PVW Resources Limited
Annual Report 2023

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AN NUAL REPORT 30 JUN E 2023 PVW Resources Limited Contents 30 June 2023 Corporate directory Directors' report Auditor's independence declaration Consolidated statement of profit or loss and other comprehensive income Consolidated statement of financial position Consolidated statement of changes in equity Consolidated statement of cash flows Notes to the consolidated financial statements Directors' declaration Independent auditor's report to the members of PVW Resources Limited Shareholder information Corporate governance statement Mining interest Annual Mineral Resource Statement 1 2 23 24 25 26 27 28 50 51 55 57 65 67 PVW Resources Limited Corporate directory 30 June 2023 Directors David Wheeler – Non-Executive Chairman George Bauk – Executive Director Colin McCavana – Non-Executive Director Exploration Manager Karl Weber Company Secretary Joe Graziano Registered office Level 3, 1138 Hay Street, West Perth, Western Australia, 6005 Share register Auditor Solicitors Securities Exchange Advance Share Registry 110 Stirling Highway, Nedlands, WA 6009 Postal address: PO Box 1156, Nedlands, WA 6909 Ph: +61 8 9389 8033 Fax: +61 8 9262 3723 Web: www.advancedshare.com.au Hall Chadwick WA Audit Pty Ltd. 283 Rokeby Road, Subiaco WA 6008 Phone: +61 8 9426 0666 Fax: +61 8 9481 1947 Web: www.hallchadwickwa.com.au Blackwall Legal Level 26, 140 St Georges Terrace, Perth WA 6000 Australian Securities Exchange Level 40, Central Park, 152-158 St Georges Terrace, Perth WA 6000 Ph within Australia: 131 ASX (131 279) or +61 2 9338 0000 Fax: +61 2 9227 0885 Web: www.asx.com.au Stock exchange listing PVW Resources Limited shares are listed on the Australian Securities Exchange (ASX: PVW) Website www.pvwresources.com.au 1 PVW Resources Limited Directors' report 30 June 2023 The Directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'Group') consisting of PVW Resources Limited (referred to hereafter as the 'Company' or 'parent entity') and the entities it controlled at the end of, or during, the year ended 30 June 2023. Directors The following persons were Directors of PVW Resources Limited during the whole of the financial year and up to the date of this report, unless otherwise stated: David Wheeler (Non-Executive Chairman) George Bauk (Executive Director) Colin McCavana (Non-Executive Director) Information on Directors Name: Title: Experience and expertise: Other current directorships: David Wheeler Non-Executive Director - appointed 29 August 2017 (length of service 5 years 10 months), Non-Executive Chairman - appointed 11 September 2017 (length of service 5 years 9 months) Mr. Wheeler has more than 30 years of Senior Executive Management, Directorships, and Corporate Advisory experience. Mr. Wheeler is a foundation Director and Partner of Pathways Corporate a boutique Corporate Advisory firm that undertakes assignments on behalf of family offices, private clients, and ASX listed companies. Mr. Wheeler has engaged in business projects in the USA, UK, Europe, NZ, China, Malaysia, Singapore and the Middle East. Mr. Wheeler is a Fellow of the Australian Institute of Company Directors and has experience on public and private company boards, currently holding a number of Directorships and Advisory positions in Australian companies. Ragnar Metals Limited, Protean Energy Limited, Avira Resources Limited, Tyranna Resources Limited, Cycliq Group Limited, Cradle Resources Limited, OZZ Resources Limited, ColorTV Ltd and MOAB Limited. Former directorships (last 3 years): Athena Resources Ltd, Health House International Ltd, Syntonic Limited, Blaze Interests in shares: Interests in options: Interests in rights: International Ltd and Wellfully Ltd. 583,333 1,600,000 800,000 Name: Title: Experience and expertise: George Bauk Executive Director - appointed 1 February 2021 (length of service 2 years 4 months) Mr. Bauk is an experienced Executive/Director with 30 years in the resources industry. Mr. Bauk has worked in global operational and corporate roles with Northern Minerals, WMC Resources and Western Metals. Mr. Bauk has a strong background in strategic management, business planning, building teams, finance and capital/debt raising with a variety of commodities – in particular rare earths, gold, nickel and uranium. Mr. Bauk was Managing Director of Northern Minerals from 2010 to 2020. Mr. Bauk is a Fellow of the CPA and is currently Chairman of: Lithium Australia, BlackEarth Minerals and Valor Resources. Lithium Australia Limited, Valor Resources Limited and BlackEarth Minerals NL. Other current directorships: Former directorships (last 3 years): Northern Minerals Limited and Gascoyne Resources Limited. Interests in shares: Interests in options: Interests in rights: 2,625,120 - 1,600,000 2 PVW Resources Limited Directors' report 30 June 2023 Name: Title: Experience and expertise: Colin McCavana Non-Executive Director - appointed 1 February 2021 (length of service 2 years 4 months) Mr. McCavana has over 40 years’ experience in the mining and resources sector and has extensive experience in exploration, project development, construction, corporate management, capital raising, financing, and operations. Mr. McCavana has had extensive involvement in gold exploration and gold project development including the successful development and operation of several carbon in pulp and heap leach gold projects in Western Australia. Mr. McCavana is also Chairman of Reward Minerals Limited. Reward Minerals Limited Other current directorships: Former directorships (last 3 years): Northern Minerals Limited Interests in shares: Interests in options: Interests in rights: 2,327,003 - 800,000 '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 Joe Graziano Mr Graziano was appointed as Company secretary on 3 December 2018. Up to 2014 Mr Graziano worked as a Chartered Accountant with corporate and company secretarial experience. Mr Graziano has over 29 years’ experience providing a wide range of business, financial and strategic advice to small cap unlisted and listed public companies and privately owned businesses in Western Australia’s resource-driven industries. Since 2014 he has been focused on corporate advisory, company secretarial and strategic planning with listed corporations including Mergers & Acquisitions, Capital Raisings, Corporate Governance, ASX compliance and structuring. Mr Graziano is currently a director of Pathways Corporate Pty Ltd a specialised corporate advisory business. Meetings of Directors The number of meetings of the Company's Board of Directors ('the Board') held during the year ended 30 June 2023, and the number of meetings attended by each Director were: David Wheeler George Bauk Colin McCavana Full Board Attended Held 5 5 5 5 5 5 Held: represents the number of meetings held during the time the Director held office. Principal activities The principal activity of the Group constituted by PVW Resources Ltd and the entities it controlled during the year consisted of gold and rare earth elements mineral exploration in Australia. There has been no significant change in the nature of these activities during the year Review of operations Operationally throughout 2022-2023 period the Company progressed exploration for HREE mineralisation in the Tanami while ensuring other projects were kept in good standing for future exploration efforts. The exciting discovery in the Tanami of high grade Heavy Rare Earth Element (HREE) mineralisation in surface samples directed the focus of the Company into the highly prospective region. The 2022 drilling campaign has confirmed both main prospects, Castella and Watts Rise display the geology, mineralisation style and grades associated with hydrothermal unconformity related heavy rare earth mineralisation. Regional Aircore drilling has identified HREE mineralisation in weathered mafic lithologies, a significant target for future exploration. 3 PVW Resources Limited Directors' report 30 June 2023 Following the completion of Tanami Heritage and Environmental approvals in June 2022, the company immediately started the drilling activities in the Tanami. Testing the priority Castella and Watts Rise prospects and extending the regional drilling coverage were the main objectives of the campaign with the goal of identifying mineralisation and generating new REE targets. The HREE mineralisation intersected did not have the widths required for ongoing drilling and follow up. However, mapping and geochemistry are suggestive of a larger system at depth beneath the Watts Rise mineralisation. The lateral extent of anomalous HREE intersections at Castella highlight the potential for a yet undiscovered control. The Company continues to rationalise the tenement holdings, acquiring and divesting tenure that does or does not meet expectations. The main goal is to identify a significant mineralised system or large deposit. Smaller discoveries will be commercialised where possible, opportunities for divestment, acquisition and organic growth are prioritised as required. PVW Resource’s exploration strategy is to identify and develop concepts into targets that can be tested and validated. As positive results are received from quality, culturally and environmentally responsible exploration programs the projects progress to assessment for economic mineral resources. The 2022 – 2023 field season saw 16,206m of air-core drilling and 10,727m of Reverse Circulation (RC) drilling completed at the challenging Tanami Project without any safety, environmental or cultural incidents. Figure 1: Drill targets and detailed geological interpretation. TANAMI Over the past two years the company has exponentially increased the understanding of the HURREE mineralisation within the Tanami Rare Earth Project. The 2022 drilling campaign has generated multiple regional HREE anomalies and has provided a geochemical understanding applicable to regional exploration and existing prospect extensions. 4 PVW Resources Limited Directors' report 30 June 2023 Orion Metals Limited (‘Orion’) previously explored for gold and REE at the Castella prospect between 2010 and 2012. A detailed review and compilation of the drilling data from this exploration phase has been completed by PVW, details of which were reported in announcements ASX:PVW 23 Aug 2021, Tanami – Rare Earths Results Drive Exploration Program; 6 Sep 2021, Rare Earth Potential Identified at Kill Killi. In 2021 REE mineralisation was recorded by PVW geologists at Castella over a strike length of approximately 2.2km with elevated portable XRF measurements of yttrium. The rare earth mineralisation has mostly been observed within a basal conglomerate unit of the Pargee Sandstone which unconformably overlies the older Killi Killi Formation. Where mineralised the conglomerate unit is often strongly hematitic but also displays silicification and brecciation. Field work confirms the mineralisation is both structurally and lithologically controlled. The REE mineralised “corridor” at Castella strikes approximately west-northwest, with cross-cutting structures acting as structural traps for mineralisation along this trend, and the basal conglomerate unit providing a suitable lithochemical host. Figure 2: Tanami Project Location. The contact between the Pargee Sandstone and the Killi Killi Formation is a regional-scale unconformity, over 18km of strike within PVW tenure considered prospective for hydrothermal unconformity-related REE mineralisation, examples of which occur across a large part of the Birrindudu Basin (eg. Browns Range, Boulder Ridge). The two main prospect areas, Castella and Watts Rise occur 12km apart and are both located close to the contact between the Pargee Sandstone and the Killi Killi Formation. 5 PVW Resources Limited Directors' report 30 June 2023 the xenotime and PVW have undertaken multiple mineralogical, hyperspectral and metallurgical studies at Castella and Watts Rise. The studies confirm important mineral associations. Metallurgical studies confirmed the amenability of the Tanami Rare Earth Project to known rare earth ore beneficiation techniques currently being conducted on other heavy rare earth ores within Western Australia and worldwide. Multielement assay results and the geochemical investigations on drill results in 2022 have provided PVW geologists with considerable knowledge on the mineralisation system and the pathfinder geochemistry that will assist in exploring for HURREE mineralisation. florencite host mineralogy as well as identifying A detailed airborne survey flown in 2021 resulted in approximately 16,000 line km’s of new detailed magnetic and radiometric date. This was integrated with existing airborne surveys and processed to undertake a regional interpretation for the entire project, and a detailed interpretation to 10,000 scale over the Castella to Watts Rise trend. This survey has aided in targeting the unconformity and structurally complex areas that were integral to the 2022 drilling campaign. In addition to the airborne geophysics a detailed ground gravity survey we also completed in 2022 providing an insight into subsurface structure and stratigraphy. EXPLORATION PVW Resources exploration drilling program in 2022 targeted faults and structures that transect the regional unconformity potentially acting as conduits for mineralising fluids. Deposits of the HURREE style often have a small areal footprint (less than 200m) requiring detailed geological mapping and close spaced drilling. Tanami Project Regional Exploration Results The air-core drilling has provided a first-pass test along 12km from the 18km Watts Rise – Castella regional trend defined by exploration activities in 2021 and 2022. This regional air-core drilling program has identified exciting REE targets and confirmed the potential of the project. These targets associated with structure and / or stratigraphy occur along the unconformity and to the south (beneath) the unconformity within the Killi Killi Formation, also confirming a fertile basement for TREO mineralisation. Significant TREO assay results have been returned from the final batches of 2022 air-core samples, With all assays returned the significant results include: ● ● ● ● Monte Cristo Prospect 22TAAC0352: 10m @ 1,857ppm TREO (59ppm Dy2O3 468ppm Y2O3) from 19m including 5m @ 3,071ppm TREO (95ppm Dy2O3 568ppm Y2O3) from 20m (65% HREO). Monte Cristo Prospect 22TAAC0351: 11m @ 1,037ppm TREO from 22m. Serpa Prospect 22TAAC0176: 6m @ 1,676ppm TREO from 35m. Watts East Prospect 22TAAC134: 1m @ 7,032ppm TREO (634ppm Dy2O3 4394ppm Y2O3) from 30m (93% HREO). At Watts East highly elevated REE results of 1m @ 7,032ppm TREO at the bottom of the hole and with very high HREO ratios at 93% suggest the target is an offset extension of Watts Rise. The Serpa prospect is structurally controlled with mafic hosted mineralisation, open along strike within the Killi Killi Formation and immediately below the unconformity. This style of mineralisation fits the Company’s exploration model. The significant widespread TREO mineralisation at Monte Cristo is hosted by saprolite clay. The peak of the anomaly at 5m @ 3,071ppm is open along strike and the fresh rock source for this mineralisation has not yet been tested. This provides an excellent geochemical target and when put in a regional context provides an exciting new style of mineralisation. The ground gravity surveys completed in late 2022 were processed and the initial interpretation has highlighted several important outcomes, including the northeast breaks and a marked gravity low associated with alteration coincident and adjacent to the Watts Rise REE anomaly. 6 PVW Resources Limited Directors' report 30 June 2023 Figure 3: Drilling highlighting 2022-2023 results in RC and air-core drilling (ASX: PVW 09 February 2023, Multiple new Heavy Rare Earth targets identified following exciting air-core results) 7 PVW Resources Limited Directors' report 30 June 2023 Figure 4: Tanami ground gravity survey results and initial interpretation. Watts Rise project gravity results at the top of the image, Castella at the bottom. Breccia Zone Target The Watts Rise Breccia Zone Target includes an interpreted breccia at depth beneath Watts Rise TREO mineralisation and breccia zone outcropping along strike for 1km to the north-west. The identification of the breccia zone resulted from compilation of mapping undertaken by Carl Brauhart (ASX:PVW 29 November 2022, New Heavy Rare Earth Breccia target identified at Tanami Project, WA.). If drilling of the interpreted breccia zone at depth beneath Watts Rise confirms mineralisation within the Killi Killi Formation, then the depth extensions of the 1km long breccia zone to the north-west, and possible extensions under sand cover to the south-east become very significant. The Breccia Zone Target is a high-priority diamond drilling target. The geology intersected in the Watts Rise RC drilling combined with the now extensive geochemical understanding and the TREO results combine to outline the compelling Breccia Zone Target. The Company has been successful in securing an Exploration Incentive Scheme grant to test a number of conceptual targets, including the Breccia Zone Target. Diamond drilling will be required to test for the interpreted Breccia Zone as well as extensions along strike beneath air-core anomalies, and beneath laterally extensive unconformity hosted HREE anomalies at Castella. 8 PVW Resources Limited Directors' report 30 June 2023 Figure 5: Watts Rise Breccia Target, plan view above and schematic cross section (A-B cross section location shown on the plan view above) For details of the Results and Breccia Target please refer to ASX:PVW 29 November 2022, New Heavy Rare Earth Breccia target identified at Tanami Project, WA. 9 PVW Resources Limited Directors' report 30 June 2023 Tanami Gold Results Watts Rise RC drilling returned significant gold intersections that confirm historical results and confirm the gold mineralisation is open at depth. Samples were collected as 1m resamples of previously reported significant 4m RC composite gold intercepts. The resample results returned high grades, generally similar (to original 4m composite results) widths including: ● ● ● 22TARC104 – 13m @ 3.72 g/t Au from 79m including 2m @ 12.97 g/t Au from 79m and including 1m @ 11.55 g/t Au from 83m 22TARC102 – 14m @ 1.08 g/t Au from 64m including 1m @ 6.81 g/t Au from 76m 22TARC101 – 1m @ 5.48 g/t Au from 59m Air-core results highlighted a 4km long zone of anomalous gold in the prospective Killi Killi Formation. In many areas the gold anomalous intervals are associated with altered and veined sediments or intrusive mafic units of the Killi Killi Formation. The anomalous gold combined with alteration and lithological changes is a positive association and may be an indication of a large structure nearby. Figure 6: Watts Rise RC drilling section with significant gold intervals and simplified geology with mineralisation open at depth. 10 PVW Resources Limited Directors' report 30 June 2023 Figure 7: Regional air-core with maximum downhole gold results, historical gold results and geological observations in air-core drilling (ASX : PVW 10 February 2023, Latest assays reinforce high-grade gold potential at Tanami Gold Project, WA). For detail of all historical Tanami Project exploration data refer to ASX :PVW, Thred Prospectus Appendix A - Independent Geologists Report, Appendix 1. KALGOORLIE The Kalgoorlie Project is situated 30km north of Kalgoorlie near the Broad Arrow Townsite and the Norton Gold Paddington operations. The tenements are located between major operating gold mines including Golden Cities, Palm, Gordon Sirdar, and Kanowna Bell. Three project areas, Black Flag, King of the West, and Gordon Sirdar (including the Pappy Prospect) comprise the Kalgoorlie Project a total area of approximately 150km2. Mineralisation occurring close to the areas is varied and demonstrates the importance of understanding local geological controls. Gold exploration drilling within the Project is surprisingly sparse and superficial given proximity to infrastructure and operating gold mines. Often overlooked due to the granite dominated tenure, the large holding is a significant opportunity for PVW Resources. Field activities during the year have been limited to rehabilitation while field work was focused on exploration in the Tanami. LEONORA The Leonora Project is located approximately 55km northwest of Leonora in Western Australia. Access to tenements is from the Goldfields Highway or from the Leonora – Agnew Rd at the Bannockburn Mine site. Being close to existing infrastructure and well serviced towns ensures support for field activities. The Jungle Well and Jungle Well North project areas are contiguous along the Mt Clifford Shear Zone. Brilliant Well is east of the Goldfields Highway and covers a complicated greenstone / granite gneiss contact. Numerous operating gold mines in the region include Thunderbox, and Darlot, with King of the Hills (Red 5) producing first gold in June 2022. Gold has been mined at Jungle Well, with mining of the shallow oxide Jungle Well pit in 1996. Explorers have targeted Nickel at Jungle Well and base metals at Brilliant Well. Limited gold exploration has been completed and PVW believe there is significant potential within all the projects. Field work during the year has been minimal with exploration in the Tanami taking priority. 11 PVW Resources Limited Directors' report 30 June 2023 BALLINUE Ballinue Project tenure in the Western Yilgarn Ni-Cu-PGE province, was granted in early 2022. PVW’s reconnaissance exploration activities were completed, and the project was relinquished in early 2023. With no clear signs of mineralisation at surface, the expenditure and holding costs were considered disproportionate to the likelihood of a significant discovery. GASCOYNE PROJECT PVW has secured a combined exploration package of 316km2 in the heart of the emerging Gascoyne REE Province in WA. Tenure comprises one granted exploration licence and four applications (ASX:PVW 14 February 2023, PVW Acquires Highly Prospective New Rare Earth Project in WA’s Gascoyne Province) The package encompasses major structures covering highly prospective geological units including anomalous REE stream sediment samples grading >1,000ppm TREO (total rare earths oxide). The Gascoyne Province is one of the most exciting new REE provinces globally. Resources of note within the region include the Yangibana Mine, owned by Hastings Technology Metals and a significant TREO resource at the Yin Project operated by Dreadnought Resources. The exploration tenure is near a number of recent REE discoveries and active explorers, including: ● ● ● Kingfisher Mining Ltd - Two of the tenement applications E09/2752 and E09/2753 are situated ~15km south-east from Kingfisher Mining’s (ASX: KFM) Arthur River Project, located along strike on the highly prospective Lockier Shear Zone. (ASX:KFM 18 January 2023, Large Scale Carbonatite REE Targets Identified at Arthur River.) Desert Metals Ltd (17km) Krakatoa Resources Ltd (30km) Figure 8: PVW Gascoyne Project location, showing active neighbours and TREO stream sediment results from previous explorers activities. (ASX:PVW 14 February 2023, PVW Acquires Highly Prospective New Rare Earth Project in WA’s Gascoyne Province) 12 PVW Resources Limited Directors' report 30 June 2023 Figure 9: PVW Gascoyne Project location in a regional context with Hastings, Dreadnought and other active explorers. TOMKINSON (NT) PROJECT The Company has been able to assess ground access and regional geology of two tenements EL33443 and EL33444 comprising the Tomkinson Project in the Northern Territory. The exploration licenses were applied for in December 2022 and were granted subsequent to the annual reporting period. The Tomkinson Project is located over the Tomkinson Basin which has been identified by PVW as prospective for HURREE mineralisation. The Tomkinson Basin as part of the greater McArthur Basin, represents an under explored sedimentary basin at the right age to host HURREE systems. Sediments were deposited at ~1.8 Ga and HURREE mineralisation occurred in similar geological settings at ~ 1.64 Ga. The basin has potential to host base metals and manganese as demonstrated by the Bootu Creek Manganese deposit located ~12 km to the south of PVW’s applications. Seismic and geochronology data indicate that the McArthur Basin extends undercover connecting with the Tomkinson Province in the south, and the Birrindudu Basin in the west (T.N. Blaikie and M. Kunzmann 2020. Geophysical interpretation and tectonic synthesis of the Proterozoic southern McArthur Basin, northern Australia Precambrian Research 343 , 2020, 105728). Logistically the project is well serviced with the Stuart Highway traversing the tenements north – south and located midway between townships of Tennant Creek and Elliot. A network of station tracks provide access with local pastoralists providing accommodation and messing facilities. 13 PVW Resources Limited Directors' report 30 June 2023 Figure 10: PVW Tomkinson Project location, showing regional geology and structural features, stratiform Zn-Pb-Ag deposits and Bootu Creek Manganese deposit (Modified after T.N. Blaikie and M. Kunzmann 2020) 14 PVW Resources Limited Directors' report 30 June 2023 Corporate Financial results and condition The loss for the Group after providing for income tax amounted to $6,087,324 (2022: $6,518,839). The Group has a working capital surplus of $3,201,105 (2022: $9,053,046) and net cash outflows of $5,589,190 (2022: inflow of $4,340,870). Summary of results Other income Loss before income tax Income tax expense Loss attributable to owners Other comprehensive loss Consolidated 2023 $ 2022 $ 175,174 101,755 (6,087,324) - (6,087,324) (6,518,839) - (6,518,839) (6,087,324) (6,518,839) Significant changes in the state of affairs There were no significant changes in the state of affairs of the Group during the financial year. Dividends There were no dividends paid, recommended or declared during the current or previous financial year. Employees The Group had six employees at 30 June 2023 (2022: six). Likely developments and expected results of operations Likely developments in the operations of the Group are set out in the above review of operations in this annual report. Any future prospects are dependent upon the results of future exploration and evaluation. Risk overview The Group’s activities have inherent risk and the Board is unable to provide certainty of the expected results of these activities. The material business risks that the Group faces that could influence the Group’s future prospects and how these are managed, are outlined below. Exploration and developmental risks Mineral exploration and development is a speculative and high-risk undertaking that may be impeded by circumstances and factors beyond the control of the Group. As the Group is an early-stage exploration Group, there can be no assurance that exploration on the projects, or any other exploration properties that may be acquired in the future, will result in the discovery of an economic mineral resource. Even if an apparently viable mineral resource is identified, there is no guarantee that it can be economically exploited. The future exploration activities of the Group may be affected by a range of factors including geological conditions, limitation on activities due to seasonal weather patterns, unanticipated operations and technical difficulties, industrial and environmental accidents, contractor performance and many other factors beyond the control of the Group. Tenement grant and maintenance risks The Group's mining exploration activities are dependent upon the grant, or as the case may be, the maintenance of appropriate licenses, concessions, leases, permits and regulatory consents which may be withdrawn or made subject to limitations. The maintaining of tenements, obtaining renewals, or getting tenements granted, often depends on the Group being successful in obtaining the required statutory approvals, for its proposed activities and that the licenses, concessions leases, permits and consents it holds will be renewed as and when required. There's is no assurance that such renewals will be given as a matter of course and there is no assurance that new conditions will not be imposed in connection therewith. 15 PVW Resources Limited Directors' report 30 June 2023 Conditions to tenements Interests in tenements in Western Australia are governed by legislation and are evidenced by the granting of leases and licences by the State. The Group is subject to the Mining Act 1978 (WA) (Mining Act) and the Group has an obligation to meet conditions that apply to the Tenements, including the payment of rent and prescribed annual expenditure commitments. The Tenements held by the Group are subject to annual review and periodic renewal. While it is the Group’s intention to satisfy the conditions that apply to the Tenements, there can be no guarantees made that, in the future, the Tenements that are subject to renewal will be renewed or that minimum expenditure and other conditions that apply to the Tenements will be satisfied. Renewal conditions may include increased expenditure and work commitments or compulsory relinquishment of areas of the tenements comprising the Projects. There is also a risk that the Tenement Applications will not be granted to the Group. These events could have a materially adverse effect on the Group’s prospects and the value of its assets. Crown Land The land subject to the tenements overlaps with Crown land, including pastoral leases. Upon commencing mining operations on any of the Tenements, the Group may need to consider entering into a compensation and access agreement with the lease holders to ensure the requirements of the Mining Act are satisfied and to avoid any disputes arising. In the absence of agreement, the Warden’s Court determines compensation payable. The entry into these agreements may delay the undertaking of activities, including the development of any future mines, and may mean that the Group cannot explore all areas that it may prefer to explore for mineral development. Native title and heritage matters In relation to tenements which the Group has an interest in or will in the future acquire such an interest, there may be areas over which legitimate common law native title rights of Aboriginal Australians exist. If native title rights do exist, the ability of the Group to gain access to tenements (through obtaining consent of any relevant landowner), or to progress from the exploration phase to the development and mining phases of operations may be adversely affected. Grant of Future Authorisations to Explore and Mine If the Group discovers an economically viable mineral deposit that it then intends to develop, it will, among other things, require various approvals, licences and permits before it will be able to mine the deposit. There is no guarantee that the Group will be able to obtain all required approvals, licences and permits. To the extent that required authorisations are not obtained or are delayed, the Group’s operational and financial performance may be materially adversely affected. Requirement for additional capital Previous funds raised have been considered sufficient to meet the immediate objectives of the Group. Further funding may be required by the Group in the event costs exceed estimates and to effectively implement its business and operational plans in the future to take advantage of opportunities for acquisitions, joint ventures or other business opportunities, and to meet any unanticipated liabilities or expenses which the Group may incur. There can be no assurance that additional finance will be available when needed or, if available, the terms of the financing may be favourable to the Group. Government policy changes Adverse changes in government policies or legislation may affect ownership of mineral interests, taxation, royalties, land access, labour relations, and mining and exploration activities of the Group. It is possible that the current system of exploration and mine permitting in Western Australia may change, resulting in impairment of rights and possibly expropriation of the Group’s properties without adequate compensation. Global market and financial conditions The mineral resource industry and other industries are impacted by global market and financial conditions. Some of the key impacts of market uncertainty caused by the COVID-19 pandemic, global geopolitical tensions and inflationary economic environments may result in contraction in credit markets resulting in widening of credit risk, devaluations and volatility in global equity, commodity, foreign exchange and precious metal markets. Due to the current nature of the Group’s activities a slowdown in the financial markets or other economic conditions may adversely affect the Group’s share price, growth potential and ability to finance its activities. Climate change regulation Mining of mineral resources is relatively energy intensive and is dependent on the consumption of fossil fuels. Increased regulation and government policy designed to mitigate climate change may adversely affect the Group’s cost of operations and adversely impact the financial performance of the Group. Matters subsequent to the end of the financial year No matter or circumstance has arisen since 30 June 2023 that has significantly affected, or may significantly affect the Group's operations, the results of those operations, or the Group's state of affairs in future financial years. 16 PVW Resources Limited Directors' report 30 June 2023 Environmental regulation The Group is subject to environmental regulation in relation to its exploration activities. It aims to ensure that the highest standard of environmental care is achieved, and that it complies with all relevant environmental legislation. The Directors are not aware of any breaches during the period covered by this report. Indemnity and insurance of officers The Company has entered an Indemnity, Insurance and Access Deed with each Director. Pursuant to the Deed: "The Director is indemnified by the Company against any liability incurred in that capacity as an officer of the Company to the maximum extent permitted by law subject to certain exclusions." The Company must keep a complete set of Company documents until the later of: ● ● The date which is seven years after the Director ceases to be an officer of the Company; and The date after a final judgment or order has been made in relation to any hearing, conference, dispute, enquiry or investigation in which the Director is involved as a party, witness or otherwise because the Director is or was an officer of the Company (Relevant Proceedings). The Director has the right to inspect and copy a Company document in connection with any relevant proceedings during the period referred to above. Subject to the next sentence, the Company must maintain an insurance policy insuring the Director against liability as a director and officer of the Company while the Director is an officer of the Company and until the later of: ● ● The date which is seven years after the Director ceases to be an officer of the Company; and The date any Relevant Proceedings commenced before the date referred to above have been finally resolved. The Company may cease to maintain the insurance policy if the Company reasonably determines that the type of coverage is no longer available. 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. Shares under option Unissued ordinary shares of PVW Resources Limited under option at the date of this report are as follows: Grant date 30 January 2021 26 October 2021 19 May 2022 Expiry date 29 January 2024 31 December 2023 19 May 2024 Exercise price Number under option $0.3000 $0.3000 $0.6000 2,400,000 3,000,000 4,200,000 9,600,000 No person entitled to exercise the options had or has any right by virtue of the option to participate in any share issue of the Company or of any other body corporate. Shares issued on the exercise of options There were no ordinary shares of PVW Resources Limited issued on the exercise of options during the year ended 30 June 2023 and up to the date of this report. 17 PVW Resources Limited Directors' report 30 June 2023 Shares under performance rights Unissued ordinary shares of PVW Resources Limited under performance rights at the date of this report are as follows: Grant date 29 December 2020 07 September 2021 07 September 2021 11 April 2022 Expiry date 28 December 2025 07 September 2024 07 September 2024 11 April 2024 Number under rights 3,200,000 850,000 850,000 125,000 5,025,000 No person entitled to exercise the performance rights had or has any right by virtue of the performance right to participate in any share issue of the Company or of any other body corporate. Shares issued on the exercise of performance rights There were no ordinary shares of PVW Resources Limited issued on the exercise of performance rights during the year ended 30 June 2023 and up to the date of this report. Non-audit services There were no non-audit services provided during the financial year by the auditor. 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. Remuneration report (audited) The remuneration report details the key management personnel remuneration arrangements for the Group, in accordance with the requirements of the Corporations Act 2001 and its Regulations. Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including all Directors. The remuneration report is set out under the following main headings: ● ● ● ● ● Principles used to determine the nature and amount of remuneration Details of remuneration Service agreements Share-based compensation Additional disclosures relating to key management personnel Principles used to determine the nature and amount of remuneration The objective of the Group'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 capital management The remuneration policy has been tailored to increase the direct positive relationship between shareholders' investment objectives and Directors' and Executives' performance. Currently, this may be facilitated through the issue of options to Directors and Executives to encourage the alignment of personal and shareholder interests. The Company believes this policy will be effective in increasing shareholder wealth. The Board's policy for determining the nature and amount of remuneration for Board members and Senior Executive of the Company is as follows: 18 PVW Resources Limited Directors' report 30 June 2023 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 his own remuneration. Non-Executive Directors do not receive share options or other incentives. The Company's Constitution provides that Directors are entitled to be remunerated for their services as follows: ● The total aggregate fixed sum per annum to be paid to the Directors (excluding salaries of Executive Directors) from time to time will not exceed the sum determined by the Shareholders in general meeting and the total aggregate fixed sum will be divided between the Directors as the Directors shall determine and, in default of agreement between them, then in equal shares. The Directors' remuneration accrues from day to day. The total aggregate fixed sum per annum which may be paid to Non-Executive Directors is $300,000. This amount cannot be increased without the approval of the Company's Shareholders. ● ● The Directors are entitled to be paid reasonable travelling, accommodation and other expenses incurred by them respectively in or about the performance of their duties as Directors. Executive remuneration The Company’s remuneration policy for Executive Directors and senior management is designed to promote superior performance and long-term commitment to the Company. Executives receive a base remuneration which is market related and may receive performance-based remuneration. The Board reviews Executive packages annually by reference to the Company's performance, Executive performance, and comparable information from industry sectors and other listed companies in similar industries. Executives are also entitled to participate in employee share and option schemes. An Incentive Option Plan was approved by shareholders on 29 November 2022. Fixed Remuneration Other than statutory superannuation contribution, no retirement benefits are provided for Executive and Non-Executive Directors of the Company. To align Directors' interests with shareholder interests, the Directors are encouraged to hold shares in the company. Performance Based Remuneration – Short-term and long-term incentive structure The Board will review short-term and long-term incentive structures from time to time. Any incentive structure will be aligned with shareholders' interests. ● Short-term incentives - No short-term incentives in the form of cash bonuses were granted to Directors during the year. Long-term incentives - The Board has a policy of granting incentive options to Executives with exercise prices above market share price. As such, incentive options granted to Executives will generally only be of benefit if the Executives perform to the level whereby the value of the Group increases sufficiently to warrant exercising the incentive options granted. ● The Executive Directors will be eligible to participate in any short term and long-term incentive arrangements operated or introduced by the Company (or any subsidiary) from time to time Consolidated entity performance and link to remuneration As the Group is in the early stages of development and commercialisation, the Board did not consider earnings during the current and previous financial years when determining the nature and amount of remuneration of KMP. Use of remuneration consultants During the financial year, the Company did not engage any remuneration consultants. Voting and comments made at the Company's 2022 Annual General Meeting ('AGM') At the 29 November 2022 AGM, 99.91% of the votes received supported the adoption of the remuneration report for the year ended 30 June 2022. 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 Group are set out in the following tables. 19 PVW Resources Limited Directors' report 30 June 2023 2023 David Wheeler George Bauk Colin McCavana 2022 David Wheeler George Bauk Colin McCavana Short-term benefits Post- employment benefits Long-term benefits Share- based payments Cash salary and fees $ Cash bonus $ Non- Super- monetary annuation $ $ Long service leave $ Equity- settled $ Total $ 60,000 250,000 48,000 358,000 - - - - - - - - - - - - - - - - - - - - 60,000 250,000 48,000 358,000 Short-term benefits Post- employmen t benefits Long-term benefits Share- based payments Cash salary and fees $ Cash bonus $ Non- Super- monetary annuation $ $ Long service leave $ Equity- settled $ Total $ 60,000 160,000 48,000 268,000 - - - - - - - - - - - - - - - - - - - - 60,000 160,000 48,000 268,000 Service agreements Remuneration and other terms of employment for key management personnel are formalised in service agreements. Details of these agreements are as follows: Name: Title: Agreement commenced: Term of agreement: Details: Name: Title: Agreement commenced: Term of agreement: Details: Name: Title: Agreement commenced: Term of agreement: Details: David Wheeler Non-Executive Chairman 29 August 2017 Mr Wheeler's appointment as a Non-Executive Chairman will terminate on the date he retires by rotation under the Company’s Constitution but will continue for further terms if he is re-elected at future annual general meetings. Mr Wheeler was elected Chair by the Board of Directors on 11 September 2017. In consideration for his services as a Chair and member of any Board committee, Mr Wheeler is paid a set a monthly fee. George Bauk Executive Director 1 February 2021 Mr Bauk's appointment as a Executive Director will terminate on the date he retires by rotation under the Company’s Constitution but will continue for further terms if he is re-elected at future annual general meetings. In consideration for his services as a Non-Executive Director and member of any Board committee, Mr Bauk is paid a set a monthly fee. Colin McCavana Non-Executive Director 1 February 2021 Mr McCavana's appointment as a Non-Executive Director will terminate on the date he retires by rotation under the Company’s Constitution but will continue for further terms if he is re-elected at future annual general meetings. In consideration for his services as a Non-Executive Director and member of any Board committee, Mr McCavana is paid a set a monthly fee. 20 PVW Resources Limited Directors' report 30 June 2023 Share-based compensation Issue of shares There were no shares issued to Directors and other key management personnel as part of compensation during the year ended 30 June 2023. Options There were no options over ordinary shares issued to Directors and other key management personnel as part of compensation that were outstanding as at 30 June 2023. Performance rights There were no performance rights over ordinary shares issued to Directors and other key management personnel as part of compensation that were outstanding as at 30 June 2023. 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 Group, including their personally related parties, is set out below: Ordinary shares David Wheeler Colin McCavana George Bauk Balance at the start of the year Movements due to reverse acquisition 583,333 2,327,003 2,625,120 5,535,456 - - - - At appointment/ resignation Balance at the end of the year Additions - - - - - - - - 583,333 2,327,003 2,625,120 5,535,456 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 Group, including their personally related parties, is set out below: Balance at the start of the year Granted Exercised other Expired/ forfeited/ Balance at the end of the year Options over ordinary shares David Wheeler 1,600,000 1,600,000 - - - - - - 1,600,000 1,600,000 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 Group, including their personally related parties, is set out below: Performance rights over ordinary shares David Wheeler Colin McCavana George Bauk Balance at the start of the year 800,000 800,000 1,600,000 3,200,000 Granted Vested other Expired/ forfeited/ Balance at the end of the year - - - - - - - - - - - - 800,000 800,000 1,600,000 3,200,000 Loans from/ to key management personnel and their related parties The Group had no loans with key management personnel as at year end. Other transactions with key management personnel and their related parties During the year, payments were made to key management personnel and their related parties for director fees and rent. Refer to note 24 for details on related party transactions. This concludes the remuneration report, which has been audited. 21 PVW Resources Limited Directors' report 30 June 2023 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. 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 ___________________________ David Wheeler Non-Executive Chairman 27 September 2023 Perth 22 PVW Resources Limited Consolidated statement of profit or loss and other comprehensive income For the year ended 30 June 2023 Revenue Other income Interest income Expenses Exploration expense Other expenses Employee benefits expense Depreciation and amortisation expense Share based payments Interest expense Loss before income tax expense Income tax expense Loss after income tax expense for the year attributable to the owners of PVW Resources Limited Other comprehensive income for the year, net of tax Total comprehensive income for the year attributable to the owners of PVW Resources Limited Basic earnings per share Diluted earnings per share Note Consolidated 2023 $ 2022 $ 123,012 52,162 98,913 2,842 5 6 21 (4,671,013) (790,388) (593,702) (136,306) (66,995) (4,094) (3,077,238) (869,687) (554,252) (113,962) (1,998,908) (6,547) (6,087,324) (6,518,839) 7 - - (6,087,324) (6,518,839) - - (6,087,324) (6,518,839) Cents Cents 8 8 (6.27) (6.27) (8.49) (8.49) The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes 24 PVW Resources Limited Consolidated statement of financial position As at 30 June 2023 Assets Current assets Cash and cash equivalents Trade and other receivables Other current assets Total current assets Non-current assets Plant and equipment Right-of-use assets Total non-current assets Total assets Liabilities Current liabilities Trade and other payables Lease liabilities Provisions Other liabilities Total current liabilities Non-current liabilities Lease liabilities Provisions Total non-current liabilities Total liabilities Net assets Equity Issued capital Reserves Accumulated losses Total equity Note Consolidated 2023 $ 2022 $ 9 11 12 13 14 15 16 17 15 16 3,766,395 59,957 97,105 3,923,457 9,355,585 122,177 79,844 9,557,606 124,947 131,536 256,483 170,560 122,644 293,204 4,179,940 9,850,810 255,702 82,785 83,865 300,000 722,352 368,698 70,912 64,950 - 504,560 59,417 300,000 359,417 65,696 300,000 365,696 1,081,769 870,256 3,098,171 8,980,554 18 20 22,029,616 21,752,950 3,268,152 (22,127,872) (16,040,548) 3,196,427 3,098,171 8,980,554 The above consolidated statement of financial position should be read in conjunction with the accompanying notes 25 PVW Resources Limited Consolidated statement of changes in equity For the year ended 30 June 2023 Consolidated Balance at 1 July 2021 Issued capital $ Accumulated losses $ Share-based payment reserve $ Total equity $ 13,119,269 (9,521,709) 587,122 4,184,682 Loss after income tax expense for the year Other comprehensive income for the year, net of tax Total comprehensive income for the year - - (6,518,839) - - (6,518,839) - - - (6,518,839) - (6,518,839) Transactions with owners in their capacity as owners: Performance rights issued (note 21) Options issued Share issued for the acquisition of Stark Resources(note 18) Share issue costs Shares issued under prospectus (note 18) Performance share issued due to acquisition(note 21) Performance rights vested - - 247,500 (1,113,819) 9,500,000 - - - - - - - - - 79,438 2,404,542 - - - 181,050 16,000 79,438 2,404,542 247,500 (1,113,819) 9,500,000 181,050 16,000 Balance at 30 June 2022 21,752,950 (16,040,548) 3,268,152 8,980,554 Consolidated Balance at 1 July 2022 Issued capital $ Accumulated losses $ Share-based payment reserve $ Total equity $ 21,752,950 (16,040,548) 3,268,152 8,980,554 Loss after income tax expense for the year Other comprehensive income for the year, net of tax Total comprehensive income for the year - - (6,087,324) - - (6,087,324) - - - (6,087,324) - (6,087,324) Transactions with owners in their capacity as owners: Share-based payments (note 21) Share issued for the acquisition of Rare Metals Group Pty Ltd and Tiger Metals Pty Ltd (note 18) - 276,666 - - (71,725) (71,725) - 276,666 Balance at 30 June 2023 22,029,616 (22,127,872) 3,196,427 3,098,171 The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes 26 PVW Resources Limited Consolidated statement of cash flows For the year ended 30 June 2023 Cash flows from operating activities Payments to suppliers and employees Exploration and evaluation expenditure Purchase of tenements Interest received Interest and other finance costs paid Note Consolidated 2023 $ 2022 $ (1,212,149) (4,290,524) (40,000) 52,162 (4,094) (1,625,655) (2,700,225) (15,000) 2,842 - Net cash used in operating activities 10 (5,494,605) (4,338,038) Cash flows from investing activities Payments for property, plant and equipment Cash acquired from acquisition Net cash used in investing activities Cash flows from financing activities Proceeds from issue of shares Share issue transaction costs Repayment of lease liabilities Net cash (used in)/from financing activities Net (decrease)/increase in cash and cash equivalents Cash and cash equivalents at the beginning of the financial year 18 (23,895) 400 (147,858) - (23,495) (147,858) - - (71,090) 9,503,420 (616,166) (60,488) (71,090) 8,826,766 (5,589,190) 9,355,585 4,340,870 5,014,715 Cash and cash equivalents at the end of the financial year 9 3,766,395 9,355,585 The above consolidated statement of cash flows should be read in conjunction with the accompanying notes 27 PVW Resources Limited Notes to the consolidated financial statements 30 June 2023 Note 1. General information The financial statements cover PVW Resources Limited as a Group consisting of PVW Resources Limited and the entities it controlled at the end of, or during, the year. The financial statements are presented in Australian dollars, which is PVW Resources Limited's functional and presentation currency. PVW Resources Limited is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered office and principal place of business is: Level 3, 1138 Hay Street, West Perth, Western Australia, 6005 The Group is a mining and exploration company. The financial statements were authorised for issue, in accordance with a resolution of Directors, on 23 September 2023. Note 2. Significant accounting policies The principal accounting policies adopted in the preparation of the financial statements are set out either in the respective notes or below. These policies have been consistently applied to all the years presented, unless otherwise stated. New or amended Accounting Standards and Interpretations adopted The Group 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. Going concern The Group has a history of incurring trading losses and net cash outflows from operating activities. For the year ended 30 June 2023, the Group incurred a loss of $6,087,324 (2022: $6,518,839) and cash outflows from operating activities of $5,494,605 (2022: $4,338,038). The business has been funded as required via capital raising activities. The Group has the ability to reduce forecast expenditure if required and it is anticipated that additional capital can be raised in the future if required. The Directors have assessed the Group’s ability to continue as a going concern and have not identified any significant risks. 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, share based payments 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 Group's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in note 3. Parent entity information In accordance with the Corporations Act 2001, these financial statements present the results of the Group only. Supplementary information about the parent entity is disclosed in note 26. Principles of consolidation The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of PVW Resources Limited ('Company' or 'parent entity') as at 30 June 2023 and the results of all subsidiaries for the year then ended. PVW Resources Limited and its subsidiaries together are referred to in these financial statements as the 'Group'. 28 PVW Resources Limited Notes to the consolidated financial statements 30 June 2023 Note 2. Significant accounting policies (continued) Subsidiaries are all those entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de-consolidated from the date that control ceases. Revenue recognition The Group 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. Other revenue Other revenue is recognised when it is received or when the right to receive payment is established. Impairment of non-financial assets Non-financial assets, other than deferred tax assets ("DTAs") are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. Recoverable amount is the higher of an asset's fair value less costs of disposal and value-in-use. The value-in-use is the present value of the estimated future cash flows relating to the asset using a pre-tax discount rate specific to the asset or cash-generating unit to which the asset belongs. Assets that do not have independent cash flows are grouped together to form a cash-generating unit. An impairment loss is recognised if the carrying amount of an asset exceeds it recoverable amount. Impairment losses are recognised in profit or loss. New Accounting Standards and Interpretations not yet mandatory or early adopted The Group 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. There was no material impact to Group accounting policies. Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory, have not been early adopted by the Group for the annual reporting period ended 30 June 2023. The Group has not yet assessed the impact of these new or amended Accounting Standards and Interpretations. Note 3. Critical accounting judgements, estimates and assumptions The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and assumptions on historical experience and on other various factors, including expectations of future events, management believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will seldom equal the related actual results. The judgements, estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within the next financial year are discussed below. Share-based payment transactions The Group measures the cost of equity-settled transactions with employees by reference to the fair value of the equity instruments at the date at which they are granted. The fair value is determined by using 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 Group measures the cost of cash-settled share-based payments at fair value at the grant date using the Binomial or Black-Scholes model taking into account the terms and conditions upon which the instruments were granted. 29 PVW Resources Limited Notes to the consolidated financial statements 30 June 2023 Note 3. Critical accounting judgements, estimates and assumptions (continued) This fair value is expensed over the period until vesting with recognition of a corresponding liability. The liability is re- measured to fair value at each balance date up to and including the settlement date with changes in fair value recognised in profit or loss. Allowance for expected credit losses 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. Income tax The Group is subject to income taxes in the jurisdictions in which it operates. Significant judgement is required in determining the provision for income tax. There are many transactions and calculations undertaken during the ordinary course of business for which the ultimate tax determination is uncertain. The Group recognises liabilities for anticipated tax audit issues based on the Group's current understanding of the tax law. Where the final tax outcome of these matters is different from the carrying amounts, such differences will impact the current and deferred tax provisions in the period in which such determination is made. Recovery of deferred tax assets Deferred tax assets are recognised for deductible temporary differences only if the Group considers it is probable that future taxable amounts will be available to utilise those temporary differences and losses. Provision for rehabilitation A provision for restoration and rehabilitation is recognised when there is a present obligation as a result of development activities undertaken, it is probable that an outflow of economic benefits will be required to settle the obligation, and the amount of the provision can be measured reliably. The estimated future obligations include the costs of abandoning sites, removing facilities and restoring the affected areas. The provision for future restoration costs is the best estimate of the present value of the expenditure required to settle the restoration obligation at the balance date. Future restoration costs are reviewed annually and any changes in the estimate are reflected in the present value of the restoration provision at each balance date. The initial estimate of the restoration and rehabilitation provision is capitalised into the cost of the related asset and amortised on the same basis as the related asset, unless the present obligation arises from the production of inventory in the period, in which case the amount is included in the cost of production for the period. Changes in the estimate of the provision for restoration and rehabilitation are treated in the same manner, except that the unwinding of the effect of discounting on the provision is recognised as a finance cost rather than being capitalised into the cost of the related asset. Note 4. Operating segments Identification of reportable operating segments The Group operates only in one business and geographical segment being predominantly in the area of mineral exploration and exploitation in Western Australia. The Group considers its business operations in mineral exploration and exploitation to be its primary reporting function. These operating segments are based on the internal reports that are reviewed and used by the Board of Directors (who are identified as the Chief Operating Decision Makers ('CODM')) in assessing performance and in determining the allocation of resources. There is no aggregation of operating segments. Accounting policy for operating segments Unless otherwise stated, all amounts reported to the Board of Directors as the CODM with respect to operating segments, are determined in accordance with AASB 8 Operating Segments. 30 PVW Resources Limited Notes to the consolidated financial statements 30 June 2023 Note 5. Exploration expense Personnel Drilling Tenement rents, rates and others Tenement purchase1 Rehabilitation General contractors Other exploration expenses Assaying Vehicle running costs Land use fees Field provisions and accommodation Consolidated 2023 $ 2022 $ 739,260 1,053,273 307,705 524,494 13,448 350,134 544,944 587,054 168,650 221,967 160,084 392,415 530,424 280,976 445,017 3,472 575,743 283,303 302,192 84,658 108,924 70,114 4,671,013 3,077,238 1 Tenement purchase relates to the acquisition of Tiger Metals Pty Ltd and Rare Metals Group Pty Ltd. See note 19 for further details. Accounting policy on exploration expenses Exploration, evaluation and acquisition costs are expensed in the year they are incurred. Development costs are capitalised. Development expenditure is recognised at cost less accumulated amortisation and any impairment losses. Exploration and evaluation expenditure is classified as development expenditure once the technical feasibility and commercial viability of extracting the related mineral resource is demonstrable. Where commercial production in an area of interest has commenced, the associated costs together with any forecast future capital expenditure necessary to develop proved and probable reserves are amortised over the estimated economic life of the mine on a units-of-production basis. Changes in factors such as estimates of proved and probable reserves that affect unit-of-production calculations are dealt with on a prospective basis. Note 6. Other expenses Accounting services Marketing expense Consultants ASX cost Other expenses Consolidated 2023 $ 2022 $ 108,485 120,366 217,485 50,002 294,050 128,062 152,505 204,893 46,217 338,010 790,388 869,687 31 PVW Resources Limited Notes to the consolidated financial statements 30 June 2023 Note 7. Income tax Income tax expense Current tax Deferred tax - origination and reversal of temporary differences Adjustment recognised for prior periods Aggregate income tax expense Numerical reconciliation of income tax expense and tax at the statutory rate Loss before income tax expense Tax at the statutory tax rate of 25% (2022:25%) Tax effect amounts which are not deductible/(taxable) in calculating taxable income: Share-based payments Current year tax losses not recognised Current year temporary differences not recognised Income tax expense Consolidated 2023 $ 2022 $ - - - - - - - - (6,087,324) (6,518,839) (1,521,831) (1,629,710) 16,749 499,727 (1,505,082) 2,134,899 (629,817) (1,129,983) 1,004,916 125,067 - - Consolidated 2023 $ 2022 $ Tax losses not recognised Unused tax losses for which no deferred tax asset has been recognised Potential tax benefit @ 25% (2022:25%) 28,211,654 26,706,572 7,052,914 6,676,643 The above potential tax benefit for tax losses has not been recognised in the statement of financial position. These tax losses can only be utilised in the future if the continuity of ownership test is passed, or failing that, the same business test is passed. The losses have not been brought to account because the Directors do not believe it is appropriate to regard realisation of those deferred tax assets as being probable. The benefit of these deferred tax assets will only be obtained if: ● ● ● The Group derives future assessable income of a nature and of an amount sufficient to enable the benefit from the deductions for the temporary differences to be realized The Group continues to comply with the conditions of deductibility imposed by tax legislation No change in tax legislation adversely affect the Group is realizing the benefit from the deductions for the temporary difference. Accounting policy for 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. 32 PVW Resources Limited Notes to the consolidated financial statements 30 June 2023 Note 7. Income tax (continued) 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. Note 8. Earnings per share Consolidated 2023 $ 2022 $ Loss after income tax attributable to the owners of PVW Resources Limited (6,087,324) (6,518,839) Weighted average number of ordinary shares used in calculating basic earnings per share 97,110,980 76,790,151 Weighted average number of ordinary shares used in calculating diluted earnings per share 97,110,980 76,790,151 Number Number Basic earnings per share Diluted earnings per share Cents Cents (6.27) (6.27) (8.49) (8.49) The weighted average number of shares outstanding for the year ended 30 June 2023 is based on the weighted average number of shares of PVW Resources Limited outstanding in the period following the acquisition. Accounting policy for earnings per share Basic earnings per share Basic earnings per share is calculated by dividing the profit attributable to the owners of PVW Resources Limited, excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the financial year. Diluted earnings per share Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the cost of servicing equity (other than dividends) and preference share dividends, the after income tax effect of dividends, interest and other financing costs associated with dilutive potential ordinary shares that have been recognised as expenses, other discretionary changes in revenues or expenses during the period that would result from the dilution of 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 adjusted for any bonus element. 33 PVW Resources Limited Notes to the consolidated financial statements 30 June 2023 Note 9. Cash and cash equivalents Current assets Cash at bank Consolidated 2023 $ 2022 $ 3,766,395 9,355,585 Accounting policy for cash and cash equivalents Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Note 10. Cash flow information Reconciliation of loss after income tax to net cash used in operating activities Loss after income tax expense for the year Adjustments for: Depreciation and amortisation Share-based payments Interest expense Purchase of subsidiary Change in operating assets and liabilities: Decrease/(increase) in trade and other receivables Increase in other current assets Decrease in trade and other payables Increase in provisions Net cash used in operating activities Note 11. Trade and other receivables Current assets Trade receivables GST receivable Consolidated 2023 $ 2022 $ (6,087,324) (6,518,839) 136,307 66,995 993 484,495 113,962 1,998,908 6,548 430,017 62,221 (17,262) (159,945) 18,915 (19,983) (20,565) (372,587) 44,501 (5,494,605) (4,338,038) Consolidated 2023 $ 2022 $ 27,681 32,276 - 122,177 59,957 122,177 Under the general approach to impairment, the Group has assessed there was no impairment to the working capital facility for the year. Accounting policy for 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. 34 PVW Resources Limited Notes to the consolidated financial statements 30 June 2023 Note 11. Trade and other receivables (continued) Other receivables are recognised at amortised cost, less any allowance for expected credit losses. Note 12. Plant and equipment Non-current assets Motor vehicles - at cost Less: Accumulated depreciation Plant and equipment - at cost Less: Accumulated depreciation Office equipment - at cost Less: Accumulated depreciation Consolidated 2023 $ 2022 $ 97,062 (32,058) 65,004 153,012 (93,551) 59,461 1,108 (626) 482 76,972 (18,704) 58,268 149,208 (37,519) 111,689 1,108 (505) 603 124,947 170,560 Reconciliations Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out below: Consolidated Balance at 1 July 2021 Additions Depreciation expense Balance at 30 June 2022 Additions Depreciation expense Balance at 30 June 2023 Plant and equipment $ Motor vehicles $ Office equipment $ Total $ 855 144,068 (33,235) 111,688 3,804 (56,031) 68,255 3,791 (13,777) 58,269 20,090 (13,355) 754 - (151) 603 - (121) 69,864 147,859 (47,163) 170,560 23,894 (69,507) 59,461 65,004 482 124,947 Accounting policy for 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. Cost includes expenditure that is directly attributable to the acquisition of the asset. Depreciation is calculated on a diminishing value basis to write off the net cost of each item of plant and equipment over their expected useful lives as follows: Motor Vehicles Computer Equipment Office Equipment Plant and equipment 10 years 4 years 10 years 4 years The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each reporting date. 35 PVW Resources Limited Notes to the consolidated financial statements 30 June 2023 Note 12. Plant and equipment (continued) An item of property, plant and equipment is derecognised upon disposal or when there is no future economic benefit to the Group. Gains and losses between the carrying amount and the disposal proceeds are taken to profit or loss. Note 13. Right-of-use assets Non-current assets Land and buildings - right-of-use Less: Accumulated depreciation Office equipment - right-of-use Less: Accumulated depreciation Consolidated 2023 $ 2022 $ 274,696 (145,126) 129,570 196,105 (77,575) 118,530 6,440 (4,474) 1,966 4,293 (179) 4,114 131,536 122,644 Reconciliations Reconciliations of the written down values at the beginning and end of the current financial year are set out below: Consolidated Balance at 1 July 2022 Additions1 Amortisation expense Balance at 30 June 2023 Building $ Office equipment $ Total $ 118,530 80,739 (69,699) 4,114 - (2,148) 122,644 80,739 (71,847) 129,570 1,966 131,536 1 On 1 March 2023, the Group entered into a warehouse lease agreement for a 2-year term, with a 2-year lease extension. The valuation for the warehouse lease is based on the present value of the lease payments, using an incremental borrowing rate of 7.29% over a 4-year term. Lease extension options have been deemed by management to be reasonably certain to be exercised. Accounting policy for right-of-use assets A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at cost, which comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made at or before the commencement date net of any lease incentives received, any initial direct costs incurred, and, except where included in the cost of inventories, an estimate of costs expected to be incurred for dismantling and removing the underlying asset, and restoring the site or asset. Right-of-use assets are amortised on a straight-line basis over the unexpired period of the lease or the estimated useful life of the asset, whichever is the shorter. Where the Group expects to obtain ownership of the leased asset at the end of the lease term, the amortisation is over its estimated useful life. Right-of use assets are subject to impairment or adjusted for any remeasurement of lease liabilities. The subsequent measurement of the right-of-use assets is at cost less accumulated amortisation and impairment losses. The Group has elected not to recognise a right-of-use asset and corresponding lease liability for short-term leases with terms of 12 months or less and leases of low-value assets. Lease payments on these assets are expensed to profit or loss as incurred. 36 PVW Resources Limited Notes to the consolidated financial statements 30 June 2023 Note 14. Trade and other payables Current liabilities Trade payables Accruals Other payables Consolidated 2023 $ 2022 $ 134,611 41,500 79,591 295,512 39,500 33,686 255,702 368,698 Refer to note 22 for further information on financial risk management. Accounting policy for trade and other payables These amounts represent liabilities for goods and services provided to the Group prior to the end of the financial year and which are unpaid. Due to their short-term nature they are measured at amortised cost and are not discounted. The amounts are unsecured and are usually paid within 30 days of recognition. Due to the short term nature of these payables, their carrying value is assumed to approximate their fair value. Note 15. Lease liabilities Current liabilities Lease liability Non-current liabilities Lease liability Amounts recognised in profit or loss Interest on lease liabilities Amortisation Consolidated 2023 $ 2022 $ 82,785 70,912 59,417 65,696 Consolidated 2023 $ 2022 $ (4,094) (66,800) (6,547) (66,800) (70,894) (73,347) Accounting policy for lease liabilities A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the present value of the lease payments to be made over the term of the lease, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group's incremental borrowing rate. Lease payments comprise of fixed payments less any lease incentives receivable, variable lease payments that depend on an index or a rate, amounts expected to be paid under residual value guarantees, exercise price of a purchase option when the exercise of the option is reasonably certain to occur, and any anticipated termination penalties. The variable lease payments that do not depend on an index or a rate are expensed in the period in which they are incurred. Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are remeasured if there is a change in the following: future lease payments arising from a change in an index or a rate used; residual guarantee; lease term; certainty of a purchase option and termination penalties. When a lease liability is remeasured, an adjustment is made to the corresponding right-of use asset, or to profit or loss if the carrying amount of the right-of-use asset is fully written down. 37 PVW Resources Limited Notes to the consolidated financial statements 30 June 2023 Note 16. Provisions Current liabilities Annual and long service leave Non-current liabilities Environmental Consolidated 2023 $ 2022 $ 83,865 64,950 300,000 300,000 Rehabilitation The provision for rehabilitation relates to the estimated cost of rehabilitation work to be carried out in relation to the Jungle Well tenement. Accounting policy for provisions Provisions are recognised when the Group has a present (legal or constructive) obligation as a result of a past event, it is probable the Group will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting date, taking into account the risks and uncertainties surrounding the obligation. If the time value of money is material, provisions are discounted using a current pre-tax rate specific to the liability. The increase in the provision resulting from the passage of time is recognised as a finance cost. Accounting policy for 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. Note 17. Other liabilities Current liabilities Deferred consideration1 Consolidated 2023 $ 2022 $ 300,000 - 1 Deferred consideration relates to $300,000 payable to the vendors as part of the consideration payable for the Tiger Metals Pty Ltd and Rare Metals Group Pty Ltd acquisition (see note 19 for further details). Note 18. Issued capital Ordinary shares - fully paid 98,463,602 96,335,413 22,029,616 21,752,950 Consolidated 2023 Shares 2022 Shares 2023 $ 2022 $ 38 PVW Resources Limited Notes to the consolidated financial statements 30 June 2023 Note 18. Issued capital (continued) Movements in ordinary share capital Details Date Shares Issue price $ Balance Share issued under placement Share issue costs Share issued on acquisition of Stark Share issued under placement 1 July 2021 18 May 2022 9 September 2021 14 April 2022 71,085,412 5,603,648 - 1,500,001 18,146,352 $0.4000 $0.0000 $0.1650 $0.4000 13,119,269 2,241,459 (1,113,819) 247,500 7,258,541 Balance Share issued on acquisition of Rare Metals Group & Tiger Metals Share issued to advisors 30 June 2022 96,335,413 21,752,950 17 February 2023 17 February 2023 1,578,189 550,000 $0.1300 $0.1300 205,166 71,500 Balance 30 June 2023 98,463,602 22,029,616 Ordinary shares Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the Company in proportion to the number of and amounts paid on the shares held. The fully paid ordinary shares have no par value and the Company does not have a limited amount of authorised capital. On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share shall have one vote. Capital risk management The Group'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. The capital structure of the Group consists of cash. Accounting policy for issued capital Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds. Note 19. Acquisition of Tiger Metals Pty Ltd and Rare Metals Group Pty Ltd On 17 February 2023, the Company completed the acquisition of 100% of the issued capital in Tiger Metals Pty Ltd ("Tiger Metals") and Rare Metals Group Pty Ltd ("Rare Metals Group"), the holders of the Gascoyne Project. The acquisition does not meet the definition of a business combination under AASB 3 Business Combinations as Tiger Metals and Rare Metals Group do not meet the definition of a business under AASB 3. Accordingly, the acquisition has been accounted for as asset acquisition. Key terms of the Gascoyne Project purchase agreement include: ● ● ● ● ● The acquisition of the project tenement holders (being Rare Metals Group and Tiger Metals); On execution of the purchase agreement, the payment of $40,000 cash and the issue of 1,578,189 PVW shares (subject to 6 month escrow) to the vendors; On the earlier of the date of grant of the pending tenements and 6 months after execution of the purchase agreement, the issue to the vendors of PVW shares to the value of $200,000 (at an issue price equal to the 10-day VWAP of PVW shares at the date of issue). As at 30 June 2023 the tenements remain pending; A further issue to the vendors of PVW shares to the value of $400,000 (at an issue price equal to the 10-day VWAP of PVW shares as at the date of issue) in the event of PVW’s drilling activity at the project results in an intersection of at least 5 meters at 5,000 ppm TREO. The probability of this milestone being achieved is 25%; and Payment of an asset introduction fee of 550,000 PVW shares at CPS Capital Group Pty Ltd. The total consideration for the acquisitions is $616,665 as follows: 39 PVW Resources Limited Notes to the consolidated financial statements 30 June 2023 Note 19. Acquisition of Tiger Metals Pty Ltd and Rare Metals Group Pty Ltd (continued) ● ● ● ● ● Cash payment of $40,000. 1,578,189 fully paid ordinary shares of the Company valued at $205,165 using share price of $0.13 on acquisition date. Fully paid ordinary shares of the Company valued at $200,000 at acquisition and to be issued on the earlier of the date of grant of the pending tenements and 6 months after execution of the purchase agreement. Refer to note 17 for details. Fully paid ordinary shares of the Company valued at $100,000 at acquisition to be issued in the event of PVW’s drilling activity at the project results in an intersection of at least 5 meters at 5,000 ppm TREO, based on 25% probability of the milestone being achieved. Refer to note 17 for details. 550,000 fully paid ordinary shares of the Company valued at $71,500 using share price of $0.13 on acquisition date. The fair value of identifiable assets and liabilities of Tiger Metals Pty Ltd as at the date of the acquisition is as follows: Tiger Metals Group Pty Ltd Current assets Non-current liabilities Net assets acquired Rare Metals Group Pty Ltd Current assets Non-current liabilities 2023 $ 300 (17,592) (17,292) 2023 100 (29,357) (29,257) The Company recognised the amount of $524,494 as Exploration Expense in Profit or Loss (refer to note 5 for further details). Note 20. Reserves Share-based payments reserve Consolidated 2023 $ 2022 $ 3,196,427 3,268,152 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. 40 PVW Resources Limited Notes to the consolidated financial statements 30 June 2023 Note 20. Reserves (continued) Movements in reserves Movements in each class of reserve during the current and previous financial year are set out below: Consolidated Balance at 1 July 2021 Issue of 1,700,000 performance rights on 7 September 2021 Vesting of performance rights issued on 29 December 2020 Issue of 1,800,000 performance rights on 20 July 2021 Issue of 1,800,000 performance rights on 11 April 2022 Issue of 3,000,000 options of 21 October 2021 Issue of 3,000,000 options of 26 October 2021 Consideration received for options on 28 October 2021 Consideration received for options on 20 May 2022 Issue of 4,200,000 options on 19 May 2022 Balance at 30 June 2022 Revaluation of 1,700,000 performance rights on 7 September 2021 Revaluation of 3,200,000 performance rights issued on 29 December 2020 Vesting of 1,800,000 performance rights issued on 20 July 2021 Expiry of 1,800,000 performance rights issued on 20 July 2021 Balance at 30 June 2023 Note 21. Share-based payments Share-based payment reserve $ 587,122 181,050 16,000 71,452 7,986 895,133 1,008,337 3,000 420 497,652 3,268,152 (138,720) (4,011) 63,615 7,391 3,196,427 Total expenses arising from share-based payment transactions recognised during the period were as follows: Options issued Performance rights issued Performance rights vested Performance rights expired Options Set out below are summaries of options granted: Outstanding at the beginning of the financial year Granted Expired Consolidated 2023 $ 2022 $ - - 59,604 7,391 1,903,470 79,438 16,000 - 66,995 1,998,908 Number of options 2022 2023 12,600,000 2,400,000 - 10,200,000 - (3,000,000) Outstanding at the end of the financial year 9,600,000 12,600,000 41 PVW Resources Limited Notes to the consolidated financial statements 30 June 2023 Note 21. Share-based payments (continued) 2023 Grant date Expiry date 30/01/2021 26/10/2021 19/05/2022 29/01/2024 31/12/2023 19/05/2024 Exercise price Balance at the start of the year $0.3000 $0.3000 $0.6000 2,400,000 3,000,000 4,200,000 9,600,000 Granted Exercised Expired/ forfeited/ other Balance at the end of the year - - - - - - - - - - - - 2,400,000 3,000,000 4,200,000 9,600,000 The weighted average remaining contractual life of options outstanding at the end of the financial year was 0.69 years (2022:1.45). Performance Rights Set out below are summaries of performance rights granted : Outstanding at the beginning of the financial year Granted Expired Outstanding at the end of the financial year 2023 Grant date Expiry date 29/12/2020 07/09/2021 07/09/2021 20/07/2021 20/07/2021 20/07/2021 20/07/2021 11/04/2022 11/04/2022 11/04/2022 11/04/2022 28/12/2025 07/09/2024 07/09/2024 20/07/2022 20/07/2022 20/07/2023 20/07/2023 11/04/2023 11/04/2023 11/04/2024 11/04/2024 Exercise price Balance at the start of the year $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 3,200,000 850,000 850,000 310,000 465,000 310,000 465,000 50,000 75,000 50,000 75,000 6,700,000 Number of rights 2023 2022 6,700,000 - (900,000) 3,200,000 3,500,000 - 5,800,000 6,700,000 Expired/ forfeited/ other Balance at the end of the year - - - - - - - - - - - - - - - (310,000) (465,000) - - (50,000) (75,000) - - (900,000) 3,200,000 850,000 850,000 - - 310,000 465,000 - - 50,000 75,000 5,800,000 Granted Exercised - - - - - - - - - - - - 42 PVW Resources Limited Notes to the consolidated financial statements 30 June 2023 Note 21. Share-based payments (continued) 2022 Grant date Expiry date 29/12/2020 07/09/2021 07/09/2021 20/07/2021 20/07/2021 20/07/2021 20/07/2021 11/04/2022 11/04/2022 11/04/2022 11/04/2022 28/12/2025 07/09/2024 07/09/2024 20/07/2022 20/07/2022 20/07/2023 20/07/2023 11/04/2023 11/04/2023 11/04/2024 11/04/2024 Exercise price Balance at the start of the year Granted Exercised Expired/ forfeited/ other Balance at the end of the year $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 3,200,000 - - - - - - - - - - 3,200,000 - 850,000 850,000 310,000 465,000 310,000 465,000 50,000 75,000 50,000 75,000 3,500,000 - - - - - - - - - - - - - - - - - - - - - - - - 3,200,000 850,000 850,000 310,000 465,000 310,000 465,000 50,000 75,000 50,000 75,000 6,700,000 During the year, the Directors have assessed the likelihood for the milestones for the performance rights being met. Accordingly, $66,995 have been expensed during the year as share based payments. The weighted average remaining contractual life of performance rights outstanding at the end of the financial year was 1.89 years (2022: 1.38 years). Accounting policy for share-based payments Equity-settled and cash-settled share-based compensation benefits are provided to employees. Equity-settled transactions are awards of shares, or options over shares, that are provided to employees in exchange for the rendering of services. Cash-settled transactions are awards of cash for the exchange of services, where the amount of cash is determined by reference to the share price. The cost of equity-settled transactions are measured at fair value on grant date. Fair value is independently determined using either the Binomial or Black-Scholes option pricing model that takes into account the exercise price, the term of the option, the impact of dilution, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option, together with non-vesting conditions that do not determine whether the Group receives the services that entitle the employees to receive payment. No account is taken of any other vesting conditions. For performance shares with price hurdles, a Trinomial Option Pricing model has been applied for milestones with market conditions. A probability estimate determined by Directors have been applied for milestones with non-market performance conditions. The cost of equity-settled transactions are recognised as an expense with a corresponding increase in equity over the vesting period. The cumulative charge to profit or loss is calculated based on the grant date fair value of the award, the best estimate of the number of awards that are likely to vest and the expired portion of the vesting period. The amount recognised in profit or loss for the period is the cumulative amount calculated at each reporting date less amounts already recognised in previous periods. The cost of cash-settled transactions is initially, and at each reporting date until vested, determined by applying either the Binomial or Black-Scholes option pricing model, taking into consideration the terms and conditions on which the award was granted. The cumulative charge to profit or loss until settlement of the liability is calculated as follows: ● during the vesting period, the liability at each reporting date is the fair value of the award at that date multiplied by the expired portion of the vesting period. from the end of the vesting period until settlement of the award, the liability is the full fair value of the liability at the reporting date. ● 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. 43 PVW Resources Limited Notes to the consolidated financial statements 30 June 2023 Note 21. Share-based payments (continued) 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 Group or employee, the failure to satisfy the condition is treated as a cancellation. If the condition is not within the control of the Group 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. Note 22. Financial risk management The main risk the Group is exposed to through its financial instruments are market risk, credit risk and liquidity risk consisting of interest rate, foreign currency risk and equity price risk. The Board of directors has overall responsibility for the establishment and oversight of the risk management framework. The Board adopts practices designed to identify significant areas of business risk and to effectively manage those risks in accordance with the Group's risk profile. This includes assessing, monitoring and managing risks for the Group and setting appropriate risk limits and controls. The Group is not of a size nor is its affairs of such complexity to justify the establishment of a formal system for risk management and associated controls. Instead, the Board approves all expenditure, is intimately acquainted with all operations and discuss all relevant issues at the Board meetings. The operational and other compliance risk management have also been assessed and found to be operating efficiently and effectively. Market risk Foreign currency risk Exposure to foreign exchange risk may result in the fair value or future cash flows of a financial instrument fluctuating due to movement in foreign exchange rates of currencies in which the Group holds financial instruments which are other than the AUD functional currency of the Group. The Group has no material exposure to foreign exchange risk. Price risk Price risk relates to the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. The Group does not presently hold material amounts subject to price risk. As such the Board considers price risk as a low risk to the Group. Interest rate risk Exposure to interest rate risk arises on financial assets and financial liabilities recognised at the end of the reporting period whereby a future change in interest rates will affect future cash flows or the fair value of fixed rate financial instruments. The Group is also exposed to earnings volatility on floating rate instruments. Due to the low amount of debt exposed to floating interest rates, interest rate risk is not considered a high risk to the Group. Movement in interest rates on the Group's financial liabilities and assets is not material. The following table illustrates sensitivities to the Group's exposures to changes in interest rates. The table indicates the impact on how profit and equity values reported at balance sheet date would have been affected by changes in the relevant risk variable that management considers to be reasonably possible. These sensitivities assume that the movement in a particular variable is independent of other variables. The sensitivity analysis above is based on the interest rates in the period following the acquisition. There were no interest rate exposure in the prior year. 44 PVW Resources Limited Notes to the consolidated financial statements 30 June 2023 Note 22. Financial risk management (continued) Credit risk Exposure to credit risk relating to financial assets arises from the potential non-performance by counterparties of contract obligations that could lead to a financial loss to the Group. The objective of the Group is to minimise the risk of loss from credit risk. Although revenue from operations is minimal, the Group trades only with creditworthy third parties. In addition, receivable balances are monitored on an ongoing basis with the result that the Group's exposure to bad debts is insignificant. The Group's maximum credit risk exposure is limited to the carrying value of its financial assets as indicated on the statement of financial position. Generally, trade receivables are written off when there is no reasonable expectation of recovery. Indicators of this include the failure of a debtor to engage in a repayment plan, no active enforcement activity and a failure to make contractual payments for a period greater than 1 year. The Group has adopted a forward looking expected credit loss model. The Group uses the general approach to impairment, as applicable under AASB 9: Financial Instruments. Under the general approach, at each reporting period, the Group assesses whether the financial instruments are credit-impaired, and if: ● ● the credit risk of the financial instrument has increased significantly since initial recognition, the Group measures the loss allowance of the financial instruments at an amount equal to the lifetime expected credit losses; or there is no significant increase in credit risk since initial recognition, the Group measures the loss allowance for that financial instrument at an amount equal to 12-month expected credit losses. Allowance for expected credit losses The Group has recognised a loss of $nil (2022: $nil) in profit or loss in respect of the expected credit losses for the year ended 30 June 2023. Liquidity risk Vigilant liquidity risk management requires the Group to maintain sufficient liquid assets (mainly cash and cash equivalents) and available borrowing facilities to be able to pay debts as and when they become due and payable.The Group's approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group's reputation. The Group manages liquidity risk by continuously monitoring forecast and actual cash flows and ensuring sufficient cash and marketable securities are available to meet the current and future commitments of the Group. Typically, the Group ensures that it has sufficient cash to meet expected operational expenses for a period of 60 days, including the servicing of financial obligations; this excludes the potential impact of extreme circumstances that cannot reasonably be predicted, such as natural disasters. Remaining contractual maturities The following tables detail the Group's remaining contractual maturity for its financial instrument liabilities. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the financial liabilities are required to be paid. The tables include both interest and principal cash flows disclosed as remaining contractual maturities and therefore these totals may differ from their carrying amount in the statement of financial position. Consolidated - 2023 Non-derivatives Non-interest bearing Trade payables Other payables Total non-derivatives Weighted average interest rate % 1 year or less $ Between 1 and 2 years $ Between 2 and 5 years $ Over 5 years $ Remaining contractual maturities $ - - 134,611 79,591 214,202 - - - - - - - - - 134,611 79,591 214,202 The cash flows in the maturity analysis above are not expected to occur significantly earlier than contractually disclosed above. 45 PVW Resources Limited Notes to the consolidated financial statements 30 June 2023 Note 22. Financial risk management (continued) Fair value of financial instruments Unless otherwise stated, the carrying amounts of financial instruments reflect their fair value. Note 23. Interests in subsidiaries The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance with the accounting policy described in note 2: Principal place of business / Country of incorporation Ownership interest 2022 2023 % % Australia Australia Australia Australia Hong Kong Hong Kong Australia Australia Australia Australia 100% 100% 100% 100% 100% 80% 100% 100% 100% 100% 100% 100% 100% 100% 100% 80% 100% 100% - - Name PVW Tanami Pty Ltd PVW Leonara Pty Ltd PVW Kalgoorlie Pty Ltd PVW Exploration NL ThredIt Limited Thred Innovations Limited AR Technologies Pty Ltd Stark Resources Pty Ltd Rare Metals Group Pty Ltd Tiger Metals Pty Ltd Note 24. Related party transactions Parent entity PVW Resources Limited is the parent entity. Subsidiaries Interests in subsidiaries are set out in note 23. Key management personnel Disclosures relating to key management personnel are set out in note 25 and the remuneration report included in the Directors' report. Transactions with related parties There were no other transactions with related parties during the current and previous financial year. Loans to/from related parties There were no loans to or from related parties at the current and previous reporting date. Note 25. Key management personnel disclosures Compensation The aggregate compensation made to Directors and other members of key management personnel of the Group is set out below: Short-term employee benefits Consolidated 2023 $ 2022 $ 358,000 268,000 46 PVW Resources Limited Notes to the consolidated financial statements 30 June 2023 Note 25. Key management personnel disclosures (continued) Other key management personnel transactions A number of these companies transacted with the Group during the year. The terms and conditions of these transactions were no more favourable than those available, or which might reasonably be expected to be available, in similar transactions to non-key management personnel related companies on an arm’s length basis. The aggregate value of transactions and outstanding balances relating to key management personnel and entities over which they have control or significant influence were as follows: Other income: Rent income from BlackEarth Minerals NL1 Other income from BlackEarth Minerals NL1 Rent income from Valor Resources Limited2 Other income from Valor Resources Limited2 Expenses: Consulting fees paid to Pathway Corporate Pty Ltd3 for Company Secretary and CFO role Rent paid to Pathway Corporate Pty Ltd3 for office space Consolidated 2023 $ 2022 $ 56,182 18,572 18,150 18,296 55,333 15,777 13,000 24,866 111,200 108,976 Consolidated 2023 2022 77,000 18,000 80,750 18,000 95,000 98,750 1 The Director, Mr George Bauk is the Non-Executive Chairman of Lithium Australia NL and BlackEarth Minerals NL 2 The Director, Mr George Bauk is the Executive Chairman of Valor Resources Limited 3 The Director, Mr David Wheeler is the Director of Pathways Corporate Pty Ltd Related party payables outstanding at year end George Bauk Bell Bay Investments Pty Ltd Valor Resources Limited Note 26. Parent entity information Set out below is the supplementary information about the parent entity. Statement of profit or loss and other comprehensive income Loss after income tax Total comprehensive income Consolidated 2023 $ 2022 $ 18,333 4,400 - 18,333 4,400 1,100 22,733 23,833 Parent 2023 $ 2022 $ (5,563,326) (6,519,185) (5,563,326) (6,519,185) 47 PVW Resources Limited Notes to the consolidated financial statements 30 June 2023 Note 26. Parent entity information (continued) Statement of financial position Total current assets Total non-current assets Total assets Total current liabilities Total non-current liabilities Total liabilities Net assets Equity Issued capital Share-based payments reserve Accumulated losses Total equity Parent 2023 $ 2022 $ 3,895,668 9,440,541 505,048 4,400,716 287,823 9,728,364 860,343 316,651 442,202 1,302,545 431,159 747,810 3,098,171 8,980,554 22,029,615 21,752,950 3,268,152 (22,325,241) (16,040,548) 3,393,797 3,098,171 8,980,554 Guarantees entered into by the parent entity in relation to the debts of its subsidiaries The parent entity had no guarantees in relation to the debts of its subsidiaries as at 30 June 2023 and 30 June 2022. Contingent liabilities The parent entity had no contingent liabilities as at 30 June 2023 and 30 June 2022. Capital commitments - Property, plant and equipment The parent entity had no capital commitments for property, plant and equipment as at 30 June 2023 and 30 June 2022. Note 27. Remuneration of auditors During the financial year the following fees were paid or payable for services provided by Hall Chadwick WA Audit Pty Ltd., the auditor of the Company: Audit services Audit or review of the financial statements Note 28. Commitments Consolidated 2023 $ 2022 $ 26,500 24,500 In order to maintain current rights of tenure to exploration tenements, the Company is required to outlay rentals and to meet the minimum expenditure requirements. These obligations are not provided for in the financial statements and are payable: 48 PVW Resources Limited Notes to the consolidated financial statements 30 June 2023 Note 28. Commitments (continued) Exploration expenditure Committed at the reporting date but not recognised as liabilities, payable: Within one year One to five years More than five years Consolidated 2023 $ 2022 $ 1,124,340 1,826,083 89,579 1,316,426 2,900,596 214,301 3,040,002 4,431,323 Note 29. Events after the reporting period No matter or circumstance has arisen since 30 June 2023 that has significantly affected, or may significantly affect the Group's operations, the results of those operations, or the Group's state of affairs in future financial years. 49 PVW Resources Limited Directors' declaration 30 June 2023 In the Directors' opinion: ● ● ● ● the attached financial statements and notes comply with the Corporations Act 2001, the Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements; the attached financial statements and notes comply with International Financial Reporting Standards as issued by the International Accounting Standards Board as described in note 2 to the financial statements; the attached financial statements and notes give a true and fair view of the Group's financial position as at 30 June 2023 and of its performance for the financial year ended on that date; and there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable. The Directors have been given the declarations required by section 295A of the Corporations Act 2001. Signed in accordance with a resolution of Directors made pursuant to section 295(5)(a) of the Corporations Act 2001. On behalf of the Directors ___________________________ David Wheeler Non-Executive Chairman 27 September 2023 Perth 50 PVW Resources Limited Shareholder information 30 June 2023 The shareholder information set out below was applicable as at 20 September 2023. Distribution of equitable securities Analysis of number of equitable security holders by size of holding: Ordinary shares Number of holders % of total Number holders of shares % of total shares issued 1 to 1,000 1,001 to 5,000 5,001 to 10,000 10,001 to 100,000 100,001 and over 174 354 210 530 182 63,367 12.000 1,012,649 24.413 14.483 1,669,657 36.552 20,870,404 12.552 74,847,525 0.064 1.028 1.696 21.197 76.015 1,450 100.000 98,463,602 100.000 Holding less than a marketable parcel - - - - Equity security holders Twenty largest quoted equity security holders The names of the twenty largest security holders of quoted equity securities are listed below: Ordinary shares % of total shares Number held issued CITICORP NOMINEES PTY LIMITED SUNSET CAPITAL MANAGEMENT PTY LTD (SUNSET SUPERFUND A/C) JHY INVESTMENTS PTY LTD CELTIC FINANCE CORP PTY LTD TOTODE PTY LTD (HINDMARSH INVESTMENT A/C) TIMEVIEW ENTERPRISES PTY LTD RIVERVIEW FLATS PTY LTD BELL BAY INVESTMENTS PTY LTD (CJ & DD MCCAVANA FAMILY A/C) LIND GLOBAL MACRO FUND LP ONE MANAGED INVESTMENT FUNDS LIMITED (TI GROWTH A/C) LIND GLOBAL FUND II LP MR GAVIN JEREMY DUNHILL MR DOMINIC VIRGARA TENDEKA HOLDINGS PTY LTD (BULLER SUPER FUND A/C) MRS ANN MAREE JOHNSON + MR DEAN ROBERT JOHNSON (LOVANDEE SUPER FUND A/C) MAURER INVESTMENTS PTY LIMITED (MAURER FAMILY A/C) JAMBER INVESTMENTS PTY LTD (THE AMBER SCHWARZ FAM A/C) MR NATHAN RYAN WAGNER PHILLIP HALL (THE HALL A/C) MS YUE LIM 3,336,247 3,073,457 2,415,008 2,253,333 2,096,010 1,875,000 1,875,000 1,751,692 1,750,000 1,458,333 1,367,175 1,140,000 1,000,000 1,000,000 950,000 939,796 926,666 864,173 841,701 800,000 3.388 3.121 2.453 2.288 2.129 1.904 1.904 1.779 1.777 1.481 1.389 1.158 1.016 1.016 0.965 0.954 0.941 0.878 0.855 0.812 31,713,591 32.208 55 PVW Resources Limited Shareholder information 30 June 2023 Unquoted equity securities Options issued to Directors Options issued to vendors Performance rights issued to Directors Performance rights issued to vendors Performance rights issued to employees Substantial holders There are no substantial holders in the Company. Voting rights The voting rights attached to ordinary shares are set out below: Number on issue Number of holders 2,400,000 7,200,000 3,200,000 1,700,000 125,000 3 13 3 7 5 Ordinary shares On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share shall have one vote. There are no other classes of equity securities. Restricted securities Class Options Other disclosures Expiry date 24 January 2024 Number of shares 2,400,000 In accordance with ASX Listing Rule 4.10.19, the Company confirms that for the time between reinstatement to the official list of the ASX and 30 June 2023, the entity has used its cash and assets in a form readily convertible to cash at the time of admission in a way consistent with its business objectives. 56 PVW Resources Limited Corporate governance statement 30 June 2023 CORPORATE GOVERNANCE STATEMENT The Board is responsible for establishing the Company’s corporate governance framework. This Corporate Governance Statement is current as of 28 August 2023 and has been approved by the Board of the Company on that date. In establishing its corporate governance framework, the Board has referred to the 4th edition of the ASX Corporate Governance Councils’ Corporate Governance Principles and Recommendations (“Recommendations”). The Corporate Governance Statement discloses the extent to which the Company follows the Recommendations. The Company will follow each recommendation where the Board has considered the recommendation to be an appropriate benchmark for its corporate governance practices. Where the Company’s corporate governance practices will follow a recommendation, the Board has made appropriate statements reporting on the adoption of the recommendation. In compliance with the “if not, why not” reporting regime, where, after due consideration, the Company’s corporate governance practices will not follow a recommendation, the Board has explained its reasons for not following the recommendation and disclosed what, if any, alternative practices the Company will adopt instead of those in the recommendation. The Company’s governance-related documents can be found on its website at pvwresources.com.au under the section marked "About Us" under the heading “Governance”. PRINCIPLES AND RECOMMENDATIONS COMPLY (YES/NO) EXPLANATION Principle 1: Lay solid foundations for management and oversight Recommendation 1.1 A listed entity should have and disclose a board charter setting out: (a) the respective roles and responsibilities of its board and YES management; and (b) those matters expressly reserved to the board and those delegated to management. Recommendation 1.2 A listed entity should: (a) undertake appropriate checks before appointing a director or senior executive or putting someone forward for election as a director; and (b) provide security holders with all material information in its possession relevant to a decision on whether or not to elect or re-elect a director. YES Recommendation 1.3 A listed entity should have a written agreement with each director and senior executive setting out the terms of their appointment. YES The Company has established the respective roles and responsibilities of its Board and management, and those matters expressly reserved to the Board and those delegated to management, and has documented this in its Board Charter. The responsibilities of the Board include but are not limited to: (a) setting and reviewing strategic direction and planning; (b) reviewing financial and operational performance; (c) risks and reviewing risk identifying principal management strategies; and (d) considering and reviewing significant capital investments and material transactions. In exercising its responsibilities, the Board recognises that there are many stakeholders in the operations of the Company, including employees, shareholders, co- ventures, the government and the community. The Board carefully considers the character, experience, education and skillset, as well as interests and associations of potential candidates for appointment to the Board and conducts appropriate checks to verify the suitability of the candidate, prior to their election. The Company has appropriate procedures in place to ensure that material information relevant to a decision to elect or re-elect a director, is disclosed in the notice of meeting provided to shareholders. The Company has a written agreement with each of the Directors. The material terms of any employment, service or consultancy agreement the Company, or any of its child entities, has entered into with its Chief Executive Officer, any of its directors, and any other person or entity who is a related party of the Chief Executive Officer or any of its directors will be disclosed in accordance with ASX Listing Rule 3.16.4 (taking into consideration the exclusions from disclosure outlined in that rule). 57 PVW Resources Limited Corporate governance statement 30 June 2023 PRINCIPLES AND RECOMMENDATIONS COMPLY (YES/NO) EXPLANATION Recommendation 1.4 The company secretary of a listed entity should be accountable directly to the board, through the chair, on all matters to do with the proper functioning of the board. YES The Company Secretary is accountable to the Board for facilitating the Company’s corporate governance processes and the proper functioning of the Board. Each Director is entitled to access the advice and services of the Company Secretary. In accordance with the Company’s Constitution, the appointment or removal of the Company Secretary is a matter for the Board as a whole. Details of the Company Secretary’s experience and qualifications are set out in the Annual Report. The Company is committed to creating a diverse working environment and promoting a culture which embraces diversity and has adopted a written policy. Given the size of the Company and scale of its operations, however, the Board is of the view that the setting of measurable objectives for achieving gender diversity is not required at this time. Further as the Company has not established measureable objectives for achieving gender diversity, the Company has not reported on progress towards achieving them. NO (not followed in full) Recommendation 1.5 A listed entity should: (a) have and disclose a diversity policy; (b) through its board or a committee of the board set measurable objectives for achieving gender diversity in the composition of its board, senior executives and workforce generally; and (c) disclose in relation to each reporting period: (1) the measurable objectives set for that period to achieve gender diversity; (2) the entity’s progress towards achieving those objectives; and (3) either: (A) (the respective proportions of men and women on the board, in senior executive positions and across the whole workforce (including how the entity has defined “senior executive” for these purposes); or (B) if the entity is a “relevant employer” under the Workplace Gender Equality Act, the entity’s most recent “Gender Equality Indicators”, as defined in and published under that Act. If the entity was in the S&P / ASX 300 Index at the commencement of the reporting period, the measurable objective for achieving gender diversity in the composition of its board should be to have not less than 30% of its directors of each gender within a specified period. Recommendation 1.6 A listed entity should: (a) have and disclose a process for periodically evaluating the performance of the board, its committees and individual directors; and (b) disclose for each reporting period whether a performance evaluation has been undertaken in accordance with that process during or in respect of that period. Recommendation 1.7 A listed entity should: (a) have and disclose a process for evaluating the performance of its senior executives at least once every reporting period; and (b) disclose for each reporting period whether a performance evaluation has been undertaken in accordance with that process during or in respect of that period. NO Whilst the Company has a written policy, the Board recognises that as a result of the Company’s size and the stage of the entity’s life as a public listed technology company, the assessment of the directors’ and executives’ overall performance and its own succession plan is conducted on an informal basis. Whilst this is at variance with the ASX Recommendations, the Directors consider that at the date of this report an appropriate and adequate process for the evaluation of Directors is in place. Refer above. NO Principle 2: Structure the board to add value 58 PVW Resources Limited Corporate governance statement 30 June 2023 PRINCIPLES AND RECOMMENDATIONS COMPLY (YES/NO) EXPLANATION YES A Nomination Committee operated during FY18. The Committee was comprised of 3 Independent Non- Executive Directors. The charter of the Committee is disclosed in the Corporate Governance Policies on the Company’s website. The full board now perform the duties of the Committee. Attendance is reported in the annual report. Recommendation 2.1 The board of a listed entity should: (a) have a nomination committee which: (1) has at least three members, a majority of whom are independent directors; and (2) is chaired by an independent director, and disclose: (3) the charter of the committee; (4) the members of the committee; and (5) as at the end of each reporting period, the number of times the committee met throughout the period and the individual attendances of the members at those meetings; or (b) if it does not have a nomination committee, disclose that fact and the processes it employs to address board succession issues and to ensure that the board has the appropriate balance of skills, experience, independence and knowledge of the entity to enable it to discharge its duties and responsibilities effectively. Recommendation 2.2 A listed entity should have and disclose a board skill matrix setting out the mix of skills and diversity that the board currently has or is looking to achieve in its membership. NO (not followed in full) The details of the skill set of the current Board members are set out in the description of each Director in the Annual Report. The Board believes that the current skill mix is appropriate given the Company’s size and the stage of the entity’s life as a publicly listed technology company. Recommendation 2.3 A listed entity should disclose: (a) the names of the directors considered by the board to be independent directors; (b) if a director has an interest, position, association or relationship of the type described in Box 2.3 of the ASX Corporate Governance Principles and Recommendation (4th Edition), but the board is of the opinion that it does not compromise the independence of the director, the nature of the interest, position, association or relationship in question and an explanation of why the board is of that opinion; and (c) the length of service of each director Recommendation 2.4 A majority of the board of a listed entity should be independent directors. Recommendation 2.5 The chair of the board of a listed entity should be an independent director and, in particular, should not be the same person as the CEO of the entity. Recommendation 2.6 A listed entity should have a program for inducting new directors and providing appropriate professional development opportunities for continuing directors to develop and maintain the skills and knowledge needed to perform their role as a director effectively. YES Mr David Wheeler has been an Independent Non- Executive Chairman of the Company since prior the reverse acquisition of PVW Resources NL. Mr Colin McCavana has been appointed as an Independent Non-Executive Director of the Company since 1 February 2021. YES YES NO The Board comprises three Directors of whom two are considered to be an Independent Director. The Board considers that all Directors bring an independent judgement to bear on Board decisions and that the Board’s expertise and experience adds considerable value to the Company. Mr David Wheeler (Chair) was an Independent Non- Executive Director of the Company from his appointment on 30 August 2017. Mr Wheeler is considered to be the most appropriate person to Chair the Board because of his public company experience. The Board recognises that as a result of the Company’s size and the stage of the entity’s life as a publicly listed technology company and has changed direction to be an exploration company in the materials sector, the Board has not put in place a formal program for inducting new directors. However, it does provide a package of information on commencement and background provides the Company’s interaction with personnel to gain a stronger understanding of the business. Similarly, the Company does not at this stage provide professional development opportunities for Directors. More formal processes for both of these areas will be considered in the future as the Company develops. ready Principle 3: Act ethically and responsibly 59 PVW Resources Limited Corporate governance statement 30 June 2023 PRINCIPLES AND RECOMMENDATIONS COMPLY (YES/NO) EXPLANATION Recommendation 3.1 A listed entity should articulate and disclose its values. Recommendation 3.2 A listed entity should: (a) have and disclose a code of conduct for its directors, senior executives and employees; and (b) ensure that the board or a committee of the board is informed of any material breaches of that code. YES YES The Company has disclosed through its Code of Conduct that it is committed to promoting good corporate conduct and governance. Refer to the company website The Company is committed to promoting good corporate conduct grounded by strong ethics and responsibility. The Company has established a Code of Conduct (Code), which addresses matters relevant to the its Company’s stakeholders. It may be amended from time to time by the Board, and is disclosed on the Company’s website. The Code applies to all Directors, employees, contractors and officers of the Company. legal and ethical obligations to Recommendation 3.3 A listed entity should: (a) have and disclose a whistleblower policy; and (b) ensure that the board or a committee of the board is informed of any material incidents reported under that policy. Recommendation 3.4 A listed entity should: (a) have and disclose an anti-bribery and corruption policy; and (b) ensure that the board or committee of the board is informed of any material breaches of that policy. YES The Company has disclosed its whistleblower policy on its website. YES The Company has disclosed these under its Corporate Code of Conduct in its Corporate Governance Plan on its website . Principle 4: Safeguard integrity in financial reporting Recommendation 4.1 The board of a listed entity should: (a) have an audit committee which: YES PVW Resources was not a Company required by ASX Listing Rule 12.7 to have an Audit Committee although it is included in the ASX Recommendations. The Board has not established an audit committee at this point in the Company’s development. It is considered that the size of the Board along with the level of activity of the Company renders this impractical and the full Board considers in detail all of the matters for which the directors are responsible. The Board has adopted an Audit Committee Charter which describes the role, composition, functions and responsibilities of the Audit Committee and is disclosed on the Company’s website. (1) has at least three members, all of whom are non- executive directors and a majority of whom are independent directors; and (2) is chaired by an independent director, who is not the chair of the board, and disclose: (3) the charter of the committee; (4) the relevant qualifications and experience of the members of the committee; and (5) in relation to each reporting period, the number of times the committee met throughout the period and the individual attendances of the members at those meetings; or (b) if it does not have an audit committee, disclose that fact and the processes it employs that independently verify and safeguard the integrity of its financial reporting, including the processes for the appointment and removal of the external auditor and the rotation of the audit engagement partner. Recommendation 4.2 The board of a listed entity should, before it approves the entity’s financial statements for a financial period, receive from its CEO and CFO a declaration that, in their opinion, the financial records of the entity have been properly maintained and that the financial statements comply with the appropriate accounting standards and give a true and fair view of the financial position and performance of the entity and that the opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively. YES In accordance with ASX Recommendation 4.2 the Chief Executive Officer (or their equivalent) and Chief Financial Officer (or their equivalent) are required to provide assurances that the written declarations under s295A of the Corporations Act (and for the purposes of ASX Recommendation 4.2) are founded on a sound framework of risk management and internal control and that the framework is operating effectively in all material respects in relation to financial reporting risks. Both the Chief Executive Officer and Chief Financial Officer provide such assurances at the time the s295A declarations are provided to the Board. 60 PVW Resources Limited Corporate governance statement 30 June 2023 PRINCIPLES AND RECOMMENDATIONS COMPLY (YES/NO) EXPLANATION Recommendation 4.3 A listed entity should disclose its process to verify the integrity of any periodic corporate report it releases to the market that is not audited or reviewed by an external auditor. YES The Company’s external audit function is performed by Hall Chadwick WA Audit WA Pty Ltd (“Hall Chadwick”). Representatives of Hall Chadwick will attend the Annual General Meeting and be available to answer shareholder questions regarding the audit. Principle 5: Make timely and balanced disclosure Recommendation 5.1 A listed entity should have and disclose a written policy for complying with its continuous disclosure obligations under listing rule 3.1.. YES The Company operates under the continuous disclosure requirements of the ASX Listing Rules and has adopted a policy, which is disclosed on the Company’s website. The Continuous Disclosure Policy sets out policies and procedures for the Company’s compliance with its continuous disclosure obligations under the ASX Listing Rules, and addresses financial markets communication, media contact and continuous disclosure issues. It forms part of the Company’s corporate policies and procedures and is available to all staff. The Company Secretary manages the policy. The policy will develop over time as best practice and regulations change and the Company Secretary will be responsible for communicating any amendments. Recommendation 5.2 A listed entity should ensure that its board receives copies of all material market announcements promptly after they have been made. Recommendation 5.3 A listed entity that gives a new and substantive investor or analyst presentation should release a copy of the presentation materials on the ASX Market Announcements Platform ahead of the presentation. YES The Company Secretary provides confirmation to every director once an announcement has been lodged on the ASX Platform YES Company presentation is released on ASX Market Announcements Platform and our website. Principle 6: Respect the rights of security holders Recommendation 6.1 A listed entity should provide information about itself and its governance to investors via its website. YES The Company keeps investors informed of its corporate governance, financial performance and prospects via its website – pvwresources.com.au. Investors can access copies of all announcements to the ASX, notices of meetings, annual reports and financial statement, and investor presentations via the ‘Investors’ section and can access general information regarding the Company on our website. 61 PVW Resources Limited Corporate governance statement 30 June 2023 PRINCIPLES AND RECOMMENDATIONS COMPLY (YES/NO) EXPLANATION Recommendation 6.2 A listed entity should have an investor relations program that facilitates effective two-way communication with investors. YES In the affairs. accordance with The Board aims to ensure that shareholders are informed of all major developments affecting the Company’s state ASX of Recommendations, information is communicated to shareholders as follows:  the annual financial report which includes relevant information about the operations of the Company during the year, changes in the state of affairs of the entity and details of future developments, in addition to the other disclosures required by the Corporations Act 2001;  the half yearly financial report lodged with the ASX and ASIC and sent to all shareholders who request it;  notifications relating to any proposed major changes in the Company which may impact on share ownership rights that are submitted to a vote of shareholders;  notices of all meetings of shareholders;  publicly released documents including full text of notices of meetings and explanatory material made available at on pvwresouces.com.au; and Company’s website the Recommendation 6.3 A listed entity should disclose how it facilitates and encourages participation at meetings of security holders. YES  disclosure of the Corporate Governance practices and communications strategy on the entity’s website. the Company aims While to provide sufficient information to Shareholders about the Company and its activities, it understands that Shareholders may have specific questions and require additional information. To ensure that Shareholders can obtain all relevant information to assist them in exercising their rights as Shareholders, the Company has made available a telephone number and relevant contact for Shareholders to make their enquiries. The Board encourages full participation of shareholders at the Annual General Meeting to ensure a high level of accountability and identification with the Company’s strategy and goals. Important issues are presented to the shareholders as single resolutions. The external auditor of the Company is also invited to the Annual General Meeting of shareholders and is available to answer any questions concerning the conduct, preparation and content of the auditor’s report. Pursuant to section 249K of the Corporations Act 2001 the external auditor is provided with a copy of related communications received by shareholders. the notice of meeting and Recommendation 6.4 A listed entity should ensure that all substantive resolutions at a meeting of security holders are decided by a poll rather than by a show of hands. Recommendation 6.5 A listed entity should give security holders the option to receive communications from, and send communications to, the entity and its security registry electronically. YES The Company has adopted this recommendation prior to its re-admission to the ASX. YES The Company provides its investors the option to receive communications from and send communications to, the Company and the share registry electronically. 62 PVW Resources Limited Corporate governance statement 30 June 2023 PRINCIPLES AND RECOMMENDATIONS COMPLY (YES/NO) EXPLANATION Principle 7: Recognise and manage risk Recommendation 7.1 The board of a listed entity should: (a) have a committee or committees to oversee risk, each of YES which: (1) (2) has at least three members, a majority of whom are independent directors; and is chaired by an independent director, and disclose: (3) (4) (5) the charter of the committee; the members of the committee; and as at the end of each reporting period, the number of times the committee met throughout the period and the individual attendances of the members at those meetings; or (b) if it does not have a risk committee or committees that satisfy (a) above, disclose that fact and the process it employs for overseeing the entity’s risk management framework. Recommendation 7.2 The board or a committee of the board should: (a) review the entity’s risk management framework at least annually to satisfy itself that it continues to be sound and that the entity is operating with due regard to the risk appetite set by the board; and (b) disclose, in relation to each reporting period, whether such a review has taken place YES Recommendation 7.3 A listed entity should disclose: (a) if it has an internal audit function, how the function is YES structured and what role it performs; or (b) if it does not have an internal audit function, that fact and the processes it employs for evaluating and continually improving the effectiveness of its governance, risk management and internal control processes.. Recommendation 7.4 A listed entity should disclose whether it has any material exposure to environmental or social risks and, if it does, how it manages or intends to manage those risks. YES Due to the size of the Board, the Company does not have a separate Risk Committee. The Board is responsible for the oversight of the Company’s risk management and control framework. The Board has adopted a Risk Management Policy, which is disclosed on the Company’s website. The Board recognises that there are inherent risks associated with the Company’s operations including commercial, technological legal and other operational risks. The Board endeavours to mitigate such risks by continually reviewing the activities of the Company in order to identify key business and operational risks and ensuring that they are appropriately assessed and managed. No formal report in relation to the Company’s management of its material business risks is presented to the Board. The Board reviews the risk profile of the Company and monitors risk informally throughout the year. The Company does not have an internal audit function. This is the case due to the size of the Company and the stage of life of the entity. To evaluate and continually improve the effectiveness of the Company’s risk management and internal control processes, the Board relies on ongoing reporting and discussion of the management of material business risks as outlined in the Company’s Risk Management Policy. As already outlined above in relation to various ASX Recommendations, the Company constantly monitors and reviews the key risks that affect the Company and the management of those risks. The risks which the Company has identified that it has a material exposure to are its ability to raise funds within an acceptable time frame and on terms acceptable to it (“Capital Risk”); and that its existing projects, or any other projects that it may acquire in the future, will be able to be economically exploited (“Economic Risk”). The manner in which the Company manages those risks, in the case of Capital Risk, to monitor the market and investment appetite and to raise further required capital in a timely manner such that the Company’s operations are adequately funded; in the case of Economic Risk, to adopt a diversified portfolio approach and to also adopt a focused approach, seeking to lay off risk where possible. More information about the Company’s management of risk can be found in the prospectus released 12 December 2016. 63 PVW Resources Limited Corporate governance statement 30 June 2023 PRINCIPLES AND RECOMMENDATIONS COMPLY (YES/NO) EXPLANATION Principle 8: Remunerate fairly and responsibly Recommendation 8.1 The board of a listed entity should: (a) have a remuneration committee which: YES (1) has at least three members, a majority of whom are independent directors; and (2) is chaired by an independent director, and disclose: (3) the charter of the committee; (4) the members of the committee; and (5) as at the end of each reporting period, the number of times the committee met throughout the period and the individual attendances of the members at those meetings; or (b) if it does not have a remuneration committee, disclose that fact and the processes it employs for setting the level and composition of remuneration for directors and senior executives and ensuring that such remuneration is appropriate and not excessive. Recommendation 8.2 A listed entity should separately disclose its policies and practices regarding the remuneration of non-executive directors and the remuneration of executive directors and other senior executives. Recommendation 8.3 A listed entity which has an equity-based remuneration scheme should: (a) have a policy on whether participants are permitted to enter into transactions (whether through the use of derivatives or otherwise) which limit the economic risk of participating in the scheme; and (b) disclose that policy or a summary of it. A Nomination Committee operated during FY18. The Committee was comprised of 3 Independent Non- Executive Directors. The charter of the Committee is disclosed in the Corporate Governance Policies on the Company’s website. Due to the size of the Board, the full board now perform the duties of the Committee. Attendance is reported in the annual report. YES N/A Details of the Company’s policies on remuneration are set out in the Company’s “Remuneration Report” in each Annual Report published by the Company. This disclosure will include a summary of the Company’s policies regarding the deferral of performance-based remuneration and the reduction, cancellation or clawback of the performance-based remuneration in the event of serious misconduct or a material misstatement in the Company’s financial statements. The Company’s Security Trading Policy includes a statement prohibiting directors, officers and employees from dealing at any time in financial products such as warrants, futures or other financial products issued over THD markets, but does not specifically prohibit entering into transactions (whether through the use of derivatives or otherwise) which limit the economic risk of their security holding in the Company or of participating in unvested entitlements under any equity based remuneration schemes. Security Trading Policy In accordance with ASX Listing Rule 12.9, the Company has adopted a trading policy which sets out the following information: a) closed periods in which directors, employees and contractors of the Company must not deal in the Company’s securities; b) trading in the Company’s securities which is not subject to the Company’s trading policy; and c) the procedures for obtaining written clearance for trading in exceptional circumstances. The Company’s Security Trading Policy is available on the Company’s website. 64 PVW Resources Limited Mining interest 30 June 2023 INTERESTS IN MINING TENEMENTS HELD Project Tenement Location Ballinue Leonora Kalgoorlie Tanami Western Australia Western Australia Western Australia Western Australia E09/2601 E59/2585 E59/2586 E37/909 E37/1254 M37/135 P37/9312 E37/1394 E27/571 E27/614 P24/5290 P24/5291 P24/5292 P24/5293 P24/5294 P24/5397 P24/5398 P24/5399 E24/214 P24/5302 P24/5303 P24/5304 P24/5305 P24/5306 P24/5307 P24/5308 P24/5309 P24/5310 P24/5311 P24/5312 P24/5313 P24/5314 P24/5266 P24/5267 P24/5268 P24/5269 P24/5270 P24/5271 E80/4029 E80/4197 E80/4558 E80/4869 E80/4919 E80/4920 E80/4921 E80/5187 E80/5188 E80/5189 Ownership at the beginning of the year* 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Ownership at the end of the year Acquired during the year Disposed of during the year - - - 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 100% 100% 100% - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 65 PVW Resources Limited Mining interest 30 June 2023 Project Tenement Location E80/5190 E80/5249 E80/5250 E80/5694 E80/5695 E80/5696 E80/5697 Tomkinson Range EL33443 EL33444 Northern Territory Ownership at the beginning of the year* 100% 100% 100% 100% 100% 100% 100% Ownership at the end of the year Acquired during the year Disposed of during the year 100% 100% 100% 100% 100% 100% 100% 100% 100% - - - - - - - 100% 100% - - - - - - - * Represents PVW Resource Ltd ownership at the beginning of the year. 66 PVW Resources Limited Annual Mineral Resource Statement 30 June 2023 ANNUAL MINERAL RESOURCE STATEMENT In accordance with ASX Listing Rule 5.21, the Company reviews and reports its Mineral Resources at least annually. The date of reporting is 30 June each year, to coincide with the Company’s end of financial year balance date. If there are any material changes to its Mineral Resources over the course of the year, the Company is required to promptly report these changes. LEONARA Given the positive results and the compilation of PVW Resource NL’s maiden JORC 2012 compliant Resource at the Jungle Well Project, the complete Mineral Resource Estimate summary, and supporting information, including the JORC Table 1, sections 1-3 are located on the PVW Resources Ltd website and are provided in the Company’s ASX announcement dated 15 Feb 2021 titled “Prospectus” Appendix A - Independent Geologists Report, 2.4 Mineral Resource Estimation – Jungle Well Deposit. Jungle Well Deposit November Inferred Mineral Resource Estimate (0.5g/t Au Cut-off) Type LG Stockpile Oxide Transitional Fresh Total Tonnes (kt) Au (g/t) Au Ounces (oz) 7 210 309 208 735 1.3 1.0 1.1 1.4 1.1 300 6,800 10,600 9,200 26,800 MATERIAL CHANGES AND RESOURCE STATEMENT COMPARISON The Company is not aware of any new information or data that materially affects the information as previously released and all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed. COMPETENT PERSON’S STATEMENT The Mineral Resource has been compiled under the supervision of Mr. Shaun Searle who is a director of Ashmore Advisory Pty Ltd and a Registered Member of the Australian Institute of Geoscientists. Mr. Searle has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that he has undertaken to qualify as a Competent Person as defined in the JORC Code. All Mineral Resources figures reported in the table above represent estimates at November 2019. Mineral Resource estimates are not precise calculations, being dependent on the interpretation of limited information on the location, shape and continuity of the occurrence and on the available sampling results. The totals contained in the above table have been rounded to reflect the relative uncertainty of the estimate. Rounding may cause some computational discrepancies. Mineral Resources are reported in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The Joint Ore Reserves Committee Code – JORC 2012 Edition). Governance Arrangements and Internal Controls PVW Resources Limited has ensured that the Mineral Resources quoted are subject to good governance arrangements and internal controls. The Mineral Resources reported have been generated by an independent external consultant who is experienced in best practices in modelling and estimation methods. The consultant has also undertaken reviews of the quality and suitability of the underlying information used to determine the resource estimate. In addition, PVW Resources Limited’s management carry out regular reviews and audits of internal processes and external contractors that have been engaged by the Company or its joint venture partners. 67

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