Regis Resources Annual Report 2018

FY2018 Annual Report · Regis Resources

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R E G I S R E S O U R C E S A N N U A L R E P O R T

CORPORATE
DIRECTORY

ABN
28 009 174 761

Directors
Mark Clark
Paul Thomas
Mark Okeby
Ross Kestel
James Mactier
Fiona Morgan

(Executive Chairman)
(Executive Director)
(Deputy Chairman/Lead Independent Non-Executive Director)
(Independent Non-Executive Director)
(Independent Non-Executive Director)
(Independent Non-Executive Director)

Company Secretary
Kim Massey

Registered Office &
Principal Place of Business
Level 2
516 Hay Street
SUBIACO WA 6008

Share Register
Computershare Investor Services Pty Limited
GPO Box D182
PERTH WA 6840

Regis Resources Limited shares are listed on the
Australian Securities Exchange (ASX). Code: RRL.

Bankers
Macquarie Bank Limited
Level 4, Bishops See
235 St Georges Terrace
PERTH WA 6000

Auditors
KPMG
235 St Georges Terrace
PERTH WA 6000

Front Cover Photo by Ben Broeder, Every Man & His Dog Media

Garden Well pit // Photo by Will Nguyen

CONTENTS

Highlights

Chairman's Report

Corporate

Duketon Gold Project

Gold Exploration

Reserves & Resources

Directors’ Report

Remuneration Report (Audited)

Auditor’s Independence Declaration

Financial Statements

Notes to the Financial Statements

Directors' Declaration

Independent Auditor’s Report

ASX Additional Information

HIGHLIGHTS

Moolart Well Plant // Photo by Ben Broeder

CORPORATE

26%

25%

23%

11%

NET PROFIT
AFTER TAX

EARNINGS
REVENUE
PER SHARE

REVENUE
REVENUE

EBITDA

DIVIDENDS

Net proﬁt after tax up
26% to $174.2 million
for the ﬁnancial year.

Earnings per share
up 25% to 34.60
cents per share.

Revenue up 11%
to $604.4 million.

EBITDA up 23%
to $312.5 million.

Dividends declared
for FY2018 up 7% to
16.0 cents per share.

CASH AND BULLION
Cash and Bullion increased to $208.8 million at 30 June 2018, up $57.1 million for the year.

2018

2017

$208.8 million

$151.7 million

MCPHILLAMYS PROJECT
McPhillamys Project advancing with DFS & EIS expected to be completed in December 2018 quarter.

REGIS RESOURCES // 2018 ANNUAL REPORT3

DUKETON OPERATIONS

Record gold production at Duketon in FY2018 with 361,373 ounces of gold

produced at AISC of $901 per ounce.

Strong operating cashflow from Duketon of $300.8 million.

Strong operational performance at Duketon for FY2018 with full year of

production from satellite projects Gloster and Erlistoun.

Commencement of pre-strip mining at Anchor, Dogbolter and Tooheys Well

satellite pits.

FY2018 production guidance increased to 340,000-370,000 ounces of gold at

AISC $985-$1,055 per ounce.

EXPLORATION

Maiden Ore Reserve Estimate at the McPhillamys Gold Project is 60.1 million

tonnes at 1.05g/t Au for 2,034,000 ounces of gold.

Maiden Inferred Underground Mineral Resource Estimate at Rosemont of
1.4 million tonnes at 5.1g/t gold for 230,000 ounces of gold at a 2.0g/t gold
cut off grade.

RC and diamond drilling programmes at Garden Well Underground delivers

encouraging intercepts, and confirms the existence of high grade shoots 300m
south of the current pit design.

REGIS RESOURCES // 2018 ANNUAL REPORT4

CHAIRMAN’S
REPORT

Dear Shareholder,

It is my great pleasure to present to you
the 2018 Regis Resources Annual Report.

As you are aware the Company announced that I will
be stepping down as Chairman and as a director at this
year’s Annual General Meeting. Over the last 9 years
I have had the privilege of leading this Company from
a pre-production exploration company to a highly
profitable leading mid-tier gold producer. I believe the
time is right for me to handover the leadership of Regis
as it embarks on the next phase of its growth.

I am handing over at a time when the Company is in a
very strong position having enjoyed a record breaking
year in FY2018 that included the following highlights:

Continued outstanding operational performance
at Duketon with record gold production of 361,373
ounces at all in sustaining costs of $901 per ounce.

Record profit after tax of $174.2 million, up 26% on

2017 with EBITDA up 23% to 312.5 million.

A fully franked final dividend of 8 cents per share

taking full year dividends to 16 cents per share.

The commencement of mining at the Tooheys Well,
Dogbolter and Anchor pits continuing the strategy of
blending higher grade satellite ore feed to existing
operations.

A maiden Ore Reserve of 60.1 million tonnes at
1.05g/t for 2.03 million ounces of gold estimated
at McPhillamys in NSW with a pre-feasibility study
demonstrating a robust large scale open pit gold
mine with a planned 7 million tonne per annum
mining and processing operation producing an
annual average of 192,000 ounces of gold over a nine
year mine life.

A successful underground drilling programme at
Rosemont that delivered a maiden underground
resource of 1.4 million tonnes at 5.10g/t Au for
230,000 ounces of gold ore.

Group Ore Reserves as at 31 March 2018 increased by

86% to 4.06 million ounces.

Ongoing work at McPhillamys during the year has
the project progressing through the regulatory
approvals process with the lodgement of the
Preliminary Environmental Assessment.

Once again the quality of the Duketon operation
delivered very strong financial results. Regis generated
a net operating cash flow of $259.7 million for FY2018
and at the end of the financial year had cash and bullion
holdings of $208.8 million with no bank debt. The full
year dividend of 16 cents per share in FY2018 represents
a payout ratio of 13% of revenue and 26% of EBITDA
for FY2018. Regis continues to be an Australian gold
industry leader on dividend payment metrics. Since
2013 Regis has paid a total of $326 million (65cps) in
fully franked dividends.

The Company’s record gold production was achieved
with a strong contribution from the higher grade
satellite projects of Gloster and Erlistoun. The strategy
of blending higher grade ore feed from satellite projects
will continue in FY2019 with the commencement of pre-
strip mining at the Tooheys Well, Dogbolter and Anchor
deposits. FY2019 is expected to be another year of
strong production with guidance of 340,000 - 370,000
ounces at an all in sustaining cost of $985 - $1,055 per
ounce.

It is an exciting time for Regis as the Company embarks
on its first underground mine at Rosemont. Subsequent
to the end of the year, the Regis board approved the
development of an underground mining operation
directly below the Rosemont open pit. Development
work commenced in the September 2018 quarter, with
the ordering of long lead items and an underground
mining contract tendering process. Commencement
of the portal development in the southern end of the
Rosemont Main Pit is expected by March 2019 with
processing beginning in the December 2019 quarter.

The focus on defining new underground resources will
now turn to Garden Well and the high grade shoots that
have been identified below the pit in the southern part
of the deposit.

During the year, work continued on progressing the
development of the McPhillamys project with a maiden
Reserve of 2.03 million ounces released in September
2017. Subsequent to the end of the year, the Company
submitted a Preliminary Environmental Assessment (PEA)
to the NSW Department of Planning and Environment
(DPE). The PEA is the trigger for the DPE to provide the
Secretary’s Environmental Assessments Requirements

REGIS RESOURCES // 2018 ANNUAL REPORTNone of these achievements would be possible
without the relentless efforts and commitment
of all Regis employees and contractors and
I wish the Company every success in the future.

for the project, which allow the Environmental Impact
Statement (EIS) to be appropriately focussed to enable
regulatory assessment of the project. The development
of the project represents an outstanding organic growth
opportunity for Regis and we look forward to pushing
ahead with the final elements of the EIS and the DFS.

and Pajingo gold mines. He has both the technical
and corporate experience to continue the disciplined
management of our current projects and to grow the
projects and Company as opportunities arise. I have
great confidence that under their stewardship Regis will
continue to prosper and grow.

I believe it is a very exciting time for Regis as we move
forward under the new leadership team to be led by
James Mactier as incoming Non-executive Chairman
and Jim Beyer as Managing Director.

James Mactier steps into the role of Chairman and
brings his personal values, business acumen and
strong relationships throughout the industry. He will
continue to maintain the Company culture that has
lead Regis to be the quality company it is today. Jim
is a high quality and proven mining executive. He was
most recently the CEO of Mount Gibson Iron Limited
and previously the General Manger of the Boddington

I would

Finally
like to take this opportunity to
acknowledge the hard work and dedication of the Regis
team. None of these achievements would be possible
without the relentless efforts and commitment of
all Regis employees and contractors and I wish the
Company every success in the future.

Yours sincerely

Mark Clark
Executive Chairman

CORPORATE

Revenue

502
502

465
465

606
606

544
544

372
372

2014
2014

2015
2015

2016
2016

2017
2017

2018
2018

s
n
o
s
n
i
l
o
l
i
i
M
l
l
i
$
M
$

600
600

500
500

400
400

300
300

200
200

100
100

0
0

Driven by record production at the Duketon Gold
EBITDA
EBITDA
Project, Regis reported a 26% increase in profit after
tax for the 2018 financial year of $174.2 million.
234
234

%
%
(
e
(
u
e
n
u
e
n
v
e
This strong result was on the back of an 11% increase in gold revenue to $604.4 million driven by a 14% higher sales
e
v
R
e
volume. Accordingly, EBITDA increased by 23% from the previous period to $312.5 million for FY2018.
R
/
A
/
A
D
D
T
Regis sold a total of 362,790 ounces of gold during the year at an average price of A$1,676 per ounce. The Company
I
T
B
I
B
E
delivered the gold produced during the year into a combination of spot deferred contracts and at the prevailing spot
E
price. At the end of the financial year the Company had a total hedging position of 388,711 ounces of spot deferred
contracts with a delivery price of A$1,555 per ounce.

141
141
37.9% 38.9%
37.9% 38.9%

350
350
300
300
250
250
200
200

46.6% 46.6%
46.6% 46.6%

100
100

313
313

51.5%
51.5%

s
n
s
o
n
i
o
l
l
i

253
253

M
M
$
$

181
181

100
100

150
150

80
80

60
60

40
40

20
20

50
50

i
l
l
i

0
0

)

2014
2014

2015
2015

2016
2016

2017
2017

2018
2018

The following graphs illustrate the strong performance of the Company across several profit metrics.

EBITDA
EBITDA

EBITDA Margin (%)
EBITDA Margin (%)

Revenue

Revenue
502

465

606

544

606

544

600

500

600

372

465

502

372

Net Proﬁt After Tax
Net Proﬁt After Tax

174
174

138
138

112
112

87
87

55
55

180
180

160
160

140
140

120
120

100
100

80
80

60
60

40
40

20
20

0
0

s
s
n
n
o
o
i
l
l
i

i
l
l
i

M
M
$
$

2014

2015

2016

2017

2018

2014
2014

2015
2015

2016
2016

2017
2017

2018
2018

2014

2015

2016
EBITDA

2017

2018

EBITDA

234

100

313

253

313

100

181

253

234
46.6% 46.6%

80
51.5%

141

181
37.9% 38.9%

141

46.6% 46.6%

51.5%

100

37.9% 38.9%

Earnings & Dividend Per Share
Earnings & Dividend Per Share

)

(
e
u
n
e
v
e
R
/
A
D
T
I
B
E

35
35

30
30

25
25

20
20

15
15

10
10

5
5

0
0

e
e
r
r
a
a
h
h
S
S
r
e
r
e
P
P
s
s
t
n
t
n
e
e
C
C

11
11

0
0
2014
2014

34.6
34.6

27.6
27.6

15
15

16
16

22.4
22.4

13
13

17.4
17.4

6
6

2015
2015

2016
2016

2017
2017

2018
2018

)

60
%

(
e
u
40
n
e
v
e
R
/
20
A
D
T
I
B
0
E

EBITDA

EBITDA Margin (%)

EPS
EPS

Dividend Per Share
Dividend Per Share

FY2014 NPAT, EBITDA & EPS adjusted to underlying result by excluding $202.7m after tax impairment charge

400

500

s
n
o

300

400

i
l
l
i

s
n
o

M
$

i
l
l
i

M
$

300

200

100

350

300

350

250

300

250

200

150

100

s
n
o
i
l
l
i

M
$

s
n
o

i
l
l
i

M
$

180

160

140

120

100

2014

2015

2016

2017

2018

2014

2015
EBITDA

2016

EBITDA Margin (%)

2018

2017

Net Proﬁt After Tax

174

138

112

2014

2015

2016

2017

2018

2017

2018

Earnings & Dividend Per Share

34.6

27.6

22.4

17.4

2014

2015

2016

2017

2018

EPS

Dividend Per Share

REGIS RESOURCES // 2018 ANNUAL REPORT

Dividends Declared

15
Net cash from operating activities of $259.7 million was up 26% from the previous year. Robust operating cashflows
from the project generated an increase in the Company’s cash and bullion holdings to $208.8 million, up $57.1 million
10
from the previous year after payment of $80.7 million in dividends and $33 million in exploration expenditure.

The Company paid a total of $80.7 million in fully franked dividends during the year and subsequent to the end of
5
the financial year declared an 8 cents per share fully franked final dividend. The final dividend was declared after
consideration of the strong cashflow and profitability from the Company’s Duketon operations in FY2018. The full year
dividend of 8 cents per share coupled with the 8 cents per share interim dividend paid in March 2018, took the full
0
year pay out to 16 cents per share. This represents a 13.4% payout of FY2018 revenue and 46% of net profit after tax.
Since the commencement of dividend payments in 2013, the Company has paid a total of $326 million in fully franked
dividends (65ps).

2016
Interim

Final

2018

2015

2017

e
r
a
h
S
r
e
P
s
t
n
e
C

Dividends Declared

Cumulative Dividends Paid

e
r
a
h
S
r
e
P
s
t
n
e
C

2016
Interim

2017

2018

Final

2015

350

300

250

200

150

100

s
n
o

i
l
l
i

M
$

326

245

170

105

2013

2014

2015

2016

2017

2018

The following chart details the movement in the Company’s cash reserves over the financial year:

Cumulative Dividends Paid

Cash & Gold on Hand - FY 2018

326

$300.8

245

170

105

($80.7)

($46.0)

($32.8)

2013

2014

2015

2016

2017

2018

($39.1)

$151.7

($36.9)

($8.2)

$208.8

s
n
o

i
l
l
i

M
$
s
n
o

i
l
l
i

M
$

350

300

250
450

200
400
150

350
100

50
300

0
250

200

150

100

Ju ne 2017

O perations

Dividen ds

D evelop m ent
Mine

Exploration

Other Capex

Inco m e Tax

Other

Ju ne 2018

Operating cash flow differs from the statutory Statement of Cash Flow “net cash from operating activities” as it is quoted under the Appendix
5B classification protocol and includes movement in gold bullion on hand

REGIS RESOURCES // 2018 ANNUAL REPORT

DUKETON
GOLD PROJECT

The Duketon Gold Project is located in the
North Eastern Goldfields of Western Australia
approximately 130 kilometres north of Laverton.

The project area consists of two operating centres being the Duketon North Operations (“DNO”) comprising the
Moolart Well Gold Mine and surrounding satellite deposits including the Gloster Gold Mine, Anchor Gold Mine and
the Dogbolter Gold Mine; and the Duketon South Operations (“DSO”) comprising the Garden Well and Rosemont Gold
Mines and surrounding satellite deposits including the Erlistoun Gold Mine and Tooheys Well Gold Mine. The Duketon
Project has in excess of 1,000 square kilometres of exploration and mining tenure.

Dogbolter Gold Mine; and the Duketon South Operations (“DSO”) comprising the Garden Well
and Rosemont Gold Mines and surrounding satellite deposits including the Erlistoun Gold Mine
and Tooheys Well Gold Mine. The Duketon Project has in excess of 1,000 square kilometres of
exploration and mining tenure.

The Duketon Project produced record gold production for 2018, with 361,373 ounces of gold
produced which was at the upper end of FY2018 guidance of 335,000-365,000 ounces. The

project benefited from a full year of production of higher grade ore feed from the Gloster and

REGIS RESOURCES // 2018 ANNUAL REPORT

The Duketon Project produced record gold production for 2018, with 361,373 ounces of gold produced which was at
the upper end of FY2018 guidance of 335,000-365,000 ounces. The project benefited from a full year of production
of higher grade ore feed from the Gloster and Erlistoun satellite deposits. Milled grade across the Duketon Project
increased by 7% to 1.19g/t and validated the strategy of pursuing organic growth through aggressive regional
exploration programmes across Duketon. All in sustaining costs were $901 per ounce which were towards the lower
end of FY2018 cost guidance and reflected the excellent cost control at the operations.

Operating results for the entire Duketon Project are summarised below:

Ore mined

Waste mined

Stripping ratio

Ore mined

Ore milled

Head grade

Recovery

Gold production

Cash cost

Cash cost inc royalty

All in Sustaining Cost

Mbcm

w:o

g/t

koz’s

A$/oz

2018

4.58

20.13

4.40

10.55

10.04

1.19

361

721

794

901

2017

4.56

25.55

5.60

10.85

9.78

1.11

324

790

864

945

DUKETON NORTH OPERATIONS

Duketon North Operations (“DNO”) comprises the Moolart Well, Gloster, Dogbolter, Petra and Anchor pits with all ore
processed through the Moolart Well processing plant.

Operating results for the year to 30 June 2018 were as follows:

Ore mined

Waste mined

Stripping ratio

Ore mined

Ore milled

Head grade

Recovery

Gold production

Cash cost

Cash cost inc royalty

All in Sustaining Cost

Mbcm

w:o

g/t

koz’s

A$/oz

2018

1.72

5.07

2.9

3.15

3.26

1.09

107

649

718

827

2017

1.74

7.77

4.5

3.37

2.95

1.14

101

621

697

785

Annual production for FY2018 at DNO was 106,928 ounces at a cash cost of $649 per ounce and an all in sustaining cost
of $827 per ounce. Production at DNO increased by 6% from the previous year due to a full year of mining operations
at the Gloster satellite deposit. Gloster ore is hauled approximately 26 kilometres by road train to the processing
facility at Moolart Well where it is blended with ore from that operation. The ore from Gloster milled during 2018 was
of a higher grade and softer, oxide material than the ore available from Moolart Well. As a result, the mill throughput
increased by 10% from the prior year.

REGIS RESOURCES // 2018 ANNUAL REPORT

DUKETON SOUTH OPERATIONS

The Duketon South Operations (“DSO”) includes the Garden Well, Rosemont, Erlistoun, Tooheys Well, Baneygo and
other satellite projects in proximity to the Garden Well processing plant.

Operating results for the year to 30 June 2018 were as follows:

Ore mined

Waste mined

Stripping ratio

Ore mined

Ore milled

Head grade

Recovery

Gold production

Cash cost

Cash cost inc royalty

All in Sustaining Cost

Mbcm

w:o

g/t

koz’s

A$/oz

2018

2.86

15.06

5.3

7.40

6.79

1.24

254

751

826

932

2017

2.82

17.78

6.3

7.48

6.83

1.10

223

867

940

1,017

DSO produced 254,445 ounces of gold for the year, which was an increase of 14% on the prior year. Gold production
increased due to a full 12 months of mining a higher grade and softer ore from the Erlistoun satellite deposit. Head
grade was 1.24g/t, an increase of 13% from the prior year.

Pre-production mining at the Tooheys Well satellite project commenced in January 2018 with first ore to be carted in
October 2018 to the Garden Well processing plant, located approximately 2.5 kilometres away.

FY2019 GUIDANCE

Regis is expecting another strong year of cashflow and has forecasted that guidance will be consistent with the
2018 financial year. All-in sustaining costs will be higher than the prior year due to $40 million of growth capital for
Tooheys Well and other satellite operations. Gold production and operating costs for FY2019 are expected to be in
the following ranges:

Gold production:

340,000 – 370,000 ounces

Cash costs, including royalties: $880 – $950 per ounce

All in Sustaining Cost:

$985 – $1,055 per ounce

REGIS RESOURCES // 2018 ANNUAL REPORT

GOLD
EXPLORATION

Regis controls a significant tenement package,
encompassing 200 granted exploration,
prospecting and mining licences

Duketon Gold Project

Regis controls a significant tenement package, encompassing 200 granted exploration, prospecting and mining
licences covering 1,674 square kilometres and 42 miscellaneous licences at the Duketon Gold Project.

Regis’ exploration effort in recent years has been successful in extending the reserve base of the Company and
replacing annual production. The successful replenishment and extension of Reserves is reflective of the advantage
the significant tenure position on prospective geology and the proximity to the 10Mtpa milling capacity provides
at Duketon.

Significant exploration projects advanced during the year ended 30 June 2018 are outlined below.

Rosemont Underground

The Rosemont Project is a fully operational open pit gold mine (commenced in March 2013) with a stand-alone
crushing and grinding plant, piping an ore slurry to the Garden Well CIL processing facility. The current open pit mine
is expected to continue until at least FY2024.

The geology at Rosemont has gold hosted in a steeply dipping quartz-dolerite unit intruding into a mafic-ultramafic
sequence. Gold mineralisation is within a brittle quartz-dolerite phase of the Rosemont Dolerite, primarily occurring
within discrete, steeply dipping, quartz-dolerite paralled, en-echelon and stacked vein structures. The quartz-
dolerite varies from 5 metres, up to 100 metres wide.

RC and diamond drilling programmes were undertaken during the year aimed at increasing data-density and
geological understanding in the two zones of this study. The drilling has helped to further define high grade gold
mineralisation in two distinct zones beneath the life of mine open pit designs to a sufficient level to support an
underground mining operation.

Subsequent to the end of the year, the Company announced the approved development of an underground mining
operation directly below the current Rosemont open pit as and part of an expansion of the existing operations.

The combined open pit and underground mine is scheduled to deliver 10.3 million tonnes of ore at 1.72g/t for 570,000
ounces over a current five year mine life.

The development timeline will be as follows:

Commencement of Development work, including long lead items and underground mining contract tendering

process – September 2018 quarter

Commencement of portal work – March 2019 quarter

Processing of first material – December 2019 quarter

REGIS RESOURCES // 2018 ANNUAL REPORT12

Oblique Long Section looking northwest shows final pit design and proposed UG mine design and stoping blocks.

Oblique Long Section looking northwest shows final pit design and proposed UG mine design and stoping blocks.
Oblique Long Section looking northwest shows final pit design and proposed UG mine design and stoping blocks.

Garden Well Underground

Section 78015mN showing high grade gold intercepts at Rosemont south, 200m below proposed UG development stope design. Cross Section
78400mN at Rosemont Central zone along strike and outside of current UG resource domains.

Section 78015mN showing high grade gold intercepts at Rosemont south, 200m below proposed UG
development stope design. Cross Section 78400mN at Rosemont Central zone along strike and outside of
current UG resource domains.

RC and diamond drilling programmes were undertaken during the year to test the continuity of high grade gold
mineralisation located below the southern end of the final Garden Well pit design and to reduce drill spacing from
40m x 40m to 40m x 20m.

Drilling results show significant widths and grades of gold mineralisation and indicate the potential for a robust
underground target below the southern end of the open pit. The southern high grade shoot measures 4-10m true
width across strike and 200m north-south along strike. The zone of mineralisation is located between 100-350m
8
below surface, dips to the east and is open to the south. Drilling along strike has also identified several high grade
shoots beneath the pit and further to the south.

A new high grade shoot has been identified 300m south of the current pit design, 200m below surface and is
open down plunge. Drilling will continue to define the extent of the southern high grade shoots along strike and
down plunge.

The long section and cross section below include the location of the intercepts referred to above.

REGIS RESOURCES // 2018 ANNUAL REPORT

Garden Well Underground

RC and diamond drilling programmes were undertaken during the year to test the continuity of

high grade gold mineralisation located below the southern end of the final Garden Well pit design

and to reduce drill spacing from 40m x 40m to 40m x 20m.

Drilling results show significant widths and grades of gold mineralisation and indicate the potential

for a robust underground target below the southern end of the open pit. The southern high grade

shoot measures 4-10m true width across strike and 200m north-south along strike. The zone of

mineralisation is located between 100-350m below surface, dips to the east and is open to the

south. Drilling along strike has also identified several high grade shoots beneath the pit and further

to the south.

A new high grade shoot has been identified 300m south of the current pit design, 200m below
surface and is open down plunge. Drilling will continue to define the extent of the southern high
grade shoots along strike and down plunge.

The long section and cross section below include the location of the intercepts referred to above.

Garden Well Long Section showing high grade shoots beneath the final pit design and highlights results.
Garden Well Long Section showing high grade shoots beneath the final pit design and highlights

results reported this quarter.

Group Reserve Growth

An aggressive exploration programme at the Duketon project continues to be focussed on high

potential areas for Mineral Resource expansions with a view to delivering further extensions to

the mine life of the current operations. The Company successfully added to the Group resource

and reserve base when it released the annual resources and reserves update in July 2018. Group

Ore Reserves increased by 86% from 2.18 million ounces to 4.06 million ounces, after accounting

for mining depletion of 396,000 ounces.

The change in the Group Ore Reserve from March 2017 to March 2018 is as follows:

REGIS RESOURCES // 2018 ANNUAL REPORT

Group Reserve Growth

An aggressive exploration programme at the Duketon project continues to be focussed on high potential areas for
Mineral Resource expansions with a view to delivering further extensions to the mine life of the current operations.
The Company successfully added to the Group resource and reserve base when it released the annual resources and
reserves update in July 2018. Group Ore Reserves increased by 86% from 2.18 million ounces to 4.06 million ounces,
after accounting for mining depletion of 396,000 ounces.

The change in the Group Ore Reserve from March 2017 to March 2018 is as follows:

31 March 2017

Depleted by Mining to 31 March 2018

31 March 2017 Net of Depletion

31 March 2018

% Variation net of Depletion

TOTAL ORE RESERVE

TONNES
(MT)

GOLD GRADE
(G/T)

GOLD METAL
(KOZ)

59.3

-10.5

48.8

117.2

115%

1.14

1.17

1.14

1.08

2,182

-396

1,786

4,065

104%

The major contributors to the increase in Ore Reserves net of depletion were:

Maiden Ore Reserve of 2,034,000 ounces at the McPhillamys Gold Project;

A review of current pit design parameters including costs, metallurgical and geotechnical performance of mining

projects to date;

McPhillamys Gold Project

A review of the open pit optimisation shell selection strategy to individually suit each deposit; and

The inclusion of further drilling results.

The McPhillamys Gold Project is wholly owned by Regis and is located approximately 250
kilometres west of Sydney in the Central West region of New South Wales. In September 2017,
McPhillamys Gold Project
the Company announced a maiden Ore Reserve Estimate of 60.1 million tonnes at 1.05g/t Au for
The McPhillamys Gold Project is wholly owned by Regis and is located approximately 250 kilometres west of Sydney
in the Central West region of New South Wales. In September 2017, the Company announced a maiden Ore Reserve
2,034,000 ounces of gold.
Estimate of 60.1 million tonnes at 1.05g/t Au for 2,034,000 ounces of gold.

Pre-feasibility level studies show the McPhillamys Gold Project is a robust, large scale open pit
gold mine with a planned 7 million tonne per annum mining and processing operation producing
an average of 192,000 ounces per annum over a nine year mine life.

Key life of mine physical results from the study are summarised below:

REGIS RESOURCES // 2018 ANNUAL REPORT

Pre-feasibility level studies show the McPhillamys Gold Project is a robust, large scale open pit gold mine with a
planned 7 million tonne per annum mining and processing operation producing an average of 192,000 ounces per
annum over a nine year mine life.

Key life of mine physical results from the study are summarised below:

MINING

Waste volume (BCM millions)

Ore volume (BCM millions)

Volume total (BCM millions)

W:O Strip Ratio

MILLING

Dry Tonnes Per Hour

Plant Availability

Ore Milled (Tonnes millions)

Milled Grade (g/t)

Recovery

Ounces Recovered

Mine life (years)

Life of mine gold production is shown below:

Annual Gold Production and Milled Grade

Ounces Recovered

Milled Grade (g/t)

250

200

’

)
s
0
0
0
(

s
e
c
n
u
O

150

100

91.6

21.3

112.9

4.29

841

95.0%

60.1

1.05

85.0%

1,728,264

u
A
t
/
g

1.6

1.4

1.2

0.8

0.6

0.4

0.2

Ounces
Recovered
Milled
Grade (g/t)

142,688

181,016

179,298

192,720

177,647

209,062

210,877

224,493

210,461

0.90

0.95

0.94

1.01

0.93

1.09

1.10

1.17

1.46

Subsequent to the end of the year, the Company announced that a Preliminary Environmental Assessment (PEA) has
been submitted to the NSW Department of Planning and Environment (DPE). The PEA represents the lead document in
the development application phase and is the trigger for the DPE to provide the Secretary’s Environmental Assessments
Requirements for the project, which will allow for the Environmental Impact Statement to be appropriately focussed
to enable regulatory assessment of the project.

Contemporaneous with the preparation of the Environmental Impact Statement, the Company expects to complete
the Definitive Feasibility Study by December 2018.

REGIS RESOURCES // 2018 ANNUAL REPORT

Discovery Ridge

Discovery Ridge is located approximately 32 kilometres south west of the McPhillamys gold

project in NSW. It is a shear hosted gold deposit in strongly foliated, fine-grained

metasediments of the Ordovician Coombing and Adaminaby Formations. The deposit is within

the hinge zone of a tight, steep north plunging D2 fold on the contact of the Adaminaby Group

with the Coombing Formation.

The deposit has a known strike length in the order of 200 metres and comprises a well-defined
steeply north pitching Eastern Lode with widths of around 50 metres and known depths of up to
Discovery Ridge
500 metres and a parallel but more diffuse West Lode of similar orientation.

Discovery Ridge is located approximately 32 kilometres south west of the McPhillamys gold project in NSW. It is
a shear hosted gold deposit in strongly foliated, fine-grained metasediments of the Ordovician Coombing and
Adaminaby Formations. The deposit is within the hinge zone of a tight, steep north plunging D2 fold on the contact
of the Adaminaby Group with the Coombing Formation.

The deposit has a known strike length in the order of 200 metres and comprises a well-defined steeply north pitching
Eastern Lode with widths of around 50 metres and known depths of up to 500 metres and a parallel but more diffuse
West Lode of similar orientation.

A total of 5,167 metres of resource and diamond drilling were undertaken during the year which
have confirmed location and tenor of historical gold intercepts. Infill resource and diamond
drilling continues with a Mineral Resource estimation and update and a maiden Ore Reserve is
expected to be announced later in the year along with a pre-feasibility study.

A total of 5,167 metres of resource and diamond drilling were undertaken during the year which have confirmed
location and tenor of historical gold intercepts. Infill resource and diamond drilling continues with a Mineral Resource
estimation and update and a maiden Ore Reserve is expected to be announced later in the year along with a pre-
feasibility study.

Discovery Ridge cross section 22,385mN (local grid)

REGIS RESOURCES // 2018 ANNUAL REPORT

GROUP ORE RESERVES As at 31 March 2018

PROVED

PROBABLE

TOTAL ORE RESERVE

TYPE

CUT-OFF
(g/t)²

TONNES
(Mt)

GOLD
GRADE
(g/t)

GOLD
METAL
(koz)

TONNES
(Mt)

GOLD
GRADE
(g/t)

GOLD
METAL
(koz)

TONNES
(Mt)

GOLD
GRADE
(g/t)

GOLD
METAL
(koz)

COMPETENT
PERSON3

Duketon Main Deposits

Sub Total

PROJECT

Moolart Well1

Garden Well1

Rosemont1

Tooheys Well5

Gloster 1

Erlistoun1

Baneygo

Petra

Dogbolter

Anchor

Duketon Satellite

Deposits

McPhillamys4

Open-Pit

> 0.4

> 0.5

> 0.4

> 0.5

> 0.4

1.3

5.6

2.0

8.9

0.0

1.0

0.1

0.91

0.71

1.24

128

1.4

0.79

15.8

0.94

6.5

1.32

0.86

246

23.7

1.03

0.88

1.10

7.1

6.3

3.4

4.0

0.9

1.6

0.1

1.61

0.93

1.39

1.22

1.11

1.18

1.87

474

276

787

366

190

154

158

2.7

0.85

21.4

0.88

8.5

1.31

603

356

32.6

0.99

1,033

7.1

7.3

3.5

4.0

0.9

1.6

0.1

1.61

366

0.93

1.39

1.22

1.11

1.18

1.87

217

157

158

Sub Total

1.1

0.90

23.4

1.28

966

24.5

1.27

998

Open-Pit

> 0.4

60.1

1.05

2,034

60.1

1.05

2,034

Regis

Grand Total

10.0

0.86

278

107.2

1.10

3,787

117.2

1.08

4,065

GROUP MINERAL RESOURCES As at 31 March 2018

GOLD

PROJECT

MEASURED

INDICATED

INFERRED

TOTAL RESOURCE

CUT-
OFF
(g/t)

TONNES
(Mt)

GOLD
GRADE
(g/t)

GOLD
METAL
(koz)

TONNES
(Mt)

GOLD
GRADE
(g/t)

GOLD
METAL
(koz)

TONNES
(Mt)

GOLD
GRADE
(g/t)

GOLD
METAL
(koz)

TONNES
(Mt)

GOLD
GRADE
(g/t)

GOLD
METAL
(koz)

COMPETENT
PERSON2

TYPE

Moolart Well1

Open-Pit

0.4

5.1

0.82

Garden Well1

Open-Pit

0.4

Rosemont1

Open-Pit

0.4

Rosemont 5

Underground

2.0

6.5

2.5

0.71

1.20

135

147

17.1

0.69

377

11.6

0.70

261

33.8

0.71

773

51.6

0.83

1,377

10.8

0.76

264

68.9

0.81

1,787

14.9

1.17

562

0.8

1.4

1.36 36.58

18.3

1.20

5.10

230

1.4

5.10

694

230

Duketon Main

Deposits

Sub Total

14.1

0.83

378

83.6

0.86 2,315

24.6

1.00

792

122.4

0.89 3,485

Tooheys Well3

Open-Pit

0.4

0.0

0.86

Gloster 1

Baneygo

Open-Pit

0.4

1.0

0.88

Open-Pit

0.4

Erlistoun1

Open-Pit

0.4

0.1

1.10

Dogbolter

Open-Pit

0.4

Russells Find

Open-Pit

0.4

Petra

Open-Pit

0.4

King John

Open-Pit

0.4

Reichelts Find

Open-Pit

0.4

Open-Pit

0.4

15.8

1.18

11.7

0.79

9.2

5.3

4.0

2.2

1.3

0.6

0.2

0.96

1.27

1.04

1.06

1.07

2.18

1.75

601

297

283

215

141

1.1

0.89

17.0

1.16

5.8

0.66

123

18.4

0.75

633

447

1.9

0.95

0.6

0.99

0.1

0.3

0.8

0.3

1.39

0.98

0.67

1.56

2.26

0.1

0.95

11.1

0.96

340

5.9

4.1

2.5

2.1

0.8

0.9

0.2

1.24

1.10

1.05

0.91

1.56

2.21

1.53

237

146

Anchor

Duketon

Satellite

Deposits

Duketon

Sub Total

1.1

0.90

50.2

1.06 1,707

11.8

0.87

329

63.2

1.02 2,067

Total

15.2

0.84

409

133.8

0.93 4,022

36.5

0.96

1,121

185.5

0.93

5,552

McPhillamys4

Total

0.4

67.7

1.05

2,282

1.2

0.64 25.46

68.9

1.04

2,307

Regis

Grand Total

15.2

0.84

409

201.6

0.97 6,304

37.7

0.95 1,146

254.5

0.96 7,859

REGIS RESOURCES // 2018 ANNUAL REPORT

Gloster Pit // Photo by Richard Spilsbury

Directors'
Report

DIRECTORS'
REPORT

Your directors submit their report for
the year ended 30 June 2018.

DIRECTORS

The directors of the Company in office since 1 July 2017 and up to the date of this report are:

Mr Mark Clark B.Bus CA
Executive Chairman

Mr Clark has over 27 years of experience in corporate advisory and public company management. He was appointed
to the board of Regis Resources Limited in May 2009 in the role of Managing Director. Mr Clark assumed the role
of Executive Chairman at Regis immediately after the company’s AGM on 12 November 2015. Prior to joining Regis,
Mr Clark was the Managing Director of Equigold NL.

He joined Equigold in 1995, was a director from April 2003 and was Managing Director from December 2005 until
Equigold’s merger with Lihir Gold Limited in June 2008.

During the past three years, Mr Clark has not served as a director of any other ASX listed companies.

Mr Clark is a member of the Institute of Chartered Accountants in Australia.

Mr Paul Thomas BAppSc (extmet) GAICD
Executive Director

Mr Thomas joined Regis in March 2014 in the role of Chief Operating Officer (COO) and was appointed to the
board immediately following the company’s AGM on 12 November 2015. Mr Thomas is a qualified metallurgist
with extensive operating and development experience gained in a career of over 30 years in the mining industry.
During this time, he has held a number of senior operations management and executive roles within Australian
listed gold and base metal mining companies.

Mr Thomas has various regulatory and technical qualifications in mining, processing, management and finance
including a Diploma in Open Cut and Underground Mining, a Diploma of Business and a Graduate Diploma of
Applied Finance and Investment. He is a Graduate Member of the Australian Institute of Company Directors.

During the past three years, Mr Thomas has not served as a director of any other ASX listed companies.

Mr Mark Okeby LLM
Deputy Chairman/Lead Independent Non-Executive Director

Mr Okeby has considerable experience in the resources industry as a solicitor and as a director of listed
companies. He has been an executive and non-executive director of a number of gold producers and other
resource companies and has been involved in the development of a number of resource projects and with
mergers and acquisitions in the resource sector.

Mr Okeby was appointed Deputy Chairman/Lead Independent Director immediately after the company’s AGM on
12 November 2015 and assumes the responsibilities of Chairman in the event of the unavailability of Mr Clark at
any time or in relation to any matter in which Mr Clark may be conflicted.

Mr Okeby is currently a non-executive director of Red Hill Iron Limited and, during the past three years, has not
served as a director of any other ASX listed companies.

REGIS RESOURCES // 2018 ANNUAL REPORTMr Ross Kestel B.Bus, CA, MAICD
Independent Non-Executive Director

Mr Kestel is a Chartered Accountant and was a director of a mid-tier accounting practice for over 26 years and
has a strong corporate and finance background. He has acted as a director and company secretary of a number of
public companies involved in mineral exploration, mining, mine services, property development, manufacturing
and technology industries.

During the past three years he has also served as a non-executive director of Beadell Resources Limited (from
February 2012 to November 2015).

Mr Kestel is a member of the Australian Institute of Company Directors.

Mr James Mactier BAgrEc(Hons), GradDipAppFin, GAICD
Independent Non-Executive Director

Mr Mactier was joint head of the Metals and Energy Capital Division of Macquarie Bank Limited for fifteen years
until his retirement in April 2015. He has wide ranging experience in project and corporate finance, resource
project assessment, equity investing, commodity and currency hedging and trading in the metals and energy
sectors globally. He is a Graduate Member of the Australian Institute of Company Directors.

During the past three years, Mr Mactier has not served as a director of any other ASX listed company.

Mrs Fiona Morgan CPEng, BE(Hons), FIEAust, FAusIMM, GAICD
Independent Non-Executive Director

Mrs Morgan is a Chartered Professional Engineer with over 24 years’ experience in the mining industry, including
working on gold, nickel, coal and iron ore projects. Mrs Morgan is the Managing Director and Chief Executive
Officer of Mintrex Pty Ltd, a highly regarded and longstanding consulting engineering company which has
successfully undertaken a broad suite of technical services to Australian and international clients developing
resource projects. She has a wide range of experience in operations and project management, maintenance,
research and design of both underground and surface mining infrastructure.

Mrs Morgan is a Fellow of the Institution of Engineers Australian, a Fellow of the Australasian Institute of Mining
and Metallurgy and a graduate member of the Australian Institute of Company Directors.

During the past three years, Mrs Morgan has not served as a director of any other ASX listed company.

COMPANY SECRETARY

Mr Kim Massey B.Com, CA
Mr Massey is a Chartered Accountant with significant experience in financial management and corporate advisory
services, particularly in the resources sector, as a corporate advisor and company secretary for a number of ASX
and AIM listed companies.

DIVIDENDS

After the balance sheet date the following dividends were proposed by the directors:

Final dividends recommended:

Ordinary shares

CENTS PER SHARE

TOTAL AMOUNT

$’000

8.00

40,389

The financial effect of these dividends has not been brought to account in the consolidated financial statements for
the year ended 30 June 2018 and will be recognised in subsequent financial reports.

REGIS RESOURCES // DIRECTORS' REPORT (continued)NATURE OF OPERATIONS AND PRINCIPAL ACTIVITIES

The principal activities of Regis Resources Limited (“Regis” or the “Company”) and its controlled entities (collectively,
the “Group”) during the year were:

production of gold from the Duketon Gold Project;

exploration, evaluation and development of gold projects in the Eastern Goldfields of Western Australia; and

exploration and evaluation of the McPhillamys Gold Project in New South Wales.

Apart from the above, or as noted elsewhere in this report, no significant changes in the state of affairs of the
Company occurred during the financial year.

OBJECTIVES

The Group’s objectives are to:

continue to optimise mining and processing operations across the Duketon Gold Project whilst maintaining a high

standard of safety;

Maximise cash flow by this process of optimisation and the blending of ore feed from satellite resources across

the Duketon tenure;

Organically increase the Reserve base of the Group by discovering and developing satellite resource positions,

extending the reserve base of existing operating deposits;

Focus on regional exploration to add incremental ounces and mine life to the three operating mills in the district;

Advance the economic study of the McPhillamys Gold Project in NSW with a view to developing a significant long

life gold mine at the project;

Return value to shareholders through a commitment to dividends; and

Actively pursue inorganic growth opportunities.

OPERATING AND FINANCIAL REVIEW

Overview of the Group

Regis is a leading Australian gold producer, with its head office in Perth, Western Australia. The Company operates
within two distinct project areas at the Duketon Gold Project in the Eastern Goldfields of Western Australia. The
Duketon North Operations (DNO) comprises the Moolart Well Gold Mine, the Gloster Gold Mine, Anchor Gold Mine and
the Dogbolter Gold Mine. The Duketon South Operations (DSO) contains the Garden Well Gold Mine, the Rosemont
Gold Mine, the Erlistoun Gold Mine and the Tooheys Well Gold Mine.

The Group also owns the McPhillamys Gold Project, an advanced exploration project in New South Wales,
250 kilometres west of Sydney near the town of Bathurst.

REGIS RESOURCES // 2018 ANNUAL REPORTFinancial Summary

KEY FINANCIAL DATA

Financial results

Sales revenue

Cost of sales (excluding D&A)(i)

Other income

Corporate, admin and other costs

EBITDA(i)

2018
$’000

2017
$’000

CHANGE
$’000

CHANGE
%

604,425

542,218

(279,273)

(278,374)

3,396

4,962

(15,987)

(15,504)

312,561

253,302

62,207

(899)

(1,566)

(483)

59,259

(6,856)

52,784

(16,716)

36,068

53,645

63,195

98,441

7.01

11.5%

0.3%

(31.6%)

3.1%

23.4%

11.9%

26.9%

28.8%

26.1%

26.0%

54.0%

18.3%

25.4%

Depreciation and amortisation (D&A)

(64,437)

(57,581)

Profit before tax(i)

Income tax expense

Reported profit after tax

Other financial information

Cash flow from operating activities

Net cash

Net assets

248,921

(74,690)

174,231

196,137

(57,974)

138,163

259,727

206,082

180,276

117,081

636,842

538,392

Basic earnings per share (cents per share)

34.60

27.59

(i) EBITDA is an adjusted measure of earnings before interest, taxes, depreciation and amortisation. Cost of sales (excluding D&A) and EBITDA
are non-IFRS financial information and are not subject to audit. These measures are included to assist investors to better understand the
performance of the business

Performance relative to the previous financial year

Regis achieved a record after tax profit of $174.2 million for the full year to 30 June 2018, which was up 26.1% from
the previous corresponding year result of $138.2 million. Record gold production of 361,373 ounces for the year and
the Company’s commitment to maximising operational efficiencies and controlling costs are the key drivers in the
current year result.

Sales

The Company produced 361,373 ounces of gold for the year ended 30 June 2018. Gold sales revenue rose by 11.5%
from the previous year with 359,750 ounces of gold sold at an average price of $1,680 per ounce in 2018 (2017: 322,355
ounces at $1,682 per ounce). The Company delivered gold produced into a combination of forward contracts and at
the prevailing spot price. The total hedging position at the end of the year was 388,711 ounces of forward contracts
with an average delivery price of $1,555 per ounce (2017: 396,406 ounces of forward contracts with a weighted average
forward price of $1,551 per ounce).

Cost of Sales

Costs of sales including royalties, but before depreciation and amortisation increased marginally by 0.3% to
$279.3 million.

Depreciation and Amortisation

Depreciation and amortisation charges increased by 11.9% from the prior year as the Company’s assets mature and
depreciation and amortisation rates based on the units of production method increase as reserves are depleted.

Cash Flow from Operating Activities

Cash flow from operating activities was $259.7 million, up 26% on the prior year due to increased production. During
the year, the Company paid $36.9 million of income taxes.

The Company continued to provide strong returns to shareholders through the payment of two fully franked dividends
in 2018 totalling $80.7 million.

REGIS RESOURCES // DIRECTORS' REPORT (continued)Duketon North Operations (“DNO”)

Operating results for the 12 months to 30 June 2018 were as follows:

Ore mined

Waste mined

Strip ratio

Ore mined

Ore milled

Head grade

Recovery

Gold production

Cash cost per ounce – pre royalties

Cash cost per ounce – incl. royalties

All-in Sustaining Cost (“AISC”)

30 JUNE 2018

30 JUNE 2017

BCM

w:o

1,721,414

1,742,903

5,074,235

7,768,536

2.9

4.5

Tonnes

3,154,597

3,368,392

Tonnes

3,255,901

2,950,400

g/t

1.09

1.14

Ounces

106,928

100,875

A$/oz

$649

$718

$827

$621

$697

$785

DNO produced 106,928 ounces of gold for the year at an all-in sustaining cost of $827 per ounce. Gold production
was up 6% on the prior year as a result of increased throughput at the Moolart Well processing facility and higher
grade ore from a full year of production from the Gloster satellite pit. Throughput was up 10% from last year due to
processing softer ore from the Gloster deposit.

In May 2018, mining commenced at the Anchor and Dogbolter satellite pits, with first ore expected to be trucked and
hauled to the Moolart Well plant in mid 2019.

Duketon South Operations (“DSO”)

Operating results at the Duketon South Operations for the 12 months to 30 June 2018 were as follows:

Ore mined

Waste mined

Strip ratio

Ore mined

Ore milled

Head grade

Recovery

Gold production

Cash cost per ounce – pre royalties

Cash cost per ounce – incl. royalties

All-in Sustaining Cost (“AISC”)

30 JUNE 2018

30 JUNE 2017

2,857,329

2,817,291

15,060,386

17,783,273

5.3

6.3

BCM

w:o

Tonnes

7,400,488

7,481,128

Tonnes

6,783,488

6,830,460

g/t

1.24

1.10

Ounces

254,445

223,478

A$/oz

$751

$826

$932

$867

$940

$1,017

Production at DSO increased by 14% from the previous year with 254,445 ounces of gold produced at an all-in
sustaining cost of $932 per ounce which was 8% lower than last year. Production is higher due to a full 12 months of
mining of higher grade and softer ore from the Erlistoun gold deposit which contributed to a higher grade ore feed.

Pre-Strip mining commenced at the Tooheys Well satellite pit in January 2018, with first gold production expected to
be in the December 2018 quarter.

REGIS RESOURCES // 2018 ANNUAL REPORTExploration

During the year, a total of 253,077 metres of exploration drilling was completed across the Group’s tenements in
Western Australia and New South Wales. The table below breaks down the drilling activity (in metres) by Prospect:

PROSPECT

AIRCORE

DIAMOND

TOTAL

PROSPECT

AIRCORE

DIAMOND

TOTAL

Rosemont

40,408

9,486

49,894

Moolart Well

2,461

22,622

Baneygo

4,833

13,790

Garden Well

Beamish

McPhillamys

18,306

16,834

25,083

18,623

174

18,480

16,834

6,865

5,366

12,231

King John

4,266

7,646

Petra

7,372

Coopers

3,996

3,141

Salt Soak

5,730

1,063

Ranch

6,585

Reichelts

6,413

Steer Creek

5,406

Pleco

1,530

3,679

Ventnor

5,029

Russells Find

4,863

Paddy Well

4,448

Anchor

2,067

2,348

McKenzie Well

3,337

756

11,912

7,372

7,137

6,793

6,585

6,413

5,406

5,209

5,029

4,863

4,448

4,415

Discovery
Ridge

3,912

1,255

5,167

Tooheys Well

1,301

1,638

284

3,223

Erlistoun

2,876

Little Well

2,296

Dogbolter

792

1,923

Idaho

2,585

Ten Mile Bore

Bella Well

1,998

1,996

Cuthbert Bore

1,639

Speights

Rojo

Deep Well

Camel Hump

Mt Varden

Slate Well

Butchers Well

1,568

1,360

1,051

981

821

636

592

Gloster

450

Cork Tree Well

302

2,876

2,296

2,715

2,585

1,998

1,996

1,639

1,568

1,360

1,051

981

821

636

592

450

302

4,093

Total

74,393 162,118

16,566 253,077

Significant projects advanced during the year ended 30 June 2018 are outlined below.

All drilling results and resource estimations highlighted in this report are detailed fully in announcements to the ASX
made by the Company throughout the year, along with the associated JORC 2012 disclosures.

Rosemont Underground

The Rosemont Project commenced in March 2013 and is a fully operational open pit gold mine with a stand-alone
crushing and grinding plant, piping an ore slurry to the Garden Well CIL. The geology at Rosemont has gold hosted in
a steeply dipping quartz-dolerite unit intruding into a mafic-ultramafic sequence. Gold mineralisation is associated
with quartz-albite-carbonate-chlorite-sulphide alteration of the quartz dolerite unit which varies from 5 metres to
greater than 100 metres wide.

In March 2018, the Company announced a maiden Inferred Underground Mineral Resource Estimate (MRE) for the
Rosemont Underground project of 1.4 million tonnes at 5.10g/t Au for 230,000 ounces of gold.

Drilling completed at Rosemont during the year included RC drilling and diamond drilling programmes to further define
high grade gold mineralisation and increase data-density and geological understanding. Both drill programmes were
successful in defining high grade gold mineralisation in two distinct zones beneath the life of mine open pit designs
to support an underground MRE.

Further drilling is continuing with a focus on defining new high grade shoots in the central zone with RC drilling and
extending the existing resources at depth below the current underground (U/G) domains with deeper diamond drilling.

Subsequent to the end of the year, the Regis board approved the development of an U/G mining operation directly
below the Rosemont open pit. Development work will commence in the September 2018 quarter, with the ordering of
long lead items and an underground mining contract tendering process. Commencement of the portal development
in the southern end of the Rosemont Main Pit is expected by March 2019 with processing beginning in the December
2019 quarter.

REGIS RESOURCES // DIRECTORS' REPORT (continued)Garden Well Underground

A review of the historic drilling below the final pit design at Garden Well indicated the potential for a significant
underground target below the southern end of the open pit project. During the year, RC and diamond drilling
programmes were conducted to test the continuity of high grade gold mineralisation and to reduce drill spacing
from 40m x 40m to 40m x 20m. Drilling results have shown significant widths and grades of gold mineralisation
and has identified several high grade shoots beneath the pit and further to the south. The southern high grade
shoot measures 4-10m width across strike and 200m north-south along strike. The zone of mineralisation is located
between 100-350m below surface and dips to the east and is open to the south. Drilling will continue to define the
extent of the southern high grade shoots along strike and down plunge.

Baneygo-Idaho Project

The Baneygo-Idaho Gold Project is located 15 kilometres south along strike of the Rosemont Gold Deposit and has a
resource of 11 million tonnes at 0.96g/t AU for 340,380 ounces. Gold mineralisation extends over a 2.5 kilometre strike
and is hosted in quartz dolerite which has intruded a sequence of mafic-ultramafic-sedimentary units.

A RC infill programme was undertaken during the year with the purpose being to convert inferred resources that may
exist inside or below the current pit designs and to ensure drill coverage in gaps in the existing 2.5 kilometre strike
with a view to adding further resources. Drilling to date has allowed the estimation of an Ore Reserve of 4 million
tonnes at 1.22g/t Au for 158,000 ounces across four shallow oxide pits.

McPhillamys Gold Project NSW

The 100% Regis owned McPhillamys Gold Project is one of Australia’s larger undeveloped open pittable gold resources.
The project is located approximately 250 kilometres west of Sydney in Central West NSW, a well-established mining
district. In September 2017, Regis announced a maiden Ore Reserve of 60.1 million tonnes at 1.05g/t Au for 2.03 million
ounces.

Pre-feasibility level studies show that the McPhillamys Gold Project is a robust, large scale open pit gold mine with
a planned 7 million tonne per annum mining and processing operation producing an average of 192,000 ounces per
annum over a ten year mine life.

Contemporaneous with the preparation of the Environmental Impact Statement, the Company expects to complete
the Definitive Feasibility Study by December 2018.

Discovery Ridge Gold Deposit

Approximately 32 kilometres from the McPhillamys Gold Project is the 100% owned Discovery Ridge deposit, a shear
hosted gold deposit located in strongly foliated, fine grained metasediments of the Ordovician Coombing and
Adaminaby Formations.

The deposit is located within the hinge zone of a tight, steep north plunging D2 fold on the contact of the Adaminaby
Group with the Coombing Formation. The deposit has a known strike length in the order of 200 metres and comprises
a well-defined steeply north pitching East Lode with widths of around 50 metres and known depths of up to 500
metres and a parallel but more diffuse West Lode of similar orientation.

A total of 5,167 metres of resource and diamond drilling was undertaken during the year which has confirmed the
location and tenor of historical gold intercepts which will be included in an updated resource and maiden reserve
estimation. Further drilling is planned to test the northern down plunge extension of the eastern following up on a
strong intersection.

Infill resource and diamond drilling continues with a Mineral Resource estimation and update and a maiden Ore
Reserve is expected to be announced later in the year along with a pre-feasibility study.

REGIS RESOURCES // 2018 ANNUAL REPORT26

SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS

There have been no significant changes in the state of affairs other than those listed in the review of operations
above.

SIGNIFICANT EVENTS AFTER THE BALANCE DATE

Share issue

Subsequent to year end, 425,133 shares have been issued as a result of the exercise of employee options for proceeds
of $35,000.

Dividends

On 27 August 2018, the directors proposed a final dividend on ordinary shares in respect of the 2018 financial year.
Refer to note 6.

Other than the matters discussed above, there has not arisen in the interval between the end of the financial year
and the date of this Report any item, transaction or event of a material and unusual nature which, in the opinion of
the directors of the Group, has significantly affected or is likely to significantly affect:

the operations of the Group;

the results of those operations; or

the state of affairs of the Group

in future financial years.

REGIS RESOURCES // DIRECTORS' REPORT (continued)27

Ore trucked from Gloster // Photo by Ben Broeder

LIKELY DEVELOPMENTS AND EXPECTED RESULTS

There are no likely developments of which the directors are aware which could be expected to significantly affect
the results of the Group’s operations in subsequent financial years not otherwise disclosed in the Principal Activities
and Operating and Financial Review or the Significant Events after the Balance Date sections of the Directors’ Report.

ENVIRONMENTAL REGULATION AND PERFORMANCE

The operations of the Group are subject to environmental regulation under the laws of the Commonwealth and the
States of Western Australia and New South Wales. The Group holds various environmental licenses issued under
these laws, to regulate its mining and exploration activities in Australia. These licenses include conditions and
regulations in relation to specifying limits on discharges into the air, surface water and groundwater, rehabilitation
of areas disturbed during the course of mining and exploration activities and the storage of hazardous substances.

All environmental performance obligations are monitored by the board of directors and subjected from time to time
to Government agency audits and site inspections. There have been no material breaches of the Group’s licenses
and all mining and exploration activities have been undertaken in compliance with the relevant environmental
regulations.

REGIS RESOURCES // 2018 ANNUAL REPORTSHARE OPTIONS

Unissued Shares

At the date of this report, the Company had the following unissued shares under listed and unlisted options.

MATURITY DATE

Unlisted options

11 August 2019

13 May 2020

1 July 2021

Total

EXERCISE PRICE

NUMBER
OUTSTANDING

$1.40

$2.70

$3.90

3,425,000

100,000

1,690,000

5,560,000

Option holders do not have any right, by virtue of the option, to participate in any share issue of the Company or any
related body corporate.

Details of options granted to directors and other key management personnel during the year are set out in the
remuneration report.

Shares Issued as a Result of the Exercise of Options

During the financial year, employees exercised unlisted options to acquire 3,417,808 fully paid ordinary shares in Regis
Resources Limited at a weighted average exercise price of $1.53 per share.

INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS

The Company has entered into an Indemnity Deed with each of the directors which will indemnify them against
liabilities incurred to a third party (not being the Company or any related company) where the liability does not arise
out of negligent conduct including a breach of good faith. The Indemnity Deed will continue to apply for a period of
10 years after a director ceases to hold office. The Company has entered into a Director’s Access and Insurance Deed
with each of the directors pursuant to which a director can request access to copies of documents provided to the
director whilst serving the Company for a period of 10 years after the director ceases to hold office. There are certain
restrictions on the directors’ entitlement to access under the deed. In addition the Company will be obliged to use
reasonable endeavours to obtain and maintain insurance for a former director similar to that which existed at the
time the director ceased to hold office.

The Company has, during or since the end of the financial year, paid an insurance premium in respect of an insurance
policy for the benefit of the directors, secretaries, executive officers and employees of the Company and any related
bodies corporate as defined in the insurance policy. The insurance grants indemnity against liabilities permitted
to be indemnified by the Company under Section 199B of the Corporations Act 2001. In accordance with commercial
practice, the insurance policy prohibits disclosure of the terms of the policy including the nature of the liability
insured against and the amount of the premium.

DIRECTORS’ MEETINGS

The number of directors’ meetings held (including meetings of Committees of the Board) and number of meetings
attended by each of the directors of the Company during the financial year are:

DIRECTORS’ MEETINGS

AUDIT AND RISK MANAGEMENT
COMMITTEE

REMUNERATION, NOMINATION AND
DIVERSITY COMMITTEE

NO. ELIGIBLE
TO ATTEND

NO. ATTENDED

NO. ELIGIBLE
TO ATTEND

NO. ATTENDED

NO. ELIGIBLE
TO ATTEND

NO. ATTENDED

n/a

M Clark

R Kestel

J Mactier

F Morgan

M Okeby

P Thomas

REGIS RESOURCES // DIRECTORS' REPORT (continued)Committee Membership

As at the date of this report, the Company had an Audit and Risk Management Committee and a Remuneration,
Nomination and Diversity Committee of the board of directors.

Members acting on the committees of the board during the year were:

AUDIT AND RISK MANAGEMENT COMMITTEE

REMUNERATION, NOMINATION AND DIVERSITY COMMITTEE

R Kestel (Chairman)

J Mactier

M Okeby

F Morgan

J Mactier

M Okeby

DIRECTORS’ INTERESTS IN THE SHARES AND OPTIONS OF THE COMPANY

As at the date of this report, the interests of the directors in the options of the Company were unchanged from the
holdings as at 30 June 2018 as disclosed in the Remuneration Report. The directors’ interests in the shares of the
Company at the date of this report are set out in the table below.

M Clark

R Kestel

J Mactier

F Morgan

M Okeby

P Thomas

NUMBER OF
ORDINARY
SHARES

3,000,000

75,000

513,230

700,000

AUDITOR INDEPENDENCE AND NON-AUDIT SERVICES

During the year KPMG, the Group auditor, provided the following non-audit services. The directors are satisfied that
the provision of non-audit services is compatible with the general standard of independence for auditors imposed
by the Corporations Act 2001. The nature and scope of each type of non-audit service provided means that auditor
independence was not compromised.

KPMG Australia received or are due to receive the following amounts for the provision of non-audit services:

Tax compliance services

Other advisory services

33,700

13,581

47,281

A copy of the auditor’s independence declaration as required under Section 307C of the Corporations Act is attached
to the Directors’ Report.

ROUNDING OFF

The Company is of a kind referred to in ASIC Instrument 2016/191 dated 24 March 2016 and in accordance with that
Instrument, amounts in the Financial Statements and Directors’ Report have been rounded to the nearest thousand
dollars, unless otherwise stated.

REGIS RESOURCES // 2018 ANNUAL REPORT30

REMUNERATION
REPORT (AUDITED)

This remuneration report for the year ended
30 June 2018 outlines the remuneration
arrangements of the Company and the Group.

This remuneration report for the year ended 30 June 2018 outlines the remuneration arrangements of the Company
and the Group in accordance with the requirements of the Corporations Act 2001 (the Act) and its regulations. This
information has been audited as required by section 308(3C) of the Act.

The remuneration report details the remuneration arrangements for key management personnel (KMP) who are
defined as those persons having authority and responsibility for planning, directing and controlling the major
activities of the Company and the Group, directly or indirectly, including any director (whether executive or otherwise)
of the parent company.

For the purposes of this report, the term “executive” includes the Executive Chairman, senior executives and company
secretaries of the Parent and the Group.

KEY MANAGEMENT PERSONNEL

Details of KMPs of the Company and Group and their movements during the year ended 30 June 2018 are set out
below:

NAME

POSITION

TERM AS KMP

Non-Executive Directors

M Okeby

R Kestel

J Mactier

F Morgan

Executive Directors

M Clark

P Thomas

Other Executives

Deputy Chairman

Full financial year

Non-Executive Director

Full financial year

Non-Executive Director

Full financial year

Non-Executive Director

Full financial year

Executive Chairman

Full financial year

Executive Director

Full financial year

P Woodman

Chief Geological Officer

Resigned 29 March 2018

K Massey

M Ertzen

Chief Financial Officer and
Company Secretary

Full financial year

Executive General Manager -
Growth

Appointed as Executive General Manager
– Growth, effective 1 April 2018. Previously
– General Manager - Business Development

REGIS RESOURCES // 2018 ANNUAL REPORTPRINCIPLES OF REMUNERATION

The Remuneration, Nomination and Diversity Committee is charged with formulating the Group’s remuneration policy,
reviewing each director’s remuneration and reviewing the Executive Chairman’s remuneration recommendations for
KMPs to ensure compliance with the Remuneration Policy and consistency across the Group. Recommendations of
the Remuneration, Nomination and Diversity Committee are put to the Board for approval.

Remuneration levels for KMP are set to attract, retain and incentivise appropriately qualified and experienced directors
and executives. We reward executives with a level and mix of remuneration appropriate to their position, responsibilities
and performance, in a way that aligns with the business strategy. For the 2018 and subsequent financial years, the
Company has implemented an Executive Remuneration Incentive Plan for executive directors and other KMPs which
sets out the performance hurdles for both Short Term Incentives (“STI”) and Long Term Incentives (“LTI”).

The objectives and principles of the Company’s remuneration policy include:

To align the objectives of executive directors and other KMP’s with the interests of shareholders and reflect

Company strategy;

To provide competitive rewards to attract, retain and incentivise high calibre executives; and

For total remuneration to include a competitive fixed component and an “at risk” component based on performance

hurdles and key performance indicators.

In FY18, the STI represented the annual component of the “at risk” reward opportunity which is payable in cash upon
the successful achievement of work related financial and non-financial key performance indicators (“KPI”). These
KPI’s are chosen to represent the key drivers of short term success for the Company with reference to Regis’ long
term strategy.

The LTI refers to the “at risk” reward opportunity which takes the form of performance rights, being the issue of
shares in Regis in the future, subject to meeting predetermined performance and vesting conditions.

Executive remuneration levels are reviewed annually by the Remuneration, Nomination and Diversity Committee with
reference to the remuneration guiding principles and market movements.

The chart below provides a summary of the structure of executive remuneration in the 2018 financial year:

FIXED REMUNERATION

Base salary + superannuation + benefits

VARIABLE REMUNERATION

STI plan

Cash

LTI plan

Performance rights

To maximise engagement of executives and align with the long-term interests of shareholders, the initial grant
of Performance rights in November 2016 had a two year performance/vesting period with a one year holding lock
restricting trading on any shares issued under the plan. Subsequent grants of performance rights have a performance/
vesting period of three years.

REGIS RESOURCES // 2018 ANNUAL REPORT32

REMUNERATION MIX – TARGET

38%

43%

35%

46%

33%

50%

Executive
Chairman

Executive
Director

Other
Executives

19%

17%

Fixed remuneration

STI

LTI

ELEMENTS OF REMUNERATION IN FY18

Fixed remuneration

Fixed remuneration consists of base remuneration (including any fringe benefits tax charges related to employee
benefits), as well as employer contributions to superannuation funds. The Group allows KMP to salary sacrifice
superannuation for additional benefits (on a total cost basis).

Remuneration levels are reviewed annually by the Remuneration, Nomination and Diversity Committee through
a process that considers individual and overall performance of the Group. In addition, external consultants may
provide analysis and advice to ensure the KMP’s remuneration is competitive in the market place, as required. In
November 2017, BDO Remuneration and Reward Pty Ltd reviewed the existing remuneration arrangements of the
Company’s KMPs and made recommendations to the Remuneration, Nomination and Diversity Committee.

Performance linked remuneration

Performance linked remuneration includes both STI and LTI and is designed to reward KMP for meeting or exceeding
their KPIs.

REGIS RESOURCES // REMUNERATION REPORT (AUDITED) (continued)
33

Rosemont Main Pit // Photo by Kaitlin Bryant

Short Term Incentive

Under the STI plan, all executives have the opportunity to earn an annual incentive which is delivered in cash. The
STI recognises and rewards annual performance.

How is it paid?

Any STI award is paid in cash after the assessment of annual performance.

How much can
executives earn?

In FY18, the Executive Chairman and Executive Director had a maximum STI opportunity of
45% and 40% respectively of fixed remuneration, and other executives had a maximum STI
opportunity of 35% of fixed remuneration.

An overarching review by the board of each individual’s performance against agreed
performance measures and a review of quantitative factors around the Company’s
performance and the macro economic environment will determine the achievable percentage
(between 0%-100%) of the maximum potential STI available to be awarded, subject further
to the level of achievement against detailed KPI’s listed below.

This maximum achievable STI percentage will automatically be 0% in a given financial year in
the event of a workplace fatality at any of the Company’s operations in that year.

How is performance
measured?

A combination of specific Company Key Performance Indicators (KPIs) are chosen to reflect
the core drivers of short term performance and also to provide a framework for delivering
sustainable value to the Group and its shareholders.

The following KPIs were chosen for the 2018 financial year:

KPI 1: EBITDA relative to internal targets (35%(i));
KPI 2: Production relative to stated guidance (35%(i)); and
KPI 3: Safety and environmental performance targets (30%(i)).

When is it paid?

What happens if
executive leaves?

The STI award is determined after the end of the financial year following a review of
performance over the year against the STI performance measures by the Remuneration,
Nomination and Diversity Committee. The Board approves the final STI award based on this
assessment of performance and the award is paid in cash three months after the end of the
performance period.

If an executive resigns or is terminated for cause before the end of the financial year, no STI is
awarded for that year. If an executive ceases employment during the performance period by
reason of redundancy, ill health, death, or other circumstances approved by the Board, the
executive will be entitled to a pro-rata cash payment based on assessment of performance
up to the date of ceasing employment for that year (subject to Board discretion).

What happens if
there is a change of
control?

In the event of a change of control, a pro-rata cash payment will be made based on
assessment of performance up to the date of the change of control (subject to Board
discretion).

(i) Represents the maximum award if stretch targets are met.

REGIS RESOURCES // 2018 ANNUAL REPORT
Long Term Incentives

Under the LTI plan, annual grants of performance rights are made to executives to align remuneration with the
creation of shareholder value over the long-term.

How is it paid?

Executives are eligible to receive performance rights (being the issue of shares in Regis in
the future).

How much can
executives earn?

In FY18, the Executive Chairman and Executive Director had a maximum LTI opportunity of
90% and 75% respectively of fixed remuneration, and other executives had a maximum LTI
opportunity of 65% of fixed remuneration.

An overarching review by the board of each individual’s performance against agreed
performance measures and a review of quantitative factors around the Company’s
performance and the macro economic environment will determine the achievable percentage
(between 0%-100%) of the maximum potential LTI available to be awarded, subject further to
the level of achievement against detailed KPI’s listed below.

This maximum achievable LTI percentage will automatically be 0% in a given financial year in
the event of a workplace fatality at any of the Company’s operations in that year.

How is performance
measured?

The vesting of performance rights are subject to a number of vesting conditions. The
performance rights issued in FY18 are subject to the following vesting conditions:

When is
performance
measured?

What happens if
executive leaves?

Relative Total Shareholder Return (25%(i)) measured on a sliding scale against a select
peer group of comparator companies. (ASX code: AQG, BDR, DRM, EVN, KRM, MML, MOY,
NCM, NST, OGC, PRU, RMS, RSG, SAR, SBM, SLR, TGZ, TRY);

Absolute Total Shareholder Return (25%(i));

Absolute earnings per share (“EPS”) (25%(i)) measured against a pre-determined target(ii)

set by the board (as an average across two 12 month periods); and

Reserve growth and production replacement over the three year vesting period (25%(i))

The performance rights issued in FY17 have a two year performance period with the vesting
of the rights tested as at 30 June 2018. All subsequent issues of performance rights have
a three year performance period. Any performance rights that do not vest will lapse after
testing. There is no re-testing of performance rights.

Where an executive ceases to be an employee of any Group Company:

due to resignation or termination for cause, then any unvested rights will automatically

lapse on the date of the cessation of employment; or

due to any other reason, then a proportion of any unvested rights will lapse equivalent
to the proportion of time remaining in the period during which the relevant vesting
conditions must be satisfied and the remaining unvested rights will continue and are
still capable of vesting in accordance with the relevant vesting conditions at the end of
that period, unless the Board determines otherwise.

What happens if
there is a change of
control?

If a matter, event, circumstance or transaction occurs that the Board reasonably believes
may lead to a change of control, the Board may in its discretion determine the treatment
and timing of such treatment of any unvested rights and must notify the holder of any
changes to the terms of the rights as a result of such a decision. If a change of control
occurs and the Board hasn’t made such a decision, all unvested rights will vest and be
automatically exercised.

Are executives
eligible for
dividends?

Executives are not eligible to receive dividends on unvested performance rights.

(i) Represents the maximum award if stretch targets are met.

(ii) Targets and actual outcomes for each of the STI and LTI performance measures will be disclosed in the relevant remuneration report in the year

the award may vest. This is to recognise commercial sensitivity of disclosing key organisational metrics.

REGIS RESOURCES // REMUNERATION REPORT (AUDITED) (continued)PERFORMANCE AND EXECUTIVE REMUNERATION OUTCOMES IN FY18

Actual remuneration earned by executives in FY18

The actual remuneration earned by executives in the year ended 30 June 2018 is set out below. This provides
shareholders with a view of the remuneration actually paid to executives for performance in 2018 year and the value
of LTIs that vested during the period.

Performance against STI measures

A combination of financial and non-financial measures is used to measure performance for STI rewards. Company
performance against those measures is as follows for 2018:

KEY PERFORMANCE INDICATOR

WEIGHTING

METRIC

ACHIEVEMENT

KPI 1: EBITDA

35%

EBITDA relative to Budget

KPI 2: Production

35%

Production relative to stated guidance

Stretch target achieved
– 100% award

Threshold target achieved
– 65% award

KPI 3: Safety and Environment

30%

Reduction in safety and environmental
measures

Threshold target achieved
– 40% award

Based on this assessment, the STI payments for FY2018 to executives were recommended as detailed in the
following table:

NAME

POSITION

Mark Clark

Executive Chairman

Paul Thomas

Chief Operating Officer

Kim Massey

Chief Financial Officer & Company Secretary

ACHIEVED STI

STI AWARDED

69.83%

235,676

167,592

109,982

Performance against LTI measures

LTI awards granted in FY18 will be subject to testing at the end of the three year performance period on 30 June 2021.
In November 2017, after receiving approval from shareholders at the AGM, 430,440 performance rights were granted
in total to the Executive Directors, Mr Mark Clark and Mr Paul Thomas, and to other executives, Mr Kim Massey and
Mr Peter Woodman, under the Group’s Executive Incentive Plan (“EIP”). Mr Woodman resigned from his position as
Chief Geologist Officer 29 March 2018 and forfeited LTI rewards. Further details of the grant, including performance
conditions and the calculation of fair value is disclosed in the Note 23 to the financial statements.

LTI awards granted and approved by shareholders in November 2016 were tested at the end of the two year
performance period on 30 June 2018. The Board resolved to vest 100% of the performance rights granted in November
2016, and further instructed that the shares be issued following the release of the 2018 financial report. Further
details of the grant, including performance conditions and the calculation of fair value is disclosed in Note 23 to the
financial statements.

A number of performance conditions determined the vesting of the performance rights. The outcomes of these
performance conditions as tested for the two year performance period ending on 30 June 2018 were as follows:

PERFORMANCE CONDITION WEIGHTING METRIC

ACHIEVEMENT

Relative TSR

25%

Company’s relative total shareholder return
measured against 17 comparator mining companies

Stretch target achieved
– 100% award

Absolute TSR

25%

Company’s absolute TSR

EPS

25%

Growth in the Company’s earnings per share

Reserves Growth

25%

Growth in the Company’s ore reserves

Stretch target achieved
– 100% award

REGIS RESOURCES // 2018 ANNUAL REPORTBased on the outcomes of the performance conditions, the following 2016 performance rights vested and became
exercisable on 30 June 2018:

NAME

POSITION

ACHIEVED LTI

LTI AWARDED

Mark Clark

Executive Chairman

Paul Thomas

Chief Operating Officer

Peter Woodman(i)

Chief Geological Officer

Kim Massey

Chief Financial Officer &
Company Secretary

No. Rights Vested

Fair Value

100%

168,000

95,333

$319,326

$181,205

69,333

$131,785

(i) Mr Woodman resigned from his position as Chief Geological Officer on 29 March 2018, resulting in the lapsing of his performance rights prior to

vesting.

During the year the following 2017 performance rights were granted:

NAME

POSITION

ACHIEVED LTI

LTI AWARDED

Mark Clark

Executive Chairman

Paul Thomas

Chief Operating Officer

Peter Woodman(i)

Chief Geological Officer

Kim Massey

Chief Financial Officer &
Company Secretary

No. Rights Granted

Fair Value

173,554

113,636

71,625

$517,581

$338,891

$213,604

71,625

$213,604

(i) Mr Woodman resigned from his position as Chief Geological Officer on 29 March 2018, resulting in the lapsing of his performance rights prior to

vesting.

Garden Well // Photo by Christine Darbyshire

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Statutory performance indicators

The Company aims to align its executive remuneration to its strategic and business objectives and the creation
of shareholder wealth. The table below shows measures of the Group’s financial performance over the past five
years as required by the Corporations Act 2001. However these measures are not necessarily consistent with the
measures used in determining the variable amounts of remuneration to be awarded to KMPs, as discussed above. As
a consequence, there may not always be a direct correlation between the statutory key performance measures and
the variable remuneration awarded.

2018

$’000

2017

$’000

2016

$’000

2015

$’000

2014

$’000

Revenue

606,495

543,799

502,019

465,320

371,933

Net profit/(loss) after tax

174,231

138,163

111,793

86,920

(147,830)

Basic earnings/(loss) per share (cents)

Diluted earnings/(loss) per share (cents)

34.60

34.35

27.59

27.29

22.37

22.22

17.39

(29.68)

Net assets

636,842

538,392

481,848

409,973

321,060

PERFORMANCE AND EXECUTIVE REMUNERATION ARRANGEMENTS IN FY19

Following a review by the Remuneration, Nomination and Diversity Committee and after feedback from shareholders
and external advisors, the Board resolved to change the structure of the STI awards for the 2019 and subsequent
financial years. The STI awarded will now be payable with 50% in cash, payable 3 months after the end of the financial
year and 50% in performance rights which vest 12 months after the end of the financial year. Disqualifying events will
apply to the performance rights prior to vesting, including non-performance, a workplace fatality or material one-off
write downs and at the discretion of the Board. Subsequent to the end of the 2018 financial year, the Board resolved
to set STI and LTI hurdles as follows for the 2019 financial year:

COMPONENT

LINKS TO FY2019 PERFORMANCE

Total Fixed Remuneration (TFR)

Salaries awarded effective 1 July 2018 used as basis for determining the value
component for FY2019 STI and LTI.

The maximum STI opportunity that each KMP can earn are:

Executive Chairman

70%

Chief Operating Officer 65%

Other executives

60%

Short Term Incentives (STI)

The following KPIs were chosen for the 2019 financial year:

KPI 1: EBITDA relative to budget (20%(i));

KPI 2: Production relative to stated guidance (20%(i));

KPI 3: Safety and environmental performance measures (20%(i));

KPI 4: McPhillamys Project targets as determined by the Board (20%); and

KPI 5: Rosemount underground targets as determined by the Board (20%).

Long Term Incentives (LTI)

The performance rights issued in 2019 are subject to the following vesting
conditions:

Relative Total Shareholder Return (20%(i)) measured on a sliding scale against
a select peer group of comparator companies (ASX code: DCN, EVN, NCM, NST,
OGC, PRU, RSG, SAR, SBM,WGX).

Absolute Total Shareholder Return (20%(i));

Absolute Earnings Per Share (“EPS”) (15%(i)) measured against a pre-determined

target(ii) set by the Board (as an average across three 12 month periods);

Reserve growth in excess of depletion over the three-year vesting period (15%(i));

McPhillamys Project targets as determined by the Board (15%); and

Rosemount underground targets as determined by the Board (15%).

(i) Represents the maximum award if stretch targets are met.

REGIS RESOURCES // 2018 ANNUAL REPORTSERVICE CONTRACTS

The Group has entered into service contracts with each KMP. The service contract outlines the components of
remuneration paid to each key management person but does not prescribe how remuneration levels are modified
year to year. Remuneration levels are reviewed each year to take into account cost-of-living changes, any change in
the scope of the role performed by the key management person and any changes required to meet the principles of
the remuneration policy. No service contract specifies a term of employment or entitlement to performance based
incentives, except as detailed below for the Executive Chairman.

Mr Mark Clark, the Company’s Executive Chairman, is employed under a fixed term contract, with the following
significant terms:

A term of three years commencing 4 May 2018;

Fixed remuneration of $821,250 per annum inclusive of superannuation (2017: $766,500) subject to annual review;

and

Opportunity to earn a performance based STI and LTI determined by the Board.

Each key management person, except as specified below, is subject to a notice period of 1 month which the Company
may pay in part or full of the required notice period. The key management personnel are also entitled to receive,
on termination of employment, statutory entitlements of accrued annual and long service leave, and any accrued
superannuation contributions would be paid to their fund. In the case of a genuine redundancy, executives would
receive their statutory entitlements based on completed years of service.

The Executive Chairman’s termination provisions are as follows:

NOTICE PERIOD

PAYMENT IN
LIEU OF NOTICE

ENTITLEMENT TO OPTIONS
AND RIGHTS ON TERMINATION

Employer initiated termination:

without reason

3 months plus 9 months’ salary

12 months

with reason

Not less than 3 months

serious misconduct

0 – 1 month

Options - 1 month to exercise,
extendable at Board discretion
Rights – refer to LTI details above

Employee initiated
termination

3 months

Not specified

As above

Change of control

1 month plus 12 months’ salary Not specified

As above

Mr Paul Thomas, the Company’s Chief Operating Officer, is employed under a contract with the following termination
provisions:

NOTICE PERIOD

PAYMENT IN
LIEU OF NOTICE

ENTITLEMENT TO OPTIONS
AND RIGHTS ON TERMINATION

Employer initiated termination:

with or without reason

3 months

serious misconduct

0 – 1 month

Up to 3 months

0 – 1 month

Options - 1 month to exercise,
extendable at Board discretion
Rights – refer to LTI details above

Employee initiated
termination

3 months

Not specified

As above

Change of control

1 month plus 12 months’ salary Not specified

As above

Mr Kim Massey, the Company’s Chief Financial Officer and Company Secretary is entitled to 1 months’ notice plus 12
months’ salary in the event of a change of control.

REGIS RESOURCES // REMUNERATION REPORT (AUDITED) (continued)NON-EXECUTIVE DIRECTORS

Total remuneration for all non-executive directors, last voted upon by shareholders at the 2017 AGM, is not to exceed
$700,000 per annum. At the date of this report, total non-executive directors’ base fees are $362,000 per annum
excluding superannuation. Non-executive directors’ fees cover all main board activities and membership of board
committees. Non-executive directors do not receive performance-related compensation and are not provided with
any retirement benefits, apart from statutory superannuation. From time to time, non-executive directors may
provide additional services to the Company and in these cases they are paid fees in line with industry rates.

The Board has resolved to increase non-executive director fees for 2019. The increase will include both base fees and
chair fees and are within the agreed pool for non-executive directors fees.

KEY MANAGEMENT PERSONNEL REMUNERATION

Table 1: Remuneration for the year ended 30 June 2018

SHORT TERM

POST
EMPLOYMENT

LONG-TERM
BENEFITS

SHARE-BASED
PAYMENT

2018

SALARY &
FEES

CASH
REWARDS

NON-
MONETARY
BENEFITS*

SUPER-
ANNUATION

ACCRUED
ANNUAL &
LONG SERVICE
LEAVE#

OPTIONS &
RIGHTS+

TERMINATION
PAYMENTS

Non-executive directors

R Kestel(i)

J Mactier

F Morgan

97,000

85,000

M Okeby(ii)

302,468

Executive directors

9,215

8,075

29,606

M Clark(iv)

701,114 235,676

4,756

25,000

69,491

861,186

P Thomas(iv)

566,672

167,592

4,756

25,000

54,223

305,481

Other executives

K Massey(iv)

382,229 109,982

4,756

25,000

38,486

331,032

PERFOR-
MANCE
RELATED

TOTAL

106,215

93,075

332,074

1,897,223

57.81%

1,123,724

42.10%

891,485

49.47%

P Woodman(iii, iv)

273,708

M Ertzen(v)

75,115

3,567

1,189

19,728

19,837

(131,075)

5,619

191,384

7,363

8,025

24,853

116,545

21.32%

Total

2,568,306 513,250

19,024

157,062

190,062

1,391,477

5,619 4,844,800

* Non-monetary benefits are presented at actual cost plus any fringe benefits tax paid or payable by the Group.

Long term benefits for accrued annual and long service leave are the movements in the provision, net of any leave taken.

+ Represents the statutory remuneration expensed based on fair value at grant date of options and rights over the vesting period of the award.
Options have been vested during the year for KMPs as detailed in Table 3. Table 3 reflects the realised benefits of share-based payments for the
year.

(i) Mr Kestel’s fees include an additional $12,000 for chairing the Board Committees.

(ii) Mr Okeby’s fees includes $207,468 for additional services provided relating to the McPhillamys project.

(iii) Mr Woodman resigned as Chief Geological Officer effective 29 March 2018.

(iv) Mr Clark, Mr Thomas, Mr Woodman and Mr Massey elected to receive a portion of their superannuation entitlements above the statutorily required

maximum amount as salary.

(v) Mr Ertzen was appointed as Executive General Manager - Growth on 1 April 2018. The remuneration presented above is only for the period

subsequent to this appointment.

REGIS RESOURCES // 2018 ANNUAL REPORTTable 2: Remuneration for the year ended 30 June 2017

SHORT TERM

POST
EMPLOYMENT

LONG-TERM
BENEFITS

SHARE-BASED
PAYMENT

2017

SALARY &
FEES

CASH
REWARDS

NON-
MONETARY
BENEFITS*

SUPER-
ANNUATION

ACCRUED
ANNUAL & LONG
SERVICE LEAVE#

OPTIONS &
RIGHTS

TOTAL

PERFORMANCE
RELATED

Non-executive directors

G Evans

R Kestel

J Mactier

F Morgan

M Okeby

7,083

97,000

85,000

52,362

117,076

Executive directors

M Clark

653,420

205,320

P Thomas

521,590

125,474

Other executives

K Massey

373,076

91,253

P Woodman

367,261

91,253

3,734

673

9,215

8,075

4,974

8,075

32,083

33,125

29,115

34,075

7,756

106,215

93,075

57,336

125,151

78,441

902,692

1,875,690

59.07%

54,296

336,693

1,074,912

43.00%

47,724

322,906

867,808

32,406

468,703

997,432

47.72%

56.14%

Total

2,273,868

513,300

14,936

159,410

212,867

2,030,994 5,205,375

* Non-monetary benefits are presented at actual cost plus any fringe benefits tax paid or payable by the Group.

Long term benefits for accrued annual and long service leave are the movements in the provision, net of any leave taken.

Rosemont Main Pit // Photo by Marty McKenzie

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Table 3: Voluntary information – Non-IFRS – Remuneration received by executives for the
year ended 30 June 2018

The amounts disclosed below as executive KMP remuneration for 2018 reflect the realised benefits received by each
KMP during the reporting period. The remuneration values disclosed below have been determined as follows:

Fixed remuneration

Fixed remuneration includes base salaries received, payments made to superannuation funds, the taxable value of
non-monetary benefits received and any once-off payments such as sign-on bonuses or termination benefits, see
Table 1 above for details. Fixed remuneration excludes any accruals of annual or long service leave.

Short-term incentives

The cash STI benefits represent the bonuses that were awarded to each KMP in relation to the prior financial year and
which were paid in the current financial year.

Long-term incentives

The value of vested options was determined based on the intrinsic value of the options at the date of vesting, being
the difference between the share price on that date and the exercise price payable by the KMP. The options that
vested during the current year were granted in August 2015 (Mr Thomas and Mr Massey), November 2015 (M Clark)
and January 2016 (Mr Woodman). The performance rights that vested during the year were granted in November 2016.

FIXED REMUNERATION

AWARDED STI (CASH)

VESTED LTI

TOTAL VALUE

Executive directors

M Clark

P Thomas

Other executives

K Massey

P Woodman(i)

M Ertzen(ii)

Total executive KMP

Non-executive directors

Total KMP remuneration

771,256

607,006

442,756

336,470

86,052

2,243,540

624,439

2,867,979

235,676

167,592

2,077,500

692,500

109,982

1,435,000

975,000

3,084,432

1,467,098

1,987,738

1,311,470

86,052

513,250

5,180,000

7,936,790

624,439

513,250

5,180,000

8,561,229

(i) Mr Woodman resigned as Chief Geological Officer on 29 March 2018.

(ii) Mr Ertzen was appointed as Executive General Manager - Growth on 1 April 2018. The remuneration presented above is only for the period

subsequent to this appointment.

The amounts disclosed above are not the same as the remuneration expensed in relation to each KMP in accordance
with the accounting standards ($4,844,800 for 2018, see Table 1 above). The directors believe that the remuneration
received is more relevant to users for the following reasons:

The statutory remuneration expensed is based on fair value determined at grant date and does not reflect the

fair value of the equity instruments when they are actually received by the KMPs.

The statutory remuneration shows benefits before they are actually received by the KMPs.

Where options or performance rights do not vest because a market-based performance condition is not satisfied
(e.g. absolute TSR), the Company must still recognise the full amount of expenses even though the KMPs will never
receive any benefits.

Share-based payment awards are treated differently under the accounting standards depending on whether the
performance conditions are market conditions (no reversal of expense) or non-market conditions (reversal of
expense where shares fail to vest), even though the benefit received by the KMP is the same (nil where equity
instruments fail to vest).

The accuracy of information in this section has been audited together with the rest of the remuneration report.

REGIS RESOURCES // 2018 ANNUAL REPORTTables 4 & 5: Rights and options over equity instruments granted as compensation

All rights and options refer to rights and options over ordinary shares of Regis Resources Limited, which are
exercisable on a one-for-one basis.

There were no options granted to KMPs as compensation during the current year. Details on options granted as
compensation in previous years and which have vested during or remain outstanding at the end of the year are
provided below.

OPTIONS

GRANTED &
OUTSTANDING

TERMS & CONDITIONS FOR EACH GRANT

VESTED

NO.

GRANT
DATE

FAIR VALUE
PER OPTION
AT GRANT
DATE

EXERCISE
PRICE PER
OPTION

EXPIRY
DATE

VESTING
DATE

% VESTED
DURING
THE YEAR

% FORFEITED
DURING THE
YEAR

NO.

M Clark

750,000 12 Nov 15

$1.04

$1.27

$1.40 11 Aug 19 11 Aug 17

750,000

100%

$1.40 11 Aug 19 11 Aug 18

P Thomas

250,000 12 Aug 15

$0.58

$1.40 11 Aug 19 11 Aug 17

250,000

100%

P Thomas

250,000 12 Aug 15

P Woodman(i)

500,000

25 Jan 16

P Woodman(i)

500,000

25 Jan 16

$0.74

$1.00

$1.29

$1.40 11 Aug 19 11 Aug 18

$2.34

6 Jan 20 25 Jan 18

500,000

100%

$2.34

6 Jan 20 25 Jan 19

100%

K Massey

500,000 12 Aug 15

$0.58

$1.40 11 Aug 19 11 Aug 17

500,000

100%

K Massey

500,000 12 Aug 15

M Ertzen(ii)

50,000

5 Jul 17

M Ertzen(ii)

50,000

5 Jul 17

M Ertzen(ii)

200,000 12 Aug 15

$0.74

$1.28

$1.87

$0.74

$1.40 11 Aug 19 11 Aug 18

$3.90

1 Jul 21

5 Jul 19

$3.90

1 Jul 21

5 Jul 20

$1.40 11 Aug 19 11 Aug 18

Total

4,300,000

2,000,000

(i) Mr Woodman resigned as Chief Geological Officer on 29 March 2018 and forfeited the right to the unvested options held at that date.

(ii) Mr Ertzen was appointed as Executive General Manager - Growth on 1 April 2018. Only options vested subsequent to his appointment or remain

outstanding at the end of the year are presented in the table above.

All options expire at the earlier of their expiry date or termination of the individual’s employment. Options granted as
compensation do not have any vesting conditions other than a continuing employment service condition.

Details on performance rights that were granted as compensation to each KMP during the current year and in previous
years and which have vested during or remain outstanding at the end of the year are provided below.

RIGHTS

GRANTED

NUMBER OF RIGHTS TO:

VESTING CONDITION

GRANT
DATE

FAIR VALUE
AT GRANT
DATE

TEST DATE

M CLARK

P THOMAS

K MASSEY P WOODMAN(I)

% VESTED
DURING
THE YEAR

%
FORFEITED
DURING
THE YEAR

Relative TSR

23 Nov 17

$2.68 30 Jun 20

43,388

28,409

17,906

Absolute TSR

23 Nov 17

$1.86 30 Jun 20

43,389

28,409

17,906

Earnings per share 23 Nov 17

$3.69 30 Jun 20

43,388

28,409

17,906

Ore reserves

23 Nov 17

$3.69 30 Jun 20

43,389

28,409

17,907

Relative TSR

18 Nov 16

$1.51

30 Jun 18

42,000

23,833

17,333

Absolute TSR

18 Nov 16

$0.97

30 Jun 18

42,000

23,833

17,333

Earnings per share 18 Nov 16

$2.56 30 Jun 18

42,000

23,833

17,333

17,906

17,907

17,333

Ore reserves

18 Nov 16

$2.56 30 Jun 18

42,000

23,834

17,334

Total rights

341,554

208,969

140,958

Value of rights granted during the year

$517,581 $338,891 $213,604

$213,604

83%

17%

(i) Mr Woodman resigned as Chief Geological Officer on 29 March 2018 and forfeited the right to the unvested performance rights held at that date.

REGIS RESOURCES // REMUNERATION REPORT (AUDITED) (continued)In relation to the performance rights granted in November 2016, the two year performance period during which the
performance rights were tested ended on 30 June 2018 with the testing occurring within 60 days after that date. Any
performance rights which did not vest lapsed after testing. There is no re-testing of performance rights. In relation
to the performance rights granted in November 2017, there is a three year performance period which ends on 30 June
2020.

In addition to a continuing employment service condition, vesting of the performance rights is conditional upon
the Group achieving certain performance hurdles. Details of the performance criteria are included in the long-term
incentives discussion on page 34.

The value of rights granted during the year is the fair value of the rights calculated at grant date. The total value of
the rights granted is included in the table above. This amount is allocated to remuneration over the vesting period
(i.e. in years 1 July 2017 to 30 June 2020). No performance rights were exercised during the year.

Table 6: Rights and options over equity instruments

The movement during the reporting period, by number of options over ordinary shares in the Company held, directly,
indirectly or beneficially, by each key management person, including their related parties, is as follows:

HELD AT START
OF PERIOD

HELD AT END
OF PERIOD

VESTED AT 30 JUNE 2018

1 JULY 2017

GRANTED AS
REMUNERATION

EXERCISED

NET CHANGE
OTHER

30 JUNE 2018

TOTAL

EXERCISABLE

NOT
EXERCISABLE

Options

M Clark(i)

1,500,000

P Thomas(ii)

500,000

K Massey(iii)

1,000,000

P Woodman(iv)

1,000,000

M Ertzen(v)

n/a

Rights

M Clark

P Thomas

K Massey

P Woodman(iv)

168,000

95,333

69,333

173,554

113,636

71,625

(750,000)

(250,000)

(500,000)

750,000

250,000

500,000

(500,000)

n/a

300,000

341,554

168,000

208,969

95,333

140,958

69,333

(140,958)

n/a

(i) The intrinsic value of options exercised by Mr Clark during the year was $2,077,500. Mr Clark was issued with 750,000 ordinary shares. No amounts

remain unpaid on the shares issued.

(ii) The intrinsic value of options exercised by Mr Thomas during the year was $692,500. Mr Thomas exercised his options using the cashless exercise
feature available under the Regis ESOP and was issued with 168,605 ordinary shares as a result. No amounts remain unpaid on the shares issued.

(iii) The intrinsic value of options exercised by Mr Massey during the year was $1,435,000. Mr Massey exercised his options using the cashless exercise
feature available under the Regis ESOP and was issued with 336,066 ordinary shares as a result. No amounts remain unpaid on the shares issued.

(iv) The intrinsic value of options exercised by Mr Woodman during the year was $975,000. Mr Woodman exercised his options using the cashless
exercise feature available under the Regis ESOP and was issued with 236,486 ordinary shares as a result. No amounts remain unpaid on the shares
issued. Mr Woodman resigned as Chief Geological Officer on 29 March 2018 and forfeited all unvested options and rights held at that date.

(v) Mr Ertzen was appointed as Executive General Manager - Growth on 1 April 2018. “Net change other” represents the number of options and rights

held at this date. No options or rights were granted or exercised subsequent to this appointment.

There were no options granted to KMPs during the year, apart from options granted to Mr Ertzen prior to his
appointment as a KMP. All unvested options and rights held by Mr Woodman at the date of his resignation were
forfeited. Rights granted in the prior year were tested on 30 June 2018 against performance criteria – the portion
relating to achieved performance criteria vested and were exercised on that date, and the remaining rights were
forfeited. There have been no alterations to the terms and conditions of options or rights awarded as remuneration
since their award date.

REGIS RESOURCES // 2018 ANNUAL REPORTTable 7: Shareholdings of key management personnel

The movement during the reporting period in the number of ordinary shares in Regis Resources Limited held, directly,
indirectly or beneficially, by each key management person, including their related parties, is as follows:

Non-executive directors

M Okeby

R Kestel

J Mactier

F Morgan

Executive directors

M Clark

P Thomas

Other executives

P Woodman(i)

K Massey

M Ertzen(ii)

Total

HELD AT
1 JULY 2017

ON EXERCISE OF
OPTIONS

NET CHANGE
OTHER

HELD AT
30 JUNE 2018

700,000

75,000

513,230

700,000

75,000

513,230

2,460,000

750,000

(210,000)

3,000,000

168,605

(168,605)

236,486

(236,486)

336,066

(336,066)

n/a

200,000

3,748,230

1,491,157

(751,157)

4,488,230

(i) Mr Woodman resigned as Chief Geological Officer on 29 March 2018. He did not hold any shares at this date.

(ii) Mr Ertzen was appointed as Executive General Manager - Growth on 1 April 2018. “Net change other” represents the number of shares held at this

date. There was no movement in Mr Ertzen’s shareholding subsequent to this appointment.

Unless stated otherwise, “Net change other” relates to on-market purchases and sales of shares.

All equity transactions with KMP other than those arising from the exercise of remuneration options have been
entered into under terms and conditions no more favourable than those the Group would have adopted if dealing at
arm’s length.

Loans to key management personnel and their related parties

There were no loans made to any director, key management personnel and/or their related parties during the current
or prior years.

Other transactions with key management personnel

For the year ended 30 June 2018, services totalling $645,073 (2017: $335,302) have been provided on normal commercial
terms to the Group by Mintrex Pty Ltd, of which Mrs Morgan is Managing Director, Chief Executive Officer and a
shareholder. The Company engaged Mintrex during the financial year to engineer preliminary plant designs for the
McPhillamys Project. Mrs Morgan and Mintrex have structured their management of this engineering project to
ensure she has no involvement in the control or direction of the work. The balance outstanding at 30 June was
$30,249, exclusive of GST.

Other than the ordinary accrual of personnel expenses at balance date and transactions disclosed above, there are
no other amounts receivable from and payable to key management personnel and their related parties.

Signed in accordance with a resolution of the directors.

Mr Mark Clark
Executive Chairman

Perth, 27 August 2018

REGIS RESOURCES // REMUNERATION REPORT (AUDITED) (continued)AUDITOR’S INDEPENDENCE DECLARATION

Lead Auditor’s Independence Declaration under
Section 307C of the Corporations Act 2001

To the Directors of Regis Resources Limited

I declare that, to the best of my knowledge and belief, in relation to the audit of Regis Resources
Limited for the financial year ended 30 June 2018 there have been:

i. no contraventions of the auditor independence requirements as set out in the Corporations

Act 2001 in relation to the audit; and

ii. no contraventions of any applicable code of professional conduct in relation to the audit.

KPMG

R Gambitta
Partner

Partner

27 August 2018

KPMG, an Australian partnership and a member firm of the KPMG
network of independent member firms affiliated with KPMG
International Cooperative (“KPMG International”), a Swiss entity.

Liability limited by a scheme approved under
Professional Standards Legislation.

REGIS RESOURCES // 2018 ANNUAL REPORT

BMM Software use // Photo by Florent Etievant

Financial
Statements

CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME

For the year ended 30 June 2018

Revenue

Cost of goods sold

Gross profit

Other income

Investor and corporate costs

Personnel costs

Share-based payment expense

Occupancy costs

Other corporate administrative expenses

Impairment of non-current assets

Other expenses

Finance costs

Profit before tax

Income tax expense

Profit from continuing operations

Profit attributable to members of the parent

Other comprehensive income

Items that will not be reclassified to profit or loss:

Cash flow hedge reserve

Unrealised gains/(losses) on cash flow hedges

Realised gains transferred to net profit

Tax effect

Financial assets reserve

Changes in the fair value of financial assets designated at fair value
through other comprehensive income

Tax effect

Other comprehensive (loss)/income for the period, net of tax

Total comprehensive income for the period

NOTE

CONSOLIDATED

2018

$’000

2017

$’000

606,495

543,799

(343,585)

(335,827)

262,910

207,972

3,396

4,962

(1,818)

(8,479)

(3,231)

(584)

(636)

(353)

(1,011)

(1,273)

248,921

(74,690)

174,231

(188)

(110)

174,121

(2,117)

(5,521)

(3,222)

(585)

(312)

(2,939)

(936)

(1,165)

196,137

(57,974)

138,163

(641)

(4,177)

1,424

(2,180)

654

(4,920)

133,243

Total comprehensive income attributable to members of the parent

174,121

133,243

Basic earnings per share attributable to ordinary equity holders of the
parent (cents per share)

Diluted earnings per share attributable to ordinary equity holders of the
parent (cents per share)

34.60

34.35

27.59

27.29

The above statement of comprehensive income should be read in conjunction with the accompanying notes.

REGIS RESOURCES // 2018 ANNUAL REPORTCONSOLIDATED
BALANCE SHEET

As at 30 June 2018

Current assets

Cash and cash equivalents

Gold bullion awaiting settlement

Receivables

Inventories

Derivatives

Financial assets

Other current assets

Total current assets

Non-current assets

Inventories

Property, plant and equipment

Exploration and evaluation assets

Mine properties under development

Mine properties

Intangible assets

Total non-current assets

Total assets

Current liabilities

Trade and other payables

Interest-bearing liabilities

Income tax payable

Provisions

Derivatives

Total current liabilities

Non-current liabilities

Interest-bearing liabilities

Deferred tax liabilities

Provisions

Total non-current liabilities

Total liabilities

Net assets

Equity

Issued capital

Reserves

Retained profits

Total equity

NOTE

CONSOLIDATED

2018

$’000

181,118

21,160

5,954

43,438

344

1,354

2017

$’000

119,428

24,934

6,833

39,328

260

263

1,197

253,368

192,243

45,986

195,340

171,570

29,578

124,116

2,572

569,162

822,530

48,635

806

14,242

3,418

67,101

75,098

43,453

118,587

185,688

35,452

182,388

151,735

123,244

802

493,621

685,864

43,719

1,506

2,193

4,607

102

52,127

841

49,403

45,101

95,345

147,472

636,842

538,392

433,248

29,997

173,597

431,491

26,876

80,025

636,842

538,392

The above balance sheet should be read in conjunction with the accompanying notes.

REGIS RESOURCES // 2018 ANNUAL REPORTCONSOLIDATED STATEMENT
OF CHANGES IN EQUITY

For the year ended 30 June 2018

At 1 July 2017

Profit for the period

Other comprehensive income

Changes in the fair value of financial assets, net of tax

Changes in the value of cash flow hedges, net of tax

Total other comprehensive income for the year, net of tax

Total comprehensive income for the year, net of tax

Transactions with owners in their capacity as owners:

Share-based payments expense

Dividends paid

At 1 July 2016

Profit for the period

Other comprehensive income

Changes in the fair value of financial assets, net of tax

Changes in the value of cash flow hedges, net of tax

Total other comprehensive income for the year, net of tax

Total comprehensive income for the year, net of tax

Transactions with owners in their capacity as owners:

Share-based payments expense

Dividends paid

CONSOLIDATED

SHARE-
BASED
PAYMENT
RESERVE

FINANCIAL
ASSETS
RESERVE

CASH
FLOW
HEDGE
RESERVE

RETAINED
PROFITS/
(ACCUMULA-
TED LOSSES)

ISSUED
CAPITAL

TOTAL
EQUITY

$’000

431,491

25,049

1,717

110

80,025

538,392

3,231

(110)

174,231

(110)

174,231

174,121

3,231

(80,659)

1,757

173,597 636,842

(1,526)

(3,394)

(1,526)

(3,394)

138,163

(1,526)

(3,394)

(4,920)

(1,526)

(3,394)

138,163

133,243

3,222

(80,077)

156

431,335

21,827

3,243

3,504

21,939 481,848

Shares issued, net of transaction costs

1,757

At 30 June 2018

433,248

28,280

1,717

Shares issued, net of transaction costs

156

At 30 June 2017

431,491

25,049

1,717

110

80,025 538,392

The above statement of changes in equity should be read in conjunction with the accompanying notes.

REGIS RESOURCES // 2018 ANNUAL REPORTCONSOLIDATED
STATEMENT OF CASH FLOWS

For the year ended 30 June 2018

Cash flows from operating activities

Receipts from gold sales

Payments to suppliers and employees

Option premium income received

Interest received

Interest paid

Proceeds from rental income

Income tax paid

NOTE

CONSOLIDATED

2018

$’000

2017

$’000

608,200

540,048

(314,824)

(300,416)

1,197

2,087

(69)

1,302

1,504

(126)

(36,868)

(36,230)

Net cash from operating activities

259,727

206,082

Cash flows from investing activities

Acquisition of property, plant and equipment

Proceeds on disposal of property, plant and equipment

Payments for exploration and evaluation (net of rent refunds)

Payments for acquisition of exploration assets (net of cash)

Payments for intangible assets

Payments for financial assets

Proceeds on disposal of financial assets

Payments for mine properties under development

Payments for mine properties

Net cash used in investing activities

Cash flows from financing activities

Proceeds from issue of shares

Payment of transaction costs

Payment of dividends

Repayment of finance lease

Net cash used in financing activities

Net increase in cash and cash equivalents

Cash and cash equivalents at 1 July

Cash and cash equivalents at 30 June

(37,452)

(23,395)

(144)

(32,410)

(31,564)

(50)

(1,490)

(82)

(14,053)

(31,949)

(3,370)

(802)

4,154

(9,506)

(40,301)

(117,630)

(104,782)

1,810

(53)

175

(19)

(80,659)

(80,077)

(1,505)

(1,486)

(80,407)

(81,407)

61,690

119,428

181,118

19,893

99,535

119,428

The above statement of cash flows should be read in conjunction with the accompanying notes.

REGIS RESOURCES // 2018 ANNUAL REPORTGarden Well Diamond drilling // Photo by Richard Spilsbury

Basis of preparation

Performance for the year

1. Segment Information

2. Revenue and Other Income

3. Expenses

4. Earnings per Share

5. Current Income Tax

6. Dividends

7. Cash and Cash Equivalents

Operating assets and liabilities

8. Gold Bullion Awaiting Settlement

9. Receivables

10. Inventories

11. Property, Plant and Equipment

12. Exploration and Evaluation Assets

13. Mine Properties under Development

14. Mine Properties

15. Impairment of Non-Financial Assets

16. Trade and Other Payables

17. Provisions

Notes to the
Financial Statements

Capital structure, financial instruments and risk 73

Other disclosures

18. Net Debt and Finance Costs

19. Financial Assets

20. Financial Risk Management

21. Issued Capital and Reserves

22. Deferred Income Tax

23. Share-based Payments

24. Related Parties

25. Parent Entity Information

26. Commitments

27. Contingencies

28. Auditor’s Remuneration

29. Subsequent Events

30. New Accounting Standards and Interpretations 89

Tooheys Well Pre-Production // Photo by Richard Spilsbury

BASIS OF PREPARATION

Regis Resources Limited (“Regis” or the “Company”) is a for profit company limited by shares, incorporated and
domiciled in Australia, whose shares are publicly traded on the Australian Securities Exchange. Its registered office
and principal place of business is:

Regis Resources Limited
Level 2
516 Hay Street
Subiaco WA 6008

A description of the nature of operations and principal activities of Regis and its subsidiaries (collectively, the
“Group”) is included in the Directors’ Report, which is not part of these financial statements.

The financial statements were authorised for issue in accordance with a resolution of the directors on 27 August 2018.

The financial report is a general purpose financial report which:

has been prepared in accordance with the requirements of the Corporations Act 2001, Australian Accounting
Standards and other authoritative pronouncements of the Australian Accounting Standards Board (AASB) and
complies with International Financial Reporting Standards (IFRS) as issued by the International Accounting
Standards Board (IASB);

has been prepared on a historical cost basis except for assets and liabilities and share-based payments which
are required to be measured at fair value. The basis of measurement is discussed further in the individual notes;

is presented in Australian dollars with all values rounded to the nearest thousand dollars ($’000) unless otherwise

stated, in accordance with ASIC Instrument 2016/191;

presents reclassified comparative information where required for consistency with the current year’s presentation;

adopts all new and amended Accounting Standards and Interpretations issued by the AASB that are relevant to
the operations of the Group and effective for reporting periods beginning on or after 1 July 2016. Refer to note 30
for further details;

does not early adopt Accounting Standards and Interpretations that have been issued or amended but are not yet

effective. Refer to note 30 for further details.

Principles of consolidation

The consolidated financial statements comprise the financial statements of the Group. A list of controlled entities
(subsidiaries) at year end is contained in note 24.

The financial statements of subsidiaries are prepared for the same reporting period as the parent company, using
consistent accounting policies. Adjustments are made to bring into line any dissimilar accounting policies that may
exist.

In preparing the consolidated financial statements, all intercompany balances and transactions, income and expenses
and profits and losses resulting from intra-group transactions have been eliminated. Subsidiaries are consolidated
from the date on which control is obtained to the date on which control is disposed. The acquisition of subsidiaries
is accounted for using the acquisition method of accounting.

Foreign currencies

Both the functional currency of each entity within the Group and the Group’s presentation currency is
Australian dollars.

Transactions in foreign currencies are initially recorded in Australian dollars at the exchange rate on that day. Foreign
currency monetary assets and liabilities are translated to Australian dollars at the reporting date exchange rate.
Foreign currency gains and losses are generally recognised in profit or loss.

Other accounting policies

Significant and other accounting policies that summarise the measurement basis used and are relevant to an
understanding of the financial statements are provided throughout the notes to the financial statements. Where
possible, wording has been simplified to provide clearer commentary on the financial report of the Group. Accounting
policies determined non-significant are not included in the financial statements. There have been no changes to the
Group’s accounting policies that are no longer disclosed in the financial statements.

REGIS RESOURCES // NOTES TO THE FINANCIAL STATEMENTS (continued)Key estimates and judgements

In the process of applying the Group’s accounting policies, management has made a number of judgements and
applied estimates of future events. Judgements and estimates which are material to the financial report are found
in the following notes.

Note 3

Note 10

Note 12

Note 14

Note 15

Note 17

Note 22

Note 23

Expenses

Inventories

Exploration and evaluation assets

Mine properties

Impairment

Provisions

Deferred income tax

Share-based payments

Page 58

Page 65

Page 67

Page 69

Page 71

Page 72

Page 79

Page 81

The notes to the financial statements

The notes include information which is required to understand the financial statements and is material and relevant
to the operations and the financial position and performance of the Group. Information is considered relevant and
material if, for example:

the amount is significant due to its size or nature;

the amount is important for understanding the results of the Group;

it helps to explain the impact of significant changes in the Group’s business; or

it relates to an aspect of the Group’s operations that is important to its future performance.

The notes are organised into the following sections:

Performance for the year;

Operating assets and liabilities;

Capital structure and risk;

Other disclosures.

A brief explanation is included under each section.

PERFORMANCE FOR THE YEAR

This section focuses on the results and performance of the Group. This covers both profitability and the resultant
return to shareholders via earnings per share combined with cash generation and the return of cash to shareholders
via dividends.

1. SEGMENT INFORMATION

Operating segments are reported in a manner that is consistent with the internal reporting provided to the Executive
Chairman and his executive management team (the chief operating decision makers). The Group has two reportable
segments which comprise the Duketon Gold Project; being Duketon North Operations (“DNO”), currently comprising
Moolart Well, Gloster, Anchor and Dogbolter and Duketon South Operations (“DSO”), currently incorporating Garden
Well, Rosemont, Erlistoun and Tooheys Well. The segments are unchanged from those reported at 30 June 2017. A
number of new mining operations at satellite pits will commence in the next several years. In addition to current pits,
DNO will include Petra as it will be processed through the Moolart Well processing plant. DSO will add Baneygo and
the other satellite projects in that area to the Garden Well leaching circuit.

Unallocated items comprise corporate administrative costs (including personnel costs, share based payments,
occupancy costs and investor and corporate costs), interest revenue, finance costs, net gains and losses on derivatives,
exploration and evaluation assets relating to areas of interest where an economically recoverable reserve is yet to
be delineated, cash, derivative assets and income tax assets.

REGIS RESOURCES // 2018 ANNUAL REPORTSegment capital expenditure is the total cost incurred during the period to acquire property, plant and equipment,
conduct exploration and evaluation activities and develop mine properties.

The following table presents financial information for reportable segments for the years ended 30 June 2018 and
30 June 2017:

DUKETON NORTH
OPERATIONS

DUKETON SOUTH
OPERATIONS

UNALLOCATED

TOTAL

2018

2017

2018

2017

2018

2017

2018

2017

$’000

Continuing Operations

Segment revenue

Sales to external customers

175,568 170,065 428,857

372,153

- 604,425

542,218

Other revenue

2,070

1,581

2,070

1,581

Total segment revenue

175,568 170,065 428,857

372,153

2,070

1,581 606,495 543,799

Total revenue per the statement of
comprehensive income

606,495 543,799

Interest expense

Impairment of non-current assets

126

353

2,939

353

2,939

Depreciation and amortisation

17,677

18,061

46,635

39,392

265

218

64,577

57,671

Depreciation capitalised

Total depreciation and amortisation
recognised in the statement of
comprehensive income

Segment result

Segment net operating profit/(loss)
before tax

Segment assets

(140)

(90)

64,437

57,581

84,438

80,724

177,167

127,455 (12,684)

(12,042)

248,921

196,137

Segment assets at balance date

88,429

82,066

338,141 308,108 395,960 295,690 822,530 685,864

Capital expenditure for the year

18,997

18,436

58,701

46,622

51,614

32,306

129,312

97,364

2. REVENUE AND OTHER INCOME

Accounting Policies

Gold sales

Revenue is recognised and measured at the fair value of the consideration received or receivable, when the amount
of revenue can be reliably measured and it is probable that future economic benefits will flow to the Group. The
specific recognition criteria for the Group’s gold sales is upon dispatch of the gold bullion from the mine site as this is
the point at which the significant risks and rewards of ownership and control of the product passes to the customer.
Adjustments are made for variations in gold price, assay and weight between the time of dispatch and the time of
final settlement.

REGIS RESOURCES // NOTES TO THE FINANCIAL STATEMENTS (continued)Interest

Interest income is recognised as it accrues using the effective interest method.

Revenue

Gold sales

Interest

CONSOLIDATED

2018

$’000

2017

$’000

604,425

542,218

2,070

1,581

606,495

543,799

Gold forward contracts

As part of the risk management policy of the Group and in compliance with the conditions required by the Group’s
financier, the Group enters into gold forward contracts to manage the gold price of a proportion of anticipated gold
sales. The counterparty to the gold forward contracts is Macquarie Bank Limited (“MBL”).

It is management’s intention to settle each contract through physical delivery of gold and as such, the gold forward
sale contracts disclosed below do not meet the criteria of financial instruments for accounting purposes. This
is referred to as the “normal purchase/sale” exemption. Accordingly, the contracts will be accounted for as sale
contracts with revenue recognised once the gold has been delivered to MBL or its agent.

Open contracts at balance date are summarised in the table below:

GOLD FOR
PHYSICAL DELIVERY

CONTRACTED
GOLD SALE PRICE

VALUE OF
COMMITTED SALES

MARK-TO-MARKET(I)

2018

2017

ounces

2018

$/oz

2017

$/oz

2018

2017

2018

2017

$’000

Within one year

- Spot deferred contracts(ii)

388,711

396,406

1,555

1,551

604,635

614,718

(54,151)

(25,386)

388,711

396,406

604,635

614,718

(54,151)

(25,386)

Mark-to-market has been calculated with reference to the following spot price at period end $1,693/oz $1,615/oz

(i) Mark-to-market represents the value of the open contracts at balance date, calculated with reference to the gold spot price at that date. A

negative amount reflects a valuation in the counterparty’s favour.

(ii) The contracted gold sale price disclosed for spot deferred contracts reflects a weighted average of a range of contract prices. The range of prices

at the end of the year was from $1,416/oz to $1,821/oz (2017: $1,408/oz to $1,810/oz).

Other income

Rehabilitation provision adjustment

Net gain on financial instruments at fair value through profit or loss

Ineffectiveness on commodity swap contracts designated as cash flow hedges

Rental income

CONSOLIDATED

2018

$’000

2,165

1,299

(72)

3,396

2017

$’000

2,977

1,913

4,962

The net gain on financial instruments at fair value through profit or loss relates to sold gold call options that do not
qualify for hedge accounting. During the current financial year, the Group sold gold call options for 20,000 ounces
with a weighted average exercise price of $1,684/oz (2017: 35,000 ounces at A$1,716/oz). Offsetting the premium
income received during the current year is the fair value of open contracts at balance date, recognised on the
balances sheet as “derivative liabilities”.

REGIS RESOURCES // 2018 ANNUAL REPORT3. EXPENSES

Accounting Policies

Cash costs of production

Cash costs of production is a component of cost of goods sold and includes direct costs incurred for mining, milling,
laboratory and mine site administration, net of costs capitalised to pre-strip and production stripping assets. This
category also includes movements in the cost of inventory and any net realisable value write downs.

Cost of goods sold

Cash costs of production

Royalties

Depreciation of mine plant and equipment

Amortisation of mine properties

CONSOLIDATED

2018

$’000

2017

$’000

252,948

255,074

26,325

29,703

34,609

23,300

31,484

25,969

343,585

335,827

Depreciation

Depreciation of mine specific plant and equipment and buildings and infrastructure is charged to the statement
of comprehensive income on a unit-of-production basis over the economically recoverable reserves of the mine
concerned, except in the case of assets whose useful life is shorter than the life of the mine, in which case the
straight-line method is used. The unit of account is tonnes of ore milled.

Depreciation of non-mine specific plant and equipment is charged to the statement of comprehensive income and
exploration and evaluation assets on a straight-line basis over the estimated useful lives of each part of an item of
plant and equipment in current and comparative periods as follows:

Plant and equipment:

3 - 20 years

Fixtures and fittings:

3 - 20 years

Leasehold improvements:

10 years

Depreciation methods, useful lives and residual values are reviewed at each reporting date.

Amortisation

Mine properties are amortised on a unit-of-production basis over the economically recoverable reserves of the mine
concerned. The unit of account is tonnes of ore milled.

Depreciation and amortisation

Depreciation expense

Amortisation expense

Less: Amounts capitalised

Depreciation and amortisation charged to the statement of comprehensive income

CONSOLIDATED

2018

$’000

29,968

34,609

(140)

64,437

2017

$’000

31,702

25,969

(90)

57,581

REGIS RESOURCES // NOTES TO THE FINANCIAL STATEMENTS (continued)
KEY ESTIMATES AND ASSUMPTIONS

Unit-of-production method of depreciation/amortisation

The Group uses the unit-of-production basis when depreciating/amortising life of mine specific assets which
results in a depreciation/amortisation charge proportionate to the depletion of the anticipated remaining life of
mine production. Each item’s economic life, which is assessed annually, has due regard for both its physical life
limitations and to present assessments of economically recoverable reserves of the mine property at which it is
located.

Employee benefits expense

Wages and salaries

Defined contribution superannuation expense

Share-based payments expense

Employee bonuses

Other employee benefits expense

Less: Amounts capitalised

Employee benefits expense recognised in the statement of
comprehensive income

Lease payments and other expenses included in the statement of
comprehensive income

Minimum lease payments – operating lease

Less: Amounts capitalised

Recognised in the statement of comprehensive income

Other expenses

Gold swap fees

Non-capital exploration expenditure

Loss on disposal of assets

NOTE

CONSOLIDATED

2018

$’000

2017

$’000

38,750

35,700

3,569

3,231

1,473

3,966

50,989

(6,047)

3,235

3,222

335

2,425

44,917

(4,826)

44,942

40,091

384

(115)

269

867

144

1,011

380

(114)

266

804

936

REGIS RESOURCES // 2018 ANNUAL REPORT4. EARNINGS PER SHARE

Accounting Policy

Earnings per share (“EPS”) is the amount of post-tax profit attributable to each share. The Group presents basic and
diluted EPS data for ordinary shares. Basic EPS is calculated by dividing the profit or loss attributable to ordinary
shareholders of the Company by the weighted average number of ordinary shares outstanding during the period.

Diluted EPS takes into account the dilutive effect of all potential ordinary shares, being unlisted employee share
options and performance rights on issue.

Earnings used in calculating EPS

Net profit attributable to ordinary equity holders of the parent

174,231

138,163

CONSOLIDATED

2018

$’000

2017

$’000

Weighted average number of shares

Issued ordinary shares at 1 July

Effect of shares issued

Weighted average number of ordinary shares at 30 June

Effect of dilution:

Share options

Performance rights

NO. SHARES

(’000s)

501,020

499,854

2,597

928

503,617

500,782

2,885

692

5,225

247

Weighted average number of ordinary shares adjusted for the effect of dilution

507,194

506,254

There have been no transactions involving ordinary shares between the reporting date and the date of completion
of these financial statements which would impact on the above EPS calculations.

REGIS RESOURCES // NOTES TO THE FINANCIAL STATEMENTS (continued)5. CURRENT INCOME TAX

Accounting Policy

Current tax

Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantially
enacted at the reporting date, and any adjustment to tax payable in respect of previous years.

The major components of income tax expense are:

Current income tax

Current income tax expense

Adjustment in respect of income tax of previous years

Deferred income tax

Relating to the origination and reversal of temporary differences

Adjustment in respect of income tax of previous years

Income tax expense reported in the statement of comprehensive income

Deferred tax payable/(receivable) related to items recognised in OCI during
the year

Net (loss)/gain on revaluation of cash flow hedges

Net (loss)/gain on financial assets

Deferred tax charged to OCI

A reconciliation between tax expense and the product of accounting
profit before tax multiplied by the Group’s applicable income tax rate is
as follows:

Accounting profit before income tax

At the Group’s statutory income tax rate of 30% (2017: 30%)

Share-based payments

Other non-deductible items

Adjustment in respect of income tax of previous years

Income tax expense reported in the statement of comprehensive income

CONSOLIDATED

2018

$’000

2017

$’000

47,054

1,862

28,749

(2,975)

74,690

(78)

248,921

74,676

969

158

(1,113)

74,690

30,198

(3,635)

29,614

1,797

57,974

(1,424)

(654)

(2,078)

196,137

58,841

966

(1,838)

57,974

REGIS RESOURCES // 2018 ANNUAL REPORT6. DIVIDENDS

Declared and paid during the year:

Dividends on ordinary shares

CONSOLIDATED

2018

$’000

2017

$’000

Final dividend for 2017: 8 cents per share (2016: 9 cents per share)

40,312

45,007

Interim franked dividend for 2018: 8 cents per share
(2017: 7 cents per share)

Proposed by the directors after balance date but not recognised as a
liability at 30 June:

Dividends on ordinary shares

40,347

35,070

80,659

80,077

Final dividend for 2018: 8 cents per share (2017: 8 cents per share)

40,389

40,143

Dividend franking account

Amount of franking credits available to shareholders of Regis Resources
Limited for subsequent financial years

19,974

5,625

The ability to utilise the franking credits is dependent upon the ability to declare dividends.

7. CASH AND CASH EQUIVALENTS

Accounting Policy

Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise cash at bank and in hand and short-term deposits with an
original maturity of 3 months or less that are readily convertible to known amounts of cash and which are subject to
insignificant changes in value. Cash at bank earns interest at floating rates based on daily bank deposit rates. Short-
term deposits are made for varying periods of between one and three months, depending on the immediate cash
requirements of the Group, and earn interest at the respective short-term deposit rates.

At 30 June 2018, the Group had no undrawn, committed borrowing facilities available (2017: nil). Refer to note 18.

Cash and cash equivalents in the balance sheet and cash flow statement

Cash at bank and on hand

Short-term deposits

CONSOLIDATED

2018

$’000

181,118

2017

$’000

69,428

50,000

119,428

REGIS RESOURCES // NOTES TO THE FINANCIAL STATEMENTS (continued)Restrictions on cash

The Group is required to maintain $203,000 (2017: $161,000) on deposit to secure bank guarantees in relation to the
Perth office lease and two new office leases in NSW. The amount will be held for the term of the lease. In September
2018 the Group will be required to provide a bank guarantee of $280,000 in relation to the new Perth office lease.
Refer to note 26.

Reconciliation of profit after income tax to net cash inflow from operating
activities

Net profit for the year

Adjustments for:

Impairment of non-current assets

Unwinding of discount on provisions

Loss on disposal of assets

Unrealised (loss)/gain on derivatives

Share-based payments

Rehabilitation provision adjustment

Depreciation and amortisation

Changes in assets and liabilities

(Increase)/decrease in gold bullion awaiting settlement

(Increase)/decrease in receivables

(Increase)/decrease in inventories

(Increase)/decrease in other current assets

Increase/(decrease) in income tax payable

Increase/(decrease) in trade and other payables

Increase/(decrease) in deferred tax liabilities

Increase/(decrease) in provisions

Net cash from operating activities

OPERATING ASSETS AND LIABILITIES

NOTE

CONSOLIDATED

2018

$’000

2017

$’000

174,231

138,163

353

1,204

144

(30)

3,231

(2,165)

64,437

3,775

2,939

1,039

(683)

3,222

(2,977)

57,581

(2,170)

(365)

(13,476)

(18,669)

(119)

12,049

(9,289)

25,772

(435)

(64)

(7,308)

7,539

29,053

(1,301)

259,727

206,082

This section shows the assets used to generate the Group’s trading performance and the liabilities incurred as a
result. Liabilities relating to the Group’s financing activities are addressed in the capital structure and finance costs
section on page 74.

REGIS RESOURCES // 2018 ANNUAL REPORT8. GOLD BULLION AWAITING SETTLEMENT

Accounting Policy

Bullion awaiting settlement comprises gold that has been received by the refiner prior to period end but which has
not yet been delivered into a sale contract. Bullion awaiting settlement is initially recognised at the expected selling
price and adjustments for variations in the gold price are made at the time of final settlement.

Due to the short-term nature of the bullion awaiting settlement, the carrying value is assumed to approximate fair
value. The maximum exposure to credit risk is the fair value.

CONSOLIDATED

2018

$’000

2017

$’000

Current

Gold bullion awaiting settlement

21,160

24,934

At balance date, gold bullion awaiting settlement comprised 12,447 ounces valued at a weighted average realisable
value of $1,700/oz (2017: 15,487 ounces at $1,610/oz).

9. RECEIVABLES

Accounting Policy

Receivables are initially recognised at fair value and subsequently at the amounts considered receivable (financial
assets at amortised cost). Balances within receivables do not contain impaired assets, are not past due and are
expected to be received when due.

The Group does not have trade receivables in relation to gold sales. The only material receivables at year end are
for GST and fuel tax credits receivable from the Australian Taxation Office and therefore, the Group is not generally
exposed to credit risk in relation to its receivables.

Due to the short-term nature of these receivables, their carrying value is assumed to approximate fair value.

Current

GST receivable

Fuel tax credit receivable

Security deposit for land acquisition

Interest receivable

Dividend trust account

Other receivables

CONSOLIDATED

2018

$’000

3,447

1,637

201

441

228

2017

$’000

3,323

1,570

974

217

498

251

5,954

6,833

REGIS RESOURCES // NOTES TO THE FINANCIAL STATEMENTS (continued)10. INVENTORIES

Accounting Policy

Gold bullion, gold in circuit and ore stockpiles are physically measured or estimated and valued at the lower of cost
and net realisable value. Cost is determined by the weighted average method and comprises direct purchase costs
and an appropriate portion of fixed and variable overhead costs, including depreciation and amortisation, incurred in
converting ore into gold bullion. Net realisable value is the estimated selling price in the ordinary course of business,
less estimated costs of completion and costs of selling the final product, including royalties.

Consumable stores are valued at the lower of cost and net realisable value. The cost of consumable stores is measured
on a first-in first-out basis.

Inventories expected to be sold (or consumed in the case of stores) within 12 months after the balance sheet date
are classified as current assets, all other inventories are classified as non-current.

Current

Ore stockpiles

Gold in circuit

Bullion on hand

Consumable stores

Non-current

Ore stockpiles

CONSOLIDATED

2018

$’000

2017

$’000

26,394

25,894

9,123

4,263

3,658

6,098

4,254

3,082

43,438

39,328

45,986

35,452

At 30 June 2017, all inventories were carried at cost, except for a portion of ore stockpiles that were reclassified as
non-current as a result of the annual update of life of mine plans and written down to net realisable value resulting
in an expense totalling $1,440,000 being recognised in cost of goods sold.

At 30 June 2018, there was no expense recognised in costs of goods sold for inventories carried at net realisable value.

KEY ESTIMATES AND ASSUMPTIONS

Inventories

Net realisable value tests are performed at each reporting date and represent the estimated future sales price
of the product based on prevailing spot metals process at the reporting date, less estimated costs to complete
production and bring the product to sale.

Stockpiles are measured by estimating the number of tonnes added and removed from the stockpile, the number
of contained gold ounces based on assay data, and the estimated recovery percentage. Stockpile tonnages are
verified by periodic surveys.

REGIS RESOURCES // 2018 ANNUAL REPORT11. PROPERTY, PLANT AND EQUIPMENT

Accounting Policy

The value of property, plant and equipment is measured as the cost of the asset, less accumulated depreciation and
impairment. The cost of the asset also includes the cost of replacing parts that are eligible for capitalisation, the cost
of major inspections and an initial estimate of the cost of dismantling and removing the item from site at the end of
its useful life (rehabilitation provisions). Changes in the rehabilitation provisions resulting from changes in the size
or timing of the cost or from changes in the discount rate are also recognised as part of the asset cost.

Derecognition

An item of property, plant and equipment is derecognised when it is sold or otherwise disposed of, or when its use
is expected to bring no further economic benefits. Any gain or loss from derecognising the asset (the difference
between the proceeds on disposal and the carrying amount of the asset) is included in the income statement in the
period the item is derecognised.

FREEHOLD
LAND

LEASEHOLD
IMPROVEMENTS

PLANT &
EQUIPMENT

FURNITURE &
EQUIPMENT

BUILDINGS &
INFRASTRUCTURE

CAPITAL
WIP

TOTAL

CONSOLIDATED

Net carrying amount at 1 July 2017

Additions

Depreciation expense

Transfers to mine properties

Transfers between classes

Rehabilitation provision
adjustments

Disposals

$’000

16,488

17,264

$’000

303

104,224

8,496

(76)

(18,705)

1,180

(29)

(192)

$’000

600

249

(194)

169

$’000

52,288

8,485

182,388

3,171

11,629

40,809

(10,993)

(29,968)

(26)

5,298 (6,647)

2,358

(26)

2,329

(192)

Net carrying amount at 30 June 2018

33,752

227

94,974

824

52,122

13,441

195,340

At 30 June 2018

Cost

33,752

762

243,392

2,218

112,955

13,441

406,520

Accumulated depreciation

(535)

(148,418)

(1,394)

(60,833)

(211,180)

Net carrying amount

33,752

227

94,974

824

52,122

13,441

195,340

Net carrying amount at 1 July 2016

16,488

Additions

Depreciation expense

Transfers to mine properties

Transfers between classes

Rehabilitation provision
adjustments

Disposals

341

114,609

6,400

(76)

(21,306)

4,551

(85)

616

108

(176)

47,561

8,048

187,663

9,361

8,327

24,224

(10,144)

(31,702)

(18)

3,259 (7,872)

2,251

(18)

2,306

(85)

Net carrying amount at 30 June 2017

16,488

303

104,224

600

52,288

8,485

182,388

At 1 July 2016

Cost

16,488

725

223,997

Accumulated depreciation

(384)

(109,388)

Net carrying amount

16,488

341

114,609

At 30 June 2017

Cost

16,488

762

234,758

Accumulated depreciation

(459)

(130,534)

Net carrying amount

16,488

303

104,224

1,663

(1,047)

616

1,817

(1,217)

600

88,104

8,048

339,025

(40,543)

(151,362)

47,561

8,048

187,663

102,539

8,485

364,849

(50,251)

(182,461)

52,288

8,485

182,388

REGIS RESOURCES // NOTES TO THE FINANCIAL STATEMENTS (continued)12. EXPLORATION AND EVALUATION ASSETS

Accounting Policy

Exploration and evaluation expenditure is accumulated on an area of interest basis. Exploration and evaluation
assets include the costs of acquiring licences, costs associated with exploration and evaluation activity, and the fair
value (at acquisition date) of exploration and evaluation assets acquired in a business combination. Expenditure is
carried forward when incurred in areas for which the Group has rights of tenure and where economic mineralisation
is indicated, but activities have not yet reached a stage which permits a reasonable assessment of the existence
or otherwise of economically recoverable reserves and active and significant operations in, or in relation to, the
area of interest are continuing. Costs incurred before the Group has obtained the legal rights to explore an area are
recognised in the statement of comprehensive income.

Once the technical feasibility and commercial viability of the extraction of mineral resources in an area of interest are
demonstrable, exploration and evaluation assets attributable to that area of interest are first tested for impairment
and then reclassified to mine properties under development. No amortisation is charged during the exploration and
evaluation phase.

Reconciliation of movements during the year

Balance at 1 July

Expenditure for the period

Acquisition of tenements

Impairment

Transferred to mine properties under development

Transferred to mine properties

Balance at 30 June

Impairment

NOTE

CONSOLIDATED

2018

$’000

151,735

33,444

(353)

(12,918)

(388)

171,570

2017

$’000

123,739

31,976

3,382

(2,917)

(4,445)

151,735

Exploration and evaluation assets are assessed for impairment if (i) sufficient data exists to determine technical
feasibility and commercial viability, and (ii) facts and circumstances suggest that the carrying amount exceeds the
recoverable amount. For the purposes of impairment testing, exploration and evaluation assets are allocated to
cash-generating units (“CGUs”) to which the exploration activity relates. The CGU is not larger than the area of
interest.

Carrying value by area of interest

Duketon North Operations

Duketon South Operations

Duketon Gold Project satellite deposits

Regional WA exploration

NSW exploration

9,118

27,323

5,466

13,610

116,053

171,570

8,868

14,281

12,757

9,267

106,562

151,735

REGIS RESOURCES // 2018 ANNUAL REPORTKEY ESTIMATES AND ASSUMPTIONS

Impairment of exploration and evaluation assets

The future recoverability of capitalised exploration and evaluation expenditure is dependent upon a number of
factors, including whether the Group decides to exploit the related lease itself or, if not, whether it successfully
recovers the related exploration and evaluation asset through sale.

Factors that could impact future recoverability include the level of reserves and resources, future technological
changes which could impact the cost of mining, future legal changes (including changes to environmental
restoration obligations) and changes to commodity prices.

To the extent that capitalised exploration and evaluation expenditure is determined not to be recoverable in the
future, profits and net assets will be reduced in the period in which the determination is made.

Exploration expenditure commitments

Exploration expenditure commitments represent tenement rentals and expenditure requirements that may be
required to be met under the relevant legislation should the Group wish to retain tenure on all current tenements in
which the Group has an interest.

The terms and conditions under which the Group retains title to its various mining tenements oblige it to meet
tenement rentals and minimum levels of exploration expenditure as gazetted by the Western Australian and New
South Wales state governments, as well as local government rates and taxes.

The exploration commitments of the Group not provided for in the consolidated financial statements and payable
are as follows:

Within one year

CONSOLIDATED

2018

$’000

2017

$’000

1,668

2,317

The tenement commitments shown above represent the minimum required to be spent on all granted tenements as
at reporting date. Actual expenditure will vary as a result of ongoing management of the tenement portfolio including
reductions and relinquishment of tenements not considered prospective, in whole or in part.

Tenement commitments are shown gross of exemptions that are likely to be available in the ordinary course of
business as the financial impact of potential exemptions cannot be measured reliably in advance.

REGIS RESOURCES // NOTES TO THE FINANCIAL STATEMENTS (continued)13. MINE PROPERTIES UNDER DEVELOPMENT

Accounting Policy

Mine properties under development represents the costs incurred in preparing mines for production and includes
plant and equipment under construction and operating costs incurred before production commences. These costs
are capitalised to the extent they are expected to be recouped through the successful exploitation of the related
mining leases. Once production commences, these costs are transferred to property, plant and equipment and mine
properties, as relevant, and are depreciated and amortised using the units-of-production method based on the
estimated economically recoverable reserves to which they relate or are written off if the mine property is abandoned.

NOTE

CONSOLIDATED

2018

$’000

17,831

12,918

(1,168)

(3)

29,578

2017

$’000

1,199

9,158

(1,111)

(9,246)

Balance at beginning of period

Pre-production expenditure capitalised

Transferred from exploration

Transferred to inventory

Transferred to mine properties

Balance at end of period

14. MINE PROPERTIES

Accounting Policies

Production stripping costs

Once access to the ore is attained, all waste that is removed from that point forward is considered production
stripping activity. The amount of production stripping costs deferred is based on the extent to which the current
period cost per tonne of ore mined exceeds the expected cost per tonne for the life of the identified component. A
component is defined as a specific volume of the ore body that is made more accessible by the stripping activity, and
is identified based on the mine plan.

The production stripping asset is initially measured at cost, which is the accumulation of costs directly incurred to
perform the stripping activity that improves access to the identified component of the ore body. The production
stripping asset is then carried at cost less accumulated amortisation and any impairment losses.

The production stripping asset is amortised over the expected useful life of the identified component (determined
based on economically recoverable reserves), on a unit of production basis. The unit of account is tonnes of ore
mined.

Pre-strip costs

In open pit mining operations, it is necessary to remove overburden and waste materials to access the ore. This
process is referred to as stripping and the Group capitalises stripping costs incurred during the development of a
mine (or pit) as part of the investment in constructing the mine (“pre-strip”). These costs are subsequently amortised
over the life of mine on a units of production basis, where the unit of account is tonnes of ore milled.

Other mine properties

Other mine properties represent expenditure in respect of exploration, evaluation, feasibility and pre-production
operating costs incurred by the Group previously accumulated and carried forward in mine properties under
development in relation to areas of interest in which mining has now commenced. Other mine properties are stated
at cost, less accumulated amortisation and accumulated impairment losses.

Other mine properties are amortised on a unit-of-production basis over the economically recoverable reserves of the
mine concerned. The unit of account is tonnes of ore milled.

REGIS RESOURCES // 2018 ANNUAL REPORT70

Net carrying amount at 1 July 2017

Additions

Transfers from exploration and evaluation assets

Transfers from pre-production

Transfers from property, plant and equipment

Rehabilitation provision adjustment

CONSOLIDATED

PRODUCTION
STRIPPING
COSTS

PRE-STRIP
COSTS

OTHER MINE
PROPERTIES

$’000

TOTAL

$’000

41,887

30,188

40,819

40,538

123,244

7,796

416

388

38,400

388

(3,310)

Amortisation expense

(11,158)

(12,257)

(11,194)

(34,609)

Net carrying amount at 30 June 2018

60,917

36,358

26,841

124,116

At 30 June 2018

Cost

Accumulated amortisation

Net carrying amount

93,751

89,950

94,300

278,001

(32,834)

(53,592)

(67,459)

(153,885)

60,917

36,358

26,841

124,116

Net carrying amount at 1 July 2016

Additions

Transfers from exploration and evaluation assets

19,969

22,398

37,334

11,213

Transfers from pre-production

4,321

3,606

Transfers from property, plant and equipment

Rehabilitation provision adjustment

26,055

7,535

4,445

1,319

83,358

41,146

4,445

9,246

11,000

Amortisation expense

(4,801)

(11,334)

(9,834)

(25,969)

Net carrying amount at 30 June 2017

41,887

40,819

40,538

123,244

At 30 June 2017

Cost

Accumulated amortisation

Net carrying amount

At 1 July 2016

Cost

Accumulated amortisation

Net carrying amount

KEY ESTIMATES AND ASSUMPTIONS

Production stripping costs

63,563

82,154

96,803

242,520

(21,676)

(41,335)

(56,265)

(119,276)

41,887

40,819

40,538

123,244

36,843

67,335

72,486

176,664

(16,874)

(30,001)

(46,431)

(93,306)

19,969

37,334

26,055

83,358

The Group capitalises mining costs incurred during the production stage of its operations in accordance with the
accounting policy described above. The identification of specific components will vary between mines as a result
of both the geological characteristics and location of the ore body. The financial considerations of the mining
operations may also impact the identification and designation of a component.

The expected cost per tonne is a function of an individual mine’s design and therefore changes to that design will
generally result in changes to the expected cost. Changes in other technical or economic parameters that impact
reserves will also have an impact on the expected costs per tonne for each identified component. Changes in the
expected cost per tonne are accounted for prospectively from the date of change.

REGIS RESOURCES // NOTES TO THE FINANCIAL STATEMENTS (continued)15. IMPAIRMENT OF NON-FINANCIAL ASSETS

Accounting policy

At each reporting date, the Group assesses whether there is any indication that an asset may be impaired. Where
an indicator of impairment exists, the Group makes a formal estimate of recoverable amount. Where the carrying
amount of an asset exceeds its recoverable amount the asset is considered impaired and is written down to its
recoverable amount.

The recoverable amount of other assets is the greater of their fair value less costs to sell and value in use. In
assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount
rate that reflects current market assessments of the time value of money and the risks specific to the asset. For an
asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash-
generating unit to which the asset belongs.

Impairment losses are reversed when there is an indication that the impairment loss may no longer exist and there
has been a change in the estimate used to determine the recoverable amount. An impairment loss is reversed only to
the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined,
net of depreciation or amortisation, if no impairment loss had been recognised.

Total impairment losses recognised in the statement of comprehensive income for the year were as follows:

Exploration and evaluation assets

NOTE

CONSOLIDATED

2018

$’000

353

2017

$’000

2,939

An impairment loss of $353,000 (2017: $343,000) has been recognised in relation to tenements that were surrendered,
relinquished or expired during the year.

For the year ended 30 June 2017, an impairment loss of $2,596,000 was recognised for the tenements relating to the
Duketon Gold Exploration Joint Venture. The Joint Venture required Regis to spend at least $1 million over a 2 year
period to earn a 75% interest in any mining project that is confirmed by a Regis decision to mine. The 2 year term
expired in October 2017 and no further expenditure was incurred for the year ended 30 June 2018.

KEY JUDGEMENTS

Determination of mineral resources and ore reserves

The determination of mineral resources and ore reserves impacts the accounting for asset carrying values. The
Group estimates its mineral resources and ore reserves in accordance with the Australian Code for Reporting
of Exploration Results, Mineral Resources and Ore Reserves 2012 (the “JORC” Code). The information on mineral
resources and ore reserves was prepared by or under the supervision of Competent Persons as defined in the JORC
Code. The amounts presented are based on the mineral resources and ore reserves determined under the JORC
Code.

There are numerous uncertainties inherent in estimating mineral resources and ore reserves, and assumptions that
are valid at the time of estimation may change significantly when new information becomes available.

Changes in the forecast prices of commodities, exchange rates, production costs or recovery rates may change the
economic status of reserves and may ultimately result in reserves being restated.

16. TRADE AND OTHER PAYABLES

Accounting Policies

Trade payables

Trade and other payables are initially recognised at the value of the invoice received from a supplier and subsequently
measured at amortised cost. They represent liabilities for goods and services provided to the Group prior to the
end of the financial year that are unpaid and arise when the Group becomes obliged to make future payments in
respect of the purchase of these goods and services. The amounts are unsecured and generally paid within 30 days
of recognition.

REGIS RESOURCES // 2018 ANNUAL REPORTEmployee entitlements

A liability is recognised for the amount expected to be paid to an employee for annual leave they are presently
entitled to as a result of past service. The liability includes allowances for on-costs such as superannuation and
payroll taxes, as well as any future salary and wage increases that the employee may be reasonably entitled to.

Current

Trade payables

Accrued expenses

Employee entitlements – annual leave payable

Other payables

17. PROVISIONS

Accounting Policies

CONSOLIDATED

2018

$’000

21,075

15,756

3,329

8,475

48,635

2017

$’000

16,892

16,628

2,881

7,318

43,719

Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current
market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount
is recognised as a finance cost. Refer to note 18.

Site rehabilitation

In accordance with the Group’s published environmental policy and applicable legal requirements, a provision for
site rehabilitation is recognised in respect of the estimated cost of rehabilitation and restoration of the areas
disturbed by mining activities up to the reporting date, but not yet rehabilitated.

When the liability is initially recorded, the estimated cost is capitalised by increasing the carrying amount of the
related mining assets. At each reporting date the site rehabilitation provision is re-measured to reflect any changes
in discount rates and timing or amounts to be incurred. Additional disturbances or changes in rehabilitation costs
will be recognised as additions or changes to the corresponding asset and rehabilitation provision, prospectively
from the date of change. For closed sites, or where the carrying value of the related asset has been reduced to nil
either through depreciation and amortisation or impairment, changes to estimated costs are recognised immediately
in the statement of comprehensive income.

Long service leave

The Group’s net obligation in respect of long-term employee benefits is the amount of future benefit that employees
have earned in return for their service up to reporting date, plus related on costs. The benefit is discounted to
determine its present value and the discount rate is the yield at the reporting date on high-quality corporate bonds
that have maturity dates approximating the terms of the Group’s obligations.

REGIS RESOURCES // NOTES TO THE FINANCIAL STATEMENTS (continued)Current

Dividends payable

Long service leave

Rehabilitation

Non-current

Long service leave

Rehabilitation

Provision for rehabilitation

Balance at 1 July

Provisions made during the year

Provisions used during the year

Provisions re-measured during the year

Unwinding of discount

Balance at 30 June

CONSOLIDATED

2018

$’000

440

150

2,828

3,418

1,737

41,716

43,453

47,631

3,910

(1,145)

(7,056)

1,204

44,544

2017

$’000

498

156

3,953

4,607

1,423

43,678

45,101

37,401

12,439

(1,138)

(2,110)

1,039

47,631

Nature and purpose of provision for rehabilitation
The nature of rehabilitation activities includes dismantling and removing structures, rehabilitating mines, dismantling
operating facilities, closure of plant and waste sites and restoration, reclamation and re-vegetation of affected
areas. Typically, the obligation arises when the asset is installed at the production location.

KEY ESTIMATES AND ASSUMPTIONS

Rehabilitation obligations

The Group assesses site rehabilitation liabilities annually. The provision recognised is based on an assessment of the
estimated cost of closure and reclamation of the areas using internal information concerning environmental issues in
the exploration and previously mined areas, together with input from various environmental consultants, discounted
to present value. Significant estimation is required in determining the provision for site rehabilitation as there are
many factors that may affect the timing and ultimate cost to rehabilitate sites where mining and/or exploration
activities have previously taken place. These factors include future development/exploration activity, changes in the
cost of goods and services required for restoration activity and changes to the legal and regulatory framework. These
factors may result in future actual expenditure differing from the amounts currently provided.

CAPITAL STRUCTURE, FINANCIAL INSTRUMENTS AND RISK

This section outlines how the Group manages its capital, related financing costs and its exposure to various financial
risks. It explains how these risks affect the Group’s financial position and performance and what the Group does to
manage these risks.

The Group’s objectives when managing capital are to safeguard its ability to continue as a going concern, so that
it can continue to provide returns to shareholders and benefits for other stakeholders and to maintain an efficient
capital structure to reduce the cost of capital.

The Board’s policy in relation to capital management is to regularly and consistently monitor future cash flows
against expected expenditures for a rolling period of up to 12 months in advance. The Board determines the Group’s
need for additional funding by way of either share issues or loan funds depending on market conditions at the
time. The Board defines working capital in such circumstances as its excess liquid funds over liabilities, and defines
capital as being the ordinary share capital of the Company, plus retained earnings, reserves and net debt. In order to
maintain or adjust the capital structure, the Board may adjust the amount of dividends paid to shareholders, return
capital to shareholders, issue new shares or reduce debt.

There were no changes in the Group’s approach to capital management during the year.

Neither the Company nor any of its subsidiaries are subject to externally imposed capital requirements.

REGIS RESOURCES // 2018 ANNUAL REPORT18. NET DEBT AND FINANCE COSTS

Accounting Policies

Finance Leases – Group as a lessee

Finance leases, which transfer to the Group substantially all the risks and benefits incidental to ownership for the
lease item, are capitalised at the inception of the lease at the fair value of the leased asset or, if lower, at the present
value of the minimum lease payments. Lease payments are apportioned between the finance charges and reduction
of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance
charges are recognised as an expense in profit or loss.

Capitalised leased assets are depreciated over the shorter of the estimated useful life of the asset and the lease
term if there is no reasonable certainty that the Group will obtain ownership by the end of the lease term.

The carrying amounts of the Group’s current and non-current borrowings approximate their fair value.

Current interest-bearing liabilities

Finance lease liability

Non-current interest-bearing liabilities

Finance lease liability

Less: cash and cash equivalents

Net cash

Interest-bearing liabilities

Finance lease commitments

NOTE

CONSOLIDATED

2018

$’000

2017

$’000

806

1,506

841

181,118

180,276

119,428

117,081

The Group has hire purchase contracts for three Komatsu loaders. The Group’s obligations are secured by the
lessors’ title to the leased assets. Ownership of the loaders passes to the Group once all contractual payments have
been made. Refer to note 26.

Finance costs

Interest expense

Unwinding of discount on provisions

Borrowing costs

CONSOLIDATED

2018

$’000

1,204

1,273

2017

$’000

126

1,039

1,165

Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset (i.e. an
asset that necessarily takes a substantial period of time to get ready for its intended use or sale) are capitalised as
part of the cost of that asset. All other borrowing costs are expensed as part of finance costs in the period incurred.
Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds.

Unwinding of discount on provisions

The unwinding of discount on provisions represents the cost associated with the passage of time. Rehabilitation
provisions are recognised at the discounted value of the present obligation to restore, dismantle and rehabilitate
each mine site with the increase in the provision due to the passage of time being recognised as a finance cost in
accordance with the policy described in note 17.

REGIS RESOURCES // NOTES TO THE FINANCIAL STATEMENTS (continued)19. FINANCIAL ASSETS

Accounting Policy

Financial assets are initially recognised at fair value, plus transaction costs that are directly attributable to its
acquisition and subsequently measured at amortised costs or fair value depending on the business model for those
assets and the contractual cash flow characteristics.

Equity instruments

Equity instruments are normally measured at fair value through profit or loss (“FVTPL”) unless the Group chooses,
on an instrument-by-instrument basis on initial recognition, to present fair value changes in other comprehensive
income (“FVOCI”). This option is irrevocable and only applies to equity instruments which are neither held for trading
nor are contingent consideration in a business combination. Gains and losses on equity instruments measured at
FVOCI are not recycled through profit and loss or disposal and there is no impairment accounting. All gains and losses
are recorded in equity through other comprehensive income.

CONSOLIDATED

2018

$’000

2017

$’000

Current

Financial assets at amortised cost – term deposit

344

263

20. FINANCIAL RISK MANAGEMENT

The Group holds financial instruments for the following purposes:

Financing: to raise finance for the Group’s operations or, in the case of short-term deposits, to invest surplus

funds. The principal types of instruments used include bank loans, cash and short-term deposits.

Operational: the Group’s activities generate financial instruments, including cash, receivables and trade payables.

Risk management: to reduce risks arising from the financial instruments described above, including commodity

swap contracts and gold call options.

It is, and has been throughout the year, the Group’s policy that no speculative trading in financial instruments shall
be undertaken.

The Group’s holding of these financial instruments exposes it to the following risks:

Credit risk

Liquidity risk

Market risk, including interest rate and commodity price risk

This note presents information about the Group’s exposure to each of the above risks and its objectives, policies and
processes for measuring and managing risk. These risks affect the fair value measurements applied by the Group.
Further quantitative disclosures are included throughout this financial report.

The Board of Directors has overall responsibility for the establishment and oversight of the risk management
framework. The Audit and Risk Management Committee is responsible for developing and monitoring risk management
policies. The committee reports regularly to the Board of Directors on its activities.

Risk management policies are established to identify and analyse the risks faced by the Group, to set appropriate
risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are
reviewed regularly to reflect changes in market conditions and the Group’s activities. The Group, through its training
and management standards and procedures, aims to develop a disciplined and constructive control environment in
which all employees understand their roles and obligations.

The Group’s Audit and Risk Management Committee oversees how management monitors compliance with the Group’s
risk management policies and procedures and reviews the adequacy of the risk management framework in relation
to the risks faced by the Group.

REGIS RESOURCES // 2018 ANNUAL REPORTCredit Risk

Credit risk is the risk of financial loss to the Group if the counterparty to a financial asset fails to meet its contractual
obligation. Credit risk arises from cash and cash equivalents and gold bullion awaiting settlement. The Group has
adopted the policy of dealing with creditworthy counterparties as a means of mitigating the risk of financial loss from
defaults. Cash holdings are with Macquarie Bank Limited, an Australian bank regulated by APRA and with a short term
S&P rating of A-1. The Group has determined that it currently has no significant exposure to credit risk as at reporting
date given banks have investment grade credit ratings.

Liquidity Risk

Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group’s
approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet
liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risk
damage to the Group’s reputation.

The Group uses weekly and monthly cash forecasting to monitor cash flow requirements. Typically the Group ensures
that it has sufficient cash on demand to meet expected operational expenses, including the servicing of financial
obligations; this excludes the potential impact of extreme circumstances that cannot reasonably be predicted, such
as natural disasters.

The following table analyses the Group’s financial liabilities, including net and gross settled financial instruments,
into relevant maturity periods based on the remaining period at the reporting date to the contractual maturity date.
The amounts disclosed in the table are the contractual undiscounted cash flows and hence will not necessarily
reconcile with the amounts disclosed in the balance sheet.

For derivative liabilities (sold gold call options), the amounts disclosed are the net amounts that would need to be
paid if the option expired out of the money. Due to their short term nature, the amounts have been estimated using
the gold spot price applicable at reporting date.

30 JUNE 2018
($’000)

CARRYING
AMOUNT

CONTRACTUAL
CASH-FLOWS

6 MTHS OR
LESS

6-12 MTHS

1-2 YEARS

2-5 YEARS

MORE THAN
5 YEARS

Trade and other payables

45,306

(45,306)

Finance leases

842

(856)

(428)

Total

46,148

(46,162)

(45,734)

(392)

(36)

30 JUNE 2017
($’000)

CARRYING
AMOUNT

CONTRACTUAL
CASH-FLOWS

6 MTHS OR
LESS

6-12 MTHS

1-2 YEARS

2-5 YEARS

MORE THAN
5 YEARS

Trade and other payables

40,764

(40,764)

Derivative liabilities

Finance lease

Total

102

2,347

(102)

(2,414)

(102)

(811)

43,213

(43,280)

(41,677)

(747)

(820)

(36)

Assets pledged as security

The finance lease liabilities are secured by the related assets. Ownership of the assets remains with Komatsu until
all contractual payments have been made.

Financial guarantee liabilities

As at 30 June 2018, the Group did not have any financial guarantee liabilities (2017: Nil).

REGIS RESOURCES // NOTES TO THE FINANCIAL STATEMENTS (continued)Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates, commodity
prices and equity prices will affect the Group’s income or value of its holdings of financial instruments. The objective
of market risk management is to manage and control market risk exposures within acceptable parameters, while
optimising the return.

Foreign currency risk: The Group is occasionally exposed to foreign currency risk when long lead items are purchased
in a currency other than Australian dollars. The Group maintains all of its cash in Australian dollars and does not
currently hedge these purchases. There is no significant exposure to foreign currency risk at reporting date.

Interest rate risk: Since repayment of substantially all of the principal outstanding on the secured project loan
facility with Macquarie Bank Limited (“MBL”) during the current year, the Group is only exposed to interest rate
risk through its cash deposits, which attract variable interest rates. The Group regularly reviews its current
working capital requirements against cash balances and the returns available on short term deposits. There is no
significant exposure to interest rate risk at reporting date.

Commodity price risk: The Group’s exposure to commodity price risk is purely operational and arises largely from
gold price fluctuations or in relation to the purchase of inventory with commodity price as a significant input,
such as diesel. The Group’s exposure to movements in the gold price is managed through the use of gold forward
contracts (note 2) and sold call options (note 20). The gold forward sale contracts do not meet the criteria of
financial instruments for accounting purposes on the basis that they meet the normal purchase/sale exemption
because physical gold will be delivered into the contract. No sensitivity analysis is provided for these contracts
as they are outside the scope of AASB 9 Financial Instruments (2014). The sold call options are classified as
derivative financial instruments at fair value through profit or loss.

The Group continued a medium term risk management strategy during the prior year to take advantage of
historically low oil prices by entering into commodity swap transactions on gasoil to hedge exposure to movements
in the Australian dollar price of diesel. Regis considers the gasoil component to be a separately identifiable and
measurable component of diesel. During the 2018 financial year this hedge arrangement fixed a significant proportion
(approximately two thirds) of the total estimated annual diesel usage at the Group’s Duketon operations.

Interest rate risk

At the reporting date the interest rate profile of the Group’s interest-bearing financial instruments was:

Fixed rate instruments

Term deposits

Finance lease liabilities

Variable rate instruments

Cash and cash equivalents

CONSOLIDATED

2018

$’000

344

(842)

(498)

2017

$’000

50,263

(2,347)

47,916

180,854

69,167

Fair value sensitivity analysis for fixed rate instruments

The Group does not account for any fixed rate financial assets and liabilities at fair value through profit or loss.
Therefore, a change at reporting date would not affect profit or loss.

Cash flow sensitivity analysis for variable rate instruments

A sensitivity analysis has not been disclosed in relation to the variable interest rate cash on deposit and secured
bank loan as the results have been determined to be immaterial to the statement of comprehensive income for both
the current and prior financial years.

REGIS RESOURCES // 2018 ANNUAL REPORTFair Values

The carrying amounts and estimated fair values of all of the Group’s financial instruments recognised in the financial
statements are materially the same. The methods and assumptions used to estimate the fair value of the financial
instruments are disclosed in the respective notes.

Valuation of financial instruments

For all fair value measurements and disclosures, the Group uses the following to categorise the method used:

Level 1: the fair value is calculated using quoted prices in active markets.

Level 2: the fair value is estimated using inputs other than quoted prices included in Level 1, that are observable
for the asset or liability, either directly (as prices) or indirectly (derived from prices). The Group’s derivative
liabilities (sold gold call options) and derivative assets (cash flow hedges) are classified as Level 2, as they were
valued using valuation techniques that employ the use of market observable inputs. The most frequently applied
valuation techniques include forward pricing and swap models using present value calculations. The models
incorporate various inputs including the credit quality of counterparties, foreign exchange spot and forward
rates, and spot and forward rate curves of the underlying commodity. The changes in counterparty credit risk
had no material effect on the hedge effectiveness assessment for the commodity swaps designated in hedge
relationships and the sold gold call options recognised at fair value.

Level 3: the fair value is estimated using inputs for the asset or liability that are not based on observable market

data. The Group does not have any financial assets or liabilities in this category.

For financial instruments that are carried at fair value on a recurring basis, the Group determines whether transfers
have occurred between Levels in the hierarchy by reassessing categorisation (based on the lowest level input that
is significant to the fair value measurement as a whole) at the end of each reporting period. There were no transfers
between levels during the year.

21. ISSUED CAPITAL AND RESERVES

Accounting Policy

Ordinary shares are classified as equity. Transaction costs directly attributable to the issue of shares or options are
recognised as a deduction from equity, net of any related income tax effects.

Ordinary shares – issued and fully paid

Movement in ordinary shares on issue

At 1 July 2016

Issued on exercise of options

Transaction costs

At 30 June 2017

Issued on exercise of options

Transaction costs

At 30 June 2018

CONSOLIDATED

2018

$’000

2017

$’000

433,248

431,491

NO. SHARES

(’000s)

$’000

499,854

431,335

1,166

175

(19)

501,020

431,491

3,418

1,810

(53)

504,438

433,248

The holders of ordinary shares are entitled to receive dividends as declared from time to time and, on a poll, are
entitled to one vote per share at meetings of the Company. The Company does not have authorised capital or par
value in respect of its issued shares.

REGIS RESOURCES // NOTES TO THE FINANCIAL STATEMENTS (continued)SHARE-BASED
PAYMENT
RESERVE

FINANCIAL
ASSETS
RESERVE

CASH FLOW
HEDGE
RESERVE

TOTAL
RESERVES

$’000

21,827

3,222

25,049

3,231

28,280

$’000

3,243

(2,180)

654

1,717

$’000

3,504

(4,818)

1,424

110

(188)

$’000

28,574

(6,998)

2,078

3,222

26,876

(188)

3,231

29,997

Balance at 1 July 2016

Net gain on financial instruments recognised in equity

Tax effect of transfers and revaluations

Share-based payment transactions

Balance at 30 June 2017 and 1 July 2017

Net gain on financial instruments recognised in equity

Tax effect of transfers and revaluations

Share-based payment transactions

Balance at 30 June 2018

Nature and purpose of reserves

Share-based payment reserve

The share-based payment reserve is used to record the value of share-based payments and performance rights
provided to employees, including KMP, as part of their remuneration, as well as non-employees.

Financial assets reserve

The financial assets reserve records fair value changes on financial assets designated at fair-value through other
comprehensive income.

Cash flow hedge reserve

The hedging reserve records the portion of the gain or loss on a hedging instrument in a cash flow hedge that is
determined to be an effective hedge relationship.

OTHER DISCLOSURES

This section provides information on items which require disclosure to comply with Australian Accounting Standards
and other regulatory pronouncements.

22. DEFERRED INCOME TAX

Accounting Policy

Deferred tax balances are determined using the balance sheet method, which provides for temporary differences at
the balance sheet date between accounting carrying amounts and the tax bases of assets and liabilities.

Deferred income tax liabilities are recognised for all taxable temporary differences, other than for the exemptions
permitted under accounting standards. At 30 June 2018 there are no unrecognised temporary differences associated
with the Group’s investment in subsidiaries (2017: $nil).

Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax
assets and unused tax losses, to the extent that it is probable that future taxable profits will be available to utilise
these deductible temporary differences. Deferred tax assets are reviewed at each reporting date and are reduced to
the extent that it is no longer probable that the related tax benefit will be realised.

Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the temporary
differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting
date. Deferred tax assets and liabilities are only offset if a legally enforceable right exists to set off current tax assets
against current tax liabilities and the deferred tax assets and liabilities relate to the same taxable entity and the
same taxation authority.

REGIS RESOURCES // 2018 ANNUAL REPORTDeferred income tax at 30 June relates to the following:

CONSOLIDATED

Deferred tax liabilities

Receivables

Inventories

Prepayments

Financial assets

Property, plant and equipment

Exploration and evaluation expenditure

Mine properties under development

Mine properties

Gross deferred tax liabilities

Set off of deferred tax assets

Net deferred tax liabilities

Deferred tax assets

Trade and other payables

Provisions

Expenses deductible over time

Derivatives

Tax losses carried forward

Gross deferred tax assets

Set off of deferred tax assets

Net deferred tax assets

Reconciliation of deferred tax, net:

Opening balance at 1 July – net deferred tax assets/(liabilities)

Income tax (expense)/ benefit recognised in profit or loss

Income tax (expense)/benefit recognised in equity

2018

$’000

3,219

4,594

111

14,199

28,615

8,873

37,235

96,846

(21,748)

75,098

1,114

13,929

6,702

21,748

2017

$’000

2,389

469

10,083

22,529

36,973

72,595

(23,192)

49,403

940

14,763

7,450

23,192

(21,748)

(23,192)

(49,403)

(25,773)

(20,806)

(31,411)

2,814

Closing balance at 30 June – net deferred tax (liabilities)/ assets

(75,098)

(49,403)

KEY JUDGEMENTS

Recovery of deferred tax assets

Judgement is required in determining whether deferred tax assets are recognised on the balance sheet. Deferred
tax assets, including those arising from unutilised tax losses, require management to assess the likelihood that the
Group will generate taxable earnings in future periods, in order to utilise recognised deferred tax assets. Estimates
of future taxable income are based on forecast cash flows from operations and the application of existing tax laws
in Australia.

To the extent that future cash flows and taxable income differ significantly from estimates, the ability of the Group
to realise the net deferred tax assets recorded at the reporting date could be impacted. Additionally, future changes
in tax laws in Australia could limit the ability of the Group to obtain tax deductions in future periods.

REGIS RESOURCES // NOTES TO THE FINANCIAL STATEMENTS (continued)Tax consolidation

The Company and its wholly-owned Australian resident entities became part of a tax-consolidated group on 14
December 2006. As a consequence, all members of the tax-consolidation group are taxed as a single entity from that
date. The head entity within the tax-consolidation group is Regis Resources Limited.

The head entity, in conjunction with other members of the tax-consolidated group, have entered into a tax funding
arrangement which sets out the funding obligations of members of the tax-consolidated group in respect of tax
amounts. Any current tax liabilities (or assets) and deferred tax assets arising from unused tax losses of the
subsidiaries are assumed by the head entity and are recognised by the Company as intercompany receivables (or
payables). Contributions to fund the current tax liabilities are payable as per the tax funding arrangement and reflect
the timing of the head entity’s obligation to make payments for tax liabilities to the relevant tax authorities.

The Company recognises deferred tax assets arising from unused tax losses of the tax-consolidated group to the
extent that it is probable that future taxable profits of the tax-consolidated group will be available against which
asset can be utilised.

Any subsequent period adjustment to deferred tax assets arising from unused tax losses as a result of revised
assessments of the probability of recoverability is recognised by the head entity only.

The head entity in conjunction with other members of the tax-consolidated group has also entered into a tax sharing
agreement. The tax sharing agreement provides for the determination of the allocation of income tax liabilities
between the entities should the head entity default on its tax payment obligations. No amounts have been recognised
in the financial statements in respect of this agreement as payment of any amounts under the tax sharing agreement
is considered remote.

23. SHARE-BASED PAYMENTS

Accounting Policy

The value of options granted to employees is recognised as an employee expense, with a corresponding increase
in equity, over the period that the employees become unconditionally entitled to the options (the vesting period),
ending on the date on which the relevant employees become fully entitled to the option (the vesting date).

At each subsequent reporting date until vesting, the cumulative charge to the statement of comprehensive income
is the product of:

The grant date fair value of the option;

The current best estimate of the number of options that will vest, taking into account such factors as the likelihood
of employee turnover during the vesting period and the likelihood of non-market performance conditions being
met; and

The expired portion of the vesting period.

Until an option has vested, any amounts recorded are contingent and will be adjusted if more or fewer awards vest
than were originally anticipated to do so.

Recognised share-based payments expense

Employee share-based payments expense

Performance rights expense

Total expense arising from share-based payment transactions

CONSOLIDATED

2018

$’000

2,575

656

3,231

2017

$’000

2,928

294

3,222

There have been no cancellations or modifications to any of the plans during the current or prior years.

REGIS RESOURCES // 2018 ANNUAL REPORTEmployee share option plan (ESOP)

The Company has one ESOP, being the Regis Resources Limited 2014 Share Option Plan (the “Option Plan”). The
objective of the Option Plan is to assist in the recruitment, reward, retention and motivation of eligible persons of
the Group. Under the Option Plan, the board or Remuneration, Nomination and Diversity Committee may issue eligible
employees with options to acquire shares in the future at an exercise price fixed by the board or Remuneration,
Nomination and Diversity Committee on grant of the options.

The vesting of all options is subject to service conditions being met whereby the recipient must meet the eligible
employee criteria as defined in the Option Plan.

Summary of options granted

The following table illustrates the number (No.) and weighted average exercise prices (WAEP) of, and movements in,
share options issued during the year:

2018

NO.

WAEP

2017

NO.

Outstanding at the beginning of the year

9,445,000

$1.5274

13,160,000

Granted during the year

Forfeited during the year

Exercised during the year

Expired during the year

1,790,000

$3.9000

(747,500)

$2.3632

(1,035,000)

(4,665,000)

$1.5294

(2,680,000)

WAEP

$1.7125

$1.7570

$2.3473

Outstanding at the end of the year

5,822,500

$2.1480

9,445,000

$1.5274

Exercisable at the end of the year

70,000

$1.4000

Weighted average share price at the date of exercise

Weighted average remaining contractual life

Range of exercise prices

2018

$4.19

2017

$3.85

1.7 years

2.2 years

$1.40 - $3.90

$1.40 - $2.70

Weighted average fair value of options granted during the year

$1.5709

n/a

Option pricing model

The fair value of the equity-settled share options granted under the ESOP is estimated as at the date of grant using
a Black-Scholes option pricing model taking into account the terms and conditions upon which the options were
granted. There were no new grants of employee options during the year ended 30 June 2017. The following table lists
the inputs to the model used for the year ended 30 June 2018:

Dividend yield (%)

Expected volatility (%)

Risk free interest rate (%)

Expected life of the option (years)

Option exercise price ($)

Weighted average share price at grant date ($)

2018 ESOP

4.00

73.12 – 93.74

1.74 – 1.90

2 – 3 years

3.90

3.75

The expected life of the options is based on historical data and is not necessarily indicative of exercise patterns
that may occur. The expected volatility reflects the assumption that historical volatility is indicative of future trends,
which may also not necessarily be the actual outcome.

REGIS RESOURCES // NOTES TO THE FINANCIAL STATEMENTS (continued)Performance Rights

In November 2016, 401,999 performance rights were granted to the executive directors, Mr Mark Clark and Mr Paul
Thomas, and other executives, Mr Kim Massey and Mr Peter Woodman under the Group’s Executive Incentive Plan (“EIP”).

Mr Peter Woodman resigned on 29 March 2018, 69,333 performance rights granted to Mr Woodman lapsed upon the
date of the resignation in accordance with the terms and conditions.

The performance conditions that the Board has determined will apply to the Performance Rights are summarised below:

TRANCHE

WEIGHTING

PERFORMANCE CONDITIONS

Tranche A

25% of the Performance Rights

The Company’s relative total shareholder return (“TSR”) measured
against the TSR’s of 18 comparator mining companies

Tranche B

25% of the Performance Rights

The Company’s absolute TSR measured against specific thresholds

Tranche C

25% of the Performance Rights

The growth in the Company’s earnings per share (“EPS”) measured
against specific thresholds

Tranche D

25% of the Performance Rights

The growth in the Company’s Ore Reserve measured against
specific thresholds

The fair value at grant date of Tranches A and B was estimated using a Monte Carlo simulation, and a Black Scholes
option pricing model was used to estimate the fair value at grant date of Tranches C and D.

The table below details the terms and conditions of the grant and the assumptions used in estimating fair value:

ITEM

Grant date

Value of the underlying security at grant date

Exercise price

Dividend yield

Risk free rate

Volatility

Performance period (years)

TRANCHE A & B

TRANCHE C & D

18 November 2016

$2.740

nil

4.23%

1.75%

60%

$2.740

nil

4.23%

1.75%

60%

Commencement of measurement period

1 July 2016

Test date

30 June 2018

Remaining performance period (years)

nil

The weighted average fair value of the Performance Rights granted during the year was $1.90.

In November 2017, 430,440 performance rights were granted to the executive directors, Mr Mark Clark and Mr Paul
Thomas, and other executives, Mr Kim Massey and Mr Peter Woodman under the Group’s Executive Incentive Plan (“EIP”).

Mr Peter Woodman resigned on 29 March 2018, 71,625 performance rights granted to Mr Woodman lapsed upon the
date of the resignation in accordance with the terms and conditions.

REGIS RESOURCES // 2018 ANNUAL REPORTThe performance conditions that the Board has determined will apply to the Performance Rights are summarised below:

TRANCHE

WEIGHTING

PERFORMANCE CONDITIONS

Tranche A

25% of the Performance Rights

The Company’s relative total shareholder return (“TSR”)
measured against the TSR’s of 18 comparator mining companies

Tranche B

25% of the Performance Rights

Tranche C

25% of the Performance Rights

The Company’s absolute TSR measured against specific
thresholds

The growth in the Company’s earnings per share (“EPS”)
measured against specific thresholds

Tranche D

25% of the Performance Rights

The growth in the Company’s Ore Reserve measured against
specific thresholds

The table below details the terms and conditions of the grant and the assumptions used in estimating fair value:

ITEM

Grant date

Value of the underlying security at grant date

Exercise price

Dividend yield

Risk free rate

Volatility

Performance period (years)

TRANCHE A & B

TRANCHE C & D

23 November 2017

$4.090

nil

4.00%

1.90%

50%

$4.090

nil

4.00%

1.90%

50%

Commencement of measurement period

1 July 2017

Test date

30 June 2020

Remaining performance period (years)

2.6

The weighted average fair value of the Performance Rights granted during the year was $2.98.

KEY ESTIMATES AND ASSUMPTIONS

Share-based payments

The Group is required to use key assumptions, such as volatility, in respect of the fair value models used in
determining share-based payments to employees in accordance with the requirements of AASB 2 Share–based
payment. 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
expenses and equity.

REGIS RESOURCES // NOTES TO THE FINANCIAL STATEMENTS (continued)24. RELATED PARTIES

Key management personnel compensation

The key management personnel compensation included in employee benefits expense (note 3) and share-based
payments (note 23), is as follows:

Short-term employee benefits

Post-employment benefits

Long-term benefits

Termination benefits

Share-based payment

Total compensation

CONSOLIDATED

2018

2017

3,100,580

2,802,104

157,062

190,062

5,619

159,410

212,867

1,391,477

2,030,994

4,844,800

5,205,375

Individual directors and executives compensation disclosures

Information regarding individual directors’ and executives’ compensation and equity instrument disclosures required
by s300A of the Corporations Act and Corporations Regulations 2M.3.03 are provided in the Remuneration Report
section of the Directors’ Report.

No director has entered into a material contract with the Group either in the current or prior financial year and there
were no material contracts involving directors’ interests existing at year end, other than advised elsewhere in this
report.

Subsidiaries

The consolidated financial statements include the financial statements of Regis Resources Limited and the
subsidiaries listed in the following table:

NAME

Duketon Resources Pty Ltd

Artane Minerals NL

Rosemont Gold Mines Pty Ltd

LFB Resources NL

Greenflow Pty Ltd

Ultimate parent

COUNTRY OF
INCORPORATION

Australia

% EQUITY INTEREST

INVESTMENT $’000

2018

100%

2017

100%

2018

2017

30,575

44,110

74,685

Regis Resources Limited is the ultimate Australian parent entity and the ultimate parent entity of the Group.

Transactions with related parties

A loan is made by the Company to Duketon Resources and represents the subsidiary’s share of payments for
exploration and evaluation expenditure on commercial joint ventures existing between the Company and Duketon
Resources. The loan outstanding between the Company and Duketon Resources has no fixed date of repayment and
is non-interest-bearing. As at 30 June 2018, the balance of the loan receivable was $25,971,000 (2017: $24,157,000).

A loan is made by the Company to LFB Resources and represents the subsidiary’s share of payments for exploration
and evaluation expenditure. The loan outstanding between the Company and LFB Resources has no fixed date of
repayment and is non-interest-bearing. As at 30 June 2018, the balance of the loan receivable was $63,945,000 (2017:
$38,775,000).

REGIS RESOURCES // 2018 ANNUAL REPORTTransactions with key management personnel

For the year ended 30 June 2018, services totalling $645,073 (2017: $335,302) have been provided on normal commercial
terms to the Group by Mintrex Pty Ltd, of which Mrs Morgan is a Managing Director, Chief Executive Officer and
a shareholder. The Company engaged Mintrex during the financial year to engineer preliminary plant designs for
the McPhillamys Project. Mrs Morgan and Mintrex have structured their management of this engineering project
to ensure she has no involvement in the control or direction of the work. The balance outstanding at 30 June was
$30,249, exclusive of GST.

25. PARENT ENTITY INFORMATION

The following details information related to the parent entity, Regis Resources Limited, at 30 June 2018. The
information presented here has been prepared using consistent accounting policies as detailed in the relevant notes
of this report.

Current assets

Non-current assets

Total assets

Current liabilities

Non-current liabilities

Total liabilities

Issued capital

Share-based payment reserve

Retained profits

Total equity

Net profit for the year

Other comprehensive income for the period

Total comprehensive income for the period

2018

$’000

252,892

585,459

838,351

66,865

101,674

168,539

433,248

29,997

206,567

669,812

174,396

(110)

174,286

2017

$’000

190,919

518,194

709,113

51,984

85,933

137,917

431,491

26,876

112,829

571,196

138,503

(4,920)

133,583

The parent entity has not guaranteed any loans of its subsidiaries.

There are no contingent assets or liabilities of the Group or parent entity at 30 June 2018 as disclosed at note 27.

All commitments are commitments incurred by the parent entity, except for $744,000 (2017: $1,351,000) of the
exploration expenditure commitments disclosed at note 12, and $201,000 (2017: $35,000) of the operating lease
commitments disclosed at note 26.

REGIS RESOURCES // NOTES TO THE FINANCIAL STATEMENTS (continued)26. COMMITMENTS

Operating lease commitments – Group as lessee

The Group leases office premises in Perth, WA and Blayney, NSW under normal commercial lease arrangements. The
Perth office lease was entered into for an initial period of 5 years beginning 1 May 2010 and was renewed for a further
5 year period in 2016. The Group is under no legal obligation to renew the lease once the extended lease term has
expired.

During the year, two new office leases were entered into for Blayney, NSW, for an initial period of 3 years each,
effective 1 November 2017.

On 1 June 2018, the Group signed a new lease contract for the Perth office for initial period of 3 years. During this
period, the current Perth office lease will be sublet subject to negotiation with the potential lessee.

Future minimum rentals payable under non-cancellable operating leases at 30 June are as follows:

Within one year

Between one and five years

Total minimum lease payments

CONSOLIDATED

2018

$’000

1,027

1,529

2,556

2017

$’000

373

683

1,056

Finance lease commitments - Group as lessee

The Group has entered into hire purchase contracts for the purchase of two Komatsu loaders. The contracts expire
on 27 May 2019 and 4 July 2019 and ownership of the loaders passes to the Group once all contractual payments have
been made. (30 June 2017: 29 May 2018, 27 May 2019 and 4 July 2019).

Within one year

Between one and five years

Total minimum lease payments

Less amounts representing finance charges

Present value of minimum lease payments

Included in the financial statements as:

Current interest-bearing liabilities

Non-current interest-bearing liabilities

NOTE

CONSOLIDATED

2018

$’000

821

857

(15)

842

806

842

2017

$’000

1,558

856

2,414

(67)

2,347

1,506

841

2,347

Carrying value of leased assets included in plant and equipment

1,132

3,425

REGIS RESOURCES // 2018 ANNUAL REPORTContractual commitments

On 19 January 2010, the Group entered into an agreement with Pacific Energy (KPS) Pty Ltd (“KPS”) for the supply of
electricity to the Moolart Well Gold Mine. The terms of this agreement commit the Group to purchasing a fixed amount
of electricity per month for six years from 7 July 2010 (the “Effective Date”) at a price which will be reviewed annually.
The agreement has been renewed for further 4 years, effective 1 September 2017. As at 30 June 2018, the Group had
$3,507,000 commitments to purchase electricity (30 June 2017: nil).

On 23 June 2011, the Group entered into an agreement with Pacific Energy (KPS) Pty Ltd (“KPS”) for the supply of
electricity to the Garden Well Gold Mine. The terms of this agreement commit the Group to purchasing a fixed
amount of electricity per month for 5 years from 1 September 2012 (the “Effective Date”) at a price which will be
reviewed annually. The agreement was amended, effective 1 October 2013, to incorporate Rosemont Gold Mine’s
power requirements. On 1 September 2017, he agreement was renewed for further 3 years. As at 30 June 2018, at the
current contract price, the Group had commitments to purchase electricity for the remaining term of $11,330,000 (30
June 2017: $762,000).

27. CONTINGENCIES

As at 30 June 2018, the Group did not have any contingent assets or liabilities (30 June 2017: nil).

28. AUDITOR’S REMUNERATION

Audit services

KPMG Australia

Audit and review of financial statements

237,408

217,299

CONSOLIDATED

2018

2017

Other services

Other advisory services

Taxation compliance services

Total auditor’s remuneration

29. SUBSEQUENT EVENTS

Share issue

13,581

33,700

15,888

6,509

284,689

239,696

Subsequent to year end, 425,133 shares have been issued as a result of the exercise of employee options for proceeds
of $35,000.

Dividends

On 27 August 2018, the directors proposed a final dividend on ordinary shares in respect of the 2018 financial year.
Refer to note 6.

REGIS RESOURCES // NOTES TO THE FINANCIAL STATEMENTS (continued)30. NEW ACCOUNTING STANDARDS AND INTERPRETATIONS

Changes in accounting policy

The Group has adopted the following new and revised accounting standards, amendments and interpretations as of
1 July 2017:

AASB 2016-1 Amendments to Australian Accounting Standards – Recognition of Deferred Tax Assets for Unrealised

Losses

AASB 2016-2 Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB 107

The adoption of these new and revised standards did not have a material impact on the Group’s financial statements.

New standards and interpretations issued but not yet effective

The following standards, amendments to standards and interpretations have been identified as those which may
impact the entity in the period of initial application. They are available for early adoption at 30 June 2018 but have
not been applied in preparing this financial report. Except where noted, the Group has evaluated the impact of the
new standards and interpretations listed below and determined that the changes are not likely to have a material
impact on its financial statements.

AASB 15 Revenue from Contracts with Customers

AASB 15 replaces all existing revenue requirements in Australian Accounting Standards (AASB 111 Construction
Contracts, AASB 118 Revenue, AASB Interpretation 13 Customer Loyalty Programmes, AASB Interpretation 15
Agreements for the Construction of Real Estate, AASB Interpretation 18 Transfers of Assets from Customers and AASB
Interpretation 131 Revenue – Barter Transactions Involving Advertising Services) and applies to all revenue arising
from contracts with customers, unless the contracts are in the scope of other standards, such as AASB 117 (or AASB
16 Leases, once applied).

AASB 15 establishes a five step model to account for revenue in a way that depicts the transfer of promised goods
or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in
exchange for those goods or services. Under AASB 15 the revenue recognition model will change from one based on
the transfer of risk and reward of ownership to the transfer of control of ownership.

The Group has assessed the effects of applying the new standard and on the recognition of revenue recognised from
gold sales. The Group have concluded that there is no material impact in the amount of revenue recognised from gold
sales following the transition to AASB15. It is not expected that significant changes to disclosures will be required.

Application date of Standard:

1 January 2018*

Application date for Group:

1 July 2018

*Early application is permitted.

AASB 2014-10 Amendments to Australian Accounting Standards – Sale or Contribution of Assets between an
Investor and its Associate or Joint Venture

The amendments clarify that a full gain or loss is recognised when a transfer to an associate or joint venture involves
a business as defined in AASB 3 Business Combinations. Any gain or loss resulting from the sale or contribution of
assets that does not constitute a business, however, is recognised only to the extent of unrelated investors’ interests
in the associate or joint venture.

AASB 2015-10 defers the mandatory effective date (application date) of AASB 2014-10 so that the amendments are
required to be applied for annual reporting periods beginning on or after 1 January 2022 instead of 1 January 2018.

Application date of Standard:

1 January 2022

Application date for Group: 1 July 2022

REGIS RESOURCES // 2018 ANNUAL REPORTAASB 2016-5 Amendments to Australian Accounting Standards – Classification and Measurement of Share-
based Payment Transactions

This standard amends AASB 2 Share-based Payment, clarifying how to account for certain types of share-based
payment transactions. The amendments provide requirements on the accounting for:

The effects of vesting and non-vesting conditions on the measurement of cash-settled share-based payments

Share-based payment transactions with a net settlement feature for withholding tax obligations

A modification to the terms and conditions of a share-based payment that changes the classification of the

transaction from cash-settled to equity-settled.

Application date of Standard:

1 January 2018

Application date for Group:

1 July 2018

AASB 16 Leases

AASB 16 requires lessees to account for all leases under a single on-balance sheet model in a similar way to finance
leases under AASB 117 Leases. The standard includes two recognition exemptions for lessees – leases of ‘low-value’
assets (e.g., personal computers) and short-term leases (i.e., leases with a lease term of 12 months or less). At the
commencement date of a lease, a lessee will recognise a liability to make lease payments (i.e., the lease liability) and
an asset representing the right to use the underlying asset during the lease term (i.e., the right-of-use asset).

Lessees will be required to separately recognise the interest expense on the lease liability and the depreciation
expense on the right-of-use asset.

Lessees will be required to remeasure the lease liability upon the occurrence of certain events (e.g., a change in
the lease term, a change in future lease payments resulting from a change in an index or rate used to determine
those payments). The lessee will generally recognise the amount of the re-measurement of the lease liability as an
adjustment to the right-of-use asset.

Lessor accounting is substantially unchanged from today’s accounting under AASB 117. Lessors will continue to
classify all leases using the same classification principle as in AASB 117 and distinguish between two types of leases:
operating and finance leases.

The standard will primarily affect the accounting for the Group’s operating leases. As at the reporting date, the Group
has non-cancellable operating lease commitments of $2.6 million, see note 26. To date, work has focussed on the
identification of the provisions of the standard which will most impact the Group. In the year ended 30 June 2019, work
on the issues and their resolution will continue including a detailed review of contracts, in particular, the Company’s
mining services and haulage contracts and their financial reporting impacts.

Some of these commitments may be covered by the exception for short-term and low-value leases and some
commitments may relate to arrangements that will not qualify as leases under AASB 16. Given the Group’s current
level of exposure, the impact of adoption of AASB 16 on the financial statements is not expected to be material.

Application date of Standard:

1 January 2019

Application date for Group:

1 July 2019

IFRIC 23 Uncertainty over Income Tax Treatments

The Interpretation clarifies the application of the recognition and measurement criteria in IAS 12 Income Taxes when
there is uncertainty over income tax treatments. The Interpretation specifically addresses the following:

Whether an entity considers uncertain tax treatments separately.

The assumptions an entity makes about the examination of tax treatment by taxation authorities.

How an entity determines taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates.

How an entity considers changes in facts and circumstances.

Application date of Standard:

1 January 2019

Application date for Group:

1 July 2019

REGIS RESOURCES // NOTES TO THE FINANCIAL STATEMENTS (continued)DIRECTORS’ DECLARATION

In accordance with a resolution of the directors of Regis Resources Limited, I state that:

In the opinion of the directors:

(a) The financial statements, notes and additional disclosures included in the directors’ report designated
as audited, of the Company and the consolidated entity are in accordance with the Corporations Act 2001,
including:

(i) Giving a true and fair view of the consolidated entity’s financial position as at 30 June 2018 and of its

performance for the financial year ended on that date; and

(ii) Complying with Accounting Standards and the Corporations Regulations 2001; and

(b) There are reasonable grounds to believe that the Company will be able to pay its debts as and when they

become due and payable.

2. The Directors have been given the declarations required by Section 295A of the Corporations Act 2001 from the

Chief Executive Officer and Chief Financial Officer for the financial year ended 30 June 2018.

3. The directors draw attention to the notes to the consolidated financial statements, which include a statement of

compliance with International Financial Reporting Standards.

On behalf of the board

Mr Mark Clark
Executive Chairman

Perth, 27 August 2018

REGIS RESOURCES // 2018 ANNUAL REPORTINDEPENDENT AUDITOR’S REPORT

Independent Auditor’s Report

To the shareholders of Regis Resources Limited

Report on the audit of the Financial Report

Opinion

We have audited the Financial Report of Regis
Resources Limited.

In our opinion, the accompanying Financial
Report of Regis Resources Limited is in
accordance with the Corporations Act 2001,
including

• giving a true and fair view of the Group’s

financial position as at 30 June 2018 and of
its financial performance for the year ended
on that date; and

•

complying with Australian Accounting
Standards and the Corporations Regulations
2001.

Basis for opinion

The Financial Report comprises the:

• Consolidated Balance Sheet as at 30 June 2018

• Consolidated Statement of Comprehensive

Income, Consolidated Statement of Changes in
Equity and Consolidated Statement of Cash
Flows for the year then ended

• Notes including a summary of significant

accounting policies

• Directors’ Declaration.

The Group consists of Regis Resources Limited
(the Company) and the entities it controlled at the
year end and from time to time during the financial
year.

We conducted our audit in accordance with Australian Auditing Standards. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Our responsibilities under those standards are further described in the Auditor’s responsibilities for the
audit of the Financial Report section of our report.

We are independent of the Company in accordance with the Corporations Act 2001 and the relevant
ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of
Ethics for Professional Accountants (the Code). We have fulfilled our other ethical responsibilities in
accordance with the Code.

Key Audit Matters

The Key Audit Matters we identified are:

• Valuation and classification of low grade ore

stockpiles

• Valuation of exploration and evaluation assets

Key Audit Matters are those matters that, in our
professional judgement, were of most significance
in our audit of the Financial Report of the current
period.

These matters were addressed in the context of our
audit of the Financial Report as a whole, and in
forming our opinion thereon, and we do not provide
a separate opinion on these matters.

KPMG, an Australian partnership and a member firm of the KPMG
network of independent member firms affiliated with KPMG
International Cooperative (“KPMG International”), a Swiss entity.

Liability limited by a scheme approved under
Profession Standards Legislation.

REGIS RESOURCES // 2018 ANNUAL REPORT

Valuation and classification of low grade ore stockpiles
AU $45,986 thousand

Refer to Note 10 to the financial report

The key audit matter

How the matter was addressed in our audit

Significant judgment is required to be exercised
by management in assessing the value and
classification of low grade ore stockpiles which
will be used to produce gold bullion in the future.
The valuation and classification of low grade ore
stockpiles is a key audit matter because:

• Additional low grade stockpiles have been
created from the continuation of mining
activities; and

• Significant judgment is required by us in

evaluating and challenging the Group’s
assessment.

The Group’s assessment is based on a model
which estimates future revenue expected to be
derived from gold contained in the low grade ore
stockpiles, less selling costs and future
processing costs to convert stockpiles into gold
bullion. We placed particular focus on those
judgments listed below which impact the
valuation and classification of ore stockpiles:

•

Forecast processing costs of low grade ore
stockpiles.

Forecast quantity of gold contained within
the low grade ore stockpiles.

Future commodity prices expected to prevail
when the gold from existing low grade ore
stockpiles is processed and sold.

• Estimated timing of conversion of low grade
ore stockpiles into gold bullion, which drives
the classification of low grade ore stockpiles
as current or non-current assets.

For this key audit matter, our procedures included:

•

Testing the Group’s key controls around
inventory reconciliations which utilise underlying
data such as production and processing costs,
geological survey reports, mill production
reports and metallurgical survey reports.

• Assessing the methodology and key

assumptions in the Group’s model used to
determine the value of low grade ore stockpiles
by:

o comparing forecast processing costs to

previous actual costs, and for consistency
with management’s latest life of mine plan

o comparing forecast quantity of gold
contained within stockpiles to
management’s geological survey results
and historical trends

o comparing commodity prices to published
external analysts’ data for prices expected
to prevail in the future

• Critically evaluating the Group’s classification of
low grade ore stockpiles as current/non-current
by assessing the estimated timing of processing
the stockpiles against the Group’s latest life of
mine plan and the historical operating capacity
of the Group’s processing plants.

REGIS RESOURCES // 2018 ANNUAL REPORT

Valuation of exploration and evaluation (“E&E”) assets
AU $171,570 thousand

Refer to Note 12 to the financial report

The key audit matter

How the matter was addressed in our audit

Our audit procedures included:

• We tested the Group’s compliance with
minimum expenditure requirements for a
sample of exploration licenses

• We obtained corporate budgets which we

compared for consistency to areas of interest
with capitalised E&E, for evidence of the ability
to fund the continuation of activities

• We compared the documentation from the

sources listed below for information regarding
the results of activities, the potential for
commercially viable quantities of reserves to
exist and for the Group’s intentions to
continue activities in relation to certain areas of
interest. We corroborated this through
interviews of key operational and finance
personnel

Internal management plans

o
o Minutes of board meetings
o Reports lodged with relevant government

authorities

o Announcements made by the Group to

the ASX

The valuation of E&E assets is a key audit matter
due to:
•

the significance of the E&E balance (being
21% of the Group’s total assets); and

•

the greater level of audit effort to evaluate
the Group’s application of the requirements
of the industry specific accounting standard
AASB 6 Exploration for and Evaluation of
Mineral Resources, in particular the presence
of impairment indicators. The presence of
impairment indicators would necessitate a
detailed analysis by the Group of the value of
E&E, therefore given the criticality of this to
the scope and depth of our work, we
involved senior team members to challenge
the Group’s determination that no such
indicators existed.

In assessing the presence of impairment
indicators, we focused on those that may draw
into question the commercial continuation of E&E
activities for areas of interest within the Duketon
region of WA as well as the McPhillamys project
of NSW where significant capitalised E&E exists.
In performing the assessments above, we paid
particular attention to:

• The Group’s compliance with key license
conditions to maintain current rights to
tenure for an area of interest, particularly
minimum expenditure requirements

• The ability of the Group to fund the

continuation of activities for all areas of
interest

• Results from latest activities regarding the

potential for a commercially viable quantity of
reserves and the Group’s intention to
continue E&E activities in each area of
interest as a result.

REGIS RESOURCES // INDEPENDENT AUDITOR’S REPORT (continued)

Other Information

Other Information is financial and non-financial information in Regis Resources Limited’s annual
reporting which is provided in addition to the Financial Report and the Auditor’s Report. The Directors
are responsible for the Other Information.

The Other Information we obtained prior to the date of this Auditor’s Report was the Directors’ Report.
The remaining Other Information, which includes the Chairman’s Report, Corporate, Duketon Gold
Project, Gold Exploration, Gold Reserves & Resources and Additional ASX information is expected to
be made available to us after the date of the Auditor's Report.

Our opinion on the Financial Report does not cover the Other Information and, accordingly, we do not
and will not express any form of assurance conclusion thereon, with the exception of the
Remuneration Report.

In connection with our audit of the Financial Report, our responsibility is to read the Other Information.
In doing so, we consider whether the Other Information is materially inconsistent with the Financial
Report or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

We are required to report if we conclude that there is a material misstatement of this Other
Information, and based on the work we have performed on the Other Information that we obtained
prior to the date of this Auditor’s Report we have nothing to report.

Responsibilities of Directors for the Financial Report

The Directors are responsible for:

• preparing the Financial Report that gives a true and fair view in accordance with Australian

Accounting Standards and the Corporations Act 2001;

•

implementing necessary internal control to enable the preparation of a Financial Report that gives a
true and fair view and is free from material misstatement, whether due to fraud or error; and

• assessing the Group’s ability to continue as a going concern. This includes disclosing, as applicable,

matters related to going concern and using the going concern basis of accounting unless they
either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do
so.

Auditor’s responsibilities for the audit of the Financial Report

Our objective is:

•

to obtain reasonable assurance about whether the Financial Report as a whole is free from material
misstatement, whether due to fraud or error; and

to issue an Auditor’s Report that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with Australian Auditing Standards will always detect a material misstatement when it
exists.

Misstatements can arise from fraud or error. They are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on
the basis of the Financial Report.

A further description of our responsibilities for the Audit of the Financial Report is located at the
Auditing and Assurance Standards Board website at:
http://www.auasb.gov.au/auditors_responsibilities/ar1.pdf. This description forms part of our Auditor’s
Report.

REGIS RESOURCES // 2018 ANNUAL REPORT

Report on the Remuneration Report

Opinion

In our opinion, the Remuneration Report of Regis
Resources Limited for the year ended 30 June
2018, complies with Section 300A of the
Corporations Act 2001.

Director’s responsibilities

The Directors of the Company are responsible for
the preparation and presentation of the
Remuneration Report in accordance with Section
300A of the Corporations Act 2001.

Our responsibilities

We have audited the Remuneration Report
included in the Director’s report for the year ended
30 June 2018.

Our responsibility is to express an opinion on the
Remuneration Report, based on our Audit
conducted in accordance with Australian Auditing
Standards.

KPMG

R Gambitta
Partner

Perth

27 August 2018

REGIS RESOURCES // INDEPENDENT AUDITOR’S REPORT (continued)

ASX ADDITIONAL
INFORMATION

As at 19 September 2018 the
following information applied:

1. SECURITIES

(a) Fully Paid Ordinary Shares

The number of holders of fully paid ordinary shares in the Company is 8,080. On a show of hands every holder of
fully paid ordinary shares present or by proxy, shall have one vote. Upon a poll, each share shall have one vote. The
distribution of holders of fully paid ordinary shares is as follows: