is attributable to a default event that is possible within the next 12 months. Where a financial asset has become credit impaired or where it is determined that credit risk has increased significantly, the loss allowance is based on the asset's lifetime expected credit losses. The amount of expected credit loss recognised is measured on the basis of the probability weighted present value of anticipated cash shortfalls over the life of the instrument discounted at the original effective interest rate. For financial assets mandatorily measured at fair value through other comprehensive income, the loss allowance is recognised in other comprehensive income with a corresponding expense through profit or loss. In all other cases, the loss allowance reduces the asset's carrying value with a corresponding expense through profit or loss. Property, Plant and Equipment Plant and equipment is stated at historical cost less accumulated depreciation and impairment. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Depreciation is calculated on a straight-line basis to write off the net cost of each item of property, plant and equipment (excluding land) over their expected useful lives as follows: Plant and equipment 5-10 years The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting date. Nova Minerals Ltd | Annual Report 2022 41 An item of property, plant and equipment is derecognised upon disposal or when there is no future economic benefit to the consolidated entity. Gains and losses between the carrying amount and the disposal proceeds are taken to profit or loss. Exploration and Evaluation Exploration and evaluation expenditure in relation to separate areas of interest for which rights of tenure are current is carried forward as an asset in the statement of financial position where it is expected that the expenditure will be recovered through the successful development and exploitation of an area of interest, or by its sale; or exploration activities are continuing in an area and activities have not reached a stage which permits a reasonable estimate of the existence or otherwise of economically recoverable reserves. Where a project or an area of interest has been abandoned, the expenditure incurred thereon is written off in the year in which the decision is made. When production commences, the accumulated costs for the relevant area of interest are amortised over the life of the area according to the rate of depletion of the economically recoverable reserves. A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry forward costs in relation to that area of interest. Trade and Other Payables These amounts represent liabilities for goods and services provided to the consolidated entity prior to the end of the financial year and which are unpaid. Due to their short-term nature they are measured at amortised cost and are not discounted. Borrowings Loans and borrowings are initially recognised at the fair value of the consideration received, net of transaction costs. They are subsequently measured at amortised cost using the effective interest method. The component of the convertible notes that exhibits characteristics of a liability is recognised as a liability in the statement of financial position, net of transaction costs. On the issue of the convertible notes the fair value of the liability component is determined using a market rate for an equivalent non-convertible bond and this amount is carried as a non-current liability on the amortised cost basis until extinguished on conversion or redemption. The increase in the liability due to the passage of time is recognised as a finance cost. The remainder of the proceeds are allocated to the conversion option that is recognised and included in shareholders equity as a convertible note reserve, net of transaction costs. The carrying amount of the conversion option is not remeasured in the subsequent years. The corresponding interest on convertible notes is expensed to profit or loss. Finance Costs Finance costs attributable to qualifying assets are capitalised as part of the asset. All other finance costs are expensed in the period in which they are incurred. Employee Benefits Short-Term Employee Benefits Liabilities for wages and salaries, including non-monetary benefits, annual leave, long service leave and accumulating sick leave expected to be settled wholly within 12 months of the reporting date are measured at the amounts expected to be paid when the liabilities are settled. Non-accumulating sick leave is expensed to profit or loss when incurred. 42 Nova Minerals Ltd | Annual Report 2022 Other Long-Term Employee Benefits The liability for annual leave and long service leave not expected to be settled within 12 months of the reporting date are measured at the present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the reporting date on high quality corporate bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows. Termination Benefits Termination benefits are recognised when a detailed plan of termination has been communicated to affected employees. They are measured as short-term employee benefits when expected to be settled wholly within 12 months of the reporting date or as long-term benefits when not expected to be settled within 12 months of the reporting date. Retirement Benefit Obligations All employees of the consolidated entity are entitled to benefits from the consolidated entity's superannuation plan on retirement, disability or death. The consolidated entity has a defined benefit section and a defined contribution section within its plan. The defined benefit section provides defined lump sum benefits based on years of service and final average salary. The defined contribution section receives fixed contributions from entities in the consolidated entity and the consolidated entity's legal or constructive obligation is limited to these contributions. A liability or asset in respect of defined benefit superannuation plans is recognised in the statement of financial position, and is measured at the present value of the defined benefit obligation at the reporting date less the fair value of the superannuation fund's assets at that date and any unrecognised past service cost. The present value of the defined benefit obligation is based on expected future payments which arise from membership of the fund to the reporting date, calculated annually by independent actuaries using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the reporting date on high quality corporate bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised, in the period in which they occur, in other comprehensive income. Past service costs are recognised immediately in profit or loss, unless the changes to the superannuation fund are conditional on the employees remaining in service for a specified period of time ('the vesting period'). In this case, the past service costs are amortised on a straight-line basis over the vesting period. Share-Based Payments Equity-settled and cash-settled share-based compensation benefits are provided to employees and advisors. Equity-settled transactions are awards of shares, or options over shares, that are provided to employees in exchange for the rendering of services. Cash-settled transactions are awards of cash for the exchange of services, where the amount of cash is determined by reference to the share price. The cost of equity-settled transactions are measured at fair value on grant date. Fair value is independently determined using either the Binomial or Black-Scholes option pricing model that takes into account the exercise price, the term of the option, the impact of dilution, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option, together with non-vesting conditions that do not determine whether the consolidated entity receives the services that entitle the employees to receive payment. No account is taken of any other vesting conditions. Nova Minerals Ltd | Annual Report 2022 43 The cost of equity-settled transactions are recognised as an expense with a corresponding increase in equity over the vesting period. The cumulative charge to profit or loss is calculated based on the grant date fair value of the award, the best estimate of the number of awards that are likely to vest and the expired portion of the vesting period. The amount recognised in profit or loss for the period is the cumulative amount calculated at each reporting date less amounts already recognised in previous periods. The cost of cash-settled transactions is initially, and at each reporting date until vested, determined by applying either the Binomial or Black-Scholes option pricing model, taking into consideration the terms and conditions on which the award was granted. The cumulative charge to profit or loss until settlement of the liability is calculated as follows: ● during the vesting period, the liability at each reporting date is the fair value of the award at that date multiplied by the expired portion of the vesting period. from the end of the vesting period until settlement of the award, the liability is the full fair value of the liability at the reporting date. ● All changes in the liability are recognised in profit or loss. The ultimate cost of cash-settled transactions is the cash paid to settle the liability. Market conditions are taken into consideration in determining fair value. Therefore any awards subject to market conditions are considered to vest irrespective of whether or not that market condition has been met, provided all other conditions are satisfied. If equity-settled awards are modified, as a minimum an expense is recognised as if the modification has not been made. An additional expense is recognised, over the remaining vesting period, for any modification that increases the total fair value of the share-based compensation benefit as at the date of modification. If the non-vesting condition is within the control of the consolidated entity or employee, the failure to satisfy the condition is treated as a cancellation. If the condition is not within the control of the consolidated entity or employee and is not satisfied during the vesting period, any remaining expense for the award is recognised over the remaining vesting period, unless the award is forfeited. If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and any remaining expense is recognised immediately. If a new replacement award is substituted for the cancelled award, the cancelled and new award is treated as if they were a modification. Fair Value Measurement When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure purposes, the fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; and assumes that the transaction will take place either: in the principal market; or in the absence of a principal market, in the most advantageous market. Fair value is measured using the assumptions that market participants would use when pricing the asset or liability, assuming they act in their economic best interests. For non-financial assets, the fair value measurement is based on its highest and best use. Valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, are used, maximising the use of relevant observable inputs and minimising the use of unobservable inputs. Assets and liabilities measured at fair value are classified into three levels, using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. Classifications are reviewed at each reporting date and transfers between levels are determined based on a reassessment of the lowest level of input that is significant to the fair value measurement. For recurring and non-recurring fair value measurements, external valuers may be used when internal expertise is either not available or when the valuation is deemed to be significant. External valuers are selected based on market knowledge and reputation. Where there is a significant change in fair value of an asset or liability from one period to another, an analysis is undertaken, which includes a verification of the major inputs applied in the latest valuation and a comparison, where applicable, with external sources of data. 44 Nova Minerals Ltd | Annual Report 2022 Issued Capital Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds. Earnings per share Basic Earnings Per Share Basic earnings per share is calculated by dividing the profit attributable to the owners of Nova Minerals Limited, excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the financial year. Diluted Earnings Per Share Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares. Goods and Services Tax ('GST') and Other Similar Taxes Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the tax authority. In this case it is recognised as part of the cost of the acquisition of the asset or as part of the expense. Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the tax authority is included in other receivables or other payables in the statement of financial position. Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to the tax authority, are presented as operating cash flows. Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the tax authority. New Accounting Standards and Interpretations Not Yet Mandatory or Early Adopted Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory, have not been early adopted by the consolidated entity for the annual reporting period ended 30 June 2022. The consolidated entity has not yet assessed the impact of these new or amended Accounting Standards and Interpretations. Note 2. Critical Accounting Judgements, Estimates and Assumptions The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and assumptions on historical experience and on other various factors, including expectations of future events, management believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will seldom equal the related actual results. The judgements, estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within the next financial year are discussed below. Nova Minerals Ltd | Annual Report 2022 45 Coronavirus (COVID-19) Pandemic Judgement has been exercised in considering the impacts that the Coronavirus (COVID-19) pandemic has had, or may have, on the consolidated entity based on known information. This consideration extends to the nature of the products and services offered, customers, supply chain, staffing and geographic regions in which the consolidated entity operates. Other than as addressed in specific notes, there does not currently appear to be either any significant impact upon the financial statements or any significant uncertainties with respect to events or conditions which may impact the consolidated entity unfavourably as at the reporting date or subsequently as a result of the Coronavirus (COVID-19) pandemic. Share-Based Payment Transactions The consolidated entity measures the cost of equity-settled transactions with employees by reference to the fair value of the equity instruments at the date at which they are granted. The fair value is determined by using either the Binomial or Black-Scholes model taking into account the terms and conditions upon which the instruments were granted. The accounting estimates and assumptions relating to equity-settled share-based payments would have no impact on the carrying amounts of assets and liabilities within the next annual reporting period but may impact profit or loss and equity. The allowance for expected credit losses assessment requires a degree of estimation and judgement. It is based on the lifetime expected credit loss, grouped based on days overdue, and makes assumptions to allocate an overall expected credit loss rate for each group. These assumptions include recent sales experience and historical collection rates. Fair Value Measurement Hierarchy The consolidated entity is required to classify all assets and liabilities, measured at fair value, using a three level hierarchy, based on the lowest level of input that is significant to the entire fair value measurement, being: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date; Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and Level 3: Unobservable inputs for the asset or liability. Considerable judgement is required to determine what is significant to fair value and therefore which category the asset or liability is placed in can be subjective. The fair value of assets and liabilities classified as level 3 is determined by the use of valuation models. These include discounted cash flow analysis or the use of observable inputs that require significant adjustments based on unobservable inputs. Estimation of Useful Lives of Assets The consolidated entity determines the estimated useful lives and related depreciation and amortisation charges for its property, plant and equipment and finite life intangible assets. The useful lives could change significantly as a result of technical innovations or some other event. The depreciation and amortisation charge will increase where the useful lives are less than previously estimated lives, or technically obsolete or non-strategic assets that have been abandoned or sold will be written off or written down. Exploration and Evaluation Costs Exploration and evaluation costs have been capitalised on the basis that the consolidated entity will commence commercial production in the future, from which time the costs will be amortised in proportion to the depletion of the mineral resources. Key judgements are applied in considering costs to be capitalised which includes determining expenditures directly related to these activities and allocating overheads between those that are expensed and capitalised. In addition, costs are only capitalised that are expected to be recovered either through successful development or sale of the relevant mining interest. Factors that could impact the future commercial production at the mine include the level of reserves and resources, future technology changes, which could impact the cost of mining, future legal changes and changes in commodity prices. To the extent that capitalised costs are determined not to be recoverable in the future, they will be written off in the period in which this determination is made. Note 3. Operating Segments Operating segment information is disclosed on the same basis as information used for internal reporting purposes 46 Nova Minerals Ltd | Annual Report 2022 At regular intervals, the board is provided management information for the Company’s cash position, the carrying values of exploration permits and Company cash forecast for the next twelve months of operation. On this basis, the board considers the consolidated entity operates in one segment being exploration of minerals and two geographical areas, being Australia and United States. For the 30 June 2022 period the Canadian assets relate to the investment in associate and the exploration asset as been eliminated due to the deconsolidation. Geographical Information Interest Income Geographical Non- Current Assets 30 June 30 June 30 June 30 June 2022 $ 2021 $ 2022 $ 2021 $ 20,000 - - 1,800 4,527,957 2,734,349 - 23,022,266 8,674,650 313 59,257,269 29,747,129 20,000 2,113 86,807,492 41,156,128 Australia Canada United States Note 4. Expenses Profit/(loss) before income tax includes the following specific expenses: Depreciation Superannuation Corporate and Consultants Finance Charges Note 5. Income Tax Expense Consolidated 30 June 30 June 2022 $ 2021 $ 350,873 2,291 907,623 142,065 205,736 7,270 637,524 102,010 1,402,852 952,540 Consolidated 30 June 30 June 2022 $ 2021 $ Numerical reconciliation of income tax expense and tax at the statutory rate Profit/(loss) before income tax expense 34,402,821 (3,343,467) Tax at the statutory tax rate of 25% (2021: 26%) 8,600,705 (869,301) Tax effect amounts which are not deductible/(taxable) in calculating taxable income: Share-based payments Share of profits - associates Reclassification of Exploration and Evaluation Assets Current year temporary differences not recognised Income tax expense 300,013 (7,272) - 382,443 - 25,537 8,893,446 (8,893,446) (461,321) 461,321 - - Nova Minerals Ltd | Annual Report 2022 47 Tax losses not recognised Unused tax losses for which no deferred tax asset has been recognised Potential tax benefit @ 25% Consolidated 30 June 30 June 2022 $ 2021 $ 19,808,028 28,701,474 4,952,007 7,175,369 The tax losses do not expire under current tax legislation. Deferred tax assets have not been recognised in respect of these items because it is not probable that future taxable profit will be available against which the Company can utilise the benefits. These tax losses are also subject to final determination by the taxation authorities when the company derives taxable income. The tax losses are subject to further review to determine if they satisfy the necessary legislative requirements under Income Tax legislation for carry forward and recoupment of tax losses. Note 6. Current Assets - Trade and Other Receivables Other receivable Placement funds receivable Rent bond Prepayments GST receivable Consolidated 30 June 30 June 2022 $ 2021 $ 29,216 - 5,830 64,575 142,860 - 55,023 5,830 152,768 (18,609) 242,481 195,012 The Company’s exposure to credit risk related to trade and other receivables are disclosed in note 14. Note 7. Non-Current Assets - Investment in Associate Consolidated 30 June 2022 $ 30 June 2021 $ Investment in Snow Lake Resources 23,022,266 - Reconciliation Reconciliation of the carrying amounts at the beginning and end of the current and previous financial year are set out below: Opening carrying amount Fair value of Snow Lake Resources investment at date of deconsolidation Disposals Loss on disposal on Snow Lake Resources Share of Snow Lake Resources profits for period Impairment of investment in Snow Lake Resources Closing carrying amount 48 Nova Minerals Ltd | Annual Report 2022 - 99,709,182 (22,056,932) (9,102,187) 29,088 (45,556,885) 23,022,266 - - - - - - - Gain on sale and deconsolidation of Snow Lake Resources Fair value of Snow Lake Resources investment at date of deconsolidation Less carrying value of net assets on deconsolidation Gain on sale and deconsolidation of Snow Lake Resources Consolidated 30 June 30 June 2022 $ 2021 $ 99,709,182 (7,931,084) 91,778,098 - - - On the 23 November 2021 Nova Minerals’ 73.8% owned subsidiary Snow Lake Resources completed an initial public offering on the NASDAQ stock exchange. Following the flotation Nova’s shareholding in Snow Lake Resources was reduced to 54.5% and 46.1% on a fully diluted basis. As a result of the shareholding dilution, as well as the company having limited oversight in management of the Snow Lake Resources, the directors of Nova Minerals determined the company had lost control of its subsidiary as at 23 November 2021. In line with AASB 10 Consolidated Financial Statements Nova Minerals therefore derecognised the assets and liabilities of the Snow Lake Resources group in its consolidated statement of financial position as at 23 November 2021, generating a loss on deconsolidation recognised in the consolidated profit and loss statement of the group in the period. Nova Minerals was determined by the directors to retain significant influence over Snow Lake Resources and therefore Nova Mineral’s remaining interest in Snow Lake Resources has been recognised as an investment in an associate at fair value as at the date of control loss and the equity method of investment accounting applied. The initial fair value of the investment recognised on deconsolidation was determined as being Nova Minerals shareholding in Snow Lake Resources at the initial public offering price of $7.50 USD. On the 12 April 2022 Nova Minerals sold 3,000,000 Snow Lake shares at $5.49 USD after costs, resulting in a $9,102,187 AUD loss. Following the sale of shares, Nova’s shareholding in Snow Lake Resources was reduced to 37.5% and 31.7% on a fully diluted basis. As of the 30 June 2022, the board has determined the shares in Snow Lake Resources should be impaired due to a fall in the share price. As of the 30 June 2022 the fair value of the investment recognised was determined as being Nova's shareholding of 6,600,000 shares in Snow Lake Resources at $2.40 USD resulting in an impairment of $45,556,885. Note 8. Non-Current Assets - Other Financial Assets Investments in Asra Minerals Limited at fair value Loans granted to related parties note 19 Consolidated 30 June 30 June 2022 $ 2021 $ 3,797,443 2,734,349 207,738 166,348 3,963,791 2,942,087 Nova Minerals Ltd | Annual Report 2022 49 Reconciliation Investments at fair value Reconciliation of the carrying amounts at the beginning and end of the current and previous financial year are set out below: Opening balance Addition Conversion of Asra Minerals convertible note and interest Aara Minerals Shares Asra Minerals Options Disposal AX8 shares Asra Minerals Shares Gain on disposal Asra Minerals shares Movement in fair value Asra Minerals Shares Asra Minerals ASROB options Consolidated 30 June 30 June 2022 $ 2021 $ 2,734,349 30,719 - 495,590 46,509 - (238,927) 425,725 200,000 - - (93,623) - 232,596 62,904 62,238 2,108,624 - 465,088 Closing fair value 3,797,443 2,734,349 The Investment in Asra Minerals Limited comprises shares and options held by the group measured at fair value. The group shareholding in Asra Minerals comprises 8.75% ownership. Note 9. Non-Current Assets - Property, Plant and Equipment Consolidated 30 June 30 June 2022 $ 2021 $ 3,854,410 2,729,709 (358,737) (735,602) 3,118,808 2,370,972 Consolidated 30 June 30 June 2022 $ 2021 $ 2,370,972 1,258,034 937,981 1,379,500 (60,824) 156,683 (205,738) (346,828) 3,118,808 2,370,972 Plant and equipment - at cost Less: Accumulated depreciation Reconciliations Opening balance Additions Foreign exchange movement Depreciation expense Carrying amount at end of period 50 Nova Minerals Ltd | Annual Report 2022 Note 10. Non-Current Assets - Exploration and Evaluation Exploration and evaluation expenditure 56,702,626 35,843,069 Reconciliations Consolidated 30 June 30 June 2022 $ 2021 $ Opening balance Additions Deconsolidation of Snow Lake Resources Revaluation due to foreign exchange Reclassification of exploration expenditure to profit and loss Carrying amount at end of year Note 11. Equity - Issued Capital Consolidated 30 June 30 June 2022 $ 2021 $ 35,843,069 15,033,203 26,910,709 21,439,198 (8,532,572) - (531,111) 2,481,420 (98,221) - 56,702,626 35,843,069 Consolidated 30 June 2022 30 June 2021 30 June 2022 30 June 2021 Shares Shares $ $ Issued capital Share issue costs 180,202,285 1,680,946,647 - - 130,246,297 (4,533,038) 117,934,296 (3,011,598) 180,202,285 1,680,946,647 125,713,259 114,922,698 Ordinary share - issued and fully paid June 2022 No June 2022 June 2021 $ No June 2021 $ At the beginning of the period - Contributions of equity - Shares issued on conversion of options - Shares issued on conversion of derivative security - Share buy back - Performance rights exercised - Consolidation of shares adjustment (a) - Share issue costs - share based payments note 25 - Share issue costs - cash payments 1,680,946,647 114,922,698 1,079,512,182 78,401,191 109,090,910 12,000,000 123,529,412 21,000,000 - 453,476,481 15,441,257 - - - 12,000,000 (1,621,835,272) - - 312,000 - 31,428,572 (7,000,000) - - 3,142,857 (997,018) - - - - (732,000) (789,439) - - (699,790) (1,365,799) Closing balance 180,202,285 125,713,259 1,680,946,647 114,922,698 (a) On the 29 November 2021 the company completed share consolidation on a 10:1 basis Ordinary shares Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the company in proportion to the number of and amounts paid on the shares held. The fully paid ordinary shares have no par value and the company does not have a limited amount of authorised capital. Nova Minerals Ltd | Annual Report 2022 51 On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share shall have one vote. Capital risk management The consolidated entity's objectives when managing capital is to safeguard its ability to continue as a going concern, so that it can provide returns for shareholders and benefits for other stakeholders and to maintain an optimum capital structure to reduce the cost of capital. Note 12. Equity - Share Based-Payment Reserves Share-based payments reserve Convertible note reserve Consolidated 30 June 30 June 2022 $ 2021 $ 7,309,323 6,652,087 81,031 - 7,309,323 6,733,118 Share-based payments reserve The reserve is used to recognise the value of equity benefits provided to employees and directors as part of their remuneration, and other parties as part of their compensation for services. Movements in reserves Movements in each class of reserve during the financial years are set out below: Consolidated 30 June 30 June 2022 $ 2021 $ Opening balance Movement in reserve due to deconsolidation of Snow Lake Resources (note 7) Options expense in period (note 25) Performance rights granted (note 25) 6,733,118 4,468,607 (1,043,848) - 1,457,000 2,183,480 - 163,053 Closing balance 7,309,323 6,652,087 Note 13. Equity - Non-Controlling Interest Issued capital Reserves Accumulated losses Consolidated 30 June 30 June 2022 $ 2021 $ 7,357,911 6,326,958 222,783 (753,915) 392,832 (169,118) 7,581,625 5,795,826 In line with AASB 10 Consolidated Financial Statements Nova Minerals derecognised Snow Lake Resources in its consolidated statement of financial position as at 23 November 2021. The non-controlling interest as of 30 June 2022 is 0% (30 June 2021: 26.20%). As of the 30 June 2022 the non-controlling interest is 15% (30 June 2021: 15%) equity holding in AKCM Pty Ltd. 52 Nova Minerals Ltd | Annual Report 2022 Note 14. Financial Instruments The consolidated entity activities expose it to a variety of financial risks, market risk, credit risk and liquidity risk. The Company’s overall risk management program focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects of the financial performance of the entity. Market Risk Market risk is the risk that changes in market prices, such as foreign exchange risk, interest rates and equity prices will affect the Company’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return. The Company operates internationally and therefore there is exposure to foreign exchange risk arising from currency exposures. The Company is not exposed to equity security price risk and holds no equity investments. The Company is not exposed to commodity price risk as the Company is still carrying out exploration. Interest Rate Risk Interest rate risk arises from investment of cash at variable rates. The consolidated entity income and operating cash flows are not materially exposed to changes in market interest rates. At the reporting date, the interest rate profile of the Company’s interest-bearing financial instruments was: Variable Rate Instruments Cash and cash equivalents Consolidated 30 June 30 June 2022 $ 2021 $ 21,278,936 15,516,112 Interest rate risk arises from investment of cash at variable rates. The Company’s income and operating cash flows are not materially exposed to changes in market interest rates. An increase of 100 basis points (decrease of 100 basis points) in interest rates at the reporting date would have increased (decreased) equity and profit or loss by the amounts presented below. This analysis assumes that all other variables remain constant. The analysis was performed on the same basis for June 2021. The following table summarises the sensitivity of the Company’s financial assets (cash) to interest rate risk: Carrying Amount $ Profit or Loss Profit or Loss Equity 100 bp 100 bp 100 bp Increase Decrease Increase $ $ $ Equity 100 bp Decrease $ 30 June 2022 Variable rate instruments Cash and cash equivalents 21,278,936 212,789 (212,789) 212,789 (212,789) Carrying Amount $ Profit or Loss Profit or Loss Equity 100 bp 100 bp 100 bp Increase Decrease Increase $ $ $ Equity 100 bp Decrease $ 30 June 2021 Variable rate instruments Cash and cash equivalents 15,516,112 155,161 (155,161) 155,161 (155,161) Nova Minerals Ltd | Annual Report 2022 53 Credit Risk Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations. The Company has no significant concentration of credit risk. Credit risk arises from cash and cash equivalents held with the bank and financial institutions and receivables due from other entities. For banks and financial institutions, only independently rated parties with a minimum rating of ‘A’ are accepted. The maximum exposure to credit risk is the carrying amount of the financial asset. The maximum exposure to credit risk at the reporting date was: Cash and cash equivalents BAS Receivables Liquidity Risk Consolidated 30 June 30 June 2022 $ 2021 $ 21,278,936 15,516,112 - 142,860 21,421,796 15,516,112 Liquidity risk is the risk that the consolidated entity will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s liquidity risk arises from operational commitments. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities. Management aims at maintaining flexibility in funding by regularly reviewing cash requirements and monitoring forecast cash flows. The following are the contractual maturities of financial liabilities: Weighted Average Interest Rate 6 Months or Less 6 to 12 Months Between 2 and 5 Years Over 5 Years Carrying Amount Total Contract- ual Cash Flows % $ $ $ $ $ $ - 3,999,852 3,999,852 - - - - - 3,999,852 3,999,852 - 3,999,852 3,999,852 Weighted Average Interest Rate 6 Months or Less 6 to 12 Months Between 2 and 5 Years Over 5 Years Carrying Amount Total Contract- ual Cash Flows % $ $ $ $ $ $ - 12.00% 3,424,690 - - 862,371 3,424,690 862,371 - - - - 3,424,690 3,424,690 - 862,371 862,371 - 4,287,061 4,287,061 Consolidated - 30 June 2022 Non-derivatives Non-interest bearing Trade payables Total non-derivatives Consolidated - 30 June 2021 Non-derivatives Non-interest bearing Trade payables Convertible note Total non-derivatives 54 Nova Minerals Ltd | Annual Report 2022 Fair Value The carrying amount of the financial assets and financial liabilities recorded in the financial statements represent their respective net fair value determined in accordance with the accounting policies. Capital Management The Company’s policy in relation to capital management is for management to regularly and consistently monitor future cash flows against expected expenditures for a rolling period of up to 12 months in advance. The Board determines the Company’s need for additional funding by way of either share placements or loan funds depending on market conditions at the time. Management defines working capital in such circumstances as its excess liquid funds over liabilities, and defines capital as being the ordinary share capital of the Company. There were no changes in the Company’s approach to capital management during the year. The Company is not subject to externally imposed capital requirements. Note 15. Fair Value Measurement The following tables detail the consolidated entity's assets and liabilities, measured or disclosed at fair value, using a three-level hierarchy, based on the lowest level of input that is significant to the entire fair value measurement, being: Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly Level 3: Unobservable inputs for the asset or liability Consolidated - 30 June 2022 Assets Investments at fair value Total assets Consolidated - 30 June 2021 Assets Investments at fair value Total assets Liabilities Convertible Note Total liabilities Level 1 Level 2 Level 3 $ $ $ Total $ 3,797,443 3,797,443 - - - 3,797,443 - 3,797,443 Level 1 Level 2 Level 3 $ $ $ Total $ 2,734,349 2,734,349 862,371 862,371 - - - - - 2,734,349 - 2,734,349 - - 862,371 862,371 Note 16. Key Management Personnel Disclosures The aggregate compensation made to directors and other members of key management personnel of the consolidated entity is set out below: Short-term employee benefits Share-based payments Consolidated 30 June 30 June 2022 $ 2021 $ 597,673 229,277 526,184 975,788 826,950 1,501,972 Nova Minerals Ltd | Annual Report 2022 55 Note 17. Remuneration of Auditors During the financial year the following fees were paid or payable for services provided by RSM Australia Partners (2021), the auditors of the company: Audit services - RSM Australia Partners Audit or review of the financial statements Other services - RSM Australia Partners Preparation of the tax return Note 18. Contingent Liabilities Consolidated 30 June 30 June 2022 $ 2021 $ 77,500 95,920 3,656 6,500 81,156 102,420 There are no contingent liabilities that the consolidated entity has become aware of at 30 June 2022 and 30 June 2021. Note 19. Related Party Transactions Parent entity Nova Minerals Limited is the parent entity. Subsidiaries Interests in subsidiaries are set out in Note 21. Key management personnel Disclosures relating to key management personnel are set out in Note 16 and the remuneration report included in the directors' report. The following transactions occurred with related parties: Consolidated 30 June 30 June 2022 $ 2021 $ Payment for goods and services: Payment to Benison Contractors Pty Ltd a company of Louie Siemens for Snow Lake Resources director fee Payment to Christopher Gerteisen for Snow Lake Resources consulting fees Payment to Speedy Investments Pty Ltd a company of Craig Bentley for consulting fees Payment to Harpia Group AG a company of Rodrigo Pasqua for consulting fees 33,066 6,533 1,700 12,160 - - - - During the 2021 year there were no related party transactions. 56 Nova Minerals Ltd | Annual Report 2022 Loans to/from related parties The following balances are outstanding at the reporting date in relation to loans with related parties: Current Receivables: Snow Lake Resources other receivable Non-Current Receivables: Loan to Rotor X Consolidated 30 June 30 June 2022 $ 2021 $ 29,216 - 166,348 207,738 Terms and conditions All transactions were made on normal commercial terms and conditions and at market rates Note 20. Parent Entity Information Set out below is the supplementary information about the parent entity. Statement of profit or loss and other comprehensive income Profit/(loss) after income tax Total comprehensive income/(loss) Statement of financial position Total current assets Total assets Total current liabilities Total liabilities Equity Issued capital Share-based payments reserve Accumulated losses Total equity Parent 30 June 30 June 2022 $ 2021 $ 39,569,245 (2,397,162) 39,569,245 (2,397,162) Parent 30 June 30 June 2022 $ 2021 $ 6,338,838 12,190,488 103,094,398 50,960,105 256,494 101,595 256,494 101,595 125,713,259 114,922,699 5,689,270 (30,184,678) (69,753,459) 7,309,323 102,837,904 50,858,510 Contingent liabilities The parent entity had no contingent liabilities as at 30 June 2022 and 30 June 2021. Nova Minerals Ltd | Annual Report 2022 57 Capital commitments - Property, plant and equipment The parent entity had no capital commitments for property, plant and equipment as at 30 June 2022 and 30 June 2021. Significant accounting policies The accounting policies of the parent entity are consistent with those of the consolidated entity, as disclosed in note 1. Note 21. Interests in Subsidiaries The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries with non-controlling interests in accordance with the accounting policy described in note 1: Parent Non-Controlling Interest Principal Place of Business / Country of Incorporation Ownership Interest 30 June Ownership Interest 30 June Ownership Interest 30 June Ownership Interest 30 June Class of Shares 2022 % 2021 % 2022 % 2021 % Canada Ordinary Canada Ordinary Canada Ordinary Australia Ordinary - - - - 73.80% 100.00% 100.00% 100.00% - - - - 26.20% - - - Australia Ordinary 85.00% 85.00% 15.00% 15.00% USA USA Ordinary 100.00% 100.00% Ordinary 100.00% 100.00% - - - - Name Snow Lake Resources Ltd^ Snow Lake (Crowduck) Ltd Snow Lake Exploration Ltd Thompson Bros Lithium Pty Ltd AKCM (Aust) Pty Ltd* AK Operations LLC AK Custom Mining LLC ^ Snow Lake Resources Ltd is the immediate parent of Snow Lake (Crowduck) Ltd, Snow Lake Exploration Ltd and Thompson Bros Lithium Pty Ltd (Formerly “Manitoba Minerals Pty Ltd”). In line with AASB 10 Consolidated Financial Statements Nova Minerals derecognised Snow Lake Resources in its consolidated statement of financial position as at 23 November 2021. The Non-Controlling interest as of 30 June 2022 is 0% (30 June 2021: 26.20%). *ACKM (AUS) Pty Ltd is the immediate parent of AK Operations LLC and Ak Custom Mining LLC. In December 2017 Nova entered into a JV agreement with AK Minerals Pty Ltd, a private company registered in NSW, comprising a farm-in for a number of exploration projects. As part of the agreement the JV entity AKCM (AUST) Pty Ltd was formed, with tenements transferred from AK Minerals to the JVCo. Based on a number of stages of expenditure as set out per the agreement Nova is entitled to increasing shareholding in the entity, acquiring 51% of shares after Stage 2 and 70% after Stage 3 per the original agreement. Nova now has a 85% interest in the Estelle Gold Project through surpassing ongoing expenditure requirements. 58 Nova Minerals Ltd | Annual Report 2022 Summarised financial information Summarised financial information of subsidiaries with non-controlling interests that are material to the consolidated entity are set out below: Summarised statement of financial position Current assets Non-current assets Total assets Current liabilities Non-current liabilities Total liabilities Net assets AKCM (Aust) Pty Ltd 30 June 30 June Snow Lake Resources Ltd 30 June 30 June 2022 $ 2021 $ 2022 $ 2021 $ 15,182,579 3,081,182 59,691,189 29,764,042 - 439,453 - 6,120,100 74,873,768 32,845,224 - 6,559,553 3,743,091 2,978,781 - - - - 662,987 862,370 3,743,091 2,978,781 - 1,525,357 71,130,677 29,866,443 - 5,034,196 Summarised statement of profit or loss and other comprehensive income Revenue Expenses - (450,134) 345 (289,051) - (817,608) - (657,599) Loss before income tax expense Income tax expense (450,134) - (288,706) - (817,608) - (657,599) - Loss after income tax expense (450,134) (288,706) (817,608) (657,599) Other comprehensive income/(loss) - - - - Total comprehensive income/(loss) (450,134) (288,706) (817,608) (657,599) Statement of cash flows Net cash used in operating activities Net cash from/(used in) investing activities Net cash from financing activities (9,139,831) (7,944,812) 19,980,149 10,316,343 - - (274,751) (11,149) - (660,456) - 825,235 Net increase/(decrease) in cash and cash equivalents 10,840,318 2,371,531 (285,900) 164,779 Other financial information Loss attributable to non-controlling interests Accumulated non-controlling interests at the end of reporting period (67,520) (43,306) (214,213) (172,291) (237,712) (170,192) (868,653) (654,440) Note 22. Events After the Reporting Period The following events have occurred subsequent to the period end: On 5 September 2022, the Company announced that it has issued 3,458,990 fully paid shares (“Shares”) upon the exercise of 6,250,000 unlisted options (“Options”) issued under the Company’s Employee Share Option Plan (“ESOP Plan”) of which: Nova Minerals Ltd | Annual Report 2022 59 NVAUOP4 (ASX: NVAAA) 3,303,372 Shares were issued on exercise of 6,000,000 Options pursuant to the cashless exercise facility under the ESOP Plan; and 100,000 Shares were issued on exercise of the same number of Options. NVAEIOPT (ASX: NVAAB) 55,618 Shares were issued on exercise of 150,000 Options pursuant to the cashless exercise facility under the ESOP Plan. COVID-19 Impact The impact of the Coronavirus (COVID-19) pandemic is ongoing and it is not practicable to estimate the potential impact, positive or negative, after the reporting date. The situation is rapidly developing and is dependent on measures imposed by the Australian Government and other countries, such as maintaining social distancing requirements, quarantine, travel restrictions and any economic stimulus that may be provided. No other matter or circumstance has arisen since 30 June 2022 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. Note 23. Reconciliation of Profit/(Loss) After Income Tax to Net Cash Used in Operating Activities Consolidated 30 June 2022 $ 30 June 2021 $ Profit/(loss) after income tax expense for the year 34,402,821 (3,343,467) Adjustments for: Gain from sale of investment Fair value gain on investments Exploration costs reclassified Depreciation Share based payments (Note 19) Non-cash finance costs Gain from deconsolidation of Snow Lake Resources Loss on disposal of Snow Lake Resources Fair value gain/(loss) on derivative liabilities Interest income Impairment of Investment in Snow Lake Resources Share of profit - associates Foreign exchange gain intercompany loans Change in operating assets and liabilities: Increase in trade and other receivables Increase in trade and other payables Net cash used in operating activities 60 Nova Minerals Ltd | Annual Report 2022 - - 346,828 (376,507) (565,317) (2,108,624) 98,222 205,739 1,200,053 1,470,936 102,010 (133,649) - (91,778,097) - 9,102,187 - 1,828,857 - - - - (20,000) 45,556,885 29,088 (1,533,601) (47,469) 584,510 (15,502) - (2,855,761) (2,138,336) Note 24. Earnings/(Loss) Per Share Profit/(loss) after income tax Non-controlling interest Profit/(loss) after income tax Consolidated 30 June 30 June 2022 $ 2021 $ 34,402,821 (3,343,467) 215,597 281,733 34,684,554 (3,127,870) Number Number Weighted average number of ordinary shares used in calculating basic earnings per share Adjustments for calculation of diluted earnings per share: Options over ordinary shares 176,847,043 155,460,563 12,150,000 - Weighted average number of ordinary shares used in calculating diluted earnings per share Basic earnings/(loss) per share Diluted earnings/(loss) per share 188,997,043 155,460,563 Cents Cents 19.61 18.35 (2.01) (2.01) The weighted average number of ordinary shares for 30 June 2021 has been restated for the effect of the share consolidation completed in November 2021, in accordance with AASB 133 'Earnings per share'. Number Weighted average number of ordinary shares used in calculating basic earnings per share (before restatement) Restatement following consolidation 1,554,605,632 (1,399,145,069) Weighted average number of ordinary shares used in calculating basic earnings per share (after restatement) 155,460,563 - As of the 30 June 2021 there were 97,500,000 (9,750,000 restated) outstanding unlisted options that would be included in the diluted calculation. - As of the 30 June 2022 there were 12,150,000 outstanding unlisted options that have been included in the diluted calculation. Note 25. Share-Based Payments From time to time, the Group provides Incentive Options and Performance Rights to officers, employees, consultants and other key advisors as part of remuneration and incentive arrangements. The number of options or rights granted, and the terms of the options or rights granted are determined by the Board. Shareholder approval is sought where required. During the period the following share-based payments have been recognised: Share-Based Payments During the period, the following share-based payments have been granted: Nova Minerals Ltd | Annual Report 2022 61 Recognised in Profit & Loss: Advisor options 2 Advisor options 3 Performance rights exercised (note 11) Performance rights granted Employee stock options 4 Director stock options 5 Consultant options 6 Total Recognised in Equity Options issued to brokers 1 Options Granted Consolidated 30 June 30 June 2022 $ 2021 $ 395,000 330,000 312,000 163,053 - - - - - - - 97,579 975,788 397,569 1,200,053 1,470,936 Consolidated 30 June 30 June 2022 $ 2021 $ 732,000 - For the options granted during the June 2022 financial year, the valuation model inputs used to determine the fair value at the grant date, are as follows: 1 Broker Options 2 Advisor Options 3 Advisor Options Recognised in Grant date Issued date Number of options issued Expiry date Vesting date Share price at grant date Exercise Price Expected Volatility Risk-Free Interest Rate Underlying fair value at grant date Fair Value Equity Note 11 27/09/2021 27/09/2021 1,200,000 27/09/2023 27/09/2021 $1.45 $2.20 100% 0.26% $0.61 732,000 Profit & Loss 20/10/2021 20/10/2021 500,000 20/05/2023 20/10/2021 $1.55 $1.35 100% 0.26% $0.79 395,000 Profit & Loss 20/10/2021 20/10/2021 500,000 7/10/2023 20/10/2021 $1.55 $2.20 100% 0.26% $0.66 330,000 For the options granted during the June 2021 financial year, the valuation model inputs used to determine the fair value at the grant date, are as follows: 62 Nova Minerals Ltd | Annual Report 2022 Recognised in Grant date Issued date Number of options issued Expiry date Vesting date Share price at grant date Exercise price Expected volatility Risk-free interest rate Dividend yield Early exercise factor Trinomial step Underlying fair value at grant date Fair value Option Movement June 2022 4 Employee Stock Options 5 Director Stock Options 6 Consultant Options Profit & Loss 29/12/2020 29/12/2020 1,000,000 29/12/2023 29/12/2020 $0.17 $0.075 100% 1% 0 2.50 200 $0.10 97,579 Profit & Loss 29/12/2020 29/12/2020 10,000,000 29/12/2023 29/12/2020 $0.17 $0.075 100% 1% 0 2.50 200 $0.10 975,788 Profit & Loss 20/05/2021 20/5/2021 6,000,000 20/05/2023 20/05/2021 $0.14 $0.135 100% 0.26% 0 2.50 200 $0.066 397,569 Set out below are movements in options on issue over ordinary shares of Nova Minerals Limited during the 30 June 2022 financial year: Exercise Period Exercise Price Beginning Balance Issued Exercised Lapsed Ending Balance On or before 19 September 2022 On or before 28 October 2022 On or before 28 January 2023 On or before 2 December 2022 On or before 29 December 2023 On or before 20 May 2023 On or before 27 September 2023 On or before 20 May 2023 On or before 7 October 2023 Total $0.40 6,100,000 150,000 $0.56 $0.60 750,000 $3.00 1,050,000 $0.75 1,100,000 $1.35 600,000 $2.20 $1.40 $2.20 - - - - - - - 1,200,000 - 500,000 500,000 - - 9,750,000 2,200,000 - - - - - - - - - - - 6,100,000 150,000 - - 750,000 - 1,050,000 - 1,100,000 - 600,000 - 1,200,000 - 500,000 500,000 - - 11,950,000 On the 29 November 2021 the company completed share consolidation on a 10:1 basis The weighted average year remaining contractual life The weighted average year remaining contractual life for share-based payment options outstanding as of the 30 June 2022 was 0.60 years Nova Minerals Ltd | Annual Report 2022 63 Option Movement June 2021 Set out below are movements in options on issue over ordinary shares of Nova Minerals Limited during the 30 June 2021 financial year: Exercise period Exercise Price Beginning Balance Issued Exercised Lapsed Ending Balance On or before 31 August 2020 On or before 19 September 2022 On or before 28 October 2022 On or before 28 January 2023 On or before 2 June 2022 On or before 25 November 2022 On or before 2 December 2023 On or before 20 May 2023 Total (329,610) $0.325 43,877,258 $0.40 6,100,000 $0.56 150,000 $0.60 750,000 $0.70 1,800,000 $3.00 $0.80 $1.35 - - 6,100,000 150,000 - 750,000 - - - - 1,050,000 - 1,100,000 600,000 - 52,677,258 2,750,000 (45,347,648) (329,610) 9,750,000 - (43,547,648) - - - - - - - (1,800,000) - - - - 1,050,000 - 1,100,000 - 600,000 The weighted average year remaining contractual life Performance Rights 2022 Performance Rights: During the period the Company issued 24 million performance rights (2.4 million post-consolidation) to three directors. The terms of the performance rights issued were disclosed in the annual general meeting notice announced 22 October 2021. The performance rights are long-term incentives to offer conditional rights to fully paid ordinary shares in the Company upon satisfaction of vesting criteria over the vesting periods for no cash consideration. Fair value has been measured using the share price at grant date. Vesting conditions for the rights are set out in the table below: Class of Performance Rights Class A Performance Rights Applicable Milestone Completion of either a pre-feasibility study or a definitive feasibility study of the Korbel Main deposit that demonstrates at the time of reporting that extraction is reasonably justified and economically mineable indicating an internal rate of return to the Company of greater than 20% and an independently verified JORC classified mineral reserve equal to or greater than 1,500,000 oz Au with an average grade of not less than 0.4g/t for not less than 116Mt. Number Rights Issued 600,000 Lapse Date 5 years from issue Class B Performance Rights Completion of the first gold pour (defined as a minimum quantity of 500 oz.) from the Korbel Main deposit. 5 years from issue 600,000 Class C Performance Rights Achievement of an EBITDA of more than $20m in the second half-year reporting period following the commencement of commercial operations at the Korbel Main deposit. 5 years from issue 1,200,000 The performance rights were valued as the closing share price $1.30 on the grant date 24 November 2021. The total share-based payment expense recognised from the amortisation of the 2022 issued performance rights was $163,053. 64 Nova Minerals Ltd | Annual Report 2022 Set out below are the summaries of Performance rights granted during period as share-based payments Grant date Expiry Date Class 24/11/2021 24/11/2021 24/11/2021 24/11/2026 24/11/2026 24/11/2026 A B C 2020 Performance rights issue: Price at Grant Date Granted Exercised Other Expired/ Lapsed/ 600,000 $1.30 $1.30 600,000 $1.30 1,200,000 - - - Balance at the End of the Year 600,000 - - 600,000 - 1,200,000 On 2 April 2020 36 million performance rights were issued to directors and key management as disclosed in the 2020 annual general meeting notice announced 26 February 2020. The performance rights were long- term incentives to offer conditional rights to fully paid ordinary shares in the Company upon satisfaction of vesting criteria over the vesting periods for no cash consideration. Achievement of the vesting conditions attached to the rights within the expiry period was initially assessed by the directors as highly improbable and therefore no charge was recognised. During the period 12 million of the 2020 performance rights issue vested and were exercised by holders resulting in 12 million ordinary shares being issued on 29 October 2021 - see issued capital Note 11 Fair value of the exercised rights has been measured using the share price at grant date and a charge of $312,000 recognised in share-based payment expenses in the current period in respect of the issue. The remaining 24 million performance rights as part of the 2020 issue expired on 28 October 2021. Nova Minerals Ltd | Annual Report 2022 65 Nova Minerals Ltd | Annual Report 2022 65 Director’s 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 30 June 2022 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 ___________________________ Anna Ladd-Kruger Chairperson 20 September 2022 66 Nova Minerals Ltd | Annual Report 2022 Independent Auditor’s Report Nova Minerals Ltd | Annual Report 2022 67 68 Nova Minerals Ltd | Annual Report 2022 Nova Minerals Ltd | Annual Report 2022 69 70 Nova Minerals Ltd | Annual Report 2022 ASX Additional Information Nova Minerals Ltd | Annual Report 2022 71 Nova Minerals Ltd | Annual Report 2022 71 Additional Information for ASX Listed Companies In accordance with ASX Listing Rule 4.10, the Company provides the following information to shareholders not elsewhere disclosed in this Annual Report. The following additional information is required under the ASX Listing Rules and is current as of 7 September 2022. (Reporting Date) Corporate Governance Statement The Company has prepared a Corporate Governance Statement which sets out the corporate governance practices that were in operation throughout the financial year for the Company. In accordance with ASX Listing Rule 4.10.3, the Corporate Governance Statement will be available for review on the Company’s website (www.novaminerals.com.au), and will be lodged with ASX at the same time that this Annual Report is lodged with ASX. Capital Structure Security Fully Paid Ordinary Shares Unlisted - Unl Opt @ $1.35 Exp 20/05/23 Unlisted - Unl Opt @ $2.20 Exp 7/10/23 Unlisted - Unl Opt @ $0.60 Exp 28/01/23 Unlisted - Unl Opt @ $0.60 Exp 28/01/23 Unlisted - Unl Opt @ $3.00 Exp 02/12/22 Unlisted - Unl Opt @ $0.75 Exp 29/12/23 Performance Rights – Various Vesting Conditions Number 183,661,275 1,100,000 1,700,000 250,000 500,000 1,050,000 1,100,000 2,400,000 Distribution Schedule Fully paid ordinary shares Holding Ranges 100,001 and Over 10,001 to 100,000 5,001 to 10,000 1,001 to 5,000 1 to 1,000 Total Unmarketable Parcels Unmarketable Parcels Securities 130,077,696 39,908,011 6,627,319 6,082,331 965,918 183,661,275 301,171 % of Share Capital No. of holders % Issued of Holders 70.82 21.73 3.61 3.31 0.53 100.00 0.16 230 1,238 858 2,337 1,757 6,420 916 3.58 19.28 13.36 36.40 27.38 100.00 14.27 Based on the price per security, number of holders with an unmarketable holding: 916, with total 301,171, amounting to 0.16% of Issued Capital. 72 Nova Minerals Ltd | Annual Report 2022 Top Holders The 20 largest registered holders of fully paid ordinary shares were: Name Shares Held at 7 Sept 2022 % Held 1 2 3 4 5 6 BNP PARIBAS NOMS PTY LTD BNP PARIBAS NOMINEES PTY LTD ACF CLEARSTREAM SL INVESTORS PTY LTD SWIFT GLOBAL LTD KUSHKUSH INVESTMENTS PTY LTD BNP PARIBAS NOMINEES PTY LTD 7 MR PETER ANDREW PROKSA 8 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED 9 MR JUSTIN BRUCE GARE & MRS KRISTIN DENISE PHILLIPS 10 MR MAHMOUD EL HORR 11 MURTAGH BROS VINEYARDS PTY LTD 12 MURTAGH BROS VINEYARDS PTY LTD 13 LETTERED MANAGEMENT PTY LTD BALMORAL FAMILY 14 CITICORP NOMINEES PTY LIMITED 12,563,931 6.84% 6,764,076 3.68% 5,388,488 2.93% 5,364,821 2.92% 5,000,000 2.72% 4,127,076 2.25% 2,850,000 1.55% 2,644,166 1.44% 2,542,796 1.38% 2,500,000 1.36% 2,440,000 1.33% 2,167,380 1.18% 2,050,000 1.12% 2,021,083 1.10% 15 PATRON PARTNERS PTY LTD 1,983,214 1.08% 16 MR DAVID FAGAN 17 HERSHAM HOLDINGS PTY LTD 18 KIKCETO PTY LTD 1,651,308 0.90% 1,633,669 0.89% 1,601,124 0.87% 19 MR JAGDISH MANJI VARSANI 1,500,000 0.82% 20 M & T K PTY LTD Total of Top 20 Balance of Register Grand Total Substantial Shareholders As at the Reporting Date, there are no substantial shareholders. 1,431,441 0.78% 68,224,573 37.14% 115,436,702 62.86% 183,661,275 100.00% Nova Minerals Ltd | Annual Report 2022 73 Unquoted Securities Unquoted securities on issue were: Class Expiry Date Exercise Price Number of Options Number of holders Unlisted - Unl Opt @$1.35 Exp 20/05/23 Unlisted - Unl Opt @ $2.20 Exp 7/10/23 Unlisted - Unl Opt @ $0.60 Exp 28/01/23 Unlisted - Unl Opt @ $0.60 Exp 28/01/23 Unlisted - Unl Opt @ $3.00 Exp 02/12/22 Unlisted - Unl Opt @ $0.75 Exp 29/12/23 NVAUOP10 (NVAAK) NVAUOP11 (NVAAL) NVAUOP5 (NVAAJ) NVAUOP6 (NVAAJ) NVAUOP8 (NVAAF) NVAUOP9 (NVAAH) 28 Oct 2022 $1.35 1,100,000 7 Oct 2023 $2.20 1,700,000 28 Jan 2023 $0.60 250,000 28 Jan 2023 $0.60 500,000 02 Dec 2022 $3.00 1,050,000 29 Dec 2023 $0.75 1,100,000 2 4 1 1 4 3 NVAUOP10.ASX [Unlisted Options @ $1.35 Exp 20/05/23] – 2 Holders Name Held at 7 Sept 2022 % Held 1 2 INTERNATIONAL MARKETING CORP LLC LEDGER HOLDINGS PTY LTD Total 600,000 54.55 500,000 45.45 1,100,000 100.00 NVAUOP11.ASX [Unlisted Options @ $2.20 Exp 7/10/23] – 4 Holders Name Held at 7 Sept 2022 % Held 1 2 EVOLUTION CAPITAL PTY LTD LEDGER HOLDINGS PTY LTD 3 CHELSEA LANE CAPITAL PTY LTD 4 MR GREGORY CHALOM Total NVAUOP5.ASX [Unlisted Options @$0.60 Exp 28/01/23] – 1 Holder Name 1 DALE JOEL SCHULTZ Total NVAUOP6.ASX [Unlisted Options @$0.60 Exp 28/01/23] – 1 Holder Name 1 DALE JOEL SCHULTZ Total 1,050,000 61.76 500,000 29.41 100,000 50,000 1,700,000 5.88 2.94 100.00 Held at 7 Sept 2022 % Held 250,000 100.00 250,000 100.00 Held at 7 Sept 2022 % Held 500,000 100.00 500,000 100.00 74 Nova Minerals Ltd | Annual Report 2022 NVAUOP8.ASX [Unlisted Options @ $3.00 Exp 02/12/22] – 4 Holders Name LTL CAPITAL PTY LTD 1 2 YUKOR MIPOZ PTY LTD 3 MARVEN PTY LTD 3 BENTMONT PTY LTD Total Held at 7 Sept 2022 % Held 850,000 120,000 40,000 40,000 1,050,000 80.95 11.43 3.81 3.81 100.00 NVAUOP9.ASX [Unlisted Director & Consultant Options @$0.75 Exp 29/12/23] – 3 Holders Name 1 HERSHAM HOLDINGS PTY LTD < HERSHAM FAMILY> 1 AJ HOLDINGS INTERNATIONAL LIMITED 2 Total IAN CRAIG PAMENSKY Held at 7 Sept 2022 500,000 500,000 100,000 1,100,000 % Held 45.45 45.45 9.09 100.00 Restricted Securities Not applicable Voting Rights The voting rights attached to each class of equity security are as follows:  Ordinary shares: each ordinary share is entitled to one vote when a poll is called, otherwise each member present at a meeting or by proxy has one vote on a show of hands.  Options: options do not entitle the holders to vote in respect of that equity instrument, nor participate in dividends, when declared, until such time as the options are exercised and subsequently registered as ordinary shares.  Performance rights: performance rights do not entitle the holders to vote in respect of that equity instrument, nor participate in dividends, when declared, until such time as the performance rights are vested and converted and subsequently registered as ordinary shares. ASX Admission Statement During the financial year, the Company applied its cash in a way that is consistent with its business objectives. On-Market Buy-Back There is no current on-market buy-back. Item 7, Section 611 Issues of Securities There are no issues of securities approved for the purposes of item 7 of section 611 of the Corporations Act 2001 (Cth) which have not yet been completed Nova Minerals Ltd | Annual Report 2022 75 Competent Person Statement Mr Vannu Khounphakdee P.Geo., who is an independent consulting geologist of a number of mineral exploration and development companies, reviewed and approves the technical information in this report and is a member of the Australian Institute of Geoscientists (AIG), which is ROPO accepted for the purpose of reporting in accordance with ASX listing rules. Mr Vannu Khounphakdee has sufficient experience relevant to the gold deposits under evaluation to qualify as a Competent Person as defined in the 2012 edition of the ‘Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Vannu Khounphakdee is also a Qualified Person as defined by S- K 1300 rules for mineral deposit disclosure. Mr Vannu Khounphakdee consents to the inclusion in the report of the matters based on information in the form and context in which it appears. Schedule of Interests in Mining Tenements Tenement/Claim/ADL Number 725940 - 725966 726071 - 726216 727286 - 727289 728676 - 728684 730362 - 730521 737162 - 737357 Location Alaska, USA Alaska, USA Alaska, USA Alaska, USA Alaska, USA Alaska, USA Beneficial % Held 85% 85% 85% 85% 85% 85% 76 Nova Minerals Ltd | Annual Report 2022 Main Operations: Whiskey Bravo Airstrip Matanuska-Susitna Borough, Alaska, USA 1150 S Colony Way Suite 3-440, Palmer, AK 99645 Corporate: Suite 602 566 St Kilda Road, Melbourne VIC 3004 Australia Telephone: +61 3 9537 1238 www.novaminerals.com.au

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