Renegade Exploration Limited
Annual Report 2018

Plain-text annual report

(Formerly Overland Resources Limited) ABN 92 114 187 978 Annual Report 30 June 2018 Renegade Exploration Limited CONTENTS Corporate Directory Operations Report Tenement Schedule Directors’ Report Corporate Governance Statement Statement of Profit or Loss and Other Comprehensive Income Statement of Financial Position Statement of Cash Flows Statement of Changes in Equity Notes to the Financial Statements Directors’ Declaration Auditor’s Independence Declaration Independent Auditor’s Report Additional ASX Information Page No 1 2 16 17 25 26 27 28 29 30 62 63 64 68 Renegade Exploration Limited 2018 Annual Report CORPORATE DIRECTORY Directors Mr. Robert Kirtlan (Non-Executive Chairman) Mr. Mark Wallace (Non-Executive Director) Mr. Peter Voulgaris (Non-Executive Director) CEO Mr. Ben Vallerine Company Secretary Mr. Graeme Smith Registered Office and Principal Place of Business Suite 5, Level 1 12-20 Railway Road Subiaco WA 6008 Australia Telephone: (+61 8) 9388 6020 Share Register Computershare Investor Services Pty Ltd Level 11 172 St Georges Terrace Perth WA 6000 Australia Telephone: 1300 850 505 International: (61 8) 9323 2000 Facsimile: (61 8) 9323 2033 Stock Exchange Listing Renegade Exploration Limited shares are listed on the Australian Securities Exchange, the home branch being Perth. ASX Code: RNX Auditors Stantons International Audit and Consulting Pty Ltd Level 2, 1 Walker Avenue West Perth WA 6005 Renegade Exploration Limited 1 2018 Annual Report Operations Report YANDAL EAST GOLD PROJECT, WESTERN AUSTRALIA During September 2017 the Company secured an option to acquire 75% of the Yandal East Gold Project (Yandal East) and commenced exploration over the tenements. The Company conducted a variety of desktop work prior to a project wide gravity survey followed by detailed target generation and the inaugural drilling program consisting of 285 aircore holes for 23,789m during the year. Yandal East is located 70km north-east of Wiluna, Western Australia and 25km east of the Jundee operation and comprises 352 km2 of tenure. The tenure covers 70 strike kilometres of under-explored, prospective greenstones within the world-class Yandal Greenstone Belt with past production exceeding 10Moz. Access to Yandal East is via well maintained country roads to Millrose Station Homestead and then via station tracks within the project area. Figure 1. Location and geology of the Yandal East Gold Project. Renegade Exploration Limited 2 2018 Annual Report Operations Report Acquisition The Company acquired an 18 month option to purchase a 75% interest in Yandal East by issuing 16,568,498 Renegade shares and 16,568,498 Renegade options with an exercise price of $0.00754 to Zebina Minerals Pty Ltd (“Zebina”). In addition the Company was required to spend $350,000 on exploration which it has now completed. To exercise the option the Company must issue $400,000 in Renegade shares at a 10% discount to the 20 day volume weighted average price before February 28, 2019. On exercise, the two parties will form a 75:25 exploration joint venture with Zebina free carried until a decision to mine. On decision to mine Zebina must contribute its share pro-rata or dilute to a 1% gross royalty. Desktop and Reconnaissance Work The Company completed a variety of desktop work as part of its due diligence and initial planning work at Yandal East. Activities included database compilation and the re-processing of the publically available geophysics. Company representatives completed a reconnaissance visit to the site in early September conducting rock chip sampling at Coralie Jean. Assays returned up to 24 g/t Au with 5 of 12 samples taken exceeding 10 g/t Au. Initial rock chip sampling from surface and small trenches in 2016 returned assays including 175.6 g/t Au, 115.1 g/t Au and 72.6 g/t Au, overall a total of 81 samples have been taken over 1,000m of strike length with 55 of these samples occurring over 400m and averaging 17.3 g/t Au, as announced to the market on 23rd October 2017. The Company was the successful recipient of a $150,000 grant under the state governments Exploration Incentive Scheme. Figure 2. Plan showing the distribution of high grade rock chips at Coralie Jean Renegade Exploration Limited 3 2018 Annual Report Operations Report Table 1. Company rock chip sample results from Coralie Jean Sample No. Type Easting Northing Gold (g/t) R01 R02 R03 R04 R05 R06 R07 R08 R09 R10 R11 R12 Rock Chip Rock Chip Rock Chip Rock Chip Rock Chip Rock Chip Rock Chip Rock Chip Rock Chip Rock Chip Rock Chip Rock Chip 275381.3 7118079 275374 7118086 24.8 2.62 275370.5 7118091 11.75 275366.4 7118104 275370.1 7118092 275357.2 7118122 275342.6 7118143 275548.1 7117654 275238.8 7118385 275260.2 7118298 275245 7118335 275620.1 7117402 24.1 21.8 15.5 0.25 0.09 0.11 0.04 0.03 0.02 Gravity Survey During November the company engaged Atlas Geophysics to conduct a project wide gravity survey on a 1km x 1km grid. The survey was carried out using a Scintrex CG5 digital gravity meter and Leica base and rover GNSS receivers. Gravity data were acquired at each station with two readings at 20 second duration, with all loops controlled by multiple 60 second readings at the control station. Loops were typically of 10-11 hour duration. Kinematic GNSS data were used to produce centimeter level positions and elevations for each gravity station. A new control station was established at the base of operations at Millrose Station and this was tied to the Australian Fundamental Gravity Network station at Wiluna A/S. All processing and reduction of the gravity data were carried out using AGRIS software (Atlas Gravity Reduction and Interpretation Software) to produce highly accurate Bouguer Anomaly values. The processed data were subsequently merged with existing regional data prior to the generation of various images the company used in its target generation and geological interpretation work. Target Generation The Company in conjunction with Jon Hronsky (Hronsky) of Western Mining Services completed a detailed drill target generation review resulting in the generation of 9 high priority targets within Yandal East covering approximately 32km of strike length. The review of the mineralisation in the Yandal region indicated that the mineralisation at known deposits appears to be controlled by a series of structures. At Jundee, mineralisation occurs at the intersection of the regional Nimary fault and a suite of high angled cross cutting structures. Jundee has a high concentration of these important cross cutting structures. Hronsky has identified the Celia Shear as a large regional structural control that extends for 70km within the Yandal East Project, similar to the Nimary fault at Jundee. Historical drilling has confirmed known mineralisation along the Celia Shear with Hronsky’s interpretation also confirming the existence of untested, high angled cross cutting structures at Yandal East. The structures form the basis of the Company’s high priority targets and particularly the intersection of multiple structures. The majority of these new targets are concealed by cover, therefore geochemistry is ineffective and potential mineralisation is also concealed. The 2016 discovery of the high grade Coralie Jean prospect shows that these prospects can be easily overlooked, the 2016 discovery was almost entirely concealed before a single sample of float returned 60 g/t Au. Coralie Jean is proximal to the intersection of the Celia Shear and an interpreted cross cutting structure that has been interpreted from Jundee through to the Coralie Jean area. Regional structural features associated with mineralisation include; Renegade Exploration Limited 4 2018 Annual Report Operations Report • A significant regional strike parallel shear/fault such as the Nimary fault at Jundee or the Celia Shear at Yandal East • A concentration of high angle, late, brittle cross cutting structures • Mineralisation is typically concentrated on one side of the shear, often interpreted to be hanging wall to the strike parallel structure • Mineralisation commonly concentrates along the cross cutting structures close to the regional shear • Inflexions in the orientation of the regional shear can play an important role in the accumulation of gold mineralisation Figure 3. Drilling targets generated on geology at Yandal East Renegade Exploration Limited 5 2018 Annual Report Operations Report Inaugural Drill Program The Company recently completed its inaugural, first pass aircore drilling program at its Yandal East Project. The program consisted of 285 holes for 23,789m and tested five of the original nine high priority targets including Coralie Jean (Y1), Mizina (Y2), Ward (Y3), Millrose Extension (Y5) and Millrose West (Y6). The Company has identified significant mineralisation across multiple prospects with gold grades up to 10.55 g/t intersected at Coralie Jean, 4.61 g/t at Ward and up to 2.56 g/t at Mizina with values greater than 1 g/t Au also returned from Mizina South and Millrose Extension. Some of the more significant intercepts include; • • • • • • • • • 4m @ 4.47 g/t Au from 12m; including o 1m @ 10.55 g/t Au from12m 11.5m @ 0.80 g/t Au from 117m 10m @ 0.95 g/t Au from 78m; including o 6m @ 1.4 g/t Au from 82m 4m @ 1.55 g/t Au from 61m 3m @ 2.05 g/t Au from 65m 7m @ 0.96 g/t Au from 21m; including o 4m @ 1.41 g/t Au 4m @ 1.36 g/t Au from 64m 8m @ 0.62 g/t Au from 60m 16m @ 0.45 g/t Au from 92m A vast amount of knowledge and data has been gathered as a result of the drilling program. A better understanding of the geology and mineralisation in the target areas has generated five new high priority targets. The targets are contained within the original, larger target areas that were previously developed in conjunction with Hronsky who has subsequently reviewed the recent results and assisted in the assessment of the five new targets and recommended closer spaced drilling over these targets. The Company is excited to be able to drill these new targets in its upcoming program. The new targets all contain known mineralisation, structural and geological complexity and include Ward, Mizina North, Mizina South, Millrose Extension and Coralie Jean South. The Company plans to drill at Ward, Mizina North and Millrose Extension in the upcoming quarter with drilling to follow at the other targets thereafter. Renegade Exploration Limited 6 2018 Annual Report Operations Report Coralie Jean Prospect The Coralie Jean Prospect was the first target drilled as part of the inaugural drilling program and returned some very encouraging results. Drilling has identified a 2.5km long gold-bearing system where the better results include; • • • • 4m @ 3.61 g/t Au from 12m; including o 1m @ 10.55 g/t from 12m 7m @ 0.96 g/t Au from 21m o 4m @ 1.41 g/t Au from 21m; 3m @ 2.05 g/t Au from 65m; o including 1m @ 5.19 g/t Au from 66m 2m @ 1.94 g/t Au from 71m, including o 1m @ 3.44 g/t from 71m The first pass program was broad spaced to cover a large area with the target extending for almost 4km. The four southern- most lines were separated by greater than 500m each. Ultimately mineralised intersections were spread over a 2.5km gold system with numerous intersections exceeding 0.5 g/t Au along this system (Figure 4 and Table 1). Coralie Jean sits in an ideal structural location, immediately east of the large regional structure, known as the Celia Shear. The location of the Celia Shear corresponded to a dramatic increase in the depth of weathering at Coralie Jean and the shear itself was commonly anomalous in gold. The Celia Shear may be an important conduit for mineralising fluids in the area. Figure 4: Selected drill intercepts from Coralie Jean Renegade Exploration Limited 7 2018 Annual Report Operations Report Ward At the Ward Prospect, the Company completed 42 holes for 3,477m at three separate targets within the greater Ward Prospect as shown on Figure 5 below. One line was drilled south of previously known mineralisation, along the very edge of a salt lake (YEAC0152 -154 & 164 – 166). Another three lines were drilled to infill a 680m gap where previous mineralisation had been identified (YEAC0211 – 226). The remaining three lines were drilled to test a NE trending structure (YEAC0151, 155-158 & 227-241). The first four lines all intersected significant mineralisation, including; • • • • • 10m @ 0.95 g/t Au from 78m including; o 6m @ 1.40 g/t Au from 82m 4m @ 1.55 g/t Au from 61m 4m @ 1.36 g/t Au from 64m 1m @ 1.84 g/t Au from 38m 8m @ 0.62 g/t Au from 60m Figure 5 Significant intercepts from drilling at Ward Renegade Exploration Limited 8 2018 Annual Report Operations Report Mizina Mizina South, within the greater Mizina prospect is one of the most exciting targets drilled in the recent program at Yandal East. A total of 78 holes for 7,983m were drilled across the 7km of strike length that makes up the Mizina target. The 7km strike length is between the known mineralised areas of Ward and Cowza along the same regional structure, the Celia Shear. The area has an abundance of cross cutting structures, geological complications and disruptions in magnetic features. Only one previous drill line within the entire 7km strike length has been completed, returning an intersection of 4m @ 2.54 g/t Au and was never followed up. The 78 holes were spread across 6 lines spaced approximately 800m apart covering the prospective 7km of strike length. Select better results, include; • • • • 11.5m @ 0.80g/t Au from 117m, 1m @ 2.56 g/t Au from 89m, 1m @ 1.34 g/t Au from 51m 6m @ 0.59 g/t Au from 71m Figure 6. Significant intercepts from drilling at Mizina Renegade Exploration Limited 9 2018 Annual Report Operations Report Millrose Extension The Company drilled 21 holes for 1,952m at Millrose Extension, the drilling consisted of three (3) lines separated by over 800m of strike length, as shown in Figure 7. The northern most line intersected significant disseminated sulphides towards the base of several holes before YEAC0246 intersected mineralisation, with 2m @ 0.99 g/t Au from 87m returned from quartz- manganese veining within a felsic schist and 4m @ 0.31 g/t Au from 72m further up hole. The hole ended in mineralisation. The next hole drilled encountered granite relatively shallow. This significant mineralisation is open at depth and there is 1.4km of untested strike length to the north and south of this open-ended mineralisation (Figure 7). Millrose Extension is one of the three targets the Company is planning to drill in its upcoming campaign. The area is geologically interesting with sulphide-bearing mafic schists, felsic schists with quartz-manganese veining terminating against an internal granite body. The granite may be an important control on the mineralising fluids, mineralisation elsewhere in the region is located proximal to granite contacts, including the Millrose Deposit itself. The original target was chosen due to its proximity to the Millrose Deposit, among other things, the Millrose Deposit is held by Bowlane Nominees (WA) Limited and contains 309,000 oz of gold @ 2.4 g/t gold. Millrose Extension sits between the Celia Shear and the internal granite in an area of structural complexity that includes an inflexion in the Celia Shear orientation and an abundance of high angle, cross cutting faults that intersect the Celia Shear. Some of these intersecting structures may be associated with mineralisation at the 300,000 oz, past-producing Gourdis-Vause deposits (see Figure 3). Figure 7. Drilling at the Millrose Extension Prospect Renegade Exploration Limited 10 2018 Annual Report Operations Report Table 2. Significant Intercepts from the Company’s inaugural drilling program Hole Id Sample Type Prospect Result Comment YEAC0001 Individual Coralie Jean 4m @ 4.47 g/t Au from 12m Individual Coralie Jean including 1m @ 10.55 g/t Au from YEAC0002 Individual Coralie Jean 7m @ 0.96 g/t Au from 21m Individual Coralie Jean including 4m @ 1.41 g/t Au from 21m YEAC0003 Individual Coralie Jean 1m @ 0.81 g/t Au from 9m YEAC0004 Individual Coralie Jean 1m @ 0.49 g/t Au from 20m YEAC0004 Individual Coralie Jean 2m @ 0.64 g/t Au from 23m YEAC0006 Individual Coralie Jean 1m @ 0.35 g/t Au from 33m YEAC0009 Individual Coralie Jean 2m @ 0.36 g/t Au from 40m YEAC0016 Individual Coralie Jean 1m @ 0.39 g/t Au from 48m YEAC0026 Individual Coralie Jean 1m @ 0.3 g/t Au from 26m YEAC0056 Individual Coralie Jean 1m @ 0.32 g/t Au from 75m YEAC0056 Individual Coralie Jean 4m @ 0.75 g/t Au from 87m YEAC0056 Individual Coralie Jean 1m @ 0.35 g/t Au from 95m YEAC0061 Individual Coralie Jean 1m @ 0.36 g/t Au from 113m YEAC0064 Individual Coralie Jean 1m @ 0.34 g/t Au from 17m YEAC0065 Individual Coralie Jean 2m @ 0.6 g/t Au from 42m Individual Coralie Jean including 1m @ 0.84 g/t Au from 42m YEAC0076 Individual Coralie Jean 1m @ 0.33 g/t Au from 100m YEAC0087 Individual Coralie Jean 1m @ 2.46 g/t Au from 12m YEAC0088 Individual Coralie Jean 1m @ 0.55 g/t Au from 59m YEAC0100 Individual Coralie Jean 1m @ 1.54 g/t Au from 63m YEAC0100 Individual Coralie Jean 1m @ 0.39 g/t Au from 81m YEAC0107 Individual Coralie Jean 2m @ 1.94 g/t Au from 71m Individual Coralie Jean including 1m @ 3.44 g/t Au from 71m YEAC0108 Individual Coralie Jean 3m @ 0.79 g/t Au from 65m YEAC0108 Individual Coralie Jean 2m @ 0.88 g/t Au from 90m YEAC0118 Individual Coralie Jean 2m @ 0.37 g/t Au from 40m YEAC0118 Individual Coralie Jean 3m @ 2.05 g/t Au from 65m Individual Coralie Jean including 1m @ 5.19 g/t Au from 65m YEAC0120 Individual Coralie Jean 1m @ 0.33 g/t Au from 45m YEAC0127 Individual Mizina South 5m @ 0.4 g/t Au from 88m Individual Mizina South including 1m @ 0.54 g/t Au from 88m Individual Mizina South including 1m @ 0.60 g/t Au from 91m YEAC0128 Individual Mizina South 1m @ 0.34 g/t Au from 75m YEAC0131 Individual Mizina South 1m @ 1.34 g/t Au from 51m Individual Mizina South Individual Mizina South Individual Mizina South Individual Mizina South Individual Mizina South Individual Mizina South and and and and and and 1m @ 0.37 g/t Au from 83m 1m @ 2.56 g/t Au from 89m 2m @ 0.38 g/t Au from 94m 1m @ 0.52 g/t Au from 110m 1m @ 1.8 g/t Au from 117m 8.5m @ 0.89 g/t Au from 120m Ended in mineralisation Renegade Exploration Limited 11 2018 Annual Report Operations Report Individual Mizina South or 11.5m @ 0.80 g/t Au from 117m Individual Mizina South including 1m @ 2.74 g/t Au from 120m YEAC0132 Individual Mizina South 4m @ 0.36 g/t Au from 38m Individual Mizina South including 1m @ 0.68 g/t Au from 41m YEAC0140 Individual Mizina South 3m @ 0.42 g/t Au from 101m Individual Mizina South including 1m @ 0.72 g/t Au from 101m YEAC0142 Individual Mizina South 1m @ 0.87 g/t Au from 116m YEAC0144 Individual Mizina South 2m @ 0.4 g/t Au from 82m YEAC0149 Individual Mizina South 1m @ 0.44 g/t Au from 62m YEAC0152 Individual YEAC0152 Individual YEAC0152 Individual YEAC0154 Individual YEAC0154 Individual YEAC0158 Individual Ward Ward Ward Ward Ward Ward 1m @ 1.84 g/t Au from 38m 1m @ 0.59 g/t Au from 42m 1m @ 0.59 g/t Au from 50m 4m @ 1.55 g/t Au from 61m 1m @ 0.38 g/t Au from 87m 1m @ 0.56 g/t Au from 94m YEAC0163 Individual Mizina South 3m @ 0.41 g/t Au from 75m Individual including 1m @ 0.78 g/t Au from 77m YEAC0164 Individual Ward 10m @ 0.95 g/t Au from 78m Individual Individual YEAC0166 Individual Ward Ward including 6m @ 1.40 g/t Au from 82m 5m @ 0.31 g/t Au from 104m 3m @ 0.4 g/t Au from 145m Ended in mineralisation YEAC0176 Individual Mizina North 3m @ 0.4 g/t Au from 62m Individual Mizina North Including 1m @ 0.53 g/t Au from 63m Individual Mizina North and 1m @ 0.63 g/t Au from 69m YEAC0177 Individual Mizina North 2m @ 0.38 g/t Au from 85m Individual Mizina North Including 1m @ 0.50 g/t Au from 86m YEAC0179 Individual Mizina North 1m @ 0.31 g/t Au from 46m Individual Mizina North Individual Mizina North and and 2m @ 0.61 g/t Au from 63m 1m @ 0.31 g/t Au from 77m YEAC0180 Individual Mizina North 1m @ 0.85 g/t Au from 60m YEAC0181 Individual Mizina North 1m @ 0.44 g/t Au from 35m YEAC0187 Individual Mizina North 1m @ 0.82 g/t Au from 71m YEAC0188 Individual Mizina North 6m @ 0.59 g/t Au from 71m YEAC0201 Individual Mizina North 1m @ 0.41 g/t Au from 160m YEAC0212 Composite YEAC0215 Composite Composite YEAC0218 Composite YEAC0221 Composite Composite YEAC0222 Composite Ward Ward Ward Ward Ward Ward Ward 16m @ 0.45 g/t Au from 92m 4m @ 0.49 g/t Au from 86m and 3m @ 0.71 g/t Au from 114m Ended in mineralisation 8m @ 0.62 g/t Au from 60m 4m @ 1.36 g/t Au from 64m and 8m @ 0.5 g/t Au from 80m 4m @ 0.38 g/t Au from 60m YEAC0246 Composite Millrose Ext 4m @ 0.31 g/t Au from 72m Individual Millrose Ext and 2m @ 0.99 g/t Au from 87m Renegade Exploration Limited 12 2018 Annual Report Operations Report YUKON BASE METAL PROJECT, CANADA During 2018 the Company continued to assess strategies to achieve the best outcome for the Yukon Base Metal Project and has received enquiries throughout the year and remains engaged with interested parties. History Mineralisation at the Andrew Zinc Deposit, located in the Selwyn Basin of the Yukon Territory, Canada, was discovered by a prospector in 1996. The prospector staked claims over the area and optioned them to Noranda Inc. in 2000. In 2001, thick, high-grade zinc mineralisation was intersected in Noranda’s maiden drilling program. A second drilling programme followed in 2002. Despite mineralisation remaining open in all directions, Noranda relinquished its rights in 2003. In January 2007 the Company secured an option (from the prospector) to earn a 90% interest in the Yukon Base Metal Project. Following positive results from further exploration, the Company exercised that option in July 2007. The original Project comprised 493 Mineral Claims covering 95 km2 over and around the Andrew Zinc Deposit. The Company has since expanded its land position so the Project now comprises 1554 Mineral Claims covering approximately 305km2 (see Figure 9). Figure 8. Yukon Base Metal Project Figure 9. Yukon Base Metal Project land position, location map comprising the Junction Project (100%), the Selous Project (90%) and the Riddell Project (100%). Renegade’s Activities Since 2007 the Company has completed 350 diamond drill holes for over 40,000 metres; discovered three separate zinc deposits; and defined a 2012 JORC Code compliant Measured, Indicated and Inferred Resource of 12.6 million tonnes at 5.3% Zn and 0.9% Pb (see Table 3). Renegade Exploration Limited 13 2018 Annual Report Operations Report Table 3. JORC Code 2012 compliant mineral resource estimate for the Yukon Base Metal Project Deposit Measured Indicated Inferred Total Tonnes Zinc Lead Tonnes Zinc Lead Tonnes Zinc Lead Tonnes Zinc Lead (%) (%) (%) (%) (%) (%) (%) (%) Andrew 1,730,000 5.3 1.7 4,730,000 1,670,000 6.0 4.8 1.6 0.0 190,000 3,880,000 360,000 4.9 4.7 4.0 4.6 1.6 0.0 0.2 0.1 6,650,000 5,550,000 360,000 12,560,000 5.8 4.7 4.0 5.3 1.6 0.0 0.2 0.9 1,730,000 5.3 1.7 6,400,000 5.8 1.1 4,430,000 Darcy Darin Total Note: Cut off of 2% zinc and 1000mRL applied based on economic pit modelling There is considerable potential to increase the resource base at the Yukon Base Metal Project. Mineralisation remains open at depth and along strike at the Andrew, Darcy and Darin Deposits. Numerous, sizeable, undrilled, coherent soil geochemistry anomalies are evident elsewhere at the Project, including at the Junction Project area where extensive soil anomalies have been delineated (see Figure 10). Further exploration could result in the discovery of additional resources. Figure 10. Zinc in soil geochemistry results from samples collected over the entire Yukon Base Metal Project Renegade Exploration Limited 14 2018 Annual Report Operations Report McCLEERY COPPER-COBALT, YUKON, CANADA During the year the Company divested the McCleery Copper-Cobalt project via the sale of its wholly owned subsidiary Overland Resources (BC) Limited to Rafaella Resources Limited (Rafaella). Post year end, in total the Company received $50,000 in cash and $100,000 in shares (500,000 shares) in Rafaella which listed on the ASX during July 2018. TROJAN GOLD PROJECT, WESTERN AUSTRALIA The Company terminated its option to acquire the Trojan Gold Project during October 2017, there were no further payments required. CORPORATE In September 2017, the Company executed a binding agreement with Zebina Minerals Pty Ltd (Vendor) whereby Renegade has an option to acquire 75% of the Project on or before 28th February 2019. In October 2017, the Company terminated its option-to-acquire the Trojan Gold Project from Westgold Resources Limited (ASX:WGX) and its subsidiaries. In November 2017, the Company accepted the resignation of Mr. Hugh Bresser, non-executive director, and appointed of Mr. Peter Voulgaris as non-executive director. In January 2018, the Company executed a binding term sheet with Rafaella Resources Ltd for the sale of its McCleery Copper- Cobalt project in Yukon, Canada, for the value of $100,000 in Rafaella shares. In March 2018, the Company completed a $2 million placement. Shareholders approved the change of name from “Overland Resources Limited” to “Renegade Exploration Limited” at a General Meeting held on 26 April 2018. The Company’s ASX code has changed from “OVR” to “RNX”. Renegade Exploration Limited 15 2018 Annual Report Tenement Schedule Canadian Projects Claim Names A AMB AMBfr Andrew Atlas B Bridge Clear Dasha Data Link Myschka Ozzie Riddell Scott Shack Sophia TA Name E53/1547 E53/1548 E53/1726 E53/1835 E53/1970 E53/1971** Yukon Base Metal Project Australian Projects Yandal East Gold Project** Numbers 1-8, 57-104 1-12, 17, 18, 25, 81-84, 149-150 13-16, 19-24, 26- 48, 51-80, 85-104 49-50, 105-112 115-116, 123-148 117 118-122, 151-162 1-2 3-10 1-6 53, 55, 57, 59, 61, 63, 65-74, 79-100, 105-126 *127-194 1-8, 11-16, 19-32 *1-25 1-6 *1-320 *1-231 1-12, 21-32, 41-48, 57-70, 77-90 13-16, 19, 20, 33- 40, 47, 49-56, 71- 76, 91-96 17 1-32 *1-80 1-2, 35-36 3-34 *1-5 1-4 *1-2 *3-332 Description Exploration Licence Exploration Licence Exploration Licence Exploration Licence Exploration Licence Application Exploration Licence Expiry Date 15/02/2027 15/02/2032 15/02/2033 15/02/2031 15/02/2031 15/02/2033 15/02/2030 15/02/2031 15/02/2034 31/07/2020 15/02/2025 15/02/2022 15/02/2030 15/02/2022 15/02/2028 15/02/2022 15/02/2022 15/02/2026 15/02/2027 15/02/2028 15/02/2030 01/02/2022 15/02/2029 15/02/2023 15/02/2022 15/02/2024 14/07/2022 15/02/2022 Expiry Date 07/09/2021 07/09/2021 13/10/2018 12/05/2021 N/A 06/05/2023 Tenement Schedule as per September 18, 2018 *The Company has a 100% interest in these specific claims and 90% in the remaining claims at the Yukon Base Metal Project **The Company has an option to acquire a 75% interest in the tenements of the Yandal East Gold Project. The Company may exercise that option on or before February 28, 2019. Renegade Exploration Limited 16 2018 Annual Report Directors’ Report The Directors present their report for Renegade Exploration Limited (formerly Overland Resources Limited) (“Renegade” or “the Company”) and its subsidiaries (“the Group”) for the year ended 30 June 2018. DIRECTORS The names, qualifications and experience of the Directors in office during the year and until the date of this report are as follows. Directors were in office for this entire period unless otherwise stated. Mr. Robert Kirtlan Chairman Mr Kirtlan had a background in accounting and finance prior to working for major investment banks in Sydney and New York focusing on global mining. He has been involved in the mining industry for approximately 25 years arranging equity and debt financing for junior and major mining companies. More lately he has taken active roles in the financing, management and development of exploration opportunities across a broad spectrum of commodities in various countries. Mr. Kirtlan is a Director of RMG Limited (appointed 29 April 2011), Vault Intelligence Limited (appointed 30 November 2011), and Currie Rose Resources Inc (appointed 27 October 2015. He was a Director of East Africa Resources Limited (appointed 20 November 2013, resigned 1 September 2015), Decimal Software Limited (appointed 22 April 20012, resigned 15 June 2016) and Homeland Uranium Inc (appointed 1 February 2012, resigned 30 November 2014). Mr. Peter Voulgaris (appointed 24 November 2017) Non Executive Director Mr Voulgaris has over 20 years of international mine operations, project management and development experience. His operational experience includes roles with Mount Isa Mines’ Hilton/George Fisher lead-zinc-silver, Placer Dome’s Osborne copper-gold and Granny Smith gold, and Newmont’s Callie gold mine. Mr Voulgaris acquired significant mine development and project management experience as Technical Services Manager at Ivanhoe’s world class Oyu Tolgoi copper-gold project in Mongolia and as Expansion Study Manager for MMG at the Sepon copper-gold mine in Laos. Mr Voulgaris is the former Vice President of Business Development for the TSX listed Minco Group of Companies and is currently Principal of Elysium Mining Ltd, consulting to TSX listed developers, miners, and is project manager for the Pegmont Project for Vendetta Mining (TSX: VTT). Mr. Hugh Bresser (resigned 24 November 2017) Non Executive Director Mr. Bresser has more than 20 years experience working in the resources industry. He holds an honours degree in Economic and Metalliferous Geology from James Cook University and an MBA from the Mt Eliza Business School, Melbourne. Mr. Bresser spent more than ten years working with BHP Billiton, generating and evaluating exploration projects in a variety of commodities within Australia, Asia, Southern Africa and South America. He has held senior positions within BHP Billiton’s Global Exploration Division, including three years in Exploration Global Strategy, Business Planning and Risk Management. Mr. Bresser was also employed by BHP Billiton Iron Ore Group in a senior role, working on supply chain optimisation and new capital implementation. Mr. Bresser has previously held technical positions with Pancontinental Mining Ltd, Renison Goldfields Consolidated and Goldfields Ltd. Mr. Bresser was a Director of Birimian Limited (appointed 25 May 2011, resigned 22 March 2017). Renegade Exploration Limited 17 2018 Annual Report Directors’ Report Mr. Mark Wallace Non Executive Director Mr Wallace is a finance professional with a background in economics and finance. He has spent almost 20 years working for both major and boutique Investment Banks specialising in the Global Materials and Energy sectors. He spent the bulk of his career in London and Sydney identifying, advising and financing early stage and pre development mining and energy companies. Mr. Wallace has not held any other Directorships of listed companies during the past three years. Mr. Ben Vallerine Chief Executive Officer Mr Vallerine has over 15 years global industry experience as a geologist and manager. Mr Vallerine holds a Bachelor of Science, with honours in Economic Geology from the University of Tasmania (CODES). Mr Vallerine has worked with WA gold miners Harmony Gold and New Hampton Goldfields and iron ore giant Rio Tinto. Mr Vallerine has extensive North American experience and resided in the USA for 5 years and managed all of the in-country activities for junior explorer Black Range Minerals. Mr Vallerine also managed activities in Canada and Alaska for Coventry Resources. COMPANY SECRETARY Mr. Graeme Smith (appointed 01 July 2018) Mr Smith is the principal of Wembley Corporate Services Pty Ltd which provide corporate secretarial, CFO and governance services. Mr Smith has over 25 years experience in company secretarial work Ms. Paige Exley (appointed 29 November 2017, resigned 30 June 2018) Ms Exley is a Finance and Corporate Governance professional with over 15 years of experience in the resources, mining services, biotechnology, professional services, not-for-profit, food, wine and liquor industries. Mr. Lloyd Flint (appointed 1 September 2017, resigned 29 November 2017) Ms. Beverley Nichols (resigned 1 September 2017) INTERESTS IN THE SECURITIES OF THE COMPANY As at the date of this report, the interests of the Directors in the securities of the Company were: Director Ordinary Shares Options over R. Kirtlan P. Voulgaris M. Wallace Ordinary Shares 7,000,000 15,000,000 - - 48,100,000 15,000,000 RESULTS OF OPERATIONS The Group’s net loss after taxation attributable to the members of Renegade Exploration Limited for the year was $866,890 (2017: loss of $662,782). DIVIDENDS No dividend was paid or declared by the Group in the year and up to the date of this report. Renegade Exploration Limited 18 2018 Annual Report Directors’ Report CORPORATE STRUCTURE Renegade Exploration Limited is a company limited by shares that is incorporated and domiciled in Australia. NATURE OF OPERATIONS AND PRINCIPAL ACTIVITIES During the financial year, the Group’s principal activity was mineral exploration. The Group currently holds a base metals project in Canada and a gold project in Western Australia. There have been no changes in the principal activities from prior years. EMPLOYEES The Group had no employees at 30 June 2018 (2017: no employees). REVIEW OF OPERATIONS Refer to the Operations Report preceding this Directors’ Report. SIGNIFICANT EVENTS AFTER THE REPORTING DATE The sale of McCleery Project was completed in July 2018. The Company has received 500,000 Ordinary Shares of Rafaella Resources Ltd. Other than as disclosed elsewhere within this report, there were no other subsequent events after the reporting date. LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS The Group will continue to carry out its business plan by: • • • • • exploration of the Yandal East Gold Project; continuing to explore and consider development and other strategic options for the Yukon Base Metal Project; pursuing the acquisition of additional projects with synergy to those currently in the Company’s asset portfolio; continuing to meet its commitments relating to exploration tenements and carrying out further exploration, permitting activities and project development; and prudently managing the Group’s cash to be able to take advantage of any future opportunities that may arise to add value to the business. ENVIRONMENTAL REGULATION AND PERFORMANCE The Group carries out operations that are subject to environmental regulations under both Federal, Territorial and Provincial legislation in Canada and Australia. The Group has formal procedures in place to ensure regulations are adhered to. The Group is not aware of any breaches in relation to environmental matters. SHARE OPTIONS As at the date of this report, there were 56,568,498 options over ordinary shares (56,568,498 options at the reporting date). The details of the options at the reporting date are as follows: Number Exercise Price Expiry Date 10,000,000 16,568,498 15,000,000 15,000,000 $0.007 20 April 2019 $0.00754 19 January 2020 $0.025 $0.035 31 March 2021 31 March 2021 No option holder has any right under the options to participate in any other share issue of the Company or any other entity. During the financial year 46,568,498 options were issued and no options expired. No options were exercised during the financial year. Since the end of the financial year, no options have been issued or exercised. Renegade Exploration Limited 19 2018 Annual Report Directors’ Report INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS The Company has made agreements indemnifying all the Directors and Officers of the Company against all losses or liabilities incurred by each Director or Officer in their capacity as Directors or Officers of the Company to the extent permitted by the Corporations Act 2001. The indemnification specifically excludes wilful acts of negligence. The Company paid insurance premiums in respect of Directors’ and Officers’ Liability Insurance contracts for current Officers of the Company, including Officers of the Company’s controlled entities. The liabilities insured are damages and legal costs that may be incurred in defending civil or criminal proceedings that may be brought against the Officers in their capacity as officers of entities in the Group. The total amount of insurance premiums paid has not been disclosed due to confidentiality reasons. DIRECTORS’ MEETINGS During the financial year, in addition to regular informal Board discussions, the number of Director’s meetings held during the year, and the number of meetings attended by each Director were as follows: Name Number of Meetings Eligible Number of Meetings to Attend Attended Mr. Robert Kirtlan Mr. Peter Voulgaris Mr. Hugh Bresser Mr. Mark Wallace 3 - 2 3 3 1 2 3 PROCEEDINGS ON BEHALF OF COMPANY No person has applied for leave of court to bring proceedings on behalf of the Company or intervene in any proceedings to which the Company is a party for the purpose of taking responsibility on behalf of the Company for all or any part of those proceedings. The Company was not a party to any such proceedings during the year. CORPORATE GOVERNANCE In recognising the need for the highest standards of corporate behaviour and accountability, the Directors of the Company support and have adhered to the principles of sound corporate governance. The Board recognises the recommendations of the Australian Securities Exchange Corporate Governance Council, and considers that the Company is in compliance with those guidelines to the extent possible, which are of importance to the commercial operation of a junior listed resources Company. The Company’s Corporate Governance Statement and disclosures are available on the Company’s website. AUDITOR’S INDEPENDENCE AND NON-AUDIT SERVICES Section 307C of the Corporations Act 2001 requires the Group’s auditors to provide the Directors of Renegade Exploration Limited with an Independence Declaration in relation to the audit of the full-year financial report. A copy of that declaration is included at page 64 of this report. There were no non-audit services provided by the company’s auditor during the year ended 30 June 2018. REMUNERATION REPORT (AUDITED) This report outlines the remuneration arrangements in place for key management personnel of Renegade Exploration Limited in accordance with the requirements of the Corporations Act 2001 and its Regulations. For the purpose of this report, Key Management Personnel (KMP) 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 entity. Renegade Exploration Limited 20 2018 Annual Report Directors’ Report Details of Key Management Personnel Mr. Robert Kirtlan Chairman Mr. Hugh Bresser Non-Executive Director – resigned 24 November 2017 Mr. Peter Voulgaris Non-Executive Director – appointed 24 November 2017 Mr. Mark Wallace Non-Executive Director Mr. Ben Vallerine Chief Executive Officer Ms. Beverley Nichols Company Secretary/Chief Financial Officer – resigned 31 August 2017 Remuneration Policy The Board is responsible for determining and reviewing compensation arrangements for the Directors and management. The Board assesses the appropriateness of the nature and amount of emoluments of such officers on a periodic basis by reference to relevant employment market conditions with the overall objective of ensuring maximum stakeholder benefit from the retention of a high quality board and executive team. The Company does not link the nature and amount of the emoluments of such officers to the Group’s financial or operational performance. The lack of a performance link at this time is not considered to have a negative impact on retaining and motivating Directors. As part of its Corporate Governance Policies and Procedures, the Board has adopted a formal Remuneration Committee Charter. Due to the current size of the Company and number of Directors, the Board has elected not to create a separate Remuneration Committee but has instead decided to undertake the function of the Committee as a full Board under the guidance of the formal charter. The Company has no policy on executives and directors entering into contracts to hedge their exposure to options or shares granted as part of their remuneration package. The rewards for Directors’ have no set or pre-determined performance conditions or key performance indicators as part of their remuneration due to the current nature of the business operations. The Board determines appropriate levels of performance rewards as and when they consider rewards are warranted. The table below shows the performance of the Group as measured by earnings / (loss) per share for the previous five years: As at 30 June Loss per share (cents) Share price at reporting date 2018 (0.12) 1.1 2017 (0.17) 0.7 2016 (0.15) 0.7 2015 (16.04) 0.7 2014 (0.46) 0.7 (cents) Details of the nature and amount of each element of the emoluments of each Director and Executive of the Company for the financial year are as follows: 2018 Base Directors Consulting Payments Employment Short term Share Based Post Superannuation Total Director Mr. Robert Kirtlan Mr. Peter Voulgaris* Mr. Hugh Bresser* Mr. Mark Wallace Executive Mr. Ben Vallerine Ms. Beverley Nichols* Salary Fees $ - - - - - - $ - 12,000 7,200 - - - Fees $ - - - - $ 81,7501 - 81,7501 145,000 24,000 (90,000)2 - $ - - - - - - $ 81,750 12,000 7,200 81,750 55,000 24,000 169,000 *Mr. Voulgaris was appointed on 24 November 2017, Mr. Bresser resigned on 24 November 2017, Ms.Nichols resigned on 31 August 2017. 2018 Annual Report Renegade Exploration Limited 261,700 73,500 19,200 21 - - Directors’ Report 1During the year, Mr. Robert Kirtlan was issued 15 million Options and Mr. Mark Wallace was issued 15 million Options pursuant to the EIP. The purpose of the issue of Options to the Directors is to assist in their reward and retention. The grant of the Options forms part of the Company’s remuneration strategy for Directors, in lieu of additional cash remuneration. 2Reversal of accrued performance shares to Ben Vallerine in year ended 30 June 2017. 2017 Base Directors Consulting Payments Employment Short term Share Based Post Salary Fees Fees - Options Superannuation Total Director Mr. Robert Kirtlan* Mr. Michael Haynes* Mr. Hugh Bresser Mr. Mark Wallace* Mr. Scott Robertson* Executive Mr. Ben Vallerine* Ms. Beverley Nichols $ - - - - - - - $ - 42,000 18,000 - 11,437 $ - - 900 - - $ - - - - - - - 75,521 72,000 210,0001 - $ - - - - - - - $ - 42,000 18,900 - 11,437 285,521 72,000 - 71,437 148,421 *Mr. Kirtlan was appointed on 23 May 2017, Mr. Haynes resigned on 23 June 2017, Mr. Wallace was appointed on 25 June 2017, Mr. Robertson resigned on 19 May 2017 and Mr. Vallerine was appointed on 6 December 2016 1During the year, CEO Mr. Ben Vallerine was issued 10 million ordinary shares for introducing the Trojan Project. The Company has agreed to issue a further 15 million performance shares if the Company exercises it’s option over the Trojan Project. The 10 million ordinary shares were issued on 17 March 2017 valued at $120,000. The company has not yet issued the performance shares however the liability has been accrued aggregating to $90,000 based on the share price at the date of agreement. The Performance shares immediately convert to fully paid ordinary shares (on a 1:1 basis) in the event Renegade exercises its option to purchase the Trojan Gold Project. 210,000 429,858 - Share options issued as part of the remuneration to Directors are not subject to a performance hurdle as these options are issued as a form of retention bonus and incentive to contribute to the creation of shareholder wealth. The terms and conditions of each grant of options affecting remuneration in previous, this or future reporting periods of KMP are as follows: 30 June 2018 Grant Date Grant Expiry Fair Value Exercise Total Vested % Number Date/Last per Price per Value Vested Exercise Option at Option Granted Date Grant Date $ R. Kirtlan* 26/04/18 7,500,000 31/03/21 $0.0058 $0.025 $43,500 7,500,000 100% 26/04/18 7,500,000 31/03/21 $0.0051 $0.035 $38,250 7,500,000 100% H. Bresser P. Voulgaris - - - - - - - - - - - - - - - - M. Wallace* 26/04/18 7,500,000 31/03/21 $0.0058 $0.025 $43,500 7,500,000 100% 26/04/18 7,500,000 31/03/21 $0.0051 $0.035 $38,250 7,500,000 100% B. Vallerine B. Nichols - - - - - - - - - - - - - - - - *Options were granted for no consideration with 100% vesting immediately. There were no alterations to the terms and conditions of options granted as remuneration since their grant date. There were no forfeitures during the period. No options were exercised during the year ended 30 June 2018 (2017: Nil). Options were granted as part of a remuneration package. On resignation, any unvested options will be forfeited. Renegade Exploration Limited 22 2018 Annual Report Directors’ Report Shareholdings of Key Management Personnel The number of shares in the Company held during the financial year by Key Management Personnel of Renegade Exploration Limited, including their personally related parties, is set out below. 30 June 2018 Mr. Robert Kirtlan Mr. Hugh Bresser* Mr. Peter Voulgaris* Mr. Mark Wallace Mr. Ben Vallerine Ms. Beverley Nichols* 30 June 2017 Mr. Robert Kirtlan** Mr. Michael Haynes** Mr. Hugh Bresser Mr. Mark Wallace** Mr. Scott Robertson** Mr. Ben Vallerine** Balance at the Granted during Exercised during Other changes Balance at the start of the year the year as the year during the year end of the year compensation 7,000,000 4,877,620 - 43,600,000 13,333,334 666,667 - 6,714,707 4,877,620 - - - - - - - - - - - - - - 10,000,000 - - - - - - - - - - - - - - - 7,000,000 4,877,6202 - 4,500,000 48,100,000 - - 13,333,3343 666,6672 7,000,000 7,000,000 2,138,235 8,852,9422 - 4,877,620 43,600,000 43,600,000 - - 3,333,334 13,333,3343 Ms. Beverley Nichols *Mr. Voulgaris was appointed on 24 November 2017, Mr. Bresser resigned on 24 November 2017, Ms.Nichols resigned on 31 August 2017, **Mr. Kirtlan was appointed on 23 May 2017, Mr. Haynes resigned on 23 June 2017, Mr. Wallace was appointed on 25 June 2017, Mr. Robertson resigned on 19 May 2017 and Mr. Vallerine was appointed on 6 December 2016 2 At date of resignation 3 5,000,000 shares voluntary escrowed until 16 March 2018 666,667 666,667 - - - Option holdings of Key Management Personnel The numbers of options over ordinary shares in the company held during the financial year by Key Management Personnel of Renegade Exploration Limited and of the group, including their personally related parties, are set out below: 30 June 2018 Mr. Robert Kirtlan Mr. Hugh Bresser Mr. Peter Voulgaris Mr. Mark Wallace Mr. Ben Vallerine Ms. Beverley Nichols 30 June 2017 Mr. Robert Kirtlan Mr. Michael Haynes2 Mr. Hugh Bresser Mr. Mark Wallace Mr. Ben Vallerine Ms. Beverley Nichols 2 At date of resignation. Balance at Granted during Exercised Expired Balance at % vested the start of the year as during the during the the end of the year compensation year year the year - - - - - - - 1,925,000 3,925,000 - - - 15,000,000 - - 15,000,000 - - - - - - - - - - - - - - - - - - - (1,925,000) - (3,925,000) - - - - - - - 15,000,000 100% - - - - - - - 15,000,000 100% - - - - - - - - - - - - - - - - Renegade Exploration Limited 23 2018 Annual Report Directors’ Report Executive Directors and Key Management Personnel There are no executive directors. The Executive’s remuneration is stipulated in a consulting services agreement between the Company and the Executive’s related entity. A summary of the key terms of the agreement are outlined below: The Chief Executive Officer, Mr. Ben Vallerine, consults to the Company and is remunerated on a monthly basis at a rate of $12,083 per month (excluding GST). Mr. Vallerine’s services may be terminated by giving one month written notice. Non-Executive Directors Mr. Peter Voulgaris is paid a base directors fee of $24,000 per annum No directors’ fee is drawn by Directors Robert Kirtlan and Mark Wallace. The aggregate remuneration for non-executive Directors fees has been set at an amount not to exceed $250,000 per annum. This amount may only be increased with the approval of Shareholders at a general meeting. END OF REMUNERATION REPORT Signed on behalf of the board in accordance with a resolution of the Directors. Robert Kirtlan Chairman 28 September 2018 Competent Person Statement The information in this report that relates to Mineral Resources at the Yukon Base Metal Project is based on information compiled by Mr Peter Ball who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Ball is the Manager of Data Geo. Mr Ball has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Ball consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The information in this announcement that relates to exploration results for the Yandal East Gold Project and the Yukon Base Metal Project, is based on information compiled by Mr Ben Vallerine, who is a consultant to the Company. Mr Vallerine is a Member of the Australian Institute of Geoscientists. Mr Vallerine has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and the activity he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results (JORC Code). Mr Vallerine consents to the inclusion in the report of the matters based on the information in the form and context in which it appears. Caution Regarding Forward Looking Statements This announcement contains forward looking statements which involve a number of risks and uncertainties.These forward looking statements are expressed in good faith and believed to have a reasonable basis. These statements reflect current expectations, intentions or strategies regarding the future and assumptions based on currently available information. Should one or more risks or uncertainties materialise, or should underlying assumptions prove incorrect, actual results may vary from the expectations, intentions and strategies described in this announcement. The forward looking statements are made as at the date of this announcement and the Company disclaims any intent or obligation to update publicly such forward looking statements, whether as the result of new information, future events or results or otherwise Renegade Exploration Limited 24 2018 Annual Report Corporate Governance Statement To ensure the Company operates effectively and in the best interests of shareholders, having regard to the nature of the Company’s activities and its size, the Board has adopted the revised Corporate Governance Principles and Recommendations 3rd Edition issued by the ASX Corporate Governance Council. The Company’s Corporate Governance Statement and Appendix 4G are available on the Company’s website: www.renegadeexploration.com Renegade Exploration Limited 25 2018 Annual Report Renegade Exploration Limited Statement of Profit or Loss and Other Comprehensive Income for the year ended 30 June 2018 Notes Consolidated Revenues from operations Interest revenue Other income Profit on sale of asset Revenue Consultants and directors fees Share based payment Audit and tax fees Insurance Accounting fees Computer and website expenses Rent and outgoings Depreciation Travel and accommodation Listing and registry fees Legal expenses Exploration expenditure written off Other expenses 2018 $ 7,217 45,455 3,060 55,732 2017 $ 3,899 - - 3,899 (92,804) (163,500) (203,377) (210,000) (34,225) (11,911) (65,062) (21,572) (31,870) (20) (26,269) (53,904) (39,857) (355,631) (25,386) (10,151) (74,231) (2,433) (63,722) - (5,885) (39,059) (2,680) - 5 (25,997) (29,757) Loss from operations before income tax (866,890) (662,782) Income tax expense 6 - - Loss from operations after tax attributable to members of the parent entity (866,890) (662,782) Other comprehensive profit / loss net of tax Items that may be reclassified subsequently to profit or loss Foreign currency translation 15 21,323 (54,787) Other comprehensive profit / loss for the year 21,323 (54,787) Total comprehensive loss for the year attributable to members of the parent entity (845,567) (717,569) Loss per share: Basic loss per share (cents per share) Diluted loss per share (cents per share) 19 19 (0.15) (0.15) (0.17) (0.17) The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes. Renegade Exploration Limited 26 2018 Annual Report Renegade Exploration Limited Statement of Financial Position as at 30 June 2018 CURRENT ASSETS Cash and cash equivalents Other receivables and prepayments Assets classified as held for sale Notes Consolidated 2018 $ 2017 $ 16(a) 7 2,280,396 1,130,659 76,093 17,168 53,965 - TOTAL CURRENT ASSETS 2,373,657 1,184,624 NON CURRENT ASSETS Property, plant and equipment Other receivables Deferred exploration and evaluation expenditure 8 10 11 158,576 228,330 171,446 225,515 2,260,374 1,871,201 TOTAL NON CURRENT ASSETS 2,647,280 2,268,162 TOTAL ASSETS 5,020,937 3,452,786 CURRENT LIABILITIES Trade and other payables Liabilities classified as held for sale 12(a) 347,146 3,917 152,138 - TOTAL CURRENT LIABILITIES 351,063 152,138 NON CURRENT LIABILITIES Provisions 12(b) 228,330 225,515 TOTAL NON CURRENT LIABILITIES 228,330 225,515 TOTAL LIABILITIES NET ASSETS EQUITY Contributed equity Reserves Accumulated losses TOTAL EQUITY 579,393 377,653 4,441,544 3,075,133 13 15 14 44,012,408 42,063,930 3,567,868 3,283,045 (43,138,732) (42,271,842) 4,441,544 3,075,133 The above statement of financial position should be read in conjunction with the accompanying notes. Renegade Exploration Limited 27 2018 Annual Report Renegade Exploration Limited Statement of Cash Flows for the year ended 30 June 2018 CASH FLOWS FROM OPERATING ACTIVITIES Payments to suppliers and employees Interest received Other income NET CASH FLOWS (USED IN) OPERATING Notes Consolidated 2018 $ 2017 $ (225,987) (419,365) 7,218 45,455 3,899 - ACTIVITIES 16(b) (173,314) (415,466) CASH FLOWS FROM INVESTING ACTIVITIES Payments for exploration & evaluation (526,044) (260,180) Payment for PPE Cash proceeds from sale of PPE NET CASH FLOWS (USED IN) INVESTING (2,369) 3,060 - - ACTIVITIES (525,353) (260,180) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issue of shares Transaction costs of issue of shares NET CASH FLOWS PROVIDED BY FINANCING 2,000,000 1,256,454 (151,596) (110,327) ACTIVITIES 1,848,404 1,146,127 Net increase in cash and cash equivalents Cash and cash equivalents at beginning of year CASH AND CASH EQUIVALENTS AT END OF 1,149,737 1,130,659 470,481 660,178 YEAR 16(a) 2,280,396 1,130,659 Non Cash Investing / Financing Activity The Company issued 16,568,498 shares valued at $100,000 and 16,568,498 options at a deemed value of $100,000 for the option to acquire 75% of the Yandal East Gold Project. The above statement of cash flows should be read in conjunction with the accompanying notes. Renegade Exploration Limited 28 2018 Annual Report Renegade Exploration Limited Statement of Changes in Equity for the year ended 30 June 2018 Consolidated At 1 July 2017 (Loss) for the year Other comprehensive (loss) Total comprehensive (loss) for the year Transactions with owners in their capacity as owners Share issue Transaction costs on share issue Share based payment At 30 June 2018 Consolidated At 1 July 2016 (Loss) for the year Other comprehensive (loss) Total comprehensive (loss) for the year Transactions with owners in their capacity as owners Share issue Transaction costs on share issue At 30 June 2017 Issued Capital $ Accumulated Losses $ Share Based Payment Reserves $ Foreign Currency Translation Reserves $ Total $ 42,063,930 (42,271,842) 3,855,028 (571,983) 3,075,133 - - - (866,890) - (866,890) 2,100,074 (151,596) - - - - - - - - - 263,500 - (866,890) 21,323 21,323 21,323 (845,567) - - - 2,100,074 (151,596) 263,500 44,012,408 (43,138,732) 4,118,528 (550,660) 4,441,544 Issued Capital $ Accumulated Losses $ Share Based Payment Reserves $ Foreign Currency Translation Reserves $ Total $ 40,584,296 (41,609,060) 3,855,028 (517,196) 2,313,068 - - - (662,782) - (662,782) 1,589,961 (110,327) - - - - - - - - (662,782) (54,787) (54,787) (54,787) (717,569) - - 1,589,961 (110,327) 42,063,930 (42,271,842) 3,855,028 (571,983) 3,075,133 The above statement of changes in equity should be read in conjunction with the accompanying notes. Renegade Exploration Limited 29 2018 Annual Report Renegade Exploration Limited Notes to the financial statements for the financial year ended 30 June 2018 1. Corporate Information The financial report of Renegade Exploration Limited (“Renegade” or “the Company”) and its subsidiaries (“the Group”) for the year ended 30 June 2018 was authorised for issue in accordance with a resolution of the Directors on 28 September 2018. Renegade Exploration Limited is a public company limited by shares incorporated and domiciled in Australia whose shares are publicly traded on the Australian Securities Exchange. It is a “for profit” entity. The nature of the operations and principal activities of the Group are described in the Directors’ report. 2. Going Concern The financial statements have been prepared on a going concern basis which the directors believe to be appropriate. The directors are confident that the Group will be able to maintain sufficient levels of working capital to continue as a going concern and continue to pay its debts as and when they fall due. For the year ended 30 June 2018, the Group incurred a loss before tax of $866,890 (2017: loss of $662,782) and incurred net cash inflows of $1,149,737 (2017: $470,481). At 30 June 2018, the Group had net current assets of $2,022,594 (2017: $1,032,486). The financial report has been prepared on the going concern basis, which contemplates continuity of normal business activities and realisation of assets and settlement of liabilities in the ordinary course of business. The Group’s ability to continue as a going concern is dependent upon it maintaining sufficient funds for its operations and commitments. The Directors continue to be focused on meeting the Group’s business objectives and is mindful of the funding requirements to meet these objectives. The Directors consider the basis of going concern to be appropriate for the following reasons: • • • • • The current cash of the Group relative to its fixed and discretionary commitments; The contingent nature of certain of the Group’s project expenditure commitments; The ability of the Group to terminate certain agreements without any further on-going obligation beyond what has accrued up to the date of termination; The underlying prospects for the Group to raise funds from the capital markets; and The fact that future exploration and evaluation expenditure are generally discretionary in nature (ie. at the discretion of the Directors having regard to an assessment of the progress of works undertaken to date and the prospects for the same). Subject to meeting certain expenditure commitments, further exploration activities may be slowed or suspended as part of the management of the Group’s working capital. The Directors are confident that the Group can continue as a going concern and as such are of the opinion that the financial report has been appropriately prepared on a going concern basis. Should the Group be unable to undertake the initiatives disclosed above, there is uncertainty which may cast doubt as to whether or not the Group will be able to continue as a going concern and whether it will realise its assets and extinguish its liabilities in the normal course of business and at the amounts stated in the financial statements. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts nor to the amounts and classification of liabilities that might be necessary should the Group not continue as a going concern. Renegade Exploration Limited 30 2018 Annual Report Renegade Exploration Limited Notes to the financial statements for the financial year ended 30 June 2018 3. Summary of Significant Accounting Policies Basis of Preparation The financial report is a general purpose financial report, which has been prepared in accordance with the requirements of the Corporations Act 2001, Australian Accounting Standards and other authoritative pronouncements of the Australian Accounting Standards Board. The financial report has also been prepared on a historical cost basis. The financial report is presented in Australian dollars. During the current period the Group modified the Consolidated Statement of Profit or Loss and Other Comprehensive Income to further disaggregate and clarify the nature of costs incurred. Comparative amounts were reclassified for consistency, which resulted in no impact on prior period total expenses. (a) Compliance Statement The financial report complies with Australian Accounting Standards as issued by the Australian Accounting Standards Board and International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board. (b) New accounting standards and interpretations New and revised accounting requirement applicable to the current reporting period The Group has considered the implications of new and amended Accounting Standards but determined that their application to the financial statements is either not relevant or not material. New accounting standards and interpretations issued but not yet effective The following applicable accounting standards and interpretations have been issued or amended but are not yet effective. The Company has not elected to early adopt any new Standards or Interpretations. The adoption of the Standards or Interpretations are not expected to have material impact on the financial statements of the Group. Renegade Exploration Limited 31 2018 Annual Report Application date of Standard* 1 January 2018 Application date for Group* 1 July 2018 Renegade Exploration Limited Notes to the financial statements for the financial year ended 30 June 2018 Reference Title Summary AASB 139 Financial Instruments: Recognition and Measurement AASB 9 Financial Instruments (December 2014) [Also refer to AASB 2013-9 and AASB 2014-1 below] AASB 9 introduces new requirements for the classification and measurement of financial assets and liabilities and includes a forward- looking ‘expected loss’ impairment model and a substantially-changed approach to hedge accounting. These requirements improve and simplify the approach for classification and measurement of financial assets compared with the requirements of AASB 139. The main changes are: (a) Financial assets that are debt instruments will be classified based on (1) the objective of the entity’s business model for managing the financial assets; and (2) the characteristics of the contractual cash flows. (b) Allows an irrevocable election on initial recognition to present gains and losses on investments in equity instruments that are not held for trading in other comprehensive income (instead of in profit or loss). Dividends in respect of these investments that are a return on investment can be recognised in profit or loss and there is no impairment or recycling on disposal of the instrument. (c) Introduces a ‘fair value through other comprehensive income’ measurement category for particular simple debt instruments. (d) Financial assets can be designated and measured at fair value through profit or loss at initial recognition if doing so eliminates or significantly reduces a measurement or recognition inconsistency that would arise from measuring assets or liabilities, or recognising the gains and losses on them, on different bases. (e) Where the fair value option is used for financial liabilities the change in fair value is to be accounted for as follows: • The change attributable to changes in credit risk are presented in other comprehensive income (OCI); and • The remaining change is presented in profit or loss. If this approach creates or enlarges an accounting mismatch in the profit or loss, the effect of the changes in credit risk are also presented in profit or loss. Otherwise, the following requirements have generally been carried forward unchanged from AASB 139 into AASB 9: • Classification and measurement of financial liabilities; and • Derecognition requirements for financial assets and liabilities. Renegade Exploration Limited 32 2018 Annual Report Renegade Exploration Limited Notes to the financial statements for the financial year ended 30 June 2018 Reference Title Summary Application date of Standard* Application date for Group* 1 January 2018 1 July 2018 AASB 15 Revenue from Contracts with Customers AASB 9 requirements regarding hedge accounting represent a substantial overhaul of hedge accounting that will enable entities to better reflect their risk management activities in the financial statements. Furthermore, AASB 9 introduces a new impairment model based on expected credit losses. The model makes use of more forward- looking information and applies to all financial instruments that are subject to impairment accounting. AASB 15 Revenue from Contracts with Customers replaces the existing revenue recognition standards AASB 111 Construction Contracts, AASB 118 Revenue and related Interpretations AASB 15 specifies the accounting treatment for revenue arising from contracts with customers (except for contracts within the scope of other accounting standards such as leases or financial instruments).The core principle of AASB 15 is that an entity recognises revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. An entity recognises revenue in accordance with that core principle by applying the following steps: (a) Step 1: Identify the contract(s) with a customer (b) Step 2: Identify the performance obligations in the contract (c) Step 3: Determine the transaction price (d) Step 4: Allocate the transaction price to the performance obligations in the contract (e) Step 5: Recognise revenue when (or as) the entity satisfies a performance obligation. AASB 2014-5 incorporates the consequential amendments to a number Australian Accounting Standards (including Interpretations) arising from the issuance of AASB 15. Renegade Exploration Limited 33 2018 Annual Report Application date of Standard* Application date for Group* 1 January 2019 1 July 2019 Renegade Exploration Limited Notes to the financial statements for the financial year ended 30 June 2018 Reference Title Summary AASB 16 Leases AASB 16 replaces AASB 117 Leases and related interpretations. The key features of AASB 16 are as follows: Lessee accounting • Lessees are required to recognise assets and liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value. • A lessee measures right-of-use assets similarly to other non-financial assets and lease liabilities similarly to other financial liabilities. • Assets and liabilities arising from a lease are initially measured on a present value basis. The measurement includes non- cancellable lease payments (including inflation-linked payments), and also includes payments to be made in optional periods if the lessee is reasonably certain to exercise an option to extend the lease, or not to exercise an option to terminate the lease. • AASB 16 contains disclosure requirements for lessees. Lessor accounting • AASB 16 substantially carries forward the lessor accounting requirements in AASB 117. Accordingly, a lessor continues to classify its leases as operating leases or finance leases, and to account for those two types of leases differently. • AASB 16 also requires enhanced disclosures to be provided by lessors that will improve information disclosed about a lessor’s risk exposure, particularly to residual value risk. The new standard will be effective for annual periods beginning on or after 1 January 2019. Early application is permitted, provided the new revenue standard, AASB 15 Revenue from Contracts with Customers, has been applied, or is applied at the same date as AASB 16. Renegade Exploration Limited 34 2018 Annual Report Application date of Standard* Application date for Group* 1 January 2022 1 July 2022 1 January 2018 1 July 2018 Renegade Exploration Limited Notes to the financial statements for the financial year ended 30 June 2018 Reference Title Summary AASB 2014- 10 AASB 2016-5 Amendments to Australian Accounting Standards – Sale or Contribution of Assets between an Investor and its Associate or Joint Venture Amendments to Australian Accounting Standards – Classification and Measurement of Share-based Payment Transactions 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 investor’s interests in the associate or joint venture. AASB 2015-10 deferred the mandatory effective date (application date) of AASB 2014-10 so that the amendments were required to be applied for annual reporting periods beginning on or after 1 January 2018 instead of 1 January 2016. AASB 2017-5 further defers the effective date of the amendments made in AASB 2014-10 to periods beginning on or after 1 January 2022. This Standard amends AASB 2 Share-based Payments, 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. *Designates the beginning of the applicable annual reporting period unless otherwise stated (c) Basis of Consolidation The consolidated financial statements incorporate all of the assets, liabilities and results of the parent (Renegade Exploration Limited) and all of the subsidiaries. Subsidiaries are entities the parent controls. The parent controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. A list of the subsidiaries is provided in Note 9. The assets, liabilities and results of all subsidiaries are fully consolidated into the financial statements of the Group from the date on which control is obtained by the Group. The consolidation of a subsidiary is discontinued from the date that control ceases. Intercompany transactions, balances and unrealised gains or losses on transactions between Group entities are fully eliminated on consolidation. Accounting policies of subsidiaries have been changed and adjustments made where necessary to ensure uniformity of the accounting policies adopted by the Group. Equity interests in a subsidiary not attributable, directly or indirectly, to the Group are presented as “non controlling interests". The Group initially recognises non-controlling interests that are present ownership interests in subsidiaries and are entitled to a proportionate share of the subsidiary's net assets on liquidation at either fair value or at the non-controlling interests' proportionate share of the subsidiary's net assets. Subsequent to initial recognition, non-controlling interests are attributed Renegade Exploration Limited 35 2018 Annual Report Renegade Exploration Limited Notes to the financial statements for the financial year ended 30 June 2018 their share of profit or loss and each component of other comprehensive income. Non-controlling interests are shown separately within the equity section of the statement of financial position and statement of comprehensive income. (d) Income tax Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the balance date. Deferred income tax is provided for on all temporary differences at balance date between the tax base of assets and liabilities and their carrying amounts for financial reporting purposes. No deferred income tax will be recognised from the initial recognition of goodwill or of an asset or liability, excluding a business combination, where there is no effect on accounting or taxable profit or loss. No deferred income tax will be recognised in respect of temporary differences associated with investments in subsidiaries if the timing of the reversal of the temporary difference can be controlled and it is probable that the temporary differences will not reverse in the near future. Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or liability is settled. Deferred tax is credited to Profit or Loss except where it relates to items that may be credited directly to equity, in which case the deferred tax is adjusted directly against equity. 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 tax profits will be available against which deductible temporary differences can be utilised. The amount of benefits brought to account or which may be realised in the future is based on tax rates (and tax laws) that have been enacted or substantially enacted at the balance date and the anticipation that the Group will derive sufficient future assessable income to enable the benefit to be realised and comply with the conditions of deductibility imposed by the law. The carrying amount of deferred tax assets is reviewed at each balance date and only recognised to the extent that sufficient future assessable income is expected to be obtained. Income taxes relating to items recognised directly in equity are recognised in equity and not in the Profit or Loss. (e) Cash and cash equivalents Cash and cash equivalents in the Statement of Financial Position include cash on hand, deposits held at call with banks and other short term highly liquid investments with original maturities of three months or less. Bank overdrafts are shown as current liabilities in the Statement of Financial Position. For the purpose of the Statement of Cash Flows, cash and cash equivalents consist of cash and cash equivalents as described above, net of outstanding bank overdrafts. (f) Trade and other receivables Trade receivables, which generally have 30-90 day terms, are recognised and carried at original invoice amount less an allowance for any uncollectible amounts. Collectability of trade receivables is reviewed on an ongoing basis. Individual debts that are known to be uncollectible are written off when identified. An impairment provision is recognised when there is objective evidence that the Group will not Renegade Exploration Limited 36 2018 Annual Report Renegade Exploration Limited Notes to the financial statements for the financial year ended 30 June 2018 be able to collect the receivable. Financial difficulties of the debtor, default payments or debts more than 60 days overdue are considered objective evidence of impairment. The amount of the impairment loss is the receivable carrying amount compared to the present value of estimated future cash flows, discounted at the original effective interest rate. (g) Property, plant and equipment Each class of property, plant and equipment is carried at cost less, where applicable, any accumulated depreciation and impairment losses. Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the group and the cost of the item can be measured reliably. Repairs and maintenance expenditure is charged to Profit or Loss during the financial period in which it is incurred. Depreciation The depreciable amount of most of the fixed assets are depreciated on a diminishing balance method and some of the fixed assets are depreciated on a straight line basis over their useful lives to the Group commencing from the time the asset is held ready for use. The depreciation rates used for each class of depreciable assets are: Class of Fixed Asset Plant and equipment Computer Equipment Furniture and Fittings Camp Buildings Depreciation Rate 10% to 25% 45% 20 10% The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting date. Derecognition Additions of property, plant and equipment is derecognised upon disposal or when no further future economic benefits are expected from its use or disposal. Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are recognised in the Profit or Loss. Impairment Carrying values of plant and equipment are reviewed at each balance date to determine whether there are any objective indicators of impairment that may indicate the carrying values may be impaired. Where an asset does not generate cash flows that are largely independent it is assigned to a cash generating unit and the recoverable amount test applied to the cash generating unit as a whole. Recoverable amount is determined as the greater of fair value less costs to sell and value in use. The assessment of value in use considers the present value of future cash flows discounted using an appropriate pre-tax discount rate reflecting the current market assessments of the time value of money and risks specific to the asset. If the carrying value of the asset is determined to be in excess of its recoverable amount, the asset or cash generating unit is written down to its recoverable amount. Renegade Exploration Limited 37 2018 Annual Report Renegade Exploration Limited Notes to the financial statements for the financial year ended 30 June 2018 (h) Exploration expenditure Exploration and evaluation expenditure incurred by or on behalf of the Group is accumulated separately for each area of interest. Such expenditure comprises net direct costs and an appropriate portion of related overhead expenditure, but does not include general overheads or administrative expenditure not having a specific nexus with a particular area of interest. Each area of interest is limited to a size related to a known or probable mineral resource capable of supporting a mining operation. Exploration and evaluation expenditure for each area of interest is carried forward as an asset provided that one of the following conditions is met: • • such costs are expected to be recouped through successful development and exploitation of the area of interest or, alternatively, by its sale; or exploration and evaluation activities in the area of interest 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 relation to the area are continuing. Expenditure which fails to meet the conditions outlined above is written off, furthermore, the directors regularly review the carrying value of exploration and evaluation expenditure and make write downs if the values are not expected to be recoverable. Identifiable exploration assets acquired are recognised as assets at their cost of acquisition, as determined by the requirements of AASB 6 Exploration for and Evaluation of Mineral Resources. Exploration assets acquired are reassessed on a regular basis and these costs are carried forward provided that at least one of the conditions referred to in AASB 6 is met. Exploration and evaluation expenditure incurred subsequent to acquisition in respect of an exploration asset acquired, is accounted for in accordance with the policy outlined above for exploration expenditure incurred by or on behalf of the entity. Acquired exploration assets are not written down below acquisition cost until such time as the acquisition cost is not expected to be recovered. When an area of interest is abandoned, any expenditure carried forward in respect of that area is written off. Expenditure is not carried forward in respect of any area of interest/mineral resource unless the Group’s rights of tenure to that area of interest are current. (i) Impairment of non-financial assets The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any such indication exists, or when annual impairment testing for an asset is required, the Group makes an estimate of the asset’s recoverable amount. An asset’s recoverable amount is the higher of its fair value less costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or categories of assets and the asset's value in use cannot be estimated to be close to its fair value. In such cases the asset is tested for impairment as part of the cash generating unit to which it belongs. When the carrying amount of an asset or cash-generating unit exceeds its recoverable amount, the asset or cash-generating unit is considered impaired and is written down to its recoverable amount. Renegade Exploration Limited 38 2018 Annual Report Renegade Exploration Limited Notes to the financial statements for the financial year ended 30 June 2018 In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Impairment losses relating to continuing operations are recognised in those expense categories consistent with the function of the impaired asset unless the asset is carried at revalued amount (in which case the impairment loss is treated as a revaluation decrease). An assessment is also made at each reporting date as to whether there is any indication that previously recognised impairment losses may no longer exist or may have decreased. If such indication exists, the recoverable amount is estimated. A previously recognised impairment loss is reversed only if there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognised. If that is the case the carrying amount of the asset is increased to its recoverable amount. That increased amount cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years. Such reversal is recognised in profit or loss unless the asset is carried at revalued amount, in which case the reversal is treated as a revaluation increase. After such a reversal the depreciation charge is adjusted in future periods to allocate the asset’s revised carrying amount, less any residual value, on a systematic basis over its remaining useful life. (j) Trade and other payables Liabilities for trade creditors and other amounts are measured at amortised cost, which is the fair value of the consideration to be paid in the future for goods and services received that are unpaid, whether or not billed to the Group. (k) Contributed equity Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds. Incremental costs directly attributable to the issue of new shares or options, or for the acquisition of a business, are included in the cost of the acquisition as part of the purchase consideration. (l) Revenue Revenue is recognised and measured by the fair value of the consideration received or receivable to the extent that it is probable that the economic benefits will flow to the Group and the revenue is capable of being reliably measured. The following specific recognition criteria must also be met before revenue is recognised: Interest income Revenue is recognised as the interest accrues (using the effective interest method, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial instrument) to the net carrying amount of the financial asset. (m) Earnings per share Basic earnings per share Basic earnings per share is calculated by dividing the profit or loss attributable to equity holders of the Group, excluding any costs of servicing equity other than dividends, by the weighted average number of ordinary shares, adjusted for any bonus elements. Diluted earnings per share Diluted earnings per share is calculated as net profit or loss attributable to members of the Group, adjusted for: • costs of servicing equity (other than dividends); Renegade Exploration Limited 39 2018 Annual Report Renegade Exploration Limited Notes to the financial statements for the financial year ended 30 June 2018 • the after tax effect of dividends and interest associated with dilutive potential ordinary shares that have been recognised as expenses; and • other non-discretionary changes in revenues or expenses during the period that would result from the dilution of potential ordinary shares. divided by the weighted average number of ordinary shares and dilutive potential ordinary shares, adjusted for any bonus elements. (n) Share based payment transactions The Group provides benefits to individuals acting as, and providing services similar to employees (including Directors) of the Group in the form of share based payment transactions, whereby individuals render services in exchange for shares or rights over shares (‘equity settled transactions’). There is currently an Employee Share Option Plan (ESOP) in place, which provides benefits to Directors and individuals providing services similar to those provided by an employee. The cost of these equity settled transactions with employees is measured by reference to the fair value at the date at which they are granted. The fair value is determined by using the Black Scholes formula taking into account the terms and conditions upon which the instruments were granted, as discussed in note 24. In valuing equity settled transactions, no account is taken of any performance conditions, other than conditions linked to the price of the shares of Renegade Exploration Limited (‘market conditions’). The cost of the equity settled transactions is recognised, together with a corresponding increase in equity, over the period in which the performance conditions are fulfilled, ending on the date on which the relevant employees become fully entitled to the award (‘vesting date’). The cumulative expense recognised for equity settled transactions at each reporting date until vesting date reflects (i) the extent to which the vesting period has expired and (ii) the number of awards that, in the opinion of the Directors of the group, will ultimately vest. This opinion is formed based on the best available information at balance date. No adjustment is made for the likelihood of the market performance conditions being met as the effect of these conditions is included in the determination of fair value at grant date. The profit or loss charge or credit for a period represents the movement in cumulative expense recognised at the beginning and end of the period. No expense is recognised for awards that do not ultimately vest, except for awards where vesting is conditional upon a market condition. Where the terms of an equity settled award are modified, as a minimum an expense is recognised as if the terms had not been modified. In addition, an expense is recognised for any increase in the value of the transaction as a result of the modification, as measured at the date of the modification. Where an equity settled award is cancelled, it is treated as if it had vested on the date of the cancellation, and any expense not yet recognised for the award is recognised immediately. However if a new award is substituted for the cancelled award, and designated as a replacement award on the date that it is granted, the cancelled and new award are treated as if they were a modification of the original award, as described in the previous paragraph. The dilutive effect, if any, of outstanding options is reflected in the computation of loss per share (see note 19). Renegade Exploration Limited 40 2018 Annual Report Renegade Exploration Limited Notes to the financial statements for the financial year ended 30 June 2018 (o) Goods and Services Tax Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Tax Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the Statement of Financial Position are shown inclusive of GST. The net amount of GST recoverable from, or payable to, the Australian Tax Office is included as part of receivables or payables in the Statement of Financial Position. Cash flows are presented in the Statement of Cash Flows on a gross basis, except for the GST component of investing and financing activities, which is receivable from or payable to the ATO, are disclosed as operating cash flows. (p) Investments in controlled entities All investments are initially recognised at cost, being the fair value of the consideration given and including acquisition charges associated with the investment. Subsequent to the initial measurement, investments in controlled entities are carried at cost less accumulated impairment losses. Foreign currency translation (q) Functional and presentation currency Items included in the financial statements of each entity within the Group are measured using the currency of the primary economic environment in which the entity operates (‘the functional currency’). The functional and presentation currency of Renegade Exploration Limited is Australian dollars. The functional currency of the overseas subsidiary is Canadian dollars. Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the profit or loss. Group entities The results and financial position of all the Group entities (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows: • • • • assets and liabilities are translated at the closing rate at the date of that Statement of Financial Position; income and expenses are translated at average exchange rates (unless this is not a reasonable approximation of the rates prevailing on the transaction dates, in which case income and expenses are translated at the dates of the transactions); retained earnings are translated at the exchange rates prevailing at date of transaction; and all resulting exchange differences are recognised as a separate component of equity. On consolidation, exchange differences arising from the translation of any net investment in foreign entities, and of borrowings and other financial instruments designated as hedges of such investments, are taken to shareholders’ equity. When a foreign operation is sold the exchange differences relating to that entity are recognised in the profit or loss, as part of the gain or loss on sale where applicable. Renegade Exploration Limited 41 2018 Annual Report Renegade Exploration Limited Notes to the financial statements for the financial year ended 30 June 2018 (r) Leases Leases of fixed assets where substantially all the risks and benefits incidental to the ownership of the asset, but not the legal ownership, that are transferred to entities in the economic entity are classified as finance leases. Finance leases are capitalised by recording an asset and a liability at the lower of the amounts equal to the fair value of the leased property or the present value of the minimum lease payments, including any guaranteed residual values. Lease payments are allocated between the reduction of the lease liability and the lease interest expense for the period. Leased assets are depreciated on a straight-line basis over their estimated useful lives where it is likely that the Group will obtain ownership of the asset or over the term of the lease. Leases are classified as operating leases where substantially all the risks and benefits remain with the lessor. Payments in relation to operating leases are charged as expenses in the periods in which they are incurred. Lease incentives under operating leases are recognised as a liability and amortised on a straight-line basis over the life of the lease term. (s) Segment reporting Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Board of Directors of Renegade Exploration Limited. (t) Provisions Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Where the Group expects some or all of a provision to be reimbursed, for example under an insurance contract, the reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain. The expense relating to any provision is presented in the profit or loss net of any reimbursement. If the effect of the time value of money is material, 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 where appropriate, the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost. (u) Fair Value Hierachy Financial assets and financial liabilities measured at fair value in the statement of financial position are grouped into three (3) levels of a fair value hierarchy. The three (3) levels are defined based on the observability of significant inputs to the measurement, as follows: • • • Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly Level 3: unobservable inputs for the asset or liability At balance date the Group does not have financial assets or financial liabilities subject to this criteria and carrying values are assumed to approximate fair values. Renegade Exploration Limited 42 2018 Annual Report Renegade Exploration Limited Notes to the financial statements for the financial year ended 30 June 2018 Fair Value of Assets and Liabilities (v) The Group measures some of its assets and liabilities at fair value on either a recurring or non-recurring basis, depending on the requirements of the applicable Accounting Standard. Fair value is the price the Group would receive to sell an asset or would have to pay to transfer a liability in an orderly (i.e. unforced) transaction between independent, knowledgeable and willing market participants at the measurement date. As fair value is a market-based measure, the closest equivalent observable market pricing information is used to determine fair value. Adjustments to market values may be made having regard to the characteristics of the specific asset or liability. The fair values of assets and liabilities that are not traded in an active market is determined using one or more valuation techniques. These valuation techniques maximise, to the extent possible, the use of observable market data. To the extent possible, market information is extracted from either the principal market for the asset or liability (i.e. the market with the greatest volume and level of activity for the asset or liability) or, in the absence of such a market, the most advantageous market available to the entity at the end of the reporting period (i.e. the market that maximises the receipts from the sale of the asset or minimises the payments made to transfer the liability, after taking into account transaction costs and transport costs). For non-financial assets, the fair value measurement also takes into account a market participant's ability to use the asset in its highest and best use or to sell it to another market participant that would use the asset in its highest and best use. These valuation techniques maximise, to the extent possible, the use of observable market data. If all significant inputs required to measure fair value are observable, the asset or liability is included in Level 2. If one or more significant inputs are not based on observable market data, the asset or liability is included in Level3. The Group would change the categorisation within the fair value hierarchy only in the following circumstances: (i) if a market that was previously considered active (Level 1) became inactive (Level 2 or Level 3) or vice versa; or (ii) if significant inputs that were previously unobservable (Level3) became observable (Level2) or vice versa. When a change in the categorisation occurs, the Group recognises transfers between levels of the fair value hierarchy (i.e. transfers into and out of each level of the fair value hierarchy) on the date the event or change in circumstances occurred. Financial Instruments (w) The Group initially recognises financial assets on the trade date at which the Group becomes a party to a contractual provision of the instrument. Financial assets are initially measured at cost. If the financial asset is not subsequently measured at fair value through profit or loss, the initial measurement includes transaction costs that are directly attributed to the asset's acquisition. The Group subsequently measures financial assets at either amortised costs or fair value. A financial asset is subsequently measured at amortised cost using the effective interest method and net of any impairment loss, if: • • The asset is held with an objective to collect cash flows; and The contractual terms give rise to cash flows that are solely payments of principal and interest. Financial assets other than those classified as financial assets measured at amortised costs are subsequently measured at fair value with all changes in fair value recognised in profit or loss. Renegade Exploration Limited 43 2018 Annual Report Renegade Exploration Limited Notes to the financial statements for the financial year ended 30 June 2018 All financial liabilities are recognised initially on the trade date at which the Group becomes a party to the contractual provisions of the instrument. Non derivative financial liabilities are recognised at amortised cost, comprising debt less principal payment and amortisation. The Group derecognises a financial liability when its contractual obligations are discharged, cancelled or expire. Financial assets and financial liabilities are offset when the Group has a legal right to offset the amounts and intends either to settle on a net basis or to realise the assets and settle the liability simultaneously. 4. Critical accounting estimates and judgments Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that may have a financial impact on the entity and that are believed to be reasonable under the circumstances. The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. Determination of mineral resources and ore reserves Renegade Exploration Limited estimates its mineral resources and ore reserves in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves 2004 (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 the reserves being restated. Such changes in reserves could impact on depreciation and amortisation rates, asset carrying values, deferred stripping costs and provisions for decommissioning and restoration. Capitalised exploration and evaluation expenditure The future recoverability of capitalised exploration and evaluation expenditure is dependent on a number of factors, including whether the Group decides to exploit the related lease itself or, if not, whether it successfully recovers the related exploration and evaluation asset through sale. Factors which could impact the future recoverability include the level of proved, probable and inferred mineral 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, this will reduce profits and net assets in the period in which this determination is made. In addition, exploration and evaluation expenditure is capitalised if activities in the area of interest have not yet reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves. To the Renegade Exploration Limited 44 2018 Annual Report Renegade Exploration Limited Notes to the financial statements for the financial year ended 30 June 2018 extent that it is determined in the future that this capitalised expenditure should be written off, this will reduce profits and net assets in the period in which this determination is made. Share based payment transactions The Group measures the cost of equity settled transactions with employees by reference to the fair value of the equity instruments at the date at which they are granted. The fair value is determined by using the Black Scholes formula taking into account the terms and conditions upon which the instruments were granted, as discussed in note 24. Functional currency translation reserve Under the Accounting Standards, each entity within the Group is required to determine its functional currency, which is the currency of the primary economic environment in which the entity operates. Management considers the Canadian subsidiary to be a foreign operation with Canadian dollars as the functional currency. In arriving at this determination, management has given priority to the currency that influences the labour, materials and other costs of exploration activities as they consider this to be a primary indicator of the functional currency. Deferred taxation Deferred tax assets are only recognised for deductible temporary differences and unused tax losses when management considers that it is probable that future taxable profits will be available to utilise those assets. 5. Other expenses General office expenses Printing and stationary Telecommunications Employee salaries/benefits Others Consolidated 2018 $ 1,300 8,021 1,433 - 15,243 25,997 2017 $ 2,245 8,084 1,457 12,664 5,307 29,757 Renegade Exploration Limited 45 2018 Annual Report Renegade Exploration Limited Notes to the financial statements for the financial year ended 30 June 2018 6. Income Tax (a) Income tax expense Current tax Deferred tax (b) Numerical reconciliation between aggregate tax expense recognised in the statement of profit or loss and other comprehensive income and tax expense calculated per the statutory income tax rate A reconciliation between tax expense and the product of accounting profit before income tax multiplied by the Company’s applicable tax rate is as follows: (Loss) from operations before income tax expense Tax at the company rate of 27.5% (2017:27.5%) Other non-deductible expenses Income tax benefit not brought to account Income tax expense (c) Deferred tax Statement of financial position The following deferred tax balances have not been brought to account: Liabilities Capitalised exploration and evaluation expenditure Accrued income Offset by deferred tax assets Deferred tax liability recognised Assets Consolidated 2018 $ 2017 $ - - - - - - (866,890) (238,395) - (662,782) (182,265) - 238,395 182,265 - - 626,324 514,580 - - (626,324) (514,580) - - Losses available to offset against future taxable income (at 27.5%) 12,493,587 12,233,245 Fx loss Share issue cost deductible over five years Accrued expenses Deferred tax assets offset against deferred tax liabilities Deferred tax assets not brought to account as realisation is not regarded as probable Deferred tax asset recognised Unused tax losses Potential tax benefit of unused tax losses not recognised at 27.5% (2017: 27.5%) (151,432) 66,637 58,532 - - 3,850 12,467,324 12,237,095 (626,324) (514,580) (11,841,000) (11,722,515) - - 43,058,183 42,627,327 11,841,000 11,722,515 Renegade Exploration Limited 46 2018 Annual Report Renegade Exploration Limited Notes to the financial statements for the financial year ended 30 June 2018 The benefit for tax losses will only be obtained if: (i) the Company derives future assessable income in Australia of a nature and of an amount sufficient to enable the benefit from the deductions for the losses to be realised; (ii) the Company continues to comply with the conditions for deductibility imposed by tax legislation in Australia; and (iii) no changes in tax legislation in Australia, adversely affect the Company in realising the benefit from the deductions for the losses. (e) Tax consolidation Renegade Exploration has not formed a tax consolidation group and there is no tax sharing agreement. 7. Other Receivables and Prepayments - Current GST / VAT receivable Prepayments Consolidated 2018 $ 29,264 46,829 76,093 2017 $ 43,219 10,746 53,965 Trade debtors, other debtors and goods and services tax are non-interest bearing and generally receivable on 30 day terms. They are neither past due nor impaired. The amount is fully collectible. Due to the short term nature of these receivables, their carrying value is assumed to approximate their fair value. 8. Property, Plant and Equipment Plant and Equipment Cost Accumulated depreciation Net carrying amount Camp Buildings Cost Accumulated depreciation Net carrying amount Total property, plant and equipment Cost Accumulated depreciation Net carrying amount Consolidated 2018 $ 141,966 (88,764) 53,202 2017 $ 144,955 (89,148) 55,807 335,958 331,817 (230,584) (216,178) 105,374 115,639 477,924 476,772 (319,348) (305,326) 158,576 171,446 Renegade Exploration Limited 47 2018 Annual Report Renegade Exploration Limited Notes to the financial statements for the financial year ended 30 June 2018 Reconciliations of the carrying amounts of property, plant and equipment at the beginning and end of the current financial year: Plant and Equipment Carrying amount at beginning of year Additions Depreciation expense Net exchange differences on translation Carrying amount at end of year Camp Buildings Carrying amount at beginning of year Additions Depreciation expense Net exchange differences on translation Carrying amount at end of year Consolidated 2018 $ 2017 $ 55,807 2,369 (5,505) 531 53,202 64,173 - (6,201) (2,165) 55,807 Consolidated 2018 $ 2017 $ 115,639 132,977 - (11,366) 1,101 105,374 - (12,849) (4,489) 115,639 Total property, plant and equipment 158,576 171,446 9. Investments in subsidiaries The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance with the accounting policy described in note 3 (c). Details of subsidiaries are as follows: Name Country of incorporation % Equity Interest Overland Resources Yukon Limited Canada Overland Resources (BC) Limited Canada 2018 100% 100% 2017 100% 100% 10. Other Receivables – Non Current Consolidated Advance to supplier 2018 $ 228,330 228,330 2017 $ 225,515 225,515 Other receivables represent an advance for demobilisation. The amount has been fully provided, refer note 12(b). Renegade Exploration Limited 48 2018 Annual Report Renegade Exploration Limited Notes to the financial statements for the financial year ended 30 June 2018 11. Deferred Exploration and Evaluation Expenditure Exploration and evaluation expenditure At cost Accumulated provision for impairment Total exploration and evaluation Carrying amount at beginning of the year Exploration and evaluation expenditure during the year Impairment/written off Reclassified as assets held for sale1 Net exchange differences on translation Carrying amount at end of year Consolidated 2018 $ 2017 $ 34,144,501 32,850,186 (31,884,127) (30,978,985) 2,260,374 1,871,201 1,871,201 1,476,557 742,989 444,478 (355,631) (17,168) - - 18,983 (49,834) 2,260,374 1,871,201 1In January 2018, the Company executed a binding term sheet with Rafaella Resources Ltd for sale of its McCleery Project. Therefore the McCleery Project has been classified as assets held for sale. The sale was completed in July 2018. The Directors’ assessment of the carrying amount for the Group’s exploration and development expenditure was after consideration of prevailing market conditions; previous expenditure for exploration work carried out; and the potential for mineralisation based on the Group’s independent geological reports. The recoverability of the carrying amount of the deferred exploration and evaluation expenditure is dependent on successful development and commercial exploitation, or alternatively the sale, of the respective areas of interest. In June 2012, the Company announced it was suspending mine permit activities associated with the Yukon Base Metal Project. 12. Current Liabilities (a) Trade payables1 Trade and other payables Accruals Consolidated 2018 $ 2017 $ 130,384 216,762 347,146 48,138 104,000 152,138 Due to the short term nature of these payables, their carrying value is assumed to approximate their fair value. Renegade Exploration Limited 49 2018 Annual Report Renegade Exploration Limited Notes to the financial statements for the financial year ended 30 June 2018 (b) Provisions (Non-current) Consolidated 2018 $ 2017 $ Provision for prepayment of demobilisation costs (refer 228,330 225,515 note 10) 13. Contributed Equity (a) Issued and paid up capital Ordinary shares fully paid 228,330 225,515 Consolidated 2018 $ 2017 $ 44,012,408 42,063,930 2018 Number of shares 2017 Number of shares $ $ (b) Movements in ordinary shares on issue Balance at beginning of year 514,239,963 42,063,930 354,343,236 40,584,296 Share Issue at $0.007941 on 16 December 2016 Share Issue at $0.012 on 17 March 2017 Entitlement Issue at $0.01 on 13 April 2017 Entitlement Issue at $0.01 on 21 April 2017 Share Issue at $0.009 on 28 June 2017 Share Issue at $0.0115 on 28 June 2017 - - - - - - - - - - - - Share Issue at $0.00604 on 09 October 2017 16,568,498 100,074 Share Issue at $0.011 on 12 March 2018 132,702,115 1,459,723 Share Issue at $0.011 on 30 April 2018 49,116,062 540,277 Transaction costs on share issue - (151,596) 12,592,872 10,000,000 67,264,391 58,380,978 8,180,225 3,478,261 - - - - 100,000 120,000 672,643 583,810 73,508 40,000 - - - (110,327) 712,626,638 44,012,408 514,239,963 42,063,930 (c) Ordinary shares The Group does not have authorised capital nor par value in respect of its issued capital. Ordinary shares have the right to receive dividends as declared and, in the event of a winding up of the Company, to participate in the proceeds from sale of all surplus assets in proportion to the number of and amounts paid up on shares held. Ordinary shares entitle their holder to one vote, either in person or proxy, at a meeting of the Company. (d) Capital Risk Management Renegade Exploration Limited 50 2018 Annual Report Renegade Exploration Limited Notes to the financial statements for the financial year ended 30 June 2018 The Group’s capital comprises share capital, reserves less accumulated losses amounting to $4,441,544 at 30 June 2018 (2017: $3,075,133). The Group manages its capital to ensure its ability to continue as a going concern and to optimise returns to its shareholders. The Group was ungeared at year end and not subject to any externally imposed capital requirements. Refer to note 23 for further information on the Group’s financial risk management policies. (e) Share options At 30 June 2018, there were 56,568,498 unissued ordinary shares under options (2017: 10,000,000 options). During the financial year 46,568,498 options were issued and no options expired. No options were exercised during the financial year. Since the end of the financial year, no options have been issued, exercised or expired. No option holder has any right under the options to participate in any other share issue of the Company or any other entity. Information relating to the Renegade Exploration Limited Employee Share Option Plan, including details of options issued under the plan, is set out in note 24. 14. Accumulated losses Movements in accumulated losses were as follows: At 1 July Loss for the year At 30 June 15. Reserves Share based payments reserve Foreign currency translation reserve Movement in reserves: Share based payments reserve Balance at beginning of year Equity benefits expense Balance at end of year Consolidated 2018 $ 2017 $ 42,271,842 41,609,060 866,890 662,782 43,138,732 42,271,842 Consolidated 2018 $ 2017 $ 4,118,528 3,855,028 (550,660) (571,983) 3,567,868 3,283,045 3,855,028 3,855,028 263,500 - 4,118,528 3,855,028 The Share based payments reserve is used to record the value of equity benefits provided to individuals acting as employees and directors as part of their remuneration, provided to brokers as a fee for services provided in respect of an entitlement issue, Initial Public Offer underwriting agreement and for the exercising of the option to purchase the Yukon Base Metal Project. Refer to note 24(b) for details of share based payments during the financial year and prior year. Renegade Exploration Limited 51 2018 Annual Report Consolidated Renegade Exploration Limited Notes to the financial statements for the financial year ended 30 June 2018 Foreign currency translation reserve At 1 July Foreign currency translation Balance at end of year 2018 $ 2017 $ (571,983) (517,196) 21,323 (54,787) (550,660) (571,983) The foreign currency translation reserve is used to record the currency difference arising from the translation of the financial statements of the foreign operation. 16. Cash and Cash Equivalents (a) Reconciliation of cash Cash balance comprises: Cash and cash equivalents (b) Reconciliation of the net loss after tax to the net cash flows from operations Net loss after tax Adjustments for: Share Based Payment Creditors settled by issue of shares Provision for impairment of exploration expenditure Sale of fixed assets Changes in operating assets and liabilities: (Increase) in other receivables/prepayments Increase in trade and other payables Net cash flow used in operating activities 17. Expenditure commitments (a) Expenditure commitments Consolidated 2018 $ 2017 $ 2,280,396 1,130,659 (866,890) (662,782) 163,500 - 355,631 (3,060) 210,000 40,000 - - (22,128) 199,633 (26,516) 23,832 (173,314) (415,466) Under the terms and conditions of being granted exploration licenses, the Group may have annual commitments for the term of the license. These are as follows: Australia Canada (b) Services agreement Within one year Consolidated 2018 $ 185,000 - 185,000 2017 $ 102,547 4,210 106,757 - - - - Renegade Exploration Limited 52 2018 Annual Report Renegade Exploration Limited Notes to the financial statements for the financial year ended 30 June 2018 18. Subsequent events The sale of McCleery Mineral has been completed in July 2018. The Company has received 500,000 Ordinary Shares of Rafaella Resources Ltd. Other than this, there are no matters or circumstances have arisen since the end of the financial period which significantly affected or may significantly affect the operations of the Company, the results of those operations, or the state of affairs of the Company in future financial years. Consolidated 2018 $ 2017 $ 19. Loss per share Loss used in calculating basic and dilutive EPS (866,890) (662,782) Number of Shares 2018 2017 Weighted average number of ordinary shares used in calculating basic earnings / (loss) per share: 574,424,609 389,616,690 Effect of dilution: Share options Adjusted weighted average number of ordinary - - shares used in calculating diluted loss per share: 574,424,609 389,616,690 Basic and Diluted loss per share (cents per share) (0.15) (0.17) There is no impact from the 56,568,498 options outstanding at 30 June 2018 (2017: 10,000,000 options) on the loss per share calculation because they are anti-dilutive. These options could potentially dilute basic EPS in the future. There have been no transactions involving ordinary shares or potential ordinary shares that would significantly change the number of ordinary shares or potential ordinary shares outstanding between the reporting date and the date of completion of these financial statements. 20. Auditor’s remuneration The auditor of Renegade Exploration Limited and its subsidiaries is Stantons International Audit and Consulting Pty Ltd Amounts received or due and receivable by Stantons International Audit and Consulting Pty Ltd for: Audit or review of the financial report of the Company Consolidated 2018 $ 34,225 34,225 2017 $ 24,618 24,618 Renegade Exploration Limited 53 2018 Annual Report Renegade Exploration Limited Notes to the financial statements for the financial year ended 30 June 2018 21. Key Management Personnel Disclosures (a) Details of Key Management Personnel Mr. Robert Kirtlan Chairman – appointed 23 May 2017 Mr. Peter Voulgaris Non-Executive Director – appointed 24 November 2017 Mr. Mark Wallace Non-Executive Director – appointed 25 June 2017 Mr. Ben Vallerine Chief Executive Officer – appointed 6 December 2016 Mr. Hugh Bresser Non-Executive Director – resigned 24 November 2017 Ms. Beverley Nichols Company Secretary/Chief Financial Officer – resigned 31 August 2017 (b) Remuneration of Key Management Personnel Details of the nature and amount of each element of the emolument of each Director and Executive of the Group for the financial year are as follows: Short term employee benefits Share based payments Total remuneration 22. Related Party Disclosures Consolidated 2018 $ 2017 $ 188,200 73,500 219,858 210,000 261,700 429,858 The ultimate parent entity is Renegade Exploration Limited. Refer to Note 9 Investments in subsidiaries for a list of all subsidiaries. Payments to related parties during the period: (i) ARK Securities & Investments Pty Ltd, a company of which Robert Kirtlan is a director, was paid 7,500,000 unlisted options, exercisable at $0.025, expiring 31 March 2021, pursuant to the EIP. Also, South Shore Group Pty Ltd, a company of which Robert Kirtlan is a director, was paid 7,500,000 unlisted options, exercisable at $0.035, expiring 31 March 2021, pursuant to the EIP. (ii) Sierra Whiskey Pty Limited, a company of which Mark Wallace is a director, was paid 7,500,000 unlisted options, exercisable at $0.025, expiring 31 March 2021 and 7,500,000 unlisted options, exercisable at $0.035, expiring 31 March 2021, pursuant to the EIP. Renegade Exploration Limited has undertaken a commercial arrangement with Vault Intelligence Limited where Robert Kirtlan is a director for Vault Intelligence Limited. The arrangement is for a sub-lease of commercial premises by Renegade Exploration Limited which is Vault intelligence Limited’s registered office at commercial terms equal to the lease terms received by Renegade Exploration Limited in an arms-length transaction with a third party, being the lessor of the main lease. During the year, the total rent and outgoing payment to Vault Intelligence is $22,371. There were no other related party disclosures for the year ended 30 June 2018 (2017: Nil). Renegade Exploration Limited 54 2018 Annual Report Renegade Exploration Limited Notes to the financial statements for the financial year ended 30 June 2018 23. Financial Instruments and Financial Risk Management Exposure to interest rate, liquidity and credit risk arises in the normal course of the Group’s business. The Group does not hold or issue derivative financial instruments. The Company uses different methods as discussed below to manage risks that arise from financial instruments. The objective is to support the delivery of the financial targets while protecting future financial security. (a) Liquidity Risk Liquidity risk is the risk that the Group will encounter difficulty in meeting obligations associated with financial liabilities. The Group manages liquidity risk by maintaining sufficient cash facilities to meet the operating requirements of the business and investing excess funds in highly liquid short term investments. The responsibility for liquidity risk management rests with the Board of Directors. Alternatives for sourcing our future capital needs include our cash position and the issue of equity instruments. These alternatives are evaluated to determine the optimal mix of capital resources for our capital needs. We expect that in absence of a material adverse change in a combination of our sources of liquidity, present levels of liquidity will be adequate to meet our expected capital needs. Maturity analysis for financial liabilities Financial liabilities of the Group comprise trade and other payables. As at 30 June 2018 and 30 June 2017, all financial liabilities are contractually matured within 60 days. (b) Interest Rate Risk Interest rate risk arises from the possibility that changes in interest rates will affect future cash flows or the fair value of financial instruments. The Group’s exposure to market risk for changes to interest rate risk relates primarily to its earnings on cash and term deposits. The Group manages the risk by investing in short term deposits. Cash and cash equivalents Interest rate sensitivity Consolidated 2018 $ 2017 $ 2,280,396 1,130,659 The following table demonstrates the sensitivity of the Group’s statement of profit or loss and other comprehensive income to a reasonably possible change in interest rates, with all other variables constant. Renegade Exploration Limited 55 2018 Annual Report Renegade Exploration Limited Notes to the financial statements for the financial year ended 30 June 2018 Consolidated Change in Basis Points Judgements of reasonably possible movements Increase 100 basis points Decrease 100 basis points Effect on Post Tax Loss Effect on Equity Increase/(Decrease) including accumulated losses 2018 $ 22,804 (22,804) 2017 $ 11,307 (11,307) Increase/(Decrease) 2018 $ 22,804 (22,804) 2017 $ 11,307 (11,307) A sensitivity of 100 basis points has been used as this is considered reasonable given the current level of both short term and long term interest rates. The change in basis points is derived from a review of historical movements and management’s judgement of future trends. The analysis was performed on the same basis in 2017. (c) Credit Risk Exposures Credit risk represents the risk that the counterparty to the financial instrument will fail to discharge an obligation and cause the Group to incur a financial loss. The Group’s maximum credit exposure is the carrying amounts on the statement of financial position. The Group holds financial instruments with credit worthy third parties. At 30 June 2018, the Group held cash and bank deposits. Cash and short term deposits were held with financial institutions with a rating from Standard & Poors of A or above (long term). The Group has no past due or impaired debtors as at 30 June 2018 (2017: Nil). At 30 June 2018, the Group held an advance to supplier of CAD$225,000. The advance to supplier is for demobilisation services. The balance has been fully provided (Refer note 10 & 12(b)). (d) Foreign Currency Risk Exposure As a result of operations in Canada and expenditure in Canadian dollars, the Group’s statement of financial position can be affected by movements in the CAD$/AUD$ exchange rates. The Group seeks to mitigate the effect of its foreign currency exposure by holding cash in Canadian dollars to match expenditure commitments. Sensitivity analysis: The table below summarises the FX exposure on the net monetary position of parent and the subsidiary against its respective functional currency, expressed in group’s presentation currency. If the AUD/ CAD rates moved by +10%, the effect on comprehensive loss would be as follows: Financial Assets denominated in foreign currency in the books of 2018 2017 Renegade Exploration Limited Australia Loan to subsidiary Overland Resources Yukon Limited (in CAD), net of provision for impairment 1,692,562 1,706,035 Loan to subsidiary Overland Resources Yukon Limited (in AUD), net of provision for impairment 1,717,622 1,709,940 Percentage shift of the AUD / CAD exchange rate Total effect on comprehensive loss of positive movements Total effect on comprehensive loss of negative movements 10% A$ 190,846 (156,147) 10% A$ 189,993 (155,449) Renegade Exploration Limited 56 2018 Annual Report Renegade Exploration Limited Notes to the financial statements for the financial year ended 30 June 2018 (e) Fair Value The aggregate net fair values of the Consolidated Entity’s financial assets and financial liabilities both recognised and unrecognised are as follows: Carrying Amount in the Aggregate Net Carrying Amount in the Aggregate Net Financial Statements Fair Value Financial Statements Fair Value 2018 $ 2018 $ 2017 $ 2017 $ 2,280,396 2,280,396 1,130,659 1,130,659 257,594 257,594 268,734 268,734 351,063 351,063 152,138 152,138 Financial Assets Cash Assets Receivables Financial Liabilities Payables The following methods and assumptions are used to determine the net fair value of financial assets and liabilities. Cash assets and financial assets and financial liabilities are carried at amounts approximating fair value because of their short term nature to maturity. 24. Share Based Payment Plans (a) Recognised share based payment expenses Total share based payment transactions recognised during the year were as follows: Consolidated Shares Issued Shares issued for introducing The Trojan Gold Project Performance shares to be issued for introducing The Trojan Gold Project 16,568,498 Share issued in pursuant to the option to purchase 75% of the Yandal East gold project Options Issued Options issued in pursuant to the option to purchase 75% of the Yandal East gold project Options issued to Directors 2018 $ - - 100,073 100,073 100,0002 163,500 263,500 2017 $ 120,000 90,0001 - 210,000 - - - 1$90,000 accrued for finder’s fee payable to CEO Mr. Ben Vallerine through issue of 15 million performance shares for introduction of the Trojan Gold Project. The company has not issued the shares due to the Termination of Heads of Agreement – Trojan Gold Project. 2 16,568,498 options issued for Yandel East Option were valued at a deemed value of $100,000.00 Renegade Exploration Limited 57 2018 Annual Report Renegade Exploration Limited Notes to the financial statements for the financial year ended 30 June 2018 (b) Share based payment to employees The Group has established an employee share option plan (ESOP). The objective of the ESOP is to assist in the recruitment, reward, retention and motivation of employees of the Company. Under the ESOP, the Directors may invite individuals acting in a manner similar to employees to participate in the ESOP and receive options. An individual may receive the options or nominate a relative or associate to receive the options. The plan is open to executive officers and employees of the Group. Details of options granted under ESOP are as follows: 2018 Grant date Expiry date Exercise Balance at Granted Exercised Expired Balance at Exercisable at end price start of the during the during the during the end of the of the year year year year year year Number Number Number Number Number Number 26/04/18 31/03/21 $0.025 26/04/18 31/03/21 $0.035 Weighted remaining contractual life (years) Weighted average exercise price - - - - - 15,000,000 15,000,000 30,000,000 - - - - - - 15,000,000 15,000,000 15,000,000 15,000,000 30,000,000 30,000,000 - - 2.75 2.75 $0.30 $0.30 During the financial year no options were issued. The fair value at grant date of options granted in previous reporting periods was determined using the Black Scholes option pricing model that takes into account the exercise price, the term of the option, the share price at grant date and expected price volatility of the underlying share and the risk free interest rate for the term of the option. 2017 Grant Expiry date Exercise Balance at Granted Exercised Expired Balance at Exercisable at end date price start of the during the during the during the end of the of the year 23/12/11 01/12/16 $0.25 year year year year year Number Number Number Number Number Number 9,700,000 9,700,000 - - - - (9,700,000) (9,700,000) - - - - Weighted remaining contractual life (years) 1.42 Weighted average exercise price $0.25 - - - - - - During the financial year no options were issued. The fair value at grant date of options granted in previous reporting periods was determined using the Black Scholes option pricing model that takes into account the exercise price, the term of the option, the share price at grant date and expected price volatility of the underlying share and the risk free interest rate for the term of the option. Renegade Exploration Limited 58 2018 Annual Report Renegade Exploration Limited Notes to the financial statements for the financial year ended 30 June 2018 (c) Other share based payments The table below summaries options granted to suppliers: 2018 Grant Expiry date Exercise Balance at Granted Exercised Expired Balance at Exercisable at end date price start of the during the during the during the end of the of the year year year year year year Number Number Number Number Number Number 21/04/16 20/04/19 $0.007 10,000,000 - 09/10/17 19/01/20 $0.00754 - 16,568,4981 10,000,000 16,568,498 - - - - - - 10,000,000 10,000,000 16,568,498 16,568,498 26,568,498 26,568,498 Weighted remaining contractual life (years) 1.81 Weighted average exercise price $0.007 1.27 1.27 $0.0073 $0.0073 1For acquisition of option over Yandal Gold project. The company also issued 16,568,498 shares to Zebina Minerals Pty Ltd as option fee for option over Yandal Gold project. 2017 Grant Expiry date Exercise Balance at Granted Exercised Expired Balance at Exercisable at end date price start of the during the during the during the end of the of the year year year year year year Number Number Number Number Number Number 21/04/16 20/04/19 $0.007 10,000,000 Weighted remaining contractual life (years) 10,000,000 2.81 Weighted average exercise price $0.007 - - - - - - 10,000,000 10,000,000 10,000,000 10,000,000 1.81 1.81 $0.007 $0.007 25. Yandal East Gold Project – Acquisition Terms Renegade has executed a binding agreement with Zebina Minerals Pty Ltd (Vendor) whereby Renegade has an option to acquire 75% of the Project on or before 28th February 2019. The terms option are as follows: Earn-in Phase: 1. Renegade will issue the Vendor A$100,000 of RNX scrip, based on the volume weighted average price (VWAP) for the month of August 2017 (Option Shares). The shares will be escrowed for 12 months. The shares were issued on 9th October 2017. 2. Renegade will also issue to the Vendor an equal number of unlisted options (Options) to acquire RNX shares. The Options will have an exercise price of $0.00754, and will expire 24 months from the date of satisfaction on waiver of the last of the condition precedent as per agreement. The options were issued on 19th January 2018. 3. Renegade is required to undertake A$350,000 worth of expenditure on the Project within the 18 month option period. Renegade Exploration Limited 59 2018 Annual Report Renegade Exploration Limited Notes to the financial statements for the financial year ended 30 June 2018 Execution Phase: 4. Upon issuance of its notice of intent to exercise the option Renegade will issue the Vendor an additional A$400,000 of RNX scrip, at a 10% discount to the 20-day VWAP prior to notice of intent. 50% of the shares will be escrowed for 6 months with the balance escrowed for 12 months. 26. Contingent Liabilities There are no known contingent liabilities as at 30 June 2018 (2017: Nil). 27. Operating Segment For management purposes, the Group is organised into two geographical operating segment, Australia and Canada, which involves mining exploration for zinc. All of the Group’s activities are interrelated, and discrete financial information is reported to the Board (Chief Operating Decision Makers) as a single segment. Accordingly, all significant operating decisions are based upon analysis of the Group as one segment. The financial results from this segment are equivalent to the financial statements of the Group as a whole. The Group operates in Australia and Canada. As at 30 June 2018, the total non-current assets in Canada and Australia are $1,933,287 and $713,992 respectively (30 June 2017: $2,060,270 and $207,892 respectively). The following table shows the assets and liabilities of the Group by geographic region: Current Assets Australia Canada Non Current Assets Australia Canada Total Assets Current Liabilities Australia Canada Non Current Liabilities Australia Canada Total Liabilities 28. Dividends 2018 $ 2017 $ 2,363,444 1,165,727 10,213 18,897 1,933,287 350,330 713,993 1,917,832 5,020,937 3,452,786 336,347 150,876 14,716 1,262 - 228,330 579,393 - 225,515 377,653 No dividend was paid or declared by the Company in the period since the end of the financial year and up to the date of this report. The Directors do not recommend that any amount be paid by way of dividend for the financial year ended 30 June 2018 (2017: Nil). The balance of the franking account as at 30 June 2018 is Nil (2017: Nil). Renegade Exploration Limited 60 2018 Annual Report Renegade Exploration Limited Notes to the financial statements for the financial year ended 30 June 2018 29. Information relating to Renegade Exploration Limited (“the parent entity”) Current assets Non-current assets Total assets Current liabilities Total liabilities Net assets Issued capital Accumulated losses Share based payment reserve (Loss) of the parent entity Total comprehensive (loss) of the parent entity Guarantees entered into by the parent entity in relation to the debts of its subsidiaries Guarantees provided Contingent liabilities of the parent entity Commitment for the acquisition of property, plant and equipment by the parent entity Not longer than one year Longer than one year and not longer than five years Longer than five years 2018 $ 2017 $ 2,346,276 1,165,726 2,431,625 2,060,281 4,777,901 3,226,007 336,346 336,346 150,874 150,874 4,441,555 3,075,133 44,012,408 42,063,930 (43,689,381) (42,843,825) 4,118,528 3,855,028 4,441,555 3,075,133 (845,556) (717,569) (845,556) (717,569) - - - - - - - - - - - - - - Renegade Exploration Limited 61 2018 Annual Report Renegade Exploration Limited DIRECTORS' DECLARATION In accordance with a resolution of the directors of Renegade Exploration Limited, I state that: In the opinion of the directors: (a) the financial statements and notes of 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 year ended on that date; and (ii) complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Regulations 2001; (b) the financial statements and notes also comply with International Financial Reporting Standards as disclosed in note 3(a); and (c) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable. (d) this declaration has been made after receiving the declarations required to be made to the Directors in accordance with section 295A of the Corporations Act 2001 for the financial year ended 30 June 2018. On behalf of the Board Robert Kirtlan Chairman 28 September 2018 Renegade Exploration Limited 62 2018 Annual Report PO Box 1908 West Perth WA 6872 Australia Level 2, 1 Walker Avenue West Perth WA 6005 Australia Tel: +61 8 9481 3188 Fax: +61 8 9321 1204 ABN: 84 144 581 519 www.stantons.com.au Stantons International Audit and Consulting Pty Ltd trading as Chartered Accountants and Consultants 28 September 2018 Board of Directors Renegade Exploration Limited Suite 5, Level 1 12-20 Railway Road SUBIACO WA 6008 Dear Directors RE: RENEGADE EXPLORATION LIMITED In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the following declaration of independence to the directors of Renegade Exploration Limited. As Audit Director for the audit of the financial statements of Renegade Exploration Limited for the year ended 30 June 2018, I declare that to the best of my knowledge and belief, there have been no contraventions of: (i) the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and (ii) any applicable code of professional conduct in relation to the audit. Yours sincerely STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD (Trading as Stantons International) (An Authorised Audit Company) Martin Michalik Director Liability limited by a scheme approved under Professional Standards Legislation Stantons International Audit and Consulting Pty Ltd trading as Chartered Accountants and Consultants PO Box 1908 West Perth WA 6872 Australia Level 2, 1 Walker Avenue West Perth WA 6005 Australia Tel: +61 8 9481 3188 Fax: +61 8 9321 1204 ABN: 84 144 581 519 www.stantons.com.au INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF RENEGADE EXPLORATION LIMITED Report on the Audit of the Financial Report Opinion We have audited the financial report of Renegade Exploration Limited (Formerly Overland Resources Limited), the Company and its subsidiaries (“the Group”), which comprises the consolidated statement of financial position as at 30 June 2018, the consolidated statement of comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and the directors' declaration. In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001, including: (i) giving a true and fair view of the Group’s financial position as at 30 June 2018 and of its financial performance for the year then ended; and (ii) complying with Australian Accounting Standards and the Corporations Regulations 2001. Basis for Opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board's APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Key Audit Matters We have determined the matters described below to be Key Audit Matter to be communicated in our report. 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. Liability limited by a scheme approved under Professional Standards Legislation Key Audit Matters How the matter was addressed in the audit Carrying value of deferred exploration and evaluation expenditure As at 30 June 2018, deferred exploration and evaluation expenditure totalled $2,260,374 (refer to Note 11 of the financial report). The carrying value of deferred exploration and evaluation expenditure is a key audit matter due to:    The significance of the total balance (45% of total assets); to assess management’s The necessity the requirements of the application of accounting standard Exploration for and Evaluation of Mineral Resources (“AASB 6”), in light of any indicators of impairment that may be present; and The assessment of significant judgements made by management the to evaluation exploration capitalised expenditure. in relation and Inter alia, our audit procedures following: included the i. Assessing the Group’s right to tenure over exploration assets by corroborating the ownership of the relevant licences for mineral resources to government registries and relevant third-party documentation; ii. Reviewing the directors’ assessment of the carrying value of the exploration and evaluation the veracity of costs, ensuring the data presented and that management have considered the effect of potential impairment indicators, commodity prices and the stage of the Group’s projects also against AASB 6; iii. Evaluation of Group documents for consistency with the intentions for continuing exploration and evaluation activities in areas of interest and corroborated with interviews with management. The documents we evaluated included:  Minutes of the board and management; and  Announcements made by the Group to the Australian Securities Exchange; and iv. Consideration of the requirements of accounting standard AASB 6 and reviewed the financial statements to ensure appropriate disclosures are made. Other Information The directors are responsible for the other information. The other information comprises the information included in the Group's annual report for the year ended 30 June 2018, but does not include the financial report and our auditor's report thereon. Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Directors for the Financial Report The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or has no realistic alternative but to do so. Auditor's Responsibilities for the Audit of the Financial Report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. As part of an audit in accordance with Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation of the financial report that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Directors, as well as evaluating the overall presentation of the financial report. We conclude on the appropriateness of the Directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern. We evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation. We obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the financial report. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion. We communicate with the Directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. The Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements. We also provide the Directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with the Directors, we determine those matters that were of most significance in the audit of the financial report of the current period and are therefore key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. Report on the Remuneration Report Opinion on the Remuneration Report We have audited the Remuneration Report included in pages 20 to 24 of the directors’ report for the year ended 30 June 2018. In our opinion, the Remuneration Report of Renegade Exploration Limited for the year ended 30 June 2018 complies with section 300A of the Corporations Act 2001. Responsibilities The directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards. STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD (Trading as Stantons International) (An Authorised Audit Company) Martin Michalik Director West Perth, Western Australia 28 September 2018 Renegade Exploration Limited ASX Additional Information Additional information required by the Australian Securities Exchange Limited Listing Rules and not disclosed elsewhere in this report. The additional information was applicable as at 21 September 2018. DISTRIBUTION OF SECURITY HOLDERS Analysis of numbers of listed equity security holders by size of holding: Category 1 1,001 5,001 10,001 100,001 - - - - 1,000 5,000 10,000 100,000 and over Number of Shareholders 29 10 16 173 386 614 Units 3,739 28,283 129,150 11,840,607 700,624,859 712,626,638 There are 245 shareholders holding less than a marketable parcel of ordinary shares. STATEMENT OF RESTRICTED SECURITIES There are 16,568,498 restricted securities as at 21 September 2018. SUBSTANTIAL SHAREHOLDERS The substantial shareholders of the Company are as follows: Name Sierra Whiskey Pty Ltd VOTING RIGHTS Number of equity securities 43,600,000 The voting rights attached to each class of equity security are as follows: ORDINARY SHARES Each ordinary share is entitled to one vote when a poll is called otherwise each member present at a meeting or by proxy has one vote on a show of hands. OPTIONS These securities have no voting rights. Renegade Exploration Limited 68 2018 Annual Report Renegade Exploration Limited TOP 20 SHAREHOLDERS Name of Holder 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. SIERRA WHISKEY PTY LIMITED NERO RESOURCE FUND PTY LTD MR ANTON WASYL MAKARYN + MRS MELANIE FRANCES MAKARYN ABROLHOS EDGE PTY LTD ZEBINA MINERALS PTY LTD MR PAUL NOBLE BENNETT BARTORILLA ENTERPRISES PTY LTD ZEBINA MINERALS PTY LTD MR JEREMY TOBIAS MR PAUL NOBLE BENNETT THIRD REEF PTY LTD JETOSEA PTY LTD RESOURCE INVESTMENT CAPITAL HOLDINGS PTY LTD PERSHING AUSTRALIA NOMINEES PTY LTD TOLTEC HOLDINGS PTY LTD MR BENJAMIN MATHEW VALLERINE MR BENJAMIN MATHEW VALLERINE WESTERN DISCOVERY PTY LTD CAP HOLDINGS PTY LTD MR TROY MITCHELL O'KEEFE Number of Percentage of Share s Held 43,600,000 19,590,896 19,209,127 12,592,872 11,343,527 10,933,236 10,170,000 10,080,000 9,292,975 8,627,940 8,400,000 8,394,846 8,180,225 8,000,000 6,666,667 6,666,667 6,500,000 6,191,833 6,040,000 6,000,000 226,480,811 Capital 8.48 3.81 3.74 2.45 2.21 2.13 1.98 1.96 1.81 1.68 1.63 1.63 1.59 1.56 1.30 1.30 1.26 1.20 1.17 1.17 44.06 Unquoted Equity Securities Class Number of securities Number of holders Holders with more than 20% Options exercisable at $0.007 on or before 20 April 2019 10,000,000 1 D. J. Carmichael Pty Ltd Renegade Exploration Limited 69 2018 Annual Report 

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