Rimfire Pacific Mining NL
Annual Report 2018

Plain-text annual report

RIMFIRE PACIFIC MINING NL ANNUAL Chairman’s Report Review of Exploration Activities Directors’ Report Remuneration Report Schedule of Mining Tenements Auditor’s Independence Declaration Consolidated Statement of Profit or Loss and Other Comprehensive Income Consolidated Statement of Financial Position Consolidated Statement of Changes in Equity Consolidated Statement of Cash Flows Notes to the Financial Statements Directors’ Declaration Independent Auditor’s Report Additional Information for Publicly Listed Companies Corporate Directory PAGE 1 2 7 11 16 18 19 20 21 22 23 41 42 46 49 Corporate Governance Statement The Company’s 2018 Corporate Governance Statement has been released to ASX on 27 September 2018 and is available on the Company’s website www.rimfire.com.au. Chairman’s Report Dear Fellow Shareholders, The past year has been a frustrating one for the Company and shareholders where external factors have overshadowed the significant advances made by the Company. Despite difficult Capital Market conditions for junior explorers and New Gold Inc’s strategic withdrawal from Australia, I am optimistic about the coming year. The recent formal announcement of the Company’s dual strategy, the strengthening of the Board, management and technical team and the data acquired by the Company through the New Gold Inc. farm-in agreement, provides a clear direction and the key personnel necessary to prepare an exciting work program for the coming year. The strategic departure of New Gold Inc. from Australia to concentrate on its Northern American operations was disappointing. However, New Gold Inc. spent over $2.5m on discovery work within the Fifield Project area, and invested an additional $0.5m in the Company, which relieved the funding pressure for the Company for more than 2 years. During the partnership period, a number of new mineralised prospects have emerged and New Gold Inc.’s work has now laid a foundation for additional discovery outcomes. With New Gold Inc.’s departure, the Company retains 100% interest in the Fifield Project, which is a great result for shareholders. The Company continues to strengthen its team through the recruitment of seasoned industry professionals to drive the pursuit of the Company’s dual strategy over the next 18 months with the key focus being; ▪ ▪ Advancing the technical and economic assessment of the Sorpresa gold and silver resource, and Continuing regional discovery work for large scale ore bodies Craig Riley has been appointed as Business Development Manager, with his experience of taking projects from concept stage to feasibility studies and project execution, his priority is to advance the development of the Sorpresa resource to look to make a positive contribution to funding streams for larger discovery potential at Fifield. Mike Love has been appointed as consulting Senior Geologist complementing experienced geologists, Colin Plumridge and Todd Axford, with their intimate understanding of the Fifield project area. Mike is utilising his district experience to seek potential discoveries of large Porphyry Gold-Copper and Epithermal deposits in Ordovician Age Rocks at Fifield, similar to the nearby Cowal (Evolution Mining) and Northparkes (China Molybdenum/Sumitomo) style deposits. Currently, work is being conducted in the Southern and Eastern Ordovician areas of the Fifield Project where there is shallow cover with the “right rocks” underneath. A gravity program is currently being undertaken and additional work is being planned. The Company has identified more ground, south of the Fifield Project area, east of the Cowal deposit, from which available magnetics data indicate the area may hold Ordovician volcanics undercover. Lease applications have been lodged over this ground. Active pursuit of appropriate partners to build further on the success of the Fifield project will continue to enable accelerated discovery opportunities for the Company. Finally, I would like to thank my fellow Board members, management, staff and contractors for their hard work and professionalism over the last year and my fellow shareholders for their continued support of the Company. Ian McCubbing Chairman of the Board Dated: 27th September 2018 Rimfire Pacific Mining NL – 2018 Annual Report to Shareholders | 1 FIFIELD PROJECT AREA EXPLORATION Rimfire Pacific Mining is currently focused on exploration for Gold (Au), Silver (Ag), Copper (Cu) and Cobalt (Co) within its Fifield Project Area located at Fifield, in Central Western NSW. The Company’s goal is to continue discovery growth and establish potential minable resource(s) within the currently held project areas. The aspiration which was established with New Gold Inc. during 2017 for the Fifield area is to achieve an aggregate discovery outcome greater than 4 million ounces of gold equivalent metal, being capable of supporting a mine life in excess of 10 years, and within the lower third of industry costs of production. Rimfire Tenements, Fifield NSW Concurrently, the Company is also seeking to advance the development of the Sorpresa Resource with additional work on near term prospects to build on the economic case. During the period, the Company’s earn-in partner New Gold Inc. withdrew from the earn-in agreement and Australia as part of New Gold Inc.’s overall strategic decision to concentrate on its North American operations, in particular the Rainy River Project. New Gold Inc. spent more than $2.5 million in the Fifield project area during their time of the earn-in agreement. The Company retained 100% interest in the entire Fifield project area after New Gold Inc.’s withdrawal and therefore there has been no project dilution to the Company. The investment by New Gold Inc. in the Fifield project brought a number of key project benefits including: ▪ Detailed airborne geophysics survey and interpretation for the entire tenement package (681km2) ▪ ▪ ▪ Regional Aircore and auger drilling geochemistry and lithology programs (Phase 1 and Phase 2): o A greater understanding of the underlying geology of the project area o Identification of specific “key target domains” for further discovery potential Extensive prospecting, sampling and mapping identifying new prospective targets in structural locations Successful Transit Gold-Copper prospect RC drilling program produced the largest widths for Gold intersections seen to date in the Fifield district, and 4km east of Sorpresa, 44m @ 0.63g/t Au from 36m (including 20m @ 1.11g/t Au) ▪ Detailed alteration studies, looking for additional target vectors for large scale mineralising systems ▪ Overall refinement of discovery concept and targeting criteria This legacy of the earn-in agreement has allowed the Company to continue to develop a process of review, rating and prioritisation of its key target domain opportunities to progress and grow the prospect pipeline for new discoveries. The large number and diverse nature of the regional targets forms an important element of the Company’s prospect portfolio strategy, helping mitigate discovery risk by reducing dependency on any one prospect or commodity. The Fifield area is well supported with access to infrastructure and skills suitable for any potential mining scenario, and this adds further validity to the pursuit of economic mineralisation in the district. The area around the Sorpresa Gold and Silver JORC resource (declared in December 2014), remains highly encouraging with discovery potential remaining. In addition to a continued emphasis on the prospective “7km x 2km wide Sorpresa Corridor” which includes the Fortuna, 114 Colin Corridor, Northern Gold and other prospects, discovery efforts have also focused on regional prospecting to gain a greater understanding of the wider mineralising system dynamics across the tenement package. The Company owns 223 hectares of freehold land in Fifield, which covers much of the historic alluvial Platinum/Gold workings in the district. With the addition of EL8542 and EL8543 during the period the registered tenements and licences now cover an area of approximately 681km2. A 10% interest is held by the Company (Perilya 90%) in the Broken Hill area, which includes potential for Cobalt and base metal mineralisation, sitting along strike from Cobalt Blue’s (ASX “COB”) Thackaringa Project. Rimfire Pacific Mining NL – 2018 Annual Report to Shareholders | 2 Exploration Summary and Highlights The Company conducted ongoing drill delineation of Gold and Silver mineralisation along strike and at depth at the Sorpresa Gold and Silver mineralised zone, and work programs targeting prospective Gold and Base Metal discoveries. Also reinforcing the diverse nature of mineralisation the Company’s tenements hold at Fifield, Cobalt, Nickel and Scandium mineralisation was also targeted during the period. Sorpresa Gold and Silver Resource and Regional Base Metal Discoveries Geological and structural understanding was significantly increased in the key areas of interest (North and East of Sorpresa) through a variety of work program inputs, including major regional surface mapping programs, prospecting assessment and concept generation which continues to discover additional near deposit prospects. Sorpresa Style Geology (18km2 in yellow) on Aircore Gold Geochemistry Central Tenements, Fifield NSW Sorpresa Resource The Company has also received positive results on further metallurgical test work conducted on the Sorpresa Gold and Silver resource. The Company is aiming to advance development of the Sorpresa Resource, and is continuing to execute work programs to understand key discovery opportunities proximal to the existing resource to build on the economic appeal of Sorpresa. The Company has extended the targeted area for additional “Sorpresa” style Gold discoveries from 11km2 to 18km2, currently with less than 10% of this area drill tested. Transit Prospect During the period Transit prospect positive first pass drilling results have advanced the Gold and Copper potential at this location and the surrounds. Located 4km East of Sorpresa, it demonstrates the Fifield area has the capacity to host new additional discoveries. A larger porphyry related mineralising system existing at depth remains a discovery possibility. An anomalous Gold zone encountered (in regional aircore drilling by New Gold Inc.) is also seen to extend for ~3km NNE beyond the Transit prospect. In the context of the limited drilling that has been undertaken at Transit prospect to date (8 holes in this program over a strike of 500m), a number of observations have enhanced the relative performance of this drill program. The Gold is seen as structurally controlled in shear zones. Highlights included: ▪ ▪ ▪ An excellent mineralisation hit rate in the drill holes was achieved Transit sits at the intersection of a set of structural corridors At 44m, Hole Fi0808 is the thickest Gold intersection encountered anywhere at Fifield, surpassing widths at Sorpresa Hole (Transit) Fi0808 Fi0807 Fi0810 Fi0813 Main Intersection(s) #1 Including Intersection(s) #2 44m @ 0.63g/t Au from 36m 36m @ 0.64g/t Au from 0m 30m @ 0.61g/t Au from 22m 20m @ 1.11g/t Au from 48m 4m @ 2.32g/t Au from 12m and 2m @ 1.2g/t Au from 20m 6m @ 1.65g/t Au from 32m 8m @ 0.13% Cu & 65 ppm Mo 2m @ 0.47% Cu & 131 ppm Mo These drill results, together with the recent surface mapping activities and the previously completed Aircore drilling (Phase 1) geochemistry, has provided support for favourable structural locations, including the greater Transit prospect area, to host further discoveries. Rimfire Pacific Mining NL – 2018 Annual Report to Shareholders | 3 Steeton Prospect The bedrock sample data confirms Gold mineralisation over a large area of ~ 4km x 1km NE trend. The major focus for the regional aircore drill program conducted during the period was to target Gold and Copper mineralisation including the examination of potential for Northparkes style Gold-Copper porphyry. This Eastern Ordovician area (that includes Steeton) extends NE over a prominent magnetic zone with the Ordovician rocks being encountered under cover. Southern Project Area Steeton prospect, Gold & Copper A work program of 110km2 of mapping, sampling, historic data and geophysics review of the Southern Project area of the Fifield Project was undertaken by Senior Exploration Geologist, Mick Love. The review suggests the potential for large scale Gold mineralisation in Ordovician geology, looking for Cowal and North Parkes style deposits which the Company’s Senior Geologist, Mick Love was directly involved with previously. Important new geological insights with relevance to the increased discovery prospectivity include: ▪ A body with a sequence of proximal to distal andesitic volcanics, with indications of Ordovician age is present ▪ High K Andesite and intensely altered intrusives were observed indicating a potential porphyry system setting ▪ A separate geological unit at Fifield, “Edol’s Conglomerate” is now identified for Gold potential (a mineralisation style similar to the Canbelego (Mt Boppy) deposit is conceptualised) The Company has now planned new discovery work programs to advance the potential of this Southern area. These programs will provide further context to the geology and mineralisation observations, integrating this information with the other known prospects already identified by the Company in the Central and Eastern Ordovician areas. The targeted discovery programs being planned for delivery in 2018/19 include: ▪ Ongoing geological fieldwork, sampling and mapping ▪ Gravity geophysical survey, improving the resolution on regional gravity data ▪ Targeted Auger and Aircore drilling programs of ~2,000m (for lithogeochemistry and cover depth) Rimfire Pacific Mining NL – 2018 Annual Report to Shareholders | 4 Drill Hole Location Plan with mapped geology, surface gold geochemistry & interpreted structure on 1VD Magnetic image Transit Prospect Southern Area with Proposed Reconnaissance Drill Locations (White) - on magnetics, geology, structure background Cobalt, Nickel and Scandium Prospects During the period the Company demonstrated Fifield Project’s capacity to hold other mineralisation prospects including Cobalt, Nickel and Scandium in similar geological settings to deposits held by our northern neighbours, CleanTeq (ASX:”CLQ”) Sunrise Project, Australian Mines (ASX:”AUZ”) Flemington Cobalt Project and Platina Resources (ASX:”PGM”) Owendale Project. Rimfire Fifield Cobalt areas, including Avondale and Tout East Tout East Prospect During the period the Company demonstrated that the Tout East prospect has a capacity for diverse mineralisation. Only preliminary drill testing was conducted in selected areas, Cobalt, Nickel, Scandium, Copper and Gold were encountered, with large areas of the interpreted Tout East Ultramafic body still remaining untested by drilling. The thickest intersection of mineralisation being 29m @ 0.06% Co & 0.16% Ni & 182ppm Sc from 15m, with the best interval being 6m @ 0.18% Co & 0.17% Ni & 0.044% Sc from 15m. Gold and Base Metal anomalism was also present with the best interval being intersected of 3m @ 0.08% Cu & 0.137g/t Au from 18m. Tout East prospect continues to provide incentive for further discovery initiatives for a wide suite of metals as the Company selectively targets mineralised zones in the prospect area. The mineralisation sits within the weathered profile of a fractionated intrusive complex which is the setting of the Sunrise deposit (CleanTeq ASX “CLQ”) and associated Flemington deposit (Australian Mines ASX “AUZ”), each of which are located close to Fifield. Rimfire Pacific Mining NL – 2018 Annual Report to Shareholders | 5 Avondale Avondale is an historic prospect for Platinum. During the period, a review of the historic drilling undertaken, revealed that Cobalt and Nickel mineralisation was observed (however unreleased to the market). Avondale Cobalt Nickel Prospect Recent Drilling During the period the Company undertook work programs including resubmission of pulps and samples for re-assaying and an Aircore drilling program undertaken to confirm the presence of Cobalt and Nickel. The full metal suite of elements (Co, Ni, Sc, Pt) found at Avondale are the same that are seen at the adjacent Tout Complex (CleanTeq). New drilling was designed to both confirm indications of mineralisation in historic holes and to test the interpreted southern extension of the ultramafic body believed to be associated with Cobalt and Nickel mineralisation. Assay results from the Aircore / RC drilling program confirmed the presence of Nickel, Cobalt and Scandium mineralisation. ▪ ▪ ▪ The best intersection of Cobalt being 20m @ 0.10% Co & 0.18% Ni from 10m incl. 8m @ 0.14% Co & 0.22% Ni from 12m, with the best Cobalt interval being 2m @ 0.18% Co & 0.23% Ni from 14m. The best Nickel intersection was 10m @ 0.52% Ni & 0.05% Co from 18m, with best Nickel interval being 2m @ 0.83% Ni & 0.06% Co from 20m. Best Scandium intersection was 24m@ 310ppm Sc, 0.05% Co & 0.18% Ni from 20m. Summary – Ranking of Mineralised Prospects The regional work undertaken has now established a strong foundation of mineralisation evidence. This continues to form the basis for the ongoing work programs in the next period. The Company’s goal is to build on the work completed with New Gold Inc. to discover, define and develop mineable resources and simultaneously seek to gain an economic outcome from the Sorpresa Resource. Potential for discovery outcomes still remains an important driver for value creation within the Company, so the regional work remains a critical ongoing component. Shareholders should be encouraged by the large scale mineralisation being uncovered in the surrounding Fifield district. Rimfire remains of the view that a “company making” opportunity has the potential to emerge within its tenement holdings. Rimfire Pacific Mining NL – 2018 Annual Report to Shareholders | 6 DIRECTORS’ REPORT Your Directors present the following report on the Company and its controlled entity for the financial year ended 30 June 2018. Directors The names of Directors in office during the whole of the financial year and up to the date of this report: ▪ ▪ ▪ ▪ Ian McCubbing (Chairman) John Kaminsky (Managing Director and Chief Executive Officer) Ramona Enconniere (Non-Executive Director) Andrew Greville was appointed to the Board as a Non-Executive Director on 18 August 2017 Graham Billinghurst retired at the 2017 Annual General Meeting of the Company held 24 November 2017. Principal Activities The principal activities of the Consolidated entity during the financial year were the exploration and evaluation of mineral deposits. Review of Operations The Company’s focus remains at Fifield NSW with prospects and targets in Gold, Silver, Copper and Cobalt. The ground holding at Fifield was increased to 681km2 with the addition of new tenements. The exploration efforts are situated within the well-established, highly credentialed and mineralised regional corridor, the Lachlan Transverse Zone (LTZ). This corridor includes the North Parkes Copper-Gold mine and the Cadia Valley Gold- Copper mines amongst others and represents an excellent discovery setting for the Company. New Gold Inc. – Rimfire Pacific Mining Earn-in Joint Venture During the period the earn-in agreement with New Gold Inc. was dissolved after completion of the first year of the agreement with New Gold Inc.’s exit from Australia after selling its other asset, The Peak Mines (to Aurelia Metals), to focus on its North American operations. New Gold Inc. was on the ground with the Fifield Project for more than 12 months and spent $2.5 million on discovery activity, bringing significant benefits to the Company with additional mineralised prospects being identified and advanced. Importantly the Company retains 100% ownership of the Fifield Project. Operational Activities The Company continues to enact a process of review, rating and prioritisation of its key prospect opportunities to progress and grow the pipeline for new discoveries. The large number, and diverse nature of the regional targets, forms an important element of the Company’s prospect portfolio strategy helping mitigate discovery risk by reducing dependency on any one prospect or commodity. The Fifield area is well supported with access to infrastructure and skills suitable for any potential mining scenario and this adds further validity to the pursuit of mineralisation in the district. Full details of the progression of discovery activity undertaken during the period is contained in the Review of Exploration Activities section within this Annual Report. Junior Resource Sector Outlook and Financial Position The global circumstance for the resources sector has plateaued during the period and enthusiasm for the junior resource sector has weakened, with less investor liquidity and investor participation. This is particularly the case with junior companies focused in the Gold sector. However, it needs to be understood that as major Gold producer reserves decline, the industry is starting to recognise the need to increase expenditure in the discovery of new replacement Gold resources. This should see exploration spend increase by the majors and this will translate to a more buoyant outlook for the junior Gold exploration companies. Notwithstanding the exit of New Gold Inc. from the earn-in agreement, the Company remained in healthy financial status, with a respectable cash position being maintained. Rimfire Pacific Mining NL – 2018 Annual Report to Shareholders | 7 Work Program Approach for Financial Year 2019 The major priorities at Fifield for the financial year 2019 will involve the following: ▪ The Company will maintain a discovery growth focus on the regional opportunities for Gold, Silver, Copper and Cobalt which will involve the follow up of the prioritised regional prospects under review. Areas will continue to be defined undergoing initial prospecting using mapping, geochemistry, and geophysics with subsequent drill testing of targets generated as required. ▪ Developing the Sorpresa resource will continue to be a focus for the Company with further assessment and proximal exploration work being undertaken to enhance the economic appeal of the existing resource. Funding Initiatives The Company did not undertake any funding initiatives in the period. As at 30 June 2018 the Company had $0.894 million in cash and short term deposits. During the earn-in agreement with New Gold Inc., the Company had been receiving re-imbursement for certain expenditures incurred as part of the earn-in agreement and the implementation of a services agreement with New Gold Inc. Since the departure of New Gold Inc., the Company has been focused on generating additional investor / partner interest in the Fifield project to capitalise on the work undertaken during the earn-in period and realise the strategic ambitions of the Company. Capital Structure As at 30 June 2018 the capital structure of the Company was 943,477,555 Fully Paid Ordinary Shares, and 1,500,000 unlisted options. Commodity Pricing for the Period During the 2018 Financial Year the Gold price continued with a minor increase of 1.2%, finishing at USD 1,252 per ounce. In a period of record prices, Cobalt increased by 21.2% for the 2018 Financial Year (30 June 2018) finishing at USD 71,500 per tonne. Gold, Silver and Platinum prices quoted www.kitco.com in New York in USD and Copper and Cobalt prices quoted LME.com in USD. Operating Results The loss of the Consolidated entity amounted to $1,047,835 in the period (2017: $924,782). Dividends No dividends were paid during the financial year, nor are any recommended at 30 June 2018 (30 June 2017: Nil). Significant Changes in State of Affairs New Gold Inc.’s exit from the earn-in agreement has given the Company unencumbered 100% retention of all licences associated with the Fifield Project. The Company will seek to develop new relationships with potential partners and allow the Company to build on the work completed with New Gold Inc. After Balance Date Events No other matters or circumstances which have arisen since the end of the financial year have significantly affected or may significantly affect the operations of the Consolidated entity, the results of those operations, or the state of affairs of the Consolidated entity in future financial years. Rimfire Pacific Mining NL – 2018 Annual Report to Shareholders | 8 Price USDPrice USD2-Jul-1729-Jun-18Gold (oz) 1,237.20 1,252.40 1.23%Silver (oz) 16.59 16.09 -2.98%Platinum (oz) 921.00 852.00 -7.49%Copper (t) 5,893.00 6,645.00 12.76%Cobalt (t) 59,000.00 71,500.00 21.19%Commodity2018 Financial Year % change Licence and Environmental Compliance The Consolidated entity aims to ensure that the highest standard of environmental care is achieved. The Board maintains the responsibility to ensure that the Consolidated entity’s environment policies are adhered to and to ensure that the Consolidated entity is aware of, and is in compliance with, all relevant environmental legislation. There have been no environmental breaches during the 2018 financial year. Information on Directors Ian McCubbing Non-Executive Chairman Bachelor of Commerce (Hons) (UWA), MBA(AGSM), CA, GAICD Experience and Expertise Other Current Directorships Former Directorships in Last 3 Years Special Responsibilities Appointed Director and Chairman of the Board in July 2016 and possesses a strong commercial background in the resources industry. He has over 30 years’ experience as a Chartered Accountant with industrial and mining companies, principally in the areas of corporate finance and mergers and acquisition. He holds a Bachelor of Commerce (Honours) from UWA and Executive MBA from the AGSM, and is a graduate member of the Australian Institute of Company Directors. Mr McCubbing is currently a Non-Executive Director of four other ASX listed resources related companies and previously been a director and CFO of ASX 200 listed mining companies. Avenira Ltd (Non-Executive Director since 2012), Swick Mining Services Ltd (Non-Executive Director since 2010), Symbol Mining Ltd (Non-Executive Director since 2018) and Sun Resources NL (Chairman since 2016). Kasbah Resources Ltd (Non-Executive Director from 2011 to 2016). Chairman of the Board Member of the Audit Committee. Member of Remuneration and Nomination Committee. Interests in Shares (30 June 2018) 2,574,285 John Kaminsky Managing Director and Chief Executive Officer Bachelor of Applied Science (Chemistry) (RMIT), MBA (Melbourne Business School) Experience and Expertise Appointed Director of Rimfire Pacific Mining NL and Axis Mining NL in April 2004. He brings strong strategic and international skills to the company and has more than 20 years’ experience in international trade, including chemicals, plastics, metals, minerals, ores, concentrates and energy products. He assumed the role of Executive Chairman in December 2004 and became Managing Director and Chief Executive Officer on 3rd March 2016. Other Current Directorships Former Directorships in Last 3 Years None. None. Special Responsibilities Managing Director and Chief Executive Officer. Interests in Shares (30 June 2018) 33,408,169 Rimfire Pacific Mining NL – 2018 Annual Report to Shareholders | 9 Graham Billinghurst (retired 24 November 2017) Non-Executive Director Experience and Expertise Appointed Director of Rimfire Pacific Mining NL and Axis Mining NL in May 1999. He comes to the Board with an extensive background in investment banking and corporate development in the Australasian region. As an investment banker and finance director, he brings to the Board extensive corporate, financial and commercial expertise. Other Current Directorships Former Directorships in Last 3 Years None. None. Special Responsibilities Member of the Remuneration and Nominations Committee. Interests in Shares (30 June 2018) As at the end of the period Graham is no longer a Director, his interest in shares is not included. Ramona Enconniere Non-Executive Director Bachelor of Commerce (University of Melbourne), MBA (Melbourne Business School) Experience and Expertise Other Current Directorships Former Directorships in Last 3 Years Special Responsibilities Appointed Director of Rimfire Pacific Mining NL in May 2005. She has professional affiliations with the Australian Society of CPA and the Australian Institute of Banking and Finance. She makes an excellent contribution to the Board through her experience gained in corporate banking and the funding of mergers and acquisitions, loan syndications, project financing, debt raising via capital markets/securitisation with Citibank, Bank of America, OCBC (Overseas- Chinese Bank Corporation) and National Australia Bank. None. None. Chair of the Audit Committee Member of the Remuneration and Nomination Committee Interests in Shares (30 June 2018) 9,069,860 Andrew Greville (Appointed 18 August 2017) Non-Executive Director Bachelor of Engineering (Mining), University of Queensland, Queensland Limited Mine Manager’s Certificate Experience and Expertise Other Current Directorships Former Directorships in Last 3 Years Special Responsibilities Interests in Shares / Interests in Options (30 June 2018) Appointed Director of Rimfire Pacific Mining NL in August 2017. He is a qualified mining engineer, brings over 30 years’ of mining industry experience with an outstanding track record of international success in the copper industry, particularly in the fields of business development, including mergers & acquisitions, marketing and strategy, with his last position before establishing his own consulting business WEMCO, being the Executive General Manager, Business Development and Strategy, Xstrata Copper. None. None. Member of Audit Committee Chair of Remuneration and Nomination Committee 1,000,000 Rimfire Pacific Mining NL – 2018 Annual Report to Shareholders | 10 Melanie Leydin Company Secretary Bachelor of Business majoring in Accounting and Corporate Law, Swinburne University, Chartered Accountant and Registered Company Auditor Appointed as Company Secretary of the Company in April 2017. Melanie has 25 years' experience in the accounting profession and is a director and company secretary for a number of oil and gas, junior mining and exploration entities listed on the Australian Securities Exchange. She is a Chartered Accountant and a Registered Company Auditor. Experience and Expertise Meetings of Directors During the financial year, meetings of Directors were held and attendances by each Director are detailed below. REMUNERATION REPORT (AUDITED) Principles used to determine the nature and amount of remuneration The Remuneration Report, which has been audited, outlines the Key Management Personnel (KMP) remuneration arrangements for the Consolidated entity, in accordance with the requirements of the Corporations Act 2001 and its regulations. The Remuneration Report is set out under the following main headings: 1. 2. Details of remuneration for the year ended 30 June 2018 3. Employment contracts 4. 5. Additional Disclosures relating to Key Management Personnel 6. 7. 8. Other matters Shareholding Five year summary of key financial data Share based compensation of Directors and Key Management Personnel 1. Principles used to determine the nature and amount of remuneration The Board of Rimfire Pacific Mining NL uses the Remuneration and Nomination Committee to review and consistently apply the Company Policy to allow the Company to maintain its ability to attract and retain the best executives and Directors to run and manage the Consolidated entity, as well as create alignment between Directors, executives and shareholders. The Company Policy, implemented via the Remuneration and Nomination Committee, is to benchmark Company remuneration against comparable businesses and ensure that remuneration is comparable to the upper quartile, but also within the financial constraints the Company may be operating within at the time of assessment. Remuneration policy for Directors and senior executives is reviewed annually by the Board. The policy allows a mix, as determined by the Board on advice of the Remuneration and Nomination Committee. Depending on the nature of employment agreements, remuneration comprises a fixed component, (which is based on factors such as capability, effectiveness, work tasks, responsibilities, length of service and experience), superannuation, fringe benefits, short term bonus, long term incentives (which may include shares, options on shares or performance rights), subject to any necessary shareholder or regulatory approvals. During the year the Company did not engage remuneration consultants to provide advice on the Company’s remuneration policy. The policy requires reviews taking into account the Consolidated entity’s performance, executive and Non-Executive Director performance and comparable information from industry, including other listed companies in the resources sector. Independent external advice is sought as required. There is currently no link between the policy and the Company’s earnings and shareholder wealth because the Company is still in the exploration phase and is not generating revenue. Instead, the criteria for executive and Director appraisal include: ▪ Maintaining high standards of work place health and safety, environmental compliance and community liaison, ▪ Leading the development of strategy, and communicating this to stakeholders, Rimfire Pacific Mining NL – 2018 Annual Report to Shareholders | 11 Number Eligible to AttendNumber AttendedNumber Eligible to AttendNumber AttendedNumber Eligible to AttendNumber AttendedIan McCubbing662222John Kaminsky66----Graham Billinghurst (retired 24/11/17)22----Andrew Greville (appointed 18/08/17)661122Ramona Enconniere642222Melanie Leydin (Company Secretary)66----Directors' MeetingsAudit Committee MeetingsRemuneration and Nomination Committee Meetings ▪ Maintaining and adding to capital resources necessary to execute the Company’s strategy, with minimal dilution and costs to shareholders, ▪ Technical advancement in the discovery potential of the project areas, ▪ Managing operations and expenditure to efficient levels and within budgets, ▪ ▪ ▪ Managing investor relations and Company communication, ▪ Preserving financial and business integrity and managing risk under difficult industry conditions, Recruiting, managing and training personnel to ensure access to high levels of skill in the industry, Ability to multi-skill and cover as much of the Company’s skill needs from in-house resources. The Board is aware of the need to maintain competitive remuneration to reward performance which benefits shareholders and advances the Company. To this end, a review of the short term bonus and long term incentive programs to motivate and reward those people who create shareholder value and make the greatest contribution to the Company was undertaken during the year and a proposed STI / LTI scheme was introduced and approved by the Shareholders at the AGM held 24 November 2017. The Managing Director and Chief Executive Officer has agreed and signed a new employment contract which came into force from 1 July 2017. There has been no change to the remuneration of Non-Executive Directors in the last three periods. To align Directors’ interests with shareholder interests, Directors are encouraged to hold shares in the Company. The remuneration policy review undertaken in 2018 will be revisited as required to ensure it continues to meet the needs of the Company, creates better alignment to industry practices for remuneration and to accommodate changes to law. The Company has reviewed the application of laws in relation to the use of employee share schemes and performance rights. At the 2017 AGM the Company received 89% of ‘for’ votes in relation to its remuneration report for the year ended 30 June 2017. The Company did not receive any specific feedback at the AGM regarding its remuneration practices. 2. Details of Remuneration for the Year Ended 30 June 2018 Benefits to senior executives and the Non-Executive Directors consisted exclusively of cash benefits in the period. A Non- Executive Director Pool of $200,000 was available in 2018 ($200,000 in 2017) and represents the maximum aggregate payments to Non-Executive Directors, in their capacities as Directors, that can be paid in any one year without requiring additional shareholder approval. The actual Non-Executive Director pool utilised in the 12 month period was $126,586 in total ($105,834 in 2017). This rate is below the industry norm. * Note: As part of J Kaminsky’s remuneration agreement (effective 01 July 2017), he was entitled to annual leave and long service leave. Previously, he was on a contract basis. Rimfire Pacific Mining NL – 2018 Annual Report to Shareholders | 12 Short-Term BenefitsPost EmploymentLong-Term BenefitsEquity CompensationName of Director / SeniorSalary, Fees & CommissionsCash BonusAnnual LeaveSuperannuation ContributionsLong Service LeaveShares & OptionsTotalExecutive$$$$$$$Non-Executive DirectorsG Billinghurst (retired 24/11/2017) 12,500 - - - - - 12,500 R Enconniere 30,000 - - - - - 30,000 A Greville (appointed 18/08/2017) 34,086 - - - - - 34,086 I McCubbing 45,662 - - 4,338 - - 50,000 Executive DirectorJ Kaminsky 260,815 - 18,848* 24,777 40,513* - 344,953 383,063 - 18,848 29,115 40,513 - 471,539 Primary2018Short-Term BenefitsPost EmploymentLong-Term BenefitsEquity CompensationName of Director / SeniorSalary, Fees & CommissionsCash BonusAnnual LeaveSuperannuation ContributionsLong Service LeaveShares & OptionsTotalExecutive$$$$$$$Non-Executive DirectorsG Billinghurst (retired 24/11/2017) 30,000 - - - - - 30,000 R Enconniere 30,000 - - - - - 30,000 I McCubbing 41,857 - - 3,976 - - 45,833 Executive DirectorJ Kaminsky 238,532 - - 22,661 - - 261,193 340,389 - 26,637 - 367,026 Primary2017 Performance Income as a Proportion of Total Remuneration No performance based remuneration was paid during the year ended 30 June 2018 (2017: nil). Transactions Between Related Parties Transaction between related parties are on normal commercial terms and conditions no more favourable than those available to other parties unless stated. In the current financial year related party’s (Jill Kaminsky and Nicole Kaminsky) of Mr John Kaminsky was paid in respect of administrative services $12,941 ($14,288 in 2017). Payment for these services were on normal commercial terms. 3. Employment Contracts Effective from the 1 of July 2017 the company concluded negotiations of a new Executive Services Agreement with the CEO and Managing Director. Under the terms of the new Agreement, the termination provisions are 6 months’ notice by the company and 3 months’ notice by the employee. The Non-Executive Directors have been appointed on an ongoing basis and Directors have no retirement benefit allowances (neither current nor accrued), and the Company has no obligations to Directors upon their cessation from office. 4. Share Based Compensation of Directors & Key Management Personnel No shares or options were granted to Directors or Key Management Personnel, exercised, expired or held during the year ended 30 June 2018. 5. Additional Disclosures Relating to Key Management Personnel None. 6. Shareholding Number of Shares held by Key Management Personnel in which they have a relevant interest. * A Greville held the shares at the time of his appointment as Non-Executive Director. ** Due to G Billinghurst retirement from the Board 24/11/17, he is not considered a Key Management Person from this date and his shareholdings are therefore not included in the balance for 30 June 2018. Rimfire Pacific Mining NL – 2018 Annual Report to Shareholders | 13 2018Balance 01/07/2017Received as RemunerationShares AcquiredNet Change Other **Balance 30/06/2018I McCubbing 2,574,285 - - - 2,574,285 J Kaminsky 33,408,169 - - - 33,408,169 R Enconniere 9,069,860 - - - 9,069,860 A Greville (appointed 18/08/17) * - - 1,000,000 - 1,000,000 G Billinghurst (retired 24/11/17) 19,502,375 - - (19,502,375) - Total 64,554,689 - 1,000,000 (19,502,375) 46,052,314 2017Balance 01/07/2016Received as RemunerationShares AcquiredNet Change Other Balance 30/06/2017I McCubbing - - 1,274,285 1,300,000 2,574,285 J Kaminsky 33,338,169 - 70,000 - 33,408,169 R Enconniere 7,795,575 - 1,274,285 - 9,069,860 G Billinghurst (retired 24/11/17) 19,432,375 - 70,000 - 19,502,375 Total 60,566,119 - 2,688,570 1,300,000 64,554,689 Options Number of Options held by Key Management Personnel Executives There were no executives other than the Managing Director and Chief Executive Officer, Mr John Kaminsky, at balance date. 7. Five Year Summary of Key Financial Data The earnings of the company for the five years to 30 June 2018 are summarised below: Revenue and other income Net profit / (loss) before tax Net profit / (loss) after tax 2018 $ 35,538 (1,047,835) (1,047,835) 2017 $ 43,327 (924,782) (924,782) 2016 $ 2015 $ 2014 $ 178,027 (725,485) (725,485) 228,939 (720,794) (720,794) 202,571 (2,216,830) (2,216,830) The factors that are considered to affect total shareholders return ('TSR') are summarised below: 2018 0.022 0.011 (0.11) 2017 0.019 0.022 (0.10) 2016 0.200 0.015 (0.09) 2015 0.020 0.020 (0.10) 2014 0.045 0.020 (0.33) Share price beg. financial year ($) Share price end financial year ($) Basic loss per share (cents per share) End of audited remuneration report. 8. Other Matters Shares issued under option No options were exercised during the period. Unissued shares under option At the date of this report there were 1,500,000 unissued shares under option at an issue price of $0.0295 (2.95 cents) per option, with 375,000 options to vest on 25 September 2018, and 1,125,000 options to vest on 25 September 2019 exercisable before 25 September 2020. Rimfire Pacific Mining NL – 2018 Annual Report to Shareholders | 14 2018Balance 01/07/2017Options AcquiredOptions ExpiredNet Change Other Balance 30/06/2018Total Vested 30/06/2018I McCubbing - - - - - - J Kaminsky - - - - - - R Enconniere - - - - - - A Greville (appointed 18/08/17) - - - - - - G Billinghurst (retired 24/11/17) - - - - - - Total - - - - - - 2017Balance 01/07/2016Options AcquiredOptions ExpiredNet Change Other Balance 30/06/2017Total Vested 30/06/2017I McCubbing - - - - - - J Kaminsky 3,500,000 - (3,500,000) - - - R Enconniere 803,045 - (803,045) - - - G Billinghurst (retired 24/11/17) 442,019 - (442,019) - - - Total 4,745,064 - (4,745,064) - - - Indemnifying Officers The Company maintains a Directors and Officers insurance policy. In accordance with commercial practice, the insurance policy prohibits disclosure of the terms of the policy, including the nature of the liability insured against and the amount of the premium. The Company has not otherwise, during or since the financial year, indemnified or agreed to indemnify an Officer or auditor of the Company or any related body corporate against a liability incurred as such an Officer or auditor. Directors covered by the Directors & Officers Liability Insurance Policy at the time of this report are: Mr Ian McCubbing Ms Ramona Enconniere Mr John Kaminsky Mr Andrew Greville Proceedings on Behalf of the 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 financial year. Auditor’s Independence Declaration The auditor independence declaration required under Section 307C of the Corporations Act 2001 forms part of this Directors’ Report and is included on page 18. Non-Audit Services There were no non-audit services provided by BDO East Coast Partnership during the financial year. Signed in accordance with a resolution of the Board of Directors. Chairman Dated this Ian McCubbing 27th day of September 2018 Rimfire Pacific Mining NL – 2018 Annual Report to Shareholders | 15 Schedule of Mining Tenements (as at date of this Report) No. Licence Location Units Interest Date Granted Expiry Date Mineral Focus 1. 2. 3. EL7959 Fifield EL5534 Fifield EL7058 Fifield 7 40 35 100% 16.08.2012 16.08.2020 Gold/Base Metals 100% 23.10.1998 23.10.2019 Gold/Base Metals/Cobalt/Nickel/Scandium 100% 01.02.2008 01.02.2020 Platinum/Gold/Base Metals 4. M(C)L305 Fifield 1.9ha 100% 18.11.2004 17.11.2019 Gold/Platinum/Silver 5. M(C)L306 Fifield 2.0ha 100% 18.11.2004 17.11.2019 Gold/Platinum/Silver EL8401 Fifield 100 100% 22.10.2015 22.10.2018 Gold/Base Metals 4 1 32 15 27 100% 24.03.1999 24.03.2019 Platinum 100% 27.03.2017 27.03.2020 Gold/Base Metals 100% 27.03.2017 23.03.2023 Gold/Base Metals 100% 17.05.2004 17.05.2021 Platinum/Gold/Base Metals 10% 24.06.2002 24.06.2019 Base Metals/Cobalt 6. 7. 8. 9. EL5565 Fifield EL8543 Fifield EL8542 Fifield 10. EL6241 Fifield 11. EL5958* Broken Hill Applications Pending No. Licence Location Units Interest Date Applied Date Granted 1. 2. ELA5708 Fifield ELA5709 Fifield 44 39 100% 17.07.2018 100% 17.07.2018 Nil Nil Mineral Focus Gold/Base Metals Gold/Base Metals * Perilya manages the tenement with Rimfire being free carried. Rimfire Pacific Mining NL – 2018 Annual Report to Shareholders | 16 Competent Persons Declarations The information in the report to which this statement is attached that relates to Exploration and Resource Results, is based on information reviewed and/or compiled by Todd Axford who is deemed to be a Competent Person and is a Member of The Australasian Institute of Mining and Metallurgy. Mr Axford has over 23 years’ experience in the mineral and mining industry. Mr Axford is employed by Geko-Co Pty Ltd and is a consulting geologist to the Company. Todd Axford has sufficient experience that is relevant to the style of mineralisation and type of deposits under consideration and to the activity being undertaken 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’. Todd Axford consents to the inclusion of the matters based on the information in the form and context in which it appears. Historic material previously published under 2004 JORC standard that is referenced in this report: The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements. In addition, the Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcements which operated under the 2004 JORC reporting requirements. Sorpresa Mineral Resource estimate reported under JORC 2012 code Resource Cut off Category Mt Grade Contained Metal (g/t) Au (g/t) Ag Koz Au Moz Ag Indicated Gold 0.5 g/t Au Inferred Total Indicated Silver 25 g/t Ag Inferred Total Indicated Inferred Total Combined 0.5 g/t Au & 25 g/t Ag Notes: 2.0 1.0 3.0 2.1 1.2 3.4 4.1 2.2 6.4 1.14 0.9 1.06 0.21 0.19 0.20 0.67 0.51 0.61 27 12 22 62 40 54 45 27 38 73 29 103 14 7 22 88 37 125 1.7 0.4 2.1 4.2 1.6 5.8 5.9 2.0 7.9 1. Sorpresa Mineral Resource reported to JORC 2012 standards, at 0.50 g/t Au and 25g/t Ag cut‐off 2. The figures in this table are rounded to reflect the precision of the estimates and include rounding errors. Rimfire Pacific Mining NL – 2018 Annual Report to Shareholders | 17 Tel: +61 3 9603 1700 Fax: +61 3 9602 3870 www.bdo.com.au Collins Square, Tower Four Level 18, 727 Collins Street Melbourne VIC 3008 GPO Box 5099 Melbourne VIC 3001 Australia DECLARATION OF INDEPENDENCE BY JAMES MOONEY TO THE DIRECTORS OF RIMFIRE PACIFIC MINING NL As lead auditor of Rimfire Pacific Mining NL for the year ended 30 June 2018, I declare that, to the best of my knowledge and belief, there have been: 1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and 2. No contraventions of any applicable code of professional conduct in relation to the audit. This declaration is in respect of Rimfire Pacific Mining NL and the entities it controlled during the period. James Mooney Partner BDO East Coast Partnership Melbourne, 27 September 2018 BDO East Coast Partnership ABN 83 236 985 726 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO East Coast Partnership and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation, other than for the acts or omissions of financial services licensees. Rimfire Pacific Mining NL – 2018 Annual Report to Shareholders | 18 CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2018 Revenue from continuing operations 2 35,558 43,327 Note Consolidated Entity 2018 $ 2017 $ Expenses Employee benefits expense Non-executive directors’ fees Professional costs Occupancy costs Travel costs Marketing expense Depreciation Insurance Share registry and listing expenses Loss on disposal of plant and equipment Other administration expenses Loss before income tax Income tax benefit Loss after income tax Other comprehensive income Items that may be reclassified subsequently to profit or loss Total comprehensive loss for the year Loss per share for the year attributable to the members of Rimfire Pacific Mining NL Basic loss per share (cents per share) Diluted loss per share (cents per share) (417,856) (355,629) (126,586) (105,834) (91,913) (35,572) (17,894) (138,630) (34,403) (6,915) (176,169) (138,401) (33,920) (22,718) (54,115) (737) (33,959) (25,626) (54,320) (663) (105,913) (73,729) (1,047,835) (924,782) - - (1,047,835) (924,782) - - - - (1,047,835) (924,782) (0.11) (0.11) (0.10) (0.10) 3 4 6 6 The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes Rimfire Pacific Mining NL – 2018 Annual Report to Shareholders | 19 CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2018 CURRENT ASSETS Cash and cash equivalents Trade and other receivables Other current assets TOTAL CURRENT ASSETS NON-CURRENT ASSETS Trade and other receivables Property, plant and equipment Exploration & evaluation costs TOTAL NON-CURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES Trade and other payables Provisions TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Provisions TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Contributed equity Reserves Accumulated losses TOTAL EQUITY Note Consolidated Entity 2018 $ 2017 $ 7 8 10 8 9 11 12 13 13 893,597 2,568,340 47,238 7,249 51,689 21,183 948,084 2,641,212 150,000 478,264 150,000 471,303 12,312,777 11,744,970 12,941,041 12,366,273 13,889,125 15,007,485 192,815 304,395 77,018 33,120 269,833 337,515 770 770 8,251 8,251 270,603 345,766 13,618,522 14,661,719 14 30,060,432 30,060,432 4,638 - (16,446,548) (15,398,713) 13,618,522 14,661,719 The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes Rimfire Pacific Mining NL – 2018 Annual Report to Shareholders | 20 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2018 Consolidated Entity Contributed Equity Share based payment Reserve Accumulated Losses Total $ Balance at 1 July 2017 30,060,432 Share-based payments Total comprehensive loss for the period - - Balance at 30 June 2018 30,060,432 Balance at 1 July 2016 Shares issued during the year Transaction costs related to share issues Total comprehensive loss for the period 27,123,763 3,043,242 (106,573) - Balance at 30 June 2017 30,060,432 $ - 4,638 - 4,638 - - - - - $ $ (15,398,713) 14,661,719 - 4,638 (1,047,835) (1,047,835) (16,446,548) 13,618,522 (14,473,931) 12,649,832 - - 3,043,242 (106,573) (924,782) (924,782) (15,398,713) 14,661,719 The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes Rimfire Pacific Mining NL – 2018 Annual Report to Shareholders | 21 CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2018 Note CASH FLOWS FROM OPERATING ACTIVITIES Payments to suppliers and employees Interest received Net cash used in operating activities 22a CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property, plant and equipment Payment for exploration and evaluation costs Reimbursements of exploration expenditure Tax offsets received for investing activities Proceeds from sale of property, plant and equipment Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issue of shares Transaction costs associated with share issues Net cash provided by financing activities Net (decrease)/increase in cash held Cash at beginning of the year Cash at end of the year Consolidated Entity 2018 $ (1,107,128) 40,428 (1,066,700) 2017 $ (792,228) 39,505 (752,723) (61,417) (10,752) (1,863,996) (1,412,196) 1,315,870 - 1,500 632,499 484,163 - (608,043) (306,286) - - - 2,933,242 (76,573) 2,856,669 (1,674,743) 1,797,660 2,568,340 770,680 7 893,597 2,568,340 The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes Rimfire Pacific Mining NL – 2018 Annual Report to Shareholders | 22 Note 1 Notes to the Consolidated Financial Statements The financial report is a general purpose financial report that has been prepared in accordance with Australian Accounting Standards, Australian Accounting Interpretations and other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001. Rimfire Pacific Mining NL is a profit orientated entity for the purpose of the financial report. The financial report covers the economic entity of Rimfire Pacific Mining NL and its controlled entity. Rimfire Pacific Mining NL is a listed public company, incorporated and domiciled in Australia. The principal activities of the Consolidated entity during the financial year were the exploration and development of economic mineral deposits. The financial report of Rimfire Pacific Mining NL and its controlled entity, complies with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board. The following is a summary of the material accounting policies adopted by the economic entity in the preparation of the financial report. The accounting policies have been consistently applied, unless otherwise stated. The financial report was authorised for issue by Directors on the date of signing the Directors’ Declaration. The financial report is presented in Australian dollars, has been prepared on an accruals basis and is based on historical costs. Accounting Policies a. Significant Judgements and Key Assumptions Judgements made in applying accounting policies that have the most significant effect on the amounts recognised in the financial statements concern the information regarding capitalised exploration expenditure for mining tenements. In particular, the judgement that there is insufficient information available to make a reasonable assessment of the existence or otherwise of economically recoverable reserves. b. Going Concern The consolidated entity incurred an operating loss of $1,047,835 and had cash outflows from operating activities of $1,066,700 for the year ended 30 June 2018. The ability of the consolidated entity to continue as a going concern is dependent on a number of factors, one being the continuation and availability of funds. These conditions indicate a material uncertainty that may cast significant doubt about the consolidated entity’s ability to continue as a going concern. The financial report has been prepared on the going concern basis, which contemplates the continuity of normal business activity and the realisation of assets and the settlement of liabilities in the normal course of business for the following reasons: - As at 30 June 2018, the consolidated entity had cash and cash equivalent of $893,597. - Directors have a number of external funding alternatives available such as a farm-out of exploration commitments or raising additional equity funds. The Company has a history of successfully undertaking capital raisings during the last 15 years and has entered into significant partnerships in the past. - The Board also has the ability to defer or reduce operating activities and exploration expenditure if necessary, whilst meeting minimum tenement expenditure commitments. Based on the consolidated entity successfully actioning the above, the directors believe that the consolidated entity will continue as a going concern and that it is appropriate to adopt that basis of accounting in the preparation of the financial report. Should the company be unable to continue as a going concern it may be required to realise its assets and discharge its liabilities other than in the normal course of business and at amounts different to those stated in the financial statements. The financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or the amount of liabilities that might result should the company be unable to continue as a going concern and meet its debts as and when they fall due. Rimfire Pacific Mining NL – 2018 Annual Report to Shareholders | 23 Accounting Policies (Cont’d) c. Principles of Consolidation The Consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Rimfire Pacific Mining NL as at 30 June 2018 and the results of all subsidiaries for the year then ended. Rimfire Pacific Mining NL and its subsidiaries together are referred to in these financial statements as the 'Consolidated entity'. Subsidiaries are all those entities over which the Consolidated entity has control. The Consolidated entity controls an entity when the Consolidated entity is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully Consolidated from the date on which control is transferred to the Consolidated entity. They are de-consolidated from the date that control ceases. Intercompany transactions, balances and unrealised gains on transactions between entities in the Consolidated entity are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Consolidated entity. The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in ownership interest, without the loss of control, is accounted for as an equity transaction, where the difference between the consideration transferred and the book value of the share of the non-controlling interest acquired is recognised directly in equity attributable to the parent. Where the Consolidated entity loses control over a subsidiary, it derecognises the assets including goodwill, liabilities and non- controlling interest in the subsidiary together with any cumulative translation differences recognised in equity. The Consolidated entity recognises the fair value of the consideration received and the fair value of any investment retained together with any gain or loss in profit or loss. d. Income Tax The charge for current income tax expense is based on the profit for the year adjusted for any non-assessable or disallowed items. It is calculated using the tax rates that have been enacted or are substantially enacted by the reporting date. Deferred tax is accounted for using the balance sheet liability method in respect of temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. No deferred income tax will be recognised from the initial recognition of an asset or liability, excluding a business combination, where there is no effect on the taxable profit or loss. The amount of benefits brought to account or which may be realised in the future is based on the assumption that no adverse change will occur in income taxation legislation and the anticipation that the economic entity will derive sufficient future assessable income to enable the benefit to be realised and comply with the conditions of deductibility imposed by the law. Rimfire Pacific Mining NL and its wholly-owned Australian subsidiary have not formed an income tax Consolidated group under the tax consolidation regime. e. Property, Plant and Equipment Each class of property, plant and equipment is carried at cost less, where applicable, any accumulated depreciation and impairment losses. Property Freehold land and buildings are measured on the cost basis, being the amounts which have been paid for the asset. Plant and Equipment Plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. Depreciation is calculated on a reducing balance basis to write off the net cost of each item of plant and equipment over its expected useful life commencing from the time the asset is ready for use. The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are included in profit or loss. Depreciation The depreciable amount of property, plant and equipment, but excluding freehold land, is depreciated using a reducing balance method commencing from the time the asset is held ready for use. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements. Rimfire Pacific Mining NL – 2018 Annual Report to Shareholders | 24 Accounting Policies (Cont’d) The depreciation rates used for each class of depreciable assets are: Leasehold improvements Plant and equipment Office furniture Motor Vehicles f. Leases 15% 7.5% - 30% 10% - 40% 20% Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are charged as expenses in the periods in which they are incurred. g. Exploration Evaluation and Development Expenditure Exploration and evaluation expenditure incurred is capitalised at cost and includes acquisition of rights to explore, studies, exploratory drilling, sampling and associated activities. Costs are accumulated in respect of each identifiable area of interest. General and administrative expenditures are only included in the measurement of exploration and evaluation costs where they relate directly to operational activities’ particular area of interest. These costs are only carried forward where activities in the area have not yet reached a stage which permits reasonable assessment of the existence of economically recoverable reserves and the following conditions are satisfied: (i) the rights to tenure of the area of interest are current; and (ii) at least one of the following conditions is also met: (a) the exploration and evaluation expenditures are expected to be recouped through successful development and exploration of the area of interest, or alternatively, by its sale; or (b) exploration and evaluation activities in the area of interest have not, at the reporting date, reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves, and active and significant operations in, or in relation to, the area of interest are continuing. Accumulated costs in relation to an abandoned area are written off in full against profit in the year in which the decision to abandon the area is made. When production commences, the accumulated costs for the relevant area of interest are reclassified to development and amortised over the life of the area according to the rate of depletion of the economically recoverable reserves. The carrying amount of the capitalised expenditure is also recognised after deducting any Government Grants received in relation to the capitalised exploration expenditure. The carrying amount of the capitalised expenditure is also recognised after deducting any reimbursable costs from New Gold Inc. under the earn in Agreement received in relation to the capitalised exploration. A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry forward costs in relation to that area of interest. h. Restoration, Rehabilitation, and Environmental Costs The Company has provided an environmental bond to the NSW Department of Planning and Environment in the form of a bank guarantee, included in trade and other receivables ($150,000). The ultimate recoupment of this environmental bond is dependent on the completion, to the satisfaction of the Department of rehabilitation of the relevant site. The environmental bond reflects the estimated cost to rehabilitate planned exploration activity over the tenements. The Company policy is to continuously rehabilitate areas that have been affected by exploration activity when the activity has been completed. i. Impairment of Assets At each reporting date, the group reviews the carrying values of its tangible and intangible assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use, is compared to the asset’s carrying value. Any excess of the asset’s carrying value over its recoverable amount is expensed to the Profit or Loss. Impairment testing is performed annually for goodwill and intangible assets with indefinite lives. Where it is not possible to estimate the recoverable amount of an individual asset, the group estimates the recoverable amount of cash-generating unit to which the asset belongs. Rimfire Pacific Mining NL – 2018 Annual Report to Shareholders | 25 Accounting Policies (Cont’d) j. Employee Benefits Provision is made for the Company's liability for employee benefits arising from services rendered by employees to reporting date. Employee benefits expected to be settled within one year including entitlements arising from wages and salaries and annual leave, have been measured at the amounts expected to be paid when the liability is settled plus related on-costs. Other employee benefits payable later than one year have been measured at the present value of the estimated future cash outflows to be made for those benefits. Contributions are made by the Consolidated entity to employee superannuation funds and are charged as expenses when incurred. k. Cash and Cash Equivalents Cash and deposits, including cash equivalents, comprise cash on hand and cash at bank, deposits at call and those highly liquid investments with an original maturity of three months or less, which are held for the purpose of meeting short term cash commitments rather than for investment purposes, and which are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value. For the purpose of the Consolidated Statement of Cash Flows, cash includes cash on hand and deposits with banks or financial institutions net of bank overdrafts. l. Trade and Other Receivables Trade receivables and other receivables are recorded at amounts due less any allowance for doubtful debts. m. Trade and Other Payables Trade payables and other payables are recognised when the Consolidated entity becomes obliged to make future payments resulting from the purchase of goods and services. Payments are normally settled on 30 day terms. n. Financial Instruments Recognition Financial instruments are initially measured at cost on trade date, which includes transaction costs, when the related contractual rights or obligations exist. Subsequent to initial recognition these instruments are measured as set out below. Loans and Receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are stated at amortised cost using the effective interest rate method. Financial Liabilities Non-derivative financial liabilities are recognised at amortised cost, comprising original debt less principal payments and amortisation. Fair Value Hierarchy The Group is required to classify all assets and liabilities, measured at fair value, using a three level hierarchy, based on the lowest level 1 input that is significant to the entire fair value measurement, being: Level 1 - Measurements based on quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. Level 2 - Measurements based on inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly Level 3 - Measurements based on unobservable inputs for the asset or liability. The fair values of assets and liabilities that are not traded in an active market are determined using one or more valuation techniques. 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 Level 3. The Company 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 (Level 3) became observable (Level 2) or vice versa. When a change in the categorisation occurs, the Company 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. Derecognition Financial assets are derecognised where the contractual rights to receipt of cash flows expires or the asset is transferred to another party whereby the entity no longer has any significant continuing involvement in the risks and benefits associated with the asset. Financial liabilities are derecognised where the related obligations are either discharged, cancelled or expire. The difference between the carrying value of the financial liability extinguished or transferred to another party and the fair value of consideration paid, including the transfer of non-cash assets or liabilities assumed, is recognised in profit or loss. Rimfire Pacific Mining NL – 2018 Annual Report to Shareholders | 26 Accounting Policies (Cont’d) Impairment At each reporting date, the group assesses whether there is objective evidence that a financial instrument has been impaired. Impairment losses are recognised in the Profit or Loss. o. Provisions Provisions are recognised when the Company 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 Company 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. p. Income Recognition Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets. All revenue is stated net of the amount of goods and services tax (GST). q. Government Grants Government grants relating to assets such as capitalised exploration expenditure, are recognised in the Consolidated Statement of Financial Position by deducting the grant in arriving at the carrying amount of the asset. Government grants relating to expenses are recognised in the profit and loss as other income. r. Goods and Services Tax (GST) 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 Consolidated Statement of Financial Position are shown inclusive of GST. s. Earnings per share Basic earnings per share is calculated by dividing the profit attributable to the owners of Rimfire Pacific Mining NL, excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the financial year. Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares, and the weighted average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares. t. Segment Reporting Operating segments are presented using the 'management approach', where the information presented is on the same basis as the internal reports provided to the Chief Operating Decision Makers ('CODM'). The CODM is responsible for the allocation of resources to operating segments and assessing their performance. Rimfire Pacific Mining NL does not have any separately reportable segments. u. 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. v. Equity Settled Compensation Equity-settled transactions are awards of shares, or options over shares, that are provided to employees or contractors in exchange for the rendering of services. Equity-settled share-based compensation benefits have been provided to contractors in the current financial year. The cost of equity-settled transactions are measured at fair value on grant date. Fair value is independently determined using Black- Scholes option pricing model that takes into account the exercise price, the term of the option, the impact of dilution, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option, together with non-vesting conditions that do not determine whether the Consolidated entity receives the services that entitle the employees or contractors to receive payment. No account is taken of any other vesting conditions. The cost of equity-settled transactions are recognised as an expense with a corresponding increase in equity over the vesting period. The cumulative charge to profit or loss is calculated based on the grant date fair value of the award, the best estimate of the number of awards that are likely to vest and the expired portion of the vesting period. The amount recognised in profit or loss for the period is the cumulative amount calculated at each reporting date less amounts already recognised in previous periods. Rimfire Pacific Mining NL – 2018 Annual Report to Shareholders | 27 Accounting Policies (Cont’d) w. New, revised or amending Accounting Standards and Interpretations adopted All new and revised Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that are relevant to Rimfire Pacific Mining NL and its subsidiary’s operations and effective for annual reporting periods beginning on 1 July 2017 have been adopted by the Consolidated entity where required. New standards that were amended and are applicable for the first time for the year ended 30 June 2018 are: - AASB 15 Revenue from Contracts with Customers - AASB 16 Leases - AASB 9 Financial Instruments The adoption of the amendments in these Accounting Standards and Interpretations are not applicable in the Company’s current circumstance. The consolidated entity does not recognize significant revenues, does not have any fixed lease commitments greater than twelve months and does not expect the AASB9 Financial Instrument Standard to have a material impact. Note 2 Income Other income Interest Sundry income Total Revenue Note 3 Loss for the Financial Year The net loss for the financial year has been arrived at after charging the following: Expenses Employee benefits expense Marketing expense Non-executive directors’ fees Rental expense Depreciation Note 4 Income Tax Expense a. The prima facie tax expense/(benefit) on loss before tax is reconciled to the income tax as follows: Prima facie tax expense/(benefit) on loss before tax at 30% (2017: 30%) Add: Tax effect of: - non-allowable items - net current year tax losses not recognised, temporary differences and deductible exploration expenditure. Consolidated Entity 2017 2018 $ $ 35,558 - 35,558 42,827 500 43,327 Consolidated Entity 2017 2018 $ $ 417,856 176,169 126,586 24,513 33,920 355,629 138,401 105,834 23,353 33,959 Consolidated Entity 2017 2018 $ $ (314,350) (277,434) - 8,401 344,135 300,825 29,785 31,792 Rimfire Pacific Mining NL – 2018 Annual Report to Shareholders | 28 Note 4 Income Tax Expense (Cont’d) Less: Tax effect of: - Research and Development tax offset income - Income tax benefit/(expense) attributable to loss capitalised share placement costs Deferred tax assets arising from tax losses that have not been recognised: Tax losses carried forward Temporary differences – exploration costs Temporary differences – other Net Deferred tax asset not recognized Consolidated Entity 2018 2017 $ $ - (29,785) - 0 (31,792) - 6,061,399 (3,695,333) 90,262 5,551,556 (3,523,491) 64,944 2,456,328 2,093,009 Balance of franking account at year end - - Potential deferred tax assets attributable to tax losses carried forward and temporary differences have not been brought to account because Directors do not believe realisation of the deferred tax assets is probable. These benefits will only be obtained if: (a) (b) (c) the company derives future assessable income of a nature and of an amount sufficient to enable the benefit from the deduction for the loss to be realized; the company continue to comply with the conditions for deductibility imposed by law, and no changes in tax legislation adversely affect the company in realizing the benefit from the deductibility for the loss. Rimfire Pacific Mining NL and its wholly owned entity have not opted to enter the tax consolidation regime as at 30 June 2018. Note 5 Auditor’s Remuneration Remuneration of the auditor for: - auditing or reviewing the financial reports Note 6 Earnings per Share a. Reconciliation of Earnings to Loss Loss used in the calculation of basic EPS Loss used in the calculation of dilutive EPS Consolidated Entity 2018 $ 2017 $ 38,439 38,439 39,200 39,200 Consolidated Entity 2018 $ 2017 $ (1,047,835) (924,782) (1,047,835) (924,782) b. Weighted average number of ordinary shares outstanding during the year used in calculation of basic EPS 943,477,555 917,111,859 Potential ordinary shares - - Weighted average number of ordinary shares outstanding during the year used in calculation of dilutive EPS 943,477,555 917,111,859 Rimfire Pacific Mining NL – 2018 Annual Report to Shareholders | 29 Note 6 Earnings per Share (Cont’d) c. d. Classification of securities Share options are anti-dilutive and securities have not been classed as potential ordinary shares and are not included in the determination of dilutive EPS. Ordinary shares issued between reporting date and time of completion of the financial report Basic loss per share (cents per share) Diluted loss per share (cents per share) Note 7 Cash and Cash Equivalents Cash at bank and on hand Short term deposits Reconciliation of Cash Consolidated Entity 2018 $ 2017 $ - - - - (0.11) (0.10) (0.11) (0.10) Consolidated Entity 2018 $ 264,901 628,696 893,597 2017 $ 902,283 1,666,057 2,568,340 Cash at the end of the financial year as shown in the Consolidated Statement of Cash Flows is reconciled to items in the Consolidated Statement of Financial Position as follows: Cash at bank Term deposits with maturity of 3 months or less 264,901 628,696 893,597 902,283 1,666,057 2,568,340 Refer to Note 23 for the risk exposure analysis for cash and cash equivalents. Note 8 Trade and Other Receivables OTHER RECEIVABLES CURRENT Security deposits Interest receivable Other receivables NON-CURRENT Security deposits Consolidated Entity 2018 $ 13,049 1,080 33,109 47,238 2017 $ 13,049 5,950 32,690 51,689 150,000 150,000 Refer to Note 23 for the risk exposure analysis for receivables. At the reporting date, no receivables were past due or impaired. Security deposits of $150,000 are held in support of a bank guarantee issued in favour of the NSW Department of Planning and Environment. Rimfire Pacific Mining NL – 2018 Annual Report to Shareholders | 30 Note 9 Property, Plant and Equipment PROPERTY Freehold land At cost Total Land PLANT AND EQUIPMENT Plant and equipment At cost Accumulated depreciation Motor vehicle At cost Accumulated depreciation Office furniture At cost Accumulated depreciation Leasehold improvements At cost Accumulated depreciation Total Plant and Equipment Total Property, Plant and Equipment a. Movements in Carrying Amounts Consolidated Entity 2018 $ 2017 $ 226,834 226,834 226,834 226,834 489,407 (300,364) 189,043 461,499 (270,566) 190,933 68,710 (25,605) 43,105 102,402 (83,214) 19,188 419 (325) 94 55,949 (29,217) 26,732 100,441 (73,731) 26,710 419 (325) 94 251,430 244,469 478,264 471,303 Movements in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial year. 2018 Consolidated Entity: Balance at the beginning of year Additions Disposals Depreciation expense Depreciation capitalised Carrying amount at the end of year 2017 Consolidated Entity: Balance at the beginning of year Additions Disposals Depreciation expense Depreciation capitalised Carrying amount at the end of year Freehold Land $ Motor Vehicles $ Plant and Equipment $ Office Furniture $ Leasehold Improvements $ 226,834 - - - - 226,834 26,732 25,529 (2,237) (6,919) - 43,105 190,933 27,908 - (17,518) (12,280) 189,043 26,710 1,961 - (9,483) - 19,188 94 - - - - 94 Total $ 471,303 55,398 (2,237) (33,920) (12,280) 478,264 Freehold Land $ Motor Vehicles $ Plant and Equipment $ Office Furniture $ Leasehold Improvements $ Total $ 226,834 - - - - 226,834 32,901 - - (6,169) - 26,732 219,010 5,188 (663) (17,626) (14,976) 26,330 10,526 - (10,146) - 112 - - (18) - 505,187 15,714 (663) (33,959) (14,976) 190,933 26,710 94 471,303 Rimfire Pacific Mining NL – 2018 Annual Report to Shareholders | 31 Note 10 Other Assets CURRENT Prepaid expenses (insurance, rent, body corporate) Note 11 Exploration & Evaluation Costs NON-CURRENT Exploration Expenditure Costs carried forward in respect of areas of interest in: – exploration and evaluation phases Opening balance Additional expenditure Reimbursed exploration expenditure Research and development tax offset Closing balance No exploration expenditure was impaired during 2018 (2017: Nil). Note 12 Trade and Other Payables CURRENT Trade creditors Sundry creditors and accrued expenses GST Collected Note 13 Provisions CURRENT Employee benefits NON-CURRENT Employee benefits Consolidated Entity 2017 $ 2018 $ 7,249 21,183 Consolidated Entity 2017 $ 2018 $ 12,312,777 11,744,970 11,744,970 1,764,052 (1,196,245) - 12,312,777 11,434,071 1,427,561 (632,499) (484,163) 11,744,970 Consolidated Entity 2017 $ 2018 $ 111,227 69,547 12,041 192,815 125,371 121,524 57,500 304,395 Consolidated Entity 2017 $ 2018 $ 77,018 33,120 770 8,251 Rimfire Pacific Mining NL – 2018 Annual Report to Shareholders | 32 Note 14 Contributed Equity 943,477,555 (2017: 943,477,555) fully paid ordinary shares a. Ordinary shares Contributed equity At the beginning of the reporting period Shares issued during the year 19 August 2016 - 1 September 2016 - 2 November 2016 - 5 December 2016 - - 19 May 2017 Transaction costs relating to share issues At reporting date Shares outstanding At the beginning of reporting period Shares issued during year - - - - - At reporting date 19 August 2016 1 September 2016 2 November 2016 5 December 2016 19 May 2017 b. Capital Management 2018 $ 30,060,432 30,060,432 2017 $ 30,060,432 30,060,432 30,060,432 27,123,763 - - - - - - 30,060,432 1,624,250 883,829 500,000 30,000 5,162 (106,572) 30,060,432 2018 No. 2017 No. 943,477,555 798,659,607 - - - - - 943,477,555 77,345,238 42,087,117 23,809,525 1,428,571 147,497 943,477,555 Management controls the capital of the Consolidated entity in order to ensure that the Company remains a going concern as a primary objective and is able to deliver suitable exploration, as the circumstances allow. This is done, to the best of Management’s ability in the prevailing business and economic circumstances. The Consolidated entity’s debt and capital includes ordinary share capital, listed options and financial liabilities. The Consolidated entity is not subject to any externally imposed capital requirements. c. Share based payments & options Reserves Share based payments Consolidated Entity 2017 $ 2018 $ 4,638 - Grant date Expiry date Exercise Balance at Granted Exercised price start of the year Expired/ Forfeited/ Other * Balance at 30 June 18 24 September 2017 25 September 2020 $0.0295 0 2,300,000 0 (800,000) 1,500,000 *Employee options attributable to employees who have forfeited their options by leaving the company. The fair value of the options is estimated at the date of grant using the Black-Scholes model, taking into account the terms and conditions upon which the options were granted. Rimfire Pacific Mining NL – 2018 Annual Report to Shareholders | 33 Note 14 Contributed Equity (Cont’d) For the options granted during the current financial year, the valuation model inputs used to determine the fair value at the grant date, are as follows: Grant date Expiry date Share price Exercise Expected Dividend Risk-free Fair value at at grant price volatility yield interest rate grant date date $ 24/09/17 25/09/20 $0.0210 $0.0295 100% - 6.00% $18,300 No share based payments were issued to key management personnel. Accounting policy for share-based payments Equity-settled share-based compensation benefits are provided to employees as an additional incentive to recognise your important contribution to the success of the company and persistence to deliver ongoing results. Equity-settled transactions are awards of shares, or options over shares that are provided to employees in exchange for the rendering of services. The cost of equity-settled transactions are measured at fair value on grant date. Fair value is independently determined using the Black-Scholes option pricing model that takes into account the exercise price, the term of the option, the impact of dilution, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option, together with non-vesting conditions that do not determine whether the Group receives the services that entitle the employees to receive payment. No account is taken of any other vesting conditions. The cost of equity-settled transactions are recognised as an expense with a corresponding increase in equity over the vesting period. The cumulative charge to profit or loss is calculated based on the grant date fair value of the award, the best estimate of the number of awards that are likely to vest and the expired portion of the vesting period. The amount recognised in profit or loss for the period is the cumulative amount calculated at each reporting date less amounts already recognised in previous periods. Market conditions are taken into consideration in determining fair value. Therefore any awards subject to market conditions are considered to vest irrespective of whether or not that market condition has been met provided all other conditions are satisfied. If the non-vesting condition is within the control of the Group or employee, the failure to satisfy the condition is treated as a cancellation. If the condition is not within the control of the Group or employee and is not satisfied during the vesting period, any remaining expense for the award is recognised over the remaining vesting period, unless the award is forfeited. If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and any remaining expense is recognised immediately. If a new replacement award is substituted for the cancelled award, the cancelled and new award is treated as if they were a modification. Note 15 Controlled Entity Parent Entity Rimfire Pacific Mining NL Subsidiary of Rimfire Pacific Mining NL Axis Mining NL Country of Incorporation Percentage Owned (%) 2017 2018 Australia 100 100 Rimfire Pacific Mining NL – 2018 Annual Report to Shareholders | 34 Note 16 Parent Entity Information Set out below is the supplementary information about the parent entity. Current assets Total assets Current liabilities Total liabilities Issued capital Reserves Accumulated losses Total equity Loss of the parent entity Comprehensive loss of the parent entity 2018 $ 947,857 13,888,898 268,333 269,103 2017 $ 2,640,985 15,007,258 336,015 344,266 30,060,432 4,638 (16,446,548) 13,618,522 30,060,432 - (15,397,440) 14,662,992 (1,047,835) (1,047,835) (924,782) (924,782) Parent Entity Commitments: All capital and operating commitments of the group have been entered into by the Parent Entity. Refer to note 17 for these commitments. The accounting policies of the parent entity are consistent with those of the Consolidated entity, as disclosed in note 1. Note 17 Capital and Leasing Commitments a. Operating Lease Commitments Office & Other Premises Payable - - not later than 1 year later than 1 year but not later than 5 years b. Capital Expenditure Commitments The Consolidated entity is committed to capital expenditure on its various mining tenements and leases as follows: Payable - - not later than 1 year later than 1 year but not later than 5 years Consolidated Entity 2018 $ 2017 $ 18,000 - 18,000 18,000 - 18,000 Consolidated Entity 2018 $ 350,677 701,333 1,052,010 2017 $ 345,000 707,000 1,052,000 Note 18 Contingent Liabilities and Contingent Assets The Directors are not aware of any matters or circumstances which have arisen during or since the financial year which may significantly affect the operations of the Consolidated entity, the results of those operations or state of affairs of the Consolidated entity in future years. Rimfire Pacific Mining NL – 2018 Annual Report to Shareholders | 35 Note 19 Segment Reporting Business and Geographical Segments The Consolidated entity operates predominantly in one business and geographic segment, being mineral exploration and prospecting within Australia. Segment information is presented using a “management approach”, (i.e. Segment information is provided on the same basis as information used for internal reporting purposes by the board of directors). At regular intervals, the board is provided management information at a group level for the group’s cash position, the carrying values of exploration permits and a group cash flow forecast for the next 12 months of operation. On this basis, no segment information is included in these financial statements. Note 20 Key Management Personnel Disclosures a) Details of Directors and Key Management Personnel Directors The follows persons were Directors of Rimfire Pacific Mining NL during the financial year: Ian McCubbing (Chairman) John Kaminsky (Managing Director and CEO) Andrew Greville (Non-Executive Director, appointed 18.08.2017) Ramona Enconniere (Non-Executive Director) Graham Billinghurst (Non-Executive Director, retired 24.11.2017) b. Key Management Personnel compensation Refer to the Remuneration Report contained in the Directors’ Report for details of the remuneration paid or payable to each member of the Company’s key management personnel for the year ended 30 June 2018. The totals of remuneration paid to Key Management Personnel of the company during the year are as follows: Short-term employee benefits Post-employment benefits Long Term Benefits Note 21 Related Party Details Transactions between related parties are on normal commercial terms and conditions no more favourable than those available to other parties unless otherwise stated. Transactions with director related parties: (i) In the current financial year a related party (Jill Kaminsky and Nicole Kaminsky) of Mr John Kaminsky was paid in respect of administrative services. Payment for these services were on normal commercial terms. 2018 $ 401,911 29,115 40,513 2017 $ 340,389 26,637 - 471,539 367,026 2018 $ 2017 $ 12,941 14,288 Rimfire Pacific Mining NL – 2018 Annual Report to Shareholders | 36 Note 22 Cash Flow Information a. Reconciliation of Cash Flow from Operations with Loss after Income Tax Loss after income tax Non-cash flows in loss Depreciation Loss on disposal of PPE Expense of share-based payment Changes in assets and liabilities relating to operations (Increase)/decrease in prepayments (Increase)/decrease in other receivables Increase/(decrease) in trade creditors and accruals Increase/(decrease) in provisions Cash flows used in operations Consolidated Entity 2018 $ 2017 $ (1,047,835) (924,782) 33,920 737 4,638 33,960 663 - 13,934 (37,374) (71,138) 36,418 (1,066,700) (3,747) 90,952 21,102 29,129 (752,723) b. Cash not available for use There was no cash as at the end of the year which was unavailable for use. c. Non-cash Financing and Investing Activities There were no non-cash financing and investing activities carried out during the year. Note 23 Financial Risk Management a. Financial Risk Management Objectives and Policies The Consolidated entity's activities expose it to a variety of financial risks: market risk (including interest rate risk), credit risk and liquidity risk. The Consolidated entity's overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the Consolidated entity. The Consolidated entity uses different methods to measure different types of risk to which it is exposed. These methods include sensitivity analysis in the case of interest rate and other risks. Risk management is carried out by senior executives under policies approved by the Board of Directors. These policies include identification and analysis of the risk exposure of the Consolidated entity and appropriate procedures, controls and risk limits. Market risk Interest rate risk The Consolidated entity's main interest rate risk arises from its holdings of cash and cash equivalents on deposit. Deposits held at variable rates expose the Consolidated entity to interest rate risk. Deposits held at fixed rates expose the Consolidated entity to fair value risk. The Consolidated entity's exposure to interest rate risk is set out in Note 23(b). Credit risk Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Consolidated entity. The Consolidated entity exposure to credit risk is limited to security deposits provided to landlords and other third parties. The maximum exposure to credit risk at the reporting date to recognised financial assets is the carrying amount, net of any provisions for impairment of those assets, as disclosed in the statement of financial position and notes to the financial statements. Liquidity risk Vigilant liquidity risk management requires the Consolidated entity to maintain sufficient liquid assets (mainly cash and cash equivalents) to be able to pay debts as and when they become due and payable. The Consolidated entity manages liquidity risk by maintaining adequate cash reserves by continuously monitoring actual and forecast cash flows and matching the maturity profiles of financial assets and liabilities. Rimfire Pacific Mining NL – 2018 Annual Report to Shareholders | 37 Categorisation of financial instruments Financial assets Note Category Carrying value 2018 $ Carrying value 2017 $ Cash & cash equivalents Trade and other receivables 7 8 Cash and other financial assets Trade and other receivables at amortised cost 893,597 197,238 2,568,340 201,689 Financial liabilities Trade and other payables 12 Financial liabilities measured at amortised cost 192,815 304,395 Rimfire Pacific Mining NL – 2018 Annual Report to Shareholders | 38 Note 23 Financial Risk Management (Cont’d) b. Interest Rate Risk The Consolidated entity's exposure to interest rate risk, which is the risk that a financial instrument's value will fluctuate as a result of changes in market interest rates on classes of financial assets and financial liabilities, is as follows: Floating Interest Rate $ Fixed Interest Rate Maturing Within One Year $ Non-interest Bearing $ Total $ 2018 2017 2018 2017 2018 2017 2018 2017 Financial Assets Cash Receivables Total Financial Assets Financial Liabilities Trade and sundry creditors Total Financial Liabilities Net inflow/(outflow) on financial assets 264,401 150,000 901,583 150,000 - - 628,696 1,666,057 414,401 1,051,583 628,696 1,666,057 500 47,238 47,738 - - - - - 414,401 1,051,583 - - - - 192,815 192,815 700 51,689 52,389 304,394 304,394 264,901 825,934 1,090,835 902,283 1,867,746 2,770,029 192,815 192,815 304,394 304,394 1,666,057 (145,077) (252,005) 898,020 2,465,635 Rimfire Pacific Mining NL – 2018 Annual Report to Shareholders | 39 Note 23 Financial Risk Management (Cont’d) c. Net Fair Values The carrying amounts of financial assets and liabilities approximate the net fair value unless otherwise stated. d. Sensitivity Analysis The group has performed a sensitivity analysis relating to its exposure to interest rate risk at reporting date. This sensitivity analysis demonstrates the effect on the current year results and equity which could result from a change in these risks. Interest Rate Sensitivity Analysis At 30 June 2018, the effect on loss after tax and equity as a result of changes in the interest rate, with all other variables remaining constant would be as follows: Change in loss after tax - Increase in interest rate by 0.5% - Decrease in interest rate by 0.5% Change in equity - Increase in interest rate by 0.5% - Decrease in interest rate by 0.5% Consolidated Entity 2018 $ 2,072 (2,072) 2,072 (2,072) 2017 $ 5,258 (5,258) 5,258 (5,258) The above changes are based on the effect of an interest rate change in relation to funds held in deposit with financial institutions. A change in 0.5% of the interest rate is deemed reasonable by management due to the current financial environment of low interest rates. Note 24 Events Occurring after the Reporting Period There are no matters or circumstances which have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the Consolidated entity, the results of those operations, or the state of affairs of the Consolidated entity in future financial years. Unissued shares under option At the date of this report there were 1,500,000 unissued shares under option at an issue price of $0.0295 (2.95 cents) per option, with 375,000 options to vest on 25 September 2018, and 1,125,000 options to vest on 25 September 2019 exercisable before 25 September 2020. Note 25 Company Details The registered office and principal place of business of the Company is: Rimfire Pacific Mining NL “Exchange Tower” Suite 411, 530 Little Collins Street Melbourne VIC 3000 Rimfire Pacific Mining NL – 2018 Annual Report to Shareholders | 40 DIRECTORS’ DECLARATION In the directors’ opinion: 1. 2. 3. 4. 5. the attached financial statements and notes and the Remuneration Report thereto comply with the Corporations Act 2001, the Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements; the attached financial statements and notes thereto comply with International Financial Reporting Standards as issued by the International Accounting Standards Board as described in note 1 to the financial statements; the attached financial statements and notes thereto give a true and fair view of the Consolidated entity's financial position as at 30 June 2018 and of its performance for the financial year ended on that date; there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable; and The directors have been given the declarations required by section 295A of the Corporations Act 2001. Signed in accordance with a resolution of directors made pursuant to section 295(5) of the Corporations Act 2001. On behalf of the directors Chairman Dated this Ian McCubbing 27th day of September 2018 Rimfire Pacific Mining NL – 2018 Annual Report to Shareholders | 41 Tel: +61 3 9603 1700 Fax: +61 3 9602 3870 www.bdo.com.au Collins Square, Tower Four Level 18, 727 Collins Street Melbourne VIC 3008 GPO Box 5099 Melbourne VIC 3001 Australia INDEPENDENT AUDITOR'S REPORT To the members of Rimfire Pacific Mining NL Report on the Audit of the Financial Report Opinion We have audited the financial report of Rimfire Pacific Mining NL (the Company) and its subsidiaries (the Group), which comprises the consolidated statement of financial position as at 30 June 2018, 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 report, 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) (ii) Giving a true and fair view of the Group’s financial position as at 30 June 2018 and of its financial performance for the year ended on that date; and Complying with Australian Accounting Standards and the Corporations Regulations 2001. Basis for opinion 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 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 confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor’s report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. BDO East Coast Partnership ABN 83 236 985 726 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO East Coast Partnership and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation, other than for the acts or omissions of financial services licensees. Rimfire Pacific Mining NL – 2018 Annual Report to Shareholders | 42 Material uncertainty related to going concern We draw attention to Note 1 in the financial report which describes the events and/or conditions which give rise to the existence of a material uncertainty that may cast significant doubt about the group’s ability to continue as a going concern and therefore the group may be unable to realise its assets and discharge its liabilities in the normal course of business. Our opinion is not modified in respect of this matter. 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. In addition to the matter described in the Material uncertainty related to going concern section, we have determined the matters described below to be the key audit matters to be communicated in our report. Key audit matter How the matter was addressed in our audit The company has incurred significant exploration and evaluation expenditures which have been capitalised. As the carrying value of exploration and evaluation expenditures represents a significant asset of the company, we considered it necessary to assess whether facts and circumstances existed to suggest that the carrying amount of this asset may exceed its recoverable amount. AASB 6 Exploration for and Evaluation of Mineral Resources contains detailed requirements with respect to both the initial recognition of such assets and ongoing requirements to continue to carry forward the assets. Note 1 to the financial statements contains the accounting policy and note 11 disclosures in relation to exploration and evaluation expenditures. Our procedures included:      Obtaining evidence that the Group has valid rights to explore in the areas represented by the capitalised exploration and evaluation expenditure Confirming whether the rights to tenure of the areas of interest remained current at the reporting date as well as confirming that rights to tenure are expected to be renewed Reviewing the directors’ assessment of the carrying value of the exploration and evaluation costs, ensuring that management have considered the effect of impairment indicators, commodity prices and the stage of the Group’s project Reviewing budgets and challenging assumptions made by the entity to ensure that substantive expenditure on further exploration for and evaluation of the mineral resources in the areas of interest were planned Reviewing ASX announcements and minutes of directors’ meetings to ensure that the company had not decided to discontinue activities in any of its areas of interest. Rimfire Pacific Mining NL – 2018 Annual Report to Shareholders | 43 Other information The directors are responsible for the other information. The other information comprises the information in the Group’s annual report for the year ended 30 June 2018, but does not include the financial report and the auditor’s report thereon. Our opinion on the financial report does not cover the other information and 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. A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance Standards Board website at: http://www.auasb.gov.au/auditors_responsibilities/ar1.pdf This description forms part of our auditor’s report. Rimfire Pacific Mining NL – 2018 Annual Report to Shareholders | 44 Report on the Remuneration Report Opinion on the Remuneration Report We have audited the Remuneration Report included in pages 11 to 14 of the directors’ report for the year ended 30 June 2018. In our opinion, the Remuneration Report of Rimfire Pacific Mining NL, for the year 30 June 2018, complies with section 300A of the Corporations Act 2001. Responsibilities The directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards. BDO East Coast Partnership James Mooney Partner Melbourne, 27 September 2018 Rimfire Pacific Mining NL – 2018 Annual Report to Shareholders | 45 Additional Information For Publicly Listed Companies 1. The shareholder information set out below was applicable as at 26th September 2018 (a) Distribution of Shareholders by Class Category (Size of Holding) Total Holders Fully Paid Ordinary Shares % of Issued Capital 1 – 1,000 1,001 – 5,000 5,001 – 10,000 10,001 – 100,000 100,001 over 180 154 164 820 687 53,643 510,859 1,396,920 36,769,688 904,746,445 0.01 0.05 0.15 3.90 95.89 Total 2,005 943,477,555 100.00 (b) The number of holders with shareholdings in less than marketable parcels was 895 as at 26th September 2018. (c) The number of holders of each class of equity security as at 26th September 2018: Class of Security Number Fully Paid Ordinary Shares 2,005 (d) Voting Rights Every Member is entitled to be present at a meeting and may vote. On a show of hands, every Member has one vote. On a poll every Member has: - one vote for each fully paid share; and - voting rights pro-rata to the amount paid up on each partly paid share held by the Member. Rimfire Pacific Mining NL – 2018 Annual Report to Shareholders | 46 Additional Information (cont’d) For Publicly Listed Companies (e) 20 Largest Shareholders - Ordinary Capital as at 26th September 2018 Name Mr Peng Wang Mr John Adrian Kaminsky TJS Investments (Aust) Pty Ltd Mr Choong Guang Koh New Gold Fife Pty Ltd Pershing Australia Nominees Pty Ltd HSBC Custody Nominees (Australia) Limited Dr Julie Miranda Jelbart + Mr William Theodore Durnell Ralston Corporation Pty Ltd Ant Nicholson Pty Ltd Dr Gary Robert Lillicrap Kookoo Nominees Pty Ltd Warcoll Holdings Pty Ltd Mr Ronald Roy Foote + Mrs Renate Foote Cooee Investments Pty Ltd B David Nominees Pty Ltd Mr Laurie John Newman Helen Ma Pty Ltd Mr Kerry Peter Jelbart 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. Mr Kerry Peter Jelbart + Dr Stephen Bruce Jelbart Number of Ordinary Fully Paid Shares Held % Held of Issued Ordinary Capital 29,285,714 28,085,503 28,069,931 26,500,000 23,809,524 23,611,346 22,227,535 17,000,000 15,000,379 14,000,000 13,264,342 13,200,000 12,682,375 12,333,333 11,168,604 11,000,000 10,962,582 10,372,097 10,100,000 10,000,000 3.10 2.98 2.98 2.81 2.52 2.50 2.36 1.80 1.59 1.48 1.41 1.40 1.34 1.31 1.18 1.17 1.16 1.10 1.07 1.06 342,673,265 36.32 Rimfire Pacific Mining NL – 2018 Annual Report to Shareholders | 47 Additional Information (cont’d) For Publicly Listed Companies 2. 3. The name of the Company Secretary is Melanie Leydin. The address and telephone number of the registered office and principal administrative office is: Suite 411, 530 Little Collins Street Melbourne VIC 3000 Telephone: 03 9620 5866 Facsimile : 03 9620 5822 Website : www.rimfire.com.au 4. The register of securities is held at the following address: Computershare Registry Services 117 Victoria Street West End QLD 4001 Telephone: 1300 787 272 Facsimile : 07 3237 2152 5. Stock Exchange Listing Quotation has been granted for all the ordinary shares of the company on all Member Exchanges of the Australian Securities Exchange Limited. 6. Vendor Securities There are no restricted securities on issue as at 26 September 2018. 7. Unissued shares under option As at 26 September 2018 there were 1,500,000 unissued shares under option at an issue price of $0.0295 (2.95 cents) per option, with 375,000 options to vest on 25 September 2018, and 1,125,000 options to vest on 25 September 2019 exercisable before 25 September 2020. Rimfire Pacific Mining NL – 2018 Annual Report to Shareholders | 48 Corporate Directory Directors: Ian McCubbing (Chairman) John Kaminsky (Managing Director & CEO) Ramona Enconniere Andrew Greville Company Secretary: Melanie Leydin Registered Office: Auditors: Lawyers of the Company: Share Registry: Bankers: Stock Exchange Listing: Email Address: Website Address: Suite 411, 530 Little Collins Street Melbourne VIC 3000 BDO East Coast Partnership Collins Square / Tower Four Level 18, 727 Collins Street Melbourne VIC 3008 McNab Lawyers Level 3, 139 Collins Street Melbourne VIC 3000 Carton Solicitors 8 Chapel St Cremorne VIC 3121 Computershare Investor Services Pty Ltd Yarra Falls 452 Johnston St Abbotsford VIC 3067 Tel: 1300 787 272 Westpac Banking Corporation 114 William Street Melbourne VIC 3000 Macquarie Bank Limited 300 Queen Street Brisbane QLD 4000 Australian Securities Exchange Home Exchange – Melbourne ASX Code: RIM rimfire@rimfire.com.au www.rimfire.com.au Rimfire Pacific Mining NL – 2018 Annual Report to Shareholders | 49 www.rimfire.com.au 

Continue reading text version or see original annual report in PDF format above