Renegade Exploration Limited
Annual Report 2019

Plain-text annual report

ABN 92 114 187 978 Annual Report 30 June 2019 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 13 14 22 23 24 25 26 27 57 58 59 63 Renegade Exploration Limited 2019 Annual Report CORPORATE DIRECTORY Directors Mr. Robert Kirtlan (Non-Executive Chairman) Mr. Mark Wallace (Non-Executive Director) Mr. Peter Voulgaris (Non-Executive Director) 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 Facsimile: (+61 8) 9388 0097 Share Register Automic Registry Services Level 5, 126 Phillip Street, Sydney NSW 2000 Telephone: (02) 9698 5414 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 Solicitors Corrs Chambers Westgarth Level 6, Brookfield Place Tower 2 123 St Georges Terrace Perth WA 6000 Renegade Exploration Limited 1 2019 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. This program was then followed up with a second program consisting of 53 aircore holes for a further 6,131m at the Ward, Mizna (South) and Millrose Extension prospects. 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 (Note: Coralie Jean tenements not part of the package, see below in “Acquisition Details”) Renegade Exploration Limited 2 2019 Annual Report Operations Report Acquisition Details The Company acquired an eighteen 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 was required to issue $400,000 in Renegade shares at a 10% discount to the 20 day volume weighted average price on or 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. The original terms of the Option Agreement (“Agreement”) required the Company to issue $400,000 worth of shares at a 10% discount to the twenty-day VWAP upon exercise of the Agreement. The Company renegotiated the Agreement as follows: Payment of $150,000; The return of the Coralie Jean prospect to the vendor; and A once only milestone issue of $300,000 worth of shares, at a 10% discount to the twenty-day VWAP in the Company upon a decision to mine. The exercise of the Option Agreement now means the Company has entered into a Joint Venture (JV) with Zebina on terms (previously announced on 5 September 2017) comprising: The Company has earned a full 75% interest in the JV; The Company has full control over the JV; Zebina is free carried to decision to mine; and Zebina has an option to dilute to a 1% NSR upon decision to mine if it chooses not to contribute. Figure 2: Current package of tenements Renegade Exploration Limited 3 2019 Annual Report Operations Report Ward Prospect At the Ward Prospect, the Company completed 19 holes for 2,207m in the second aircore drilling program. The holes were drilled along strike from significant mineralisation identified in the inaugural aircore program earlier in 2018. Drilling was undertaken within a 600m un-drilled corridor where 19 holes comprising 3 lines spaced 100m apart (Figure 2 and 3). Thick, significant mineralisation was returned from multiple holes, the better intercepts include; 23m @ 1.38 g/t Au from 84m, including, o 8m @ 2.04 g/t Au from 84m (YEAC0317) 20m @ 1.02 g/t Au from 88m (YEAC0313) 10m @ 0.95 g/t Au from 90m (YEAC0306) 60m @ 0.21 g/t Au from 60m (YEAC0312) Figure 3. Location and drilling at the Ward and Mizina South prospects The southern end of the mineralisation was previously interpreted to be closed off immediately north of a small dry lake. The Company drilled a single line on the very northern-edge of the lake in July and intersected significant mineralisation Renegade Exploration Limited 4 2019 Annual Report Operations Report including 6m @ 1.40 g/t Au from 82m and 4m @ 1.55 g/t Au from 61m. The Company determined the mineralisation to likely be continuous and still open with a 600m un-drilled corridor which was the focus for the November program at Ward. The corridor is immediately south of some of the best drilling intercepts at Yandal East including 13m @ 3.1 g/t Au from 61m. With only one third of the 600m corridor obscured by the lake, the November drilling focused on the easily accessible 400m south of the lake. The Company is excited by the results from this corridor and notably the thickness, including intervals of 23m @ 1.38 g/t Au from 84m and 20m @ 1.02 g/t Au from 88m. These results confirm the prospectivity of the previously un-drilled corridor and the Company plans to continue exploration in this area to determine if higher grade, economic mineralisation can be discovered in the immediate vicinity. Figure 4. Location of drilling and significant intercepts at Ward Renegade Exploration Limited 5 2019 Annual Report Operations Report Mizina South Mizina South is one of the most exciting targets drilled in the inaugural aircore program at Yandal East in July 2018. The follow up program in November consisted of 15 holes for 1,717m. Holes were drilled on 4 new sections north and south of the previously identified mineralisation with grades up to 5.74 g/t returned (Figure 2, 4 and 5). Some of the better results include; 1m @ 5.74 g/t Au from 83m 1m @ 4.11 g/t Au from 113m 6m @ 1.67 g/t Au from 80m o 4m @ 2.31 g/t Au from 80m Figure 5. Location of drilling and significant intercepts at Mizina South Renegade Exploration Limited 6 2019 Annual Report Operations Report The original Mizina target was 7km long extending 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. Prior to 2018 only one drill line within the entire 7km strike length had been completed, returning an intersection of 4m @ 2.54 g/t Au that was never followed up. The July drilling identified significant mineralisation at Mizina South including YEAC0131 that contained abundant sulphides and quartz veining over the last 30m of the hole and returned multiple assays over 1 g/t Au from 51m depth until the hole terminated in mineralisation at 128.5m a width of 75m downhole. The final 11.5m returned an average grade of 0.80 g/t Au with individual metres up to 2.74 g/t Au. The November program has successfully delineated high grade mineralisation over 400m with values of 5.74 g/t and 4.11 g/t Au intercepted 200m and 100m south of YEAC0131. In addition 4m @ 2.31 g/t Au was intercepted 200m north of YEAC0131 with 2m @ 1.36 g/t Au 100m north. Mineralisation at Mizina South remains open in both directions with the potential for the discovery of high grade mineralisation in both directions. The Company is excited about the developing potential of the Mizina South and the greater Mizina area and looks forward to completing further work in 2019. Figure 6. Enlargement of drilling and significant intercepts at Mizina South Renegade Exploration Limited 7 2019 Annual Report Operations Report Millrose Extension Millrose Extension was first drilled in mid-2018 when three (3) lines separated by over 800m of strike length were completed, as shown in Figure 6. 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 veining within a silicified felsic schist and 4m @ 0.31 g/t Au from 72m further up hole. The hole ended in mineralisation and the hole immediately to the east encountered granite relatively shallow. The November program consisted of 19 holes for 2,207m with 2 lines either side of YEAC0246 and an additional line approximately 1,000m to the north, testing the same interpreted structure. The November drilling intersected a best result of 1m @ 0.8 g/t Au from 102m on the southern-most line 200m south of the original mineralisation. Millrose Extension remains a geologically interesting area with sulphide-bearing mafic schists, felsic schists and both silicification and quartz veining increasing towards a granite body. The internal granite may be an important control on mineralising fluids in the area. 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, the Celia Shear and other structural complexities. The Millrose Deposit is held by Bowlane Nominees (WA) Limited and contains 309,000 oz of gold @ 2.4 g/t gold. Figure 7. Location of drilling an significant intercepts at Millrose Extension Renegade Exploration Limited 8 2019 Annual Report Operations Report Table 1. Significant Intercepts from the Company’s inaugural drilling program Hole Id Sample Type Prospect Result Comment YEAC0286 YEAC0287 YEAC0287 YEAC0287 YEAC0287 YEAC0287 YEAC0287 YEAC0287 YEAC0287 YEAC0287 YEAC0289 YEAC0289 YEAC0289 YEAC0289 YEAC0289 YEAC0290 YEAC0290 YEAC0291 YEAC0291 YEAC0291 YEAC0292 YEAC0292 YEAC0294 YEAC0295 YEAC0295 YEAC0296 YEAC0296 YEAC0297 YEAC0298 YEAC0299 YEAC0299 YEAC0299 YEAC0299 YEAC0299 YEAC0300 YEAC0300 YEAC0300 YEAC0300 YEAC0300 YEAC0302 YEAC0302 YEAC0303 Individual Individual Individual Individual including Individual Individual Individual including Individual Individual Individual Individual including Individual Individual including Individual including Individual Individual Individual Individual Individual Individual Mizina South 3m @ 0.69 g/t Au from 44m Mizina South 4m @ 0.61 g/t Au from 43m Mizina South 1m @ 0.62 g/t Au from 68m Mizina South 3m @ 0.68 g/t Au from 76m Mizina South 1m @ 1.27 g/t Au from 76m Mizina South 1m @ 0.31 g/t Au from 88m Mizina South 3m @ 0.32 g/t Au from 93m Mizina South 3m @ 0.73 g/t Au from 98m Mizina South 1m @ 1.19 g/t Au from 100m Mizina South 1m @ 0.47 g/t Au from 106m Mizina South 1m @ 0.94 g/t Au from 51m Mizina South 1m @ 0.45 g/t Au from 79m Mizina South 7m @ 0.66 g/t Au from 93m Mizina South 2m @ 1.36 g/t Au from 93m Mizina South 2m @ 0.33 g/t Au from 122m Mizina South 6m @ 1.67 g/t Au from 80m Mizina South 4m @ 2.31 g/t Au from 80m Mizina South 5m @ 0.6 g/t Au from 64m Mizina South 1m @ 1.33 g/t Au from 64m Mizina South 1m @ 0.34 g/t Au from 96m Mizina South 1m @ 0.39 g/t Au from 59m Mizina South 1m @ 0.31 g/t Au from 105m Mizina South 1m @ 4.11 g/t Au from 113m Mizina South 1m @ 0.32 g/t Au from 68m Mizina South 2m @ 0.3 g/t Au from 108m Composite Mizina South 4m @ 0.46 g/t Au from 78m Individual Individual Mizina South 2m @ 0.34 g/t Au from 98m Mizina South 1m @ 0.3 g/t Au from 103m EOH mineralisation Composite Mizina South 4m @ 0.3 g/t Au from 64m Composite Mizina South 4m @ 0.61 g/t Au from 68m Individual Mizina South 1m @ 0.44 g/t Au from 77m both including Individual Individual Individual or Individual including Composite including Composite Mizina South 4m @ 1.72 g/t Au from 83m Mizina South 1m @ 5.74 g/t Au from 83m Mizina South 1m @ 0.55 g/t Au from 94m Mizina South 3m @ 0.37 g/t Au from 84m Mizina South 3m @ 0.42 g/t Au from 91m Mizina South 10m @ 0.55 g/t Au from 91m Mizina South 5m @ 0.79 g/t Au from 96m Mizina South 2m @ 1.14 g/t Au from 96m Ward Ward Ward 4m @ 0.48 g/t Au from 63m 1m @ 1.21 g/t Au from 66m EOH mineralisation 4m @ 0.43 g/t Au from 84m Renegade Exploration Limited 9 2019 Annual Report Operations Report Hole Id Sample Type Prospect Result Comment YEAC0304 YEAC0304 YEAC0305 YEAC0305 YEAC0305 YEAC0306 YEAC0306 YEAC0306 YEAC0312 YEAC0312 YEAC0312 YEAC0313 YEAC0313 YEAC0314 YEAC0314 YEAC0314 YEAC0316 YEAC0317 YEAC0317 YEAC0317 YEAC0318 YEAC0318 YEAC0318 YEAC0336 Individual Individual Composite Composite Individual both including Individual Composite Composite or Composite Composite Composite Composite Composite Individual both including Individual Composite Composite Individual Individual Ward Ward Ward Ward Ward Ward Ward Ward Ward Ward Ward Ward Ward Ward Ward Ward Ward Ward Ward Ward Ward Ward Ward 1m @ 0.32 g/t Au from 75m 1m @ 0.31 g/t Au from 112m EOH mineralisation 4m @ 0.37 g/t Au from 76m 4m @ 1.39 g/t Au from 88m 2m @ 0.52 g/t Au from 101m 14m @ 0.79 g/t Au from 90m 10m @ 0.95 g/t Au from 90m 1m @ 0.39 g/t Au from 128m 4m @ 0.55 g/t Au from 60m 12m @ 0.33 g/t Au from 76m 60m @ 0.21 g/t Au from 60m 4m @ 1.08 g/t Au from 68m 20m @ 1.02 g/t Au from 88m 4m @ 0.31 g/t Au from 81m 4m @ 0.72 g/t Au from 93m 2m @ 0.39 g/t Au from 105m 2m @ 0.43 g/t Au from 104m 23m @ 1.38 g/t Au from 84m 8m @ 2.04 g/t Au from 84m 1m @ 0.36 g/t Au from 116m 4m @ 0.38 g/t Au from 68m 4m @ 1.09 g/t Au from 84m 2m @ 0.64 g/t Au from 128m Millrose Ext 1m @ 0.8 g/t Au from 102m Table 1 lists the significant intercepts from the recent drilling at Yandal East. The intersections for Table 1 were calculated using a 0.2 g/t Au cut off with a maximum of 1m of internal waste included and a minimum final value of 0.3 g/t Au. A sample from the aircore rig is collected every metre and the entire sample is passed through a splitter with part of the sample going to a bucket and placed on the ground. The other part is collected in a calico bag and placed alongside the bucket sample. The supervising geologist then has the option to sample either a 4m composite or a 1m split based upon their observation of the sample. The sample type is specified in Table 1. Table 2 only shows a comparison of those holes that previously reported significant intercepts from composites that have changed as a result of assaying re-splits. YUKON BASE METAL PROJECT, CANADA During 2019 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. The permit is also subject to a five-year renewal. The Company completed all necessary and prerequisite actions and at the time of releasing this report awaits confirmation from the Yukon Mines Department that the permit has been extended. 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. Renegade Exploration Limited 10 2019 Annual Report Operations Report 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 2). 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 6.0 1,670,000 4.8 Darcy Darin Total 1.6 0.0 190,000 4.9 3,880,000 4.7 360,000 4.0 1.6 0.0 0.2 0.1 6,650,000 5,550,000 360,000 5.8 4.7 4.0 12,560,000 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 4.6 Note: Cut off of 2% zinc and 1000mRL applied based on economic pit modelling Table 2. JORC Code 2012 compliant mineral resource estimate for the Yukon Base Metal Project There is 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. Renegade Exploration Limited 11 2019 Annual Report Operations Report Figure 10. Zinc in soil geochemistry results from samples collected over the entire Yukon Base Metal Project CORPORATE The Company had 712,626,638 ordinary shares on issue and cash and cash equivalents of A$0.8M at bank as at 30 June 2019. The Company manages its costs in accordance with the projects it holds and the requirements these projects have for either management or exploration funds. In December the Company CEO, Ben Vallerine, left the Company to take personal time and is now retained on an as required basis to provide services to the Company’s two projects. The Company engages external consultants with specific experience to its projects who provide advice as to how these projects are best managed. The Company continues to assess new opportunities presented. The board remains focused on gold and base metal projects. Renegade Exploration Limited 12 2019 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 E53/1548 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 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 13/10/2018 12/05/2021 N/A 06/05/2023 Tenement Schedule as at September 18, 2019 *The Company has a 100% interest in these specific claims and 90% in the remaining claims at the Yukon Base Metal Project Renegade Exploration Limited 13 2019 Annual Report Directors’ Report The Directors present their report for Renegade Exploration Limited (“Renegade” or “the Company”) and its subsidiaries (“the Group”) for the year ended 30 June 2019. 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 Vault Intelligence Limited (formerly Credo Resources Limited; appointed 30 November 2011), Currie Rose Resources Inc (appointed 27 October 2015 and, in the last three years has been a director of RMG Limited (appointed 29 April 2011, resigned 30 June 2019), Mr. Peter Voulgaris 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 project manager for the Pegmont Project for Vendetta Mining (TSX: VTT). 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. 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 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: Renegade Exploration Limited 14 2019 Annual Report Directors’ Report 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 $654,340 (2018: loss of $866,890). DIVIDENDS No dividend was paid or declared by the Group in the year and up to the date of this report. CORPORATE STRUCTURE Renegade Exploration Limited is a company limited by shares that is incorporated and domiciled in Australia. SIGNIFICANT CHANGE OF AFFAIRS There have been no significant change of affairs during the year ended 2019. 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 2019 (2018: no employees). REVIEW OF OPERATIONS Refer to the Operations Report preceding this Directors’ Report. SIGNIFICANT EVENTS AFTER THE REPORTING DATE 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. Renegade Exploration Limited 15 2019 Annual Report Directors’ Report SHARE OPTIONS As at the date of this report, there were 46,568,498 options over ordinary shares (46,568,498 options at the date of this report). The details of the options at the reporting date are as follows: Number 16,568,498 15,000,000 15,000,000 Exercise Price $0.00754 $0.025 $0.035 Expiry Date 19 January 2020 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 10,000,000 options expired on 20/04/19. No options were exercised during the financial year. Since the end of the financial year, no options have been issued or exercised. 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: Number of Meetings Number of Meetings Name Mr. Robert Kirtlan Mr. Peter Voulgaris Mr. Mark Wallace Eligible to Attend 4 4 4 Attended 4 4 4 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 Renegade Exploration Limited 16 2019 Annual Report Directors’ Report 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 57 of this report. There were no non-audit services provided by the Company’s auditor during the year ended 30 June 2019. 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. Details of Key Management Personnel Mr. Robert Kirtlan Chairman Mr. Peter Voulgaris Non-Executive Director Mr. Mark Wallace Non-Executive Director 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. No remuneration consultants were used during the year. 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 (cents) 2019 (0.09) 0.2 2018 (0.15) 1.1 2017 (0.17) 0.7 2016 (0.15) 0.7 2015 (16.04) 0.7 Renegade Exploration Limited 17 2019 Annual Report Directors’ Report 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: 2019 Base Directors Consulting Payments Employment Short term Share Based Post Salary Fees Fees - Options Superannuation Total Director Mr. Robert Kirtlan Mr. Peter Voulgaris2 Mr. Mark Wallace Executive Mr. Ben Vallerine (resigned 14/12/18) $ - - - - - $ - 24,000 46,000 $ 63,000 - - - 72,500 $ - (27,250) - - 70,000 135,500 (27,250) $ - - - - - $ 63,000 (3,250) 46,000 72,500 178,250 2018 Base Directors Consulting Payments Employment Short term Share Based Post Salary Fees Fees - Options Superannuation Total $ $ $ Director Mr. Robert Kirtlan Mr. Peter Voulgaris* Mr. Hugh Bresser* Mr. Mark Wallace Executive Mr. Ben Vallerine Ms. Beverley Nichols* $ - - - - - - - $ - 12,000 7,200 - - - $ - - - - 81,7501 27,2502 - 81,7501 145,000 24,000 (90,000)3 - 19,200 169,000 100,750 - - - - - - - 81,750 39,250 7,200 81,750 55,000 24,000 288,950 *Mr. Voulgaris was appointed on 24 November 2017, Mr. Bresser resigned on 24 November 2017, Ms.Nichols resigned on 31 August 2017. 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. 2During the 2018 year, 5 million options were approved by shareholders for Director Peter Voulgaris in General Meeting held on 26 April 2018. The fair value of options had been accrued as at 30 June 2018. As these options were not issued within the 12 month required period, the share based expense accrual has been reversed in 2019. 3Reversal of accrued performance shares to Ben Vallerine. Issued in year ended 30 June 2017. 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 reporting periods of KMP are as follows: Renegade Exploration Limited 18 2019 Annual Report Directors’ Report Grant Date Grant Expiry Fair Value Exercise Total Vested % Number Date/Last per Price per Value Vested 30 June 2018 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 2019 (2018: Nil). No Options were granted as part of a remuneration during the current financial year. Options were granted as part of a remuneration package in the prior year. On resignation, any unvested options will be forfeited. 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 2019 Mr. Robert Kirtlan Mr. Peter Voulgaris* Mr. Mark Wallace Mr. Ben Vallerine* 30 June 2018 Mr. Robert Kirtlan Mr. Hugh Bresser* Mr. Peter Voulgaris* Mr. Mark Wallace Mr. Ben Vallerine Ms. Beverley Nichols* 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 - 48,100,000 13,333,334 7,000,000 4,877,620 - 43,600,000 13,333,334 666,667 - - - - - - - - - - - - - - - - - - - - - - - 7,000,000 - 48,100,000 (13,333,334)1 - - - 7,000,000 4,877,6202 - 4,500,000 48,100,000 - - 13,333,3343 666,6672 *Mr. Voulgaris was appointed on 24 November 2017, Mr. Bresser resigned on 24 November 2017, Ms.Nichols resigned on 31 August 2017, Mr. Vallerine resigned on 7 December 2018. 1 At date of resignation 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: Renegade Exploration Limited 19 2019 Annual Report Directors’ Report 30 June 2019 the year compensation year year the year Balance at Granted during Exercised Expired Balance at % vested the start of the year as during the during the the end of Mr. Robert Kirtlan 15,000,000 Mr. Peter Voulgaris Mr. Mark Wallace Mr. Ben Vallerine 30 June 2018 Mr. Robert Kirtlan Mr. Hugh Bresser* Mr. Peter Voulgaris* Mr. Mark Wallace Mr. Ben Vallerine* Ms. Beverley Nichols* - 15,000,000 - - - - - - - - - - - 15,000,000 - - 15,000,000 - - - - - - - - - - - - - 15,000,000 100% - - - - 15,000,000 100% - - - - 15,000,000 100% - - - - - - - 15,000,000 100% - - - - - - *Mr. Voulgaris was appointed on 24 November 2017, Mr. Bresser resigned on 24 November 2017, Ms.Nichols resigned on 31 August 2017, Mr. Vallerine resigned on 7 December 2018 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 former 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 left full time employment with the Company in December 2018 and provides services on a daily rate basis as required. Non-Executive Directors Mr. Peter Voulgaris is paid a base directors fee of $24,000 per annum. Mr Kirtlan and Mr Wallace have consulting agreements to the Company. Mr Kirtlan’s agreement is for 12 months and provides his services for a minimum of 10 days per month. The Fee for this service is $4,000 per month and a daily fee of $1,500 for days in excess of 10 days per month. Mr Wallace’s agreement provides his services for a minimum of 2 days per month. The Fee for this service is $2,000 per month and a daily fee of $1,000 for days in excess of 2 days per month 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 30 September 2019 Renegade Exploration Limited 20 2019 Annual Report Directors’ Report 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 21 2019 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 22 2019 Annual Report Renegade Exploration Limited Statement of Profit or Loss and Other Comprehensive Income for the year ended 30 June 2019 Notes Consolidated Revenues from operations Interest revenue Other income Gain on sale of subsidiary Profit on sale of asset Government grant received Revenue Consultants and directors’ fees Share based (payment) / reversal 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 / impairment Impairment of PPE Loss on revaluation of financial asset Loss on sale of PPE Other expenses (Loss) from operations before income tax Income tax expense (Loss) from operations after tax attributable to members of the parent entity Other comprehensive income / (loss) net of tax Items that may be reclassified subsequently to profit or loss Foreign currency translation Other comprehensive income / (loss) for the year Total comprehensive income / (loss) for the year attributable to members of the parent entity Loss per share: Basic loss per share (cents per share) Diluted loss per share (cents per share) 2019 $ 31,740 4,590 86,537 - 150,000 272,867 (173,399) 27,250 (33,389) (35,148) (29,360) (3,551) (29,564) (178) (30,952) (43,365) (2,885) (389,124) (143,223) (17,500) (170) 2018 $ 7,217 45,455 - 3,060 - 55,732 (92,804) (163,500) (34,225) (11,911) (65,062) (21,572) (31,870) (20) (26,269) (53,904) (39,857) (355,631) - - - (22,649) (25,997) (654,340) (866,890) - - (654,340) (866,890) 114,043 114,043 21,323 21,323 (540,297) (845,567) (0.09) (0.09) (0.15) (0.15) 5 14 10 6 7 18 22 22 The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes. Renegade Exploration Limited 23 2019 Annual Report Renegade Exploration Limited Statement of Financial Position as at 30 June 2019 CURRENT ASSETS Cash and cash equivalents Other receivables and prepayments Assets classified as held for sale Financial assets / Investment TOTAL CURRENT ASSETS NON CURRENT ASSETS Property, plant and equipment Other receivables Deferred exploration and evaluation expenditure Notes Consolidated 2019 $ 2018 $ 857,785 2,280,396 65,777 - 82,500 76,093 17,168 - 1,006,062 2,373,657 - 244,911 158,576 228,330 2,998,345 2,260,374 19 8 9 10 11 13 14 TOTAL NON CURRENT ASSETS 3,243,256 2,647,280 TOTAL ASSETS 4,249,318 5,020,937 CURRENT LIABILITIES Trade and other payables Liabilities classified as held for sale 15(a) 103,160 - 347,146 3,917 TOTAL CURRENT LIABILITIES 103,160 351,063 NON CURRENT LIABILITIES Provisions 15(b) 244,911 228,330 TOTAL NON CURRENT LIABILITIES - 228,330 TOTAL LIABILITIES NET ASSETS EQUITY Contributed equity Reserves Accumulated losses TOTAL EQUITY 348,071 579,393 3,901,247 4,441,544 16 18 17 44,012,408 44,012,408 3,681,911 3,567,868 (43,793,072) (43,138,732) 3,901,247 4,441,544 The above statement of financial position should be read in conjunction with the accompanying notes. Renegade Exploration Limited 24 2019 Annual Report Renegade Exploration Limited Statement of Cash Flows for the year ended 30 June 2019 Notes Consolidated 2019 $ 2018 $ CASH FLOWS FROM OPERATING ACTIVITIES Payments to suppliers and employees Interest received Other income (610,660) (225,987) 31,740 154,590 7,218 45,455 NET CASH FLOWS (USED IN) OPERATING ACTIVITIES 19(b) (424,330) (173,314) CASH FLOWS FROM INVESTING ACTIVITIES Payments for exploration & evaluation Payment for PPE Cash proceeds from sale of PPE (1,000,281) (526,044) - 2,000 (2,369) 3,060 NET CASH FLOWS (USED IN) INVESTING ACTIVITIES (998,281) (525,353) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issue of shares Transaction costs of issue of shares NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES - - - 2,000,000 (151,596) 1,848,404 Net increase / (decrease) in cash and cash equivalents (1,422,611) 1,149,737 Cash and cash equivalents at beginning of year 2,280,396 1,130,659 CASH AND CASH EQUIVALENTS AT END OF YEAR 19(a) 857,785 2,280,396 During the year there was no Non Cash Investing or Financing activity except for the sale of the McLeery Project for $100,000 received in shares of Rafaella resources Limited (Refer Note 5) The above statement of cash flows should be read in conjunction with the accompanying notes. Renegade Exploration Limited 25 2019 Annual Report Renegade Exploration Limited Statement of Changes in Equity for the year ended 30 June 2019 Consolidated At 1 July 2018 (Loss) for the year Other comprehensive income / (loss) Total comprehensive income / (loss) for the year Transactions with owners in their capacity as owners Share issue Transaction costs on share issue Share based payments At 30 June 2019 Consolidated At 1 July 2017 (Loss) for the year Other comprehensive income / (loss) Total comprehensive income / (loss) for the year Transactions with owners in their capacity as owners Share issue Transaction costs on share issue Share based payments At 30 June 2018 Issued Capital $ Accumulated Losses $ Share Based Payment Reserves $ Foreign Currency Translation Reserves $ Total $ 44,012,408 (43,138,732) 4,118,528 (550,660) 4,441,544 - - - - - (654,340) - (654,340) - - - - - - - - - (654,340) 114,043 114,043 114,043 (540,297) - - - - - - 44,012,408 (43,793,072) 4,118,528 (436,617) 3,901,247 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 The above statement of changes in equity should be read in conjunction with the accompanying notes. Renegade Exploration Limited 26 2019 Annual Report Renegade Exploration Limited Notes to the Financial Statements for the financial year ended 30 June 2019 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 2019 was authorised for issue in accordance with a resolution of the Directors on 30 September 2019. 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 2019, the Group incurred a loss before tax of $654,340 (2018: loss of $866,890) and incurred net cash outflows of $1,422,611 (2018: $1,149,737 net inflows). At 30 June 2019, the Group had net current assets of $902,902 (2018: $2,022,594). 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 27 2019 Annual Report Renegade Exploration Limited Notes to the Financial Statements for the financial year ended 30 June 2019 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, modified where applicable by the measurement of fair value of selected non-current assets, financial assets and financial liabilities. The shares in Rafaella resources are carried at fair value and not at historical cost. The financial report is presented in Australian dollars. (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 and Revised Accounting Standards Adopted by the Group The Group has adopted AASB 15 Revenue from Contracts with Customers and AASB 9 Financial Instruments which became effective for financial reporting periods commencing on or after 1 January 2018. AASB 15 Revenue from contracts with customers AASB 15 replaces AASB 118 Revenue, AASB 111 Construction Contracts and several revenue-related Interpretations. AASB 15 establishes a five-step model to account for revenue arising from contracts with customers and requires that revenue to be recognised at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer. The Group has applied the new Standard effective from 1 July 2018 using the modified retrospective approach. Under this method, the cumulative effect of initial application is recognised as an adjustment to the opening balance of retained earnings at 1 July 2018 and comparatives are not restated. The adoption of AASB 15 does not have a significant impact on the Group as the Group does not currently have any revenue from customers. AASB 9 Financial Instruments AASB 9 Financial Instruments replaces AASB 139 Financial Instruments: Recognition and Measurement for annual periods beginning on or after 1 January 2018, bringing together all three aspects of the accounting for financial instruments: classification and measurement, impairment, and hedge accounting. As a result of adopting AASB 9 Financial Instruments, the Group has amended its financial instruments accounting policies to align with AASB 9. AASB 9 makes major changes to the previous guidance on the classification and measurement of financial assets and introduces an ‘expected credit loss’ model for impairment of financial assets. There were no financial instruments which the Group designated at fair value through profit or loss under AASB 139 that were subject to reclassification. The Board assessed the Group’s financial assets and determined the application of AASB 9 does not result in a change in the classification of the Group’s financial instruments. The adoption of AASB 9 does not have a significant impact on the financial report. However the investment held in Rafaella Resources Limited has been designated at fair value through profit or loss (FVPL). Refer Note 3(z). Renegade Exploration Limited 28 2019 Annual Report Renegade Exploration Limited Notes to the financial statements for the financial year ended 30 June 2019 (c) New and revised Accounting Standards for Application in Future Periods AASB 16: Leases applies to annual reporting periods beginning on or after 1 January 2019. Interpretation 4 Determining whether an Arrangement This Standard supersedes AASB 117 Leases, contains a Lease, AASB intrpretation 115 Operating Leases-Incentives and AASB intrpretation 127 Evaluating the Substance of Transactions Involving the Legal Form of lease. AASB 16 sets out the principles for the recognition, measurement, presentation and disclosure of leases and requires lessees to account for all leases under a single on- balance sheet model similar to the accounting for finance leases under AASB 117. The key features of AASB 16 are as follows: - 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 the lease are initially measured on a present value basis. The lease payments (including inflation-linked payments), and measurement also includes payments to be mad in optional periods if the lessee is reasonably certain to exercise an option to extend to lease, or not to exercise an option to terminate the lease. includes non-cancellable - AASB 16 contains disclosure requirements for leases. The Group is yet to undertake a detailed assessment of the impact of AASB 16. However, based on the Group’s preliminary assessment, the standard is not expected to have a material impact on the transactions and balances recognised in the financial statements. The Company shares office premises with Vault Intelligence Limited and Vault Intelligence charges the Company a share of rent on a periodical basis. There is no long term agreement with Vault Intelligence, hence AASB 16 has no material impact on the financial report. Other standards not yet applicable There are no other standards that are not yet effective and that would be expected to have a material impact on the entity in the current or future reporting periods and on foreseeable future transactions. (d) 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 12. 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 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. Renegade Exploration Limited 29 2019 Annual Report Renegade Exploration Limited Notes to the financial statements for the financial year ended 30 June 2019 Deconsolidation of Subsidiary Subsidiaries are entities controlled by the company. The Company 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. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. As a result of the sale of its wholly owned subsidiary, Renegade derecognises the assets and liabilities of the subsidiary, any non-controlling interests and the other components of equity related to the subsidiary. Any resulting gain or loss is recognised in profit or loss. During the year, the Group sold the McCleery Project and deconsolidated its Canadian subsidiary Overland BC Limited. The net gain on sale of subsidiary recognised in profit or loss, amounted to $86,537 as disclosed in Note 5. (e) 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. Renegade Exploration Limited 30 2019 Annual Report Renegade Exploration Limited Notes to the financial statements for the financial year ended 30 June 2019 (f) 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. (g) 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 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. (h) 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. Renegade Exploration Limited 31 2019 Annual Report Renegade Exploration Limited Notes to the financial statements for the financial year ended 30 June 2019 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. (i) 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. (j) 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 Renegade Exploration Limited 32 2019 Annual Report Renegade Exploration Limited Notes to the financial statements for the financial year ended 30 June 2019 amount of an asset or cash-generating unit exceeds its recoverable amount, the asset or cash-generating unit is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Impairment losses relating to continuing operations are recognised in those expense categories consistent with the function of the impaired asset unless the asset is carried at revalued amount (in which case the impairment loss is treated as a revaluation decrease). An assessment is also made at each 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. (k) Assets held for sale and disposal groups Non-current assets held for sale and disposal groups are presented separately in the current section of statement of financial position when the following criteria is met: the group is committed to selling the asset or disposal group, an active plan of sale has commenced, and in the judgement of Group management it is highly probable that the sale will be completed within 12 months. Immediately before the initial classification of the assets and disposal groups as held for sale, the carrying amounts of the assets (or all the assets and liabilities in the disposal groups) are measured in accordance with the applicable accounting policy. Assets held for sale and disposal groups are subsequently measured at the lower of their carrying amount and fair value less cost to sell. Assets held for sale are no longer amortised or depreciated. (l) 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. (m) 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. (n) Revenue Recognition Interest income Interest income is recognised using the effective interest method. The ‘effective interest rate’ is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial instrument to: - The gross carrying amount of the financial asset; or - The amortised cost of the financial liability. In calculating interest income and expense, the effective interest rate is applied to the gross carrying amount of the asset (when the asset is not credit-impaired) or to the amortised cost of the liability. Renegade Exploration Limited 33 2019 Annual Report Renegade Exploration Limited Notes to the financial statements for the financial year ended 30 June 2019 (o) Grant Revenue Government grants are recognised at fair value where there is reasonable assurance that the grant will be received, and all grant conditions will be met. Grants relating to expense items are recognised as income over the periods necessary to match the grant to the costs they are compensating. Grants relating to assets are credited to deferred income at fair value and are credited to income over the expected useful life of the asset on a straight-line basis. (p) 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); 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. (q) 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 27. 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. Renegade Exploration Limited 34 2019 Annual Report Renegade Exploration Limited Notes to the financial statements for the financial year ended 30 June 2019 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 22). (r) 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. (s) 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. (t) Foreign currency translation 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; Renegade Exploration Limited 35 2019 Annual Report Renegade Exploration Limited Notes to the financial statements for the financial year ended 30 June 2019 • • • 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. (u) 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. (v) 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. (w) 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. Renegade Exploration Limited 36 2019 Annual Report Renegade Exploration Limited Notes to the financial statements for the financial year ended 30 June 2019 (x) Fair Value Hierarchy 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 other than shares in Rafaella Resources Limited which are Tier 1 assets. (y) Fair Value of Assets and Liabilities 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. (z) Financial Instruments Recognition, initial measurement and derecognition Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of the financial instrument. Financial instruments (except for trade receivables) are measured initially at fair value adjusted by transactions costs, except for those carried “at fair value through profit or loss”, in which case transaction costs are expensed to profit or loss. Where available, quoted prices in an active market are used to determine the fair value. In other Renegade Exploration Limited 37 2019 Annual Report Renegade Exploration Limited Notes to the financial statements for the financial year ended 30 June 2019 circumstances, valuation techniques are adopted. Subsequent measurement of financial assets and financial liabilities are described below. Trade receivables are initially measured at the transaction price if the receivables do not contain a significant financing component in accordance with AASB 15. Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire, or when the financial asset and all substantial risks and rewards are transferred. A financial liability is derecognised when it is extinguished, discharged, cancelled or expires. Classification and subsequent measurement Financial assets Except for those trade receivables that do not contain a significant financing component and are measured at the transaction price in accordance with AASB 15, all financial assets are initially measured at fair value adjusted for transaction costs (where applicable). For the purpose of subsequent measurement, financial assets other than those designated and effective as hedging instruments, are classified into the following categories upon initial recognition:    amortised cost; fair value through other comprehensive income (FVOCI); and fair value through profit or loss (FVPL). Classifications are determined by both:   The contractual cash flow characteristics of the financial assets; and The entities business model for managing the financial asset. Financial assets at amortised cost Financial assets are measured at amortised cost if the assets meet the following conditions (and are not designated as FVPL):   they are held within a business model whose objective is to hold the financial assets and collect its contractual cash flows; and the contractual terms of the financial assets give rise to cash flows that are solely payments of principal and interest on the principal amount outstanding. After initial recognition, these are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial. The Group’s cash and cash equivalents, trade and most other receivables fall into this category of financial instruments. Financial assets at fair value through other comprehensive income The Group measures debt instruments at fair value through OCI if both of the following conditions are met:   The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding; and The financial asset is held within a business model with the objective of both holding to collect contractual cash flows and selling the financial asset. For debt instruments at fair value through OCI, interest income, foreign exchange revaluation and impairment losses or reversals are recognised in the statement of profit or loss and computed in the same manner as for financial assets measured at amortised cost. The remaining fair value changes are recognised in OCI. Upon initial recognition, the Group can elect to classify irrevocably its equity investments as equity instruments designated at fair value through OCI when they meet the definition of equity under AASB 132Financial Instruments: Presentation and are not held for trading. Financial assets at fair value through profit or loss (FVPL) Financial assets at fair value through profit or loss include financial assets held for trading, financial assets designated upon initial recognition at fair value through profit or loss, or financial assets mandatorily required to be measured at fair Renegade Exploration Limited 38 2019 Annual Report Renegade Exploration Limited Notes to the financial statements for the financial year ended 30 June 2019 value. Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in the near term. Financial liabilities Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. Financial liabilities are initially measured at fair value, and, where applicable, adjusted for transaction costs unless the Group designated a financial liability at fair value through profit or loss. Subsequently, financial liabilities are measured at amortised cost using the effective interest method except for derivatives and financial liabilities designated at FVPL, which are carried subsequently at fair value with gains or losses recognised in profit or loss. All interest-related charges and, if applicable, gains and losses arising on changes in fair value are recognised in profit or loss. Impairment From 1 July 2018, the Group assesses on a forward looking basis the expected credit losses associated with its debt instruments carried at amortised cost and FVOCI. The impairment methodology applied depends on whether there has been a significant increase in credit risk. For trade receivables, the Group applies the simplified approach permitted by AASB, which requires expected lifetime losses to be recognised from initial recognition of the receivables. Comparative information The Group has applied AASB 9 Financial Instruments retrospectively, but has elected not to restate comparative information. As a result, the comparative information provided continues to be accounted for in accordance with the Group’s previous accounting policy. Classification Until 30 June 2018, the group classified its financial assets in the following categories:     financial assets at fair value through profit or loss; loans and receivables; held-to-maturity investments; and available-for-sale financial assets. The classification depended on the purpose for which the investments were acquired. Management determined the classification of its investments at initial recognition and, in the case of assets classified as held-to-maturity, re-evaluated this designation at the end of each reporting period. 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. Renegade Exploration Limited 39 2019 Annual Report Renegade Exploration Limited Notes to the financial statements for the financial year ended 30 June 2019 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 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 26. 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. Gain on sale of Subsidiary Fair value of consideration received Less: Net Assets of the subsidiary as at date of sale Gain on sale of subsidiary Consolidated 2019 $ 100,000 (13,463) 86,537 2018 $ - - - Renegade Exploration Limited 40 2019 Annual Report Renegade Exploration Limited Notes to the financial statements for the financial year ended 30 June 2019 6. Other expenses General office expenses Printing and stationary Telecommunications Others 7. Income Tax (a) Income tax expense Current tax Deferred tax (b) Numerical reconciliation between aggregate tax expense/(benefit) 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 / (benefits) and the product of accounting loss 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% (2018:27.5%) Allowable deductions 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 2019 $ 1,084 896 207 20,462 22,649 2018 $ 1,300 8,021 1,433 15,243 25,997 Consolidated 2019 $ 2018 $ - - - - - - (654,340) (179,944) (71,096) 251,040 (866,890) (238,395) - 238,395 - - 824,545 626,324 - - (824,545) (626,324) - - Losses available to offset against future taxable income (at 27.5%) 12,092,041 12,493,587 Foreign exchange loss Share issue cost deductible over five years Accrued expenses (120,070) (151,432) 44,690 9,160 66,637 58,532 12,025,821 12,467,324 Renegade Exploration Limited 41 2019 Annual Report Renegade Exploration Limited Notes to the financial statements for the financial year ended 30 June 2019 Consolidated 2019 $ 2018 $ Income Tax (continued) Deferred tax assets offset against deferred tax liabilities (824,545) (626,324) Deferred tax assets not brought to account as realisation is not regarded as probable Deferred tax asset recognised Unused tax losses1 Potential tax benefit of unused tax losses not recognised at 27.5% (2018: 27.5%) 1 Decrease in unused tax losses is due to movement in exchange rates. The benefit for tax losses will only be obtained if: (11,201,276) (11,841,000) - - 40,731,912 43,058,183 11,201,276 11,841,000 (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. The unused tax losses include losses from Australian Parent and the Canadian Subsidiary. The unused tax losses and the unrecognised Deferred Tax Assets on them have decreased as compared to 30 June 2018 due to the movement in exchange rates between Australian Dollar and Canadian Dollar (e) Tax consolidation Renegade Exploration has not formed a tax consolidation group and there is no tax sharing agreement. 8. Other Receivables and Prepayments - Current GST / VAT receivable Other Receivable Prepayments Consolidated 2019 $ 25,031 875 39,871 65,777 2018 $ 29,264 - 46,829 76,093 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. Renegade Exploration Limited 42 2019 Annual Report Renegade Exploration Limited Notes to the financial statements for the financial year ended 30 June 2019 9. Assets classified as held for sale McCleery Project Cost Less Provision for impairment Net carrying amount 10. Financial asset / Investment Investment in Rafaella Resources Limited Loss on revaluation Net carrying amount 11. Property, Plant and Equipment Plant and Equipment Cost Accumulated depreciation Less: Accumulated impairment Net carrying amount Camp Buildings Cost Accumulated depreciation Less: Accumulated impairment Net carrying amount Total property, plant and equipment Cost Accumulated depreciation Less: Accumulated impairment Net carrying amount Consolidated 2019 $ - - - Consolidated 2019 $ 100,000 (17,500) 82,500 2018 $ 17,168 - 17,168 2018 $ - - Consolidated 2019 $ 149,735 (104,440) (45,295) 2018 $ 141,966 (88,764) - - 53,202 360,356 335,958 (262,428) (230,584) (97,928) - - 105,374 510,091 477,924 (366,868) (319,348) (143,223) - - 158,576 Renegade Exploration Limited 43 2019 Annual Report Renegade Exploration Limited Notes to the financial statements for the financial year ended 30 June 2019 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 Less: Accumulated impairment Net exchange differences on translation Carrying amount at end of year Camp Buildings Carrying amount at beginning of year Additions Depreciation expense Less: Accumulated impairment Net exchange differences on translation Carrying amount at end of year Total property, plant and equipment Consolidated 2019 $ 53,202 - (11,880) (45,295) 3,973 - 2018 $ 55,807 2,369 (5,505) 531 53,202 Consolidated 2019 $ 2018 $ 105,374 115,639 - (28,046) (97,928) 20,600 - - - (11,366) 1,101 105,374 158,576 Depreciation expense on Yukon plant and equipment is capitalised to exploration assets. 12. 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 (d). Details of subsidiaries are as follows: Name Country of incorporation % Equity Interest Overland Resources Yukon Limited Canada Overland Resources (BC) Limited Canada 2019 100% - 2018 100% 100% 13. Prepayments – Non Current Consolidated Advance to supplier 2019 $ 244,911 244,911 2018 $ 228,330 228,330 Other receivables represent an advance for demobilisation. An equivalent amount has been provided for the costs., refer note 15(b). Consolidated Renegade Exploration Limited 44 2019 Annual Report Renegade Exploration Limited Notes to the financial statements for the financial year ended 30 June 2019 14. 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 2019 $ 2018 $ 37,561,336 34,144,501 (34,562,991) (31,884,127) 2,998,345 2,260,374 2,260,374 1,871,201 1,017,039 742,989 (389,124) (355,631) - 110,056 (17,168) 18,983 2,998,345 2,260,374 1In January 2018, the Company executed a binding term sheet with Rafaella Resources Ltd for sale of its McCleery Project. Therefore, the McCleery Project was 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. The deferred exploration and evaluation expenditure of $2,998,345 as at 30 June 2019 includes $1,632,740 (CAD$1.5 million) for the Yukon base metal project in Yukon Canada. The land use permit for the Yukon tenements expired on 17 September 2019. The Company is in the process of renewing the permit and have applied to the Yukon Mines Department for renewal for the next 5 years. The Directors are confident that the permit will be renewed. 15. Current Liabilities (a) Trade payables Trade and other payables Accruals Consolidated 2019 $ 2018 $ 69,850 33,310 103,160 130,384 216,762 347,146 Due to the short term nature of these payables, their carrying value is assumed to approximate their fair value. (b) Provisions (Non-current) Provision for demobilisation costs (refer note 13) 244,911 244,911 228,330 228,330 Renegade Exploration Limited 45 Consolidated 2019 Annual Report Renegade Exploration Limited Notes to the financial statements for the financial year ended 30 June 2019 16. Contributed Equity (a) Issued and paid up capital Ordinary shares fully paid 2019 $ 2018 $ 44,012,408 44,012,408 2019 Number of shares 2018 Number of $ shares $ (b) Movements in ordinary shares on issue Balance at beginning of year 712,626,638 44,012,408 514,239,963 42,063,930 Share Issue at $0.00604 on 09 October 2017 Share Issue at $0.011 on 12 March 2018 Share Issue at $0.011 on 30 April 2018 Transaction costs on share issue (c) Ordinary shares - - - - - - - - 16,568,498 100,074 132,702,115 1,459,723 49,116,062 540,277 - (151,596) 712,626,638 44,012,408 712,626,638 44,012,408 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 The Group’s capital comprises share capital and reserves less accumulated losses amounting to $3,901,247 at 30 June 2019 (2018: $4,441,544). 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 26 for further information on the Group’s financial risk management policies. (e) Share options At 30 June 2019, there were 46,568,498 unissued ordinary shares under options (2018: 56,568,498 options). During the financial year 10 million 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 27. 17. Accumulated losses Movements in accumulated losses were as follows: At 1 July Loss for the year At 30 June Consolidated 2019 $ 2018 $ (43,138,732) (42,271,842) (654,340) (866,890) (43,793,072) (43,138,732) Renegade Exploration Limited 46 2019 Annual Report Renegade Exploration Limited Notes to the financial statements for the financial year ended 30 June 2019 18. 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 2019 $ 2018 $ 4,118,528 4,118,528 (436,617) (550,660) 3,681,911 3,567,868 4,118,528 3,855,028 - 263,500 4,118,528 4,118,528 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 27(b) for details of share based payments during the financial year and prior year. Foreign currency translation reserve At 1 July Foreign currency translation Balance at end of year Consolidated 2019 $ 2018 $ (550,660) (571,983) 114,043 21,323 (436,617) (550,660) The foreign currency translation reserve is used to record the currency difference arising from the translation of the financial statements of the foreign operation. 19. Cash and Cash Equivalents Consolidated (a) Reconciliation of cash Cash balance comprises: Cash and cash equivalents 2019 $ 2018 $ 857,785 2,280,396 Renegade Exploration Limited 47 2019 Annual Report Renegade Exploration Limited Notes to the financial statements for the financial year ended 30 June 2019 19 Cash and Cash Equivalents (continued) Consolidated (b) Reconciliation of the net loss after tax to the net cash flows from operations Net loss after tax Adjustments for: Depreciation Share Based Payment / (reversal) Loss on revaluation of financial asset Gain on sale of subsidiary Provision for impairment of exploration expenditure Loss on sale of fixed assets Impairment of PPE Changes in operating assets and liabilities: Decrease / (Increase) in other receivables/prepayments (Decrease ) / Increase in trade and other payables Net cash flow used in operating activities 20. Expenditure commitments 2019 2018 $ $ (654,340) (866,890) 178 20 (27,250) 163,500 17,500 (86,537) 389,124 170 143,223 - - 355,631 (3,060) 10,316 (216,714) (22,128) 199,613 (424,330) (173,314) (a) Expenditure commitments 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 2019 $ 2018 $ 203,000 185,000 - - 203,000 185,000 41,248 41,248 - - 21. Subsequent events 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 Group, the results of those operations, or the state of affairs of the Group in future financial years. Renegade Exploration Limited 48 2019 Annual Report Renegade Exploration Limited Notes to the financial statements for the financial year ended 30 June 2019 Consolidated 2019 $ 2018 $ 22. Loss per share Loss used in calculating basic and dilutive EPS (654,340) (866,890) Number of Shares 2019 2018 Weighted average number of ordinary shares used in calculating basic earnings / (loss) per share: 712,626,638 574,424,609 Effect of dilution: Share options Adjusted weighted average number of ordinary shares used in calculating diluted loss per share: Basic and Diluted loss per share (cents per share) - - 712,626,638 574,424,609 (0.09) (0.15) There is no impact from the 46,568,498 options outstanding at 30 June 2019 (2018: 56,568,498 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. 23. 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 24. Key Management Personnel Disclosures Consolidated 2019 $ 2018 $ 31,847 31,847 34,225 34,225 (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, resigned 7 December 2018 (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: Renegade Exploration Limited 49 2019 Annual Report Renegade Exploration Limited Notes to the financial statements for the financial year ended 30 June 2019 Short term employee benefits Share based payments Total remuneration 25. Related Party Disclosures Consolidated 2019 $ 2018 $ 205,500 (27,250) 188,200 73,500 178,250 261,700 The ultimate parent entity is Renegade Exploration Limited. Refer to Note 12 Investments in subsidiaries for a list of all subsidiaries. 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 $24,984. There were no other related party disclosures for the year ended 30 June 2019 (2018: Nil). 26. 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 2019 and 30 June 2018, 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. Renegade Exploration Limited 50 2019 Annual Report Renegade Exploration Limited Notes to the financial statements for the financial year ended 30 June 2019 Cash and cash equivalents Interest rate sensitivity Consolidated 2019 $ 2018 $ 857,785 2,280,396 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. 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 2019 $ 8,578 (8,578) 2018 $ 22,804 (22,804) Increase/(Decrease) 2019 $ 8,578 (8,578) 2018 $ 22,804 (22,804) 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 2018. (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 2019, 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 2019 (2018: Nil). (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 2019 2018 Renegade Exploration Limited Australia Loan to subsidiary Overland Resources Yukon Limited (in CAD), net of provision for impairment Loan to subsidiary Overland Resources Yukon Limited (in AUD), net of provision for impairment - - 1,692,562 1,717,622 Renegade Exploration Limited 51 2019 Annual Report Renegade Exploration Limited Notes to the financial statements for the financial year ended 30 June 2019 Percentage shift of the AUD / CAD exchange rate Total effect on comprehensive loss of positive movements Total effect on comprehensive loss of negative movements (e) Fair Value A$ - - 10% A$ 190,846 (156,147) 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 Aggregate Net Fair Carrying Amount in Aggregate Net Fair the Financial Statements 2019 $ Value 2019 $ the Financial Statements 2018 $ Value 2018 $ Financial Assets Cash Assets Receivables Investment in shares Financial Liabilities Payables 857,785 25,906 82,500 857,785 25,906 82,500 2,280,396 29,264 - 2,280,396 29,264 - 103,160 103,160 351,063 351,063 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. Share Based Payment Plans 27. (a) Recognised share based payment expenses Total expenses arising from share based payment transactions recognised during the year as part of share based payment expense were as follows: Shares Issued 16,568,498 Shares issued in pursuant to the option to purchase 75% of the Yandal East gold project Options Issued Options issued pursuant to the option to purchase 75% of the Yandal East gold project Options issued to Directors Consolidated 2019 $ 2018 $ - - - - - 100,073 100,073 100,0002 163,500 263,500 2 16,568,498 options issued for Yandal East Option were valued at a deemed value of $100,000. Renegade Exploration Limited 52 2019 Annual Report Renegade Exploration Limited Notes to the financial statements for the financial year ended 30 June 2019 (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: 2019 Grant Expiry date Exercise Balance at Granted Exercised Expired Balance at Exercisable at date price start of the during the during the during the end of the end of the year year year year year year Number Number Number Number Number Number 26/04/18 31/03/21 $0.025 15,000,000 26/04/18 31/03/21 $0.035 15,000,000 30,000,000 Weighted remaining contractual life (years) 2.75 Weighted average exercise price $0.03 - - - - - 2018 - - - - - - 15,000,000 15,000,000 15,000,000 15,000,000 30,000,000 30,000,000 1.75 1.75 $0.03 $0.03 Grant Expiry date Exercise Balance at Granted Exercised Expired Balance at Exercisable at date price start of the during the during the during the end of the end 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 $0.03 $0.03 During the 2019 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 53 2019 Annual Report Renegade Exploration Limited Notes to the financial statements for the financial year ended 30 June 2019 (c) Other share based payments The table below summaries options granted to suppliers: 2019 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 16,568,498 Weighted remaining contractual life (years) 26,568,498 1.27 - - - - - - (10,000,000) - - - 16,568,498 16,568,498 (10,000,000) 16,568,498 16,568,498 0.56 0.56 Weighted average exercise price $0.0073 $0.0075 $0.0075 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 1.27 1.27 Weighted average exercise price $0.007 $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. Yandal East Gold Project – Acquisition Terms 28. 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. These terms were amended on 8 April 2019. The new terms of the 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. Renegade Exploration Limited 54 2019 Annual Report Renegade Exploration Limited Notes to the financial statements for the financial year ended 30 June 2019 3. Renegade is required to undertake A$350,000 worth of expenditure on the Project within the 18 month option period. Renegade has fulfilled this obligation. Execution Phase: 4. During the 2019 financial year, Renegade has exercised the option and paid $150,000. Decision to Mine 5. If Renegade makes a decision to commence commercial mining operations of a deposit within the Tenements, Renegade will issue $300,000 worth of Renegade Shares at an issue price equal to a 10% discount to the 20 day VWAP of Renegade Shares Contingent Liabilities 29. There are no known contingent liabilities as at 30 June 2019 (2018: Nil). 30. 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 2019, the total non-current assets in Australia and Canada are $1,365,605 and $1,877,641 respectively (30 June 2018: $713,993 and $1,933,287 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 31. Dividends 2019 $ 2018 $ 1,001,233 2,346,276 4,839 27,381 1,365,605 713,993 1,877,641 1,933,287 4,249,318 5,020,937 97,643 5,517 336,347 14,716 - 244,911 348,071 - 228,330 579,393 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 2019 (2018: Nil). The balance of the franking account as at 30 June 2019 is Nil (2018: Nil). Renegade Exploration Limited 55 2019 Annual Report Renegade Exploration Limited Notes to the financial statements for the financial year ended 30 June 2019 32. 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 2019 $ 2018 $ 1,001,232 2,346,276 1,365,605 2,431,625 2,366,837 4,777,901 97,643 97,643 336,346 336,346 2,269,194 4,441,555 44,012,408 44,012,408 (45,861,742) (43,689,381) 4,118,528 4,118,528 2,269,194 4,441,555 (2,172,361) (845,556) (2,172,361) (845,556) Renegade Exploration Limited 56 2019 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 2019 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 2019. On behalf of the Board Robert Kirtlan Chairman 30 September 2019 Renegade Exploration Limited 57 2019 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 30 September 2019 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 2019, 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) Samir Tirodkar Director Liability limited by a scheme approved under Professional Standards Legislation Stantons International Audit and Consulting Pty Ltd trading as Chartered Accountants and Consultants INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF RENEGADE EXPLORATION LIMITED Report on the Audit of the Financial Report Opinion 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 We have audited the financial report of Renegade Exploration Limited, the Company and its subsidiaries (“the Group”), which comprises the consolidated statement of financial position as at 30 June 2019, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the financial 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 2019 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. Emphasis of Matter on Carrying Value of Deferred Exploration and Evaluation Expenditure related to Yukon Base Metal Project As referred to in note 14 to the financial report, the Group is in the process of finalising the renewal of the Land use permit for the Yukon Base Metal Project in Yukon, Canada. The carrying value of the Deferred Exploration and Evaluation Expenditure of the Group amounting to $2,998,345 as at 30 June 2019 includes $1,632,740 (CAD$1.5 million) for Yukon Base Metal Project. The recoverability of the Group’s carrying value of capitalised exploration costs for the Yukon project is dependent on the successful renewal of the land use permit, the successful commercial exploitation of the Yukon exploration assets and/or sale of the Yukon exploration assets to generate amounts equivalent or greater than their book values. In the event that the Group is not able to renew the land use permit or is not successful in commercial exploitation and/or sale of the Yukon exploration assets, the realisable value of these assets may be significantly less than their current carrying values as disclosed in the consolidated statement of financial position at 30 June 2019. Key Audit Matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Liability limited by a scheme approved under Professional Standards Legislation In addition to the matters described in the Emphasis of Matter on Carrying Value of Deferred Exploration and Evaluation Expenditure Related to Yukon Base Metal Project section above, we have determined the matter described below to be a key audit matter to be communicated in our report. Key Audit Matters How the matter was addressed in the audit Carrying Value of Exploration and Evaluation Assets As at 30 June 2019, Exploration and Evaluation Assets totalled $2,998,345 (refer to Note 14 of the financial report). The carrying value of exploration and evaluation assets is a key audit matter due to:    The expenditure capitalised is material in amount and are the largest asset and constitutes 70% of the total assets to assess management’s The necessity application of the requirements of the 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 in relation to the capitalised exploration and evaluation expenditure. Inter alia, our audit procedures included the following: 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 capitalised exploration and evaluation costs, ensuring the veracity of the data assessing management’s presented consideration of potential impairment indicators, commodity prices and the stage of the Group’s projects also against AASB 6; and iii. Evaluation of Group documents for consistency with the intentions for continuing exploration and evaluation activities in areas of interest and corroborated in discussions 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 2019 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 17 to 20 of the directors’ report for the year ended 30 June 2019. In our opinion, the Remuneration Report of Renegade Exploration Limited for the year ended 30 June 2019 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) Samir Tirodkar Director West Perth, Western Australia 30 September 2019 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 22 September 2019. 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 9 16 155 394 603 There are 276 shareholders holding less than a marketable parcel of ordinary shares. 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 63 2019 Annual Report Renegade Exploration Limited TOP 20 SHAREHOLDERS Position 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 19 19 20 Holder Name SIERRA WHISKEY PTY LIMITED NERO RESOURCE FUND PTY LTD MR ANTON WASYL MAKARYN & MRS MELANIE FRANCES MAKARYN ZEBINA MINERALS PTY LTD THIRD REEF PTY LTD MR PAUL NOBLE BENNETT BARTORILLA ENTERPRISES PTY LTD MR PAUL NOBLE BENNETT MR BENJAMIN MATHEW VALLERINE MR JEREMY TOBIAS RESOURCE INVESTMENT CAPITAL HOLDINGS PTY LTD JETOSEA PTY LTD JAWAF ENTERPRISES PTY LTD MR PAUL NOBLE BENNETT LAWRENCE CROWE CONSULTING PTY LTD TOLTEC HOLDINGS PTY LTD WESTERN DISCOVERY PTY LTD CAP HOLDINGS PTY LTD SKINK RESOURCES PTY LTD BEACON EXPLORATION PTY LTD P SARIAN PTY LIMITED POLARITY B PTY LTD Holding 43,600,000 35,090,909 33,750,000 29,568,498 28,103,940 16,194,687 16,000,000 14,468,527 13,333,334 10,873,287 9,715,766 8,101,018 8,000,000 7,760,456 7,000,000 6,872,845 6,500,000 6,400,000 6,000,000 6,000,000 6,000,000 5,200,000 % IC 6.12% 4.92% 4.74% 4.15% 3.94% 2.27% 2.25% 2.03% 1.87% 1.53% 1.36% 1.14% 1.12% 1.09% 0.98% 0.96% 0.91% 0.90% 0.84% 0.84% 0.84% 0.73% Total 324,533,267 45.54% Unquoted Equity Securities Class Number of securities Number of holders Holders with more than 20% Options exercisable at $0.00754 on or before 19 Jan 2020 16,568,498 Options exercisable at $0.025 on or before 31 Mar 2021 15,000,000 Options exercisable at $0.035 on or before 31 Mar 2021 15,000,000 1 2 2 Zebina Minerals Pty Ltd Sierra Whiskey Pty Ltd South Shore Group Pty Ltd Sierra Whiskey Pty Ltd South Shore Group Pty Ltd Renegade Exploration Limited 64 2019 Annual Report 

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