Shree Minerals Ltd Annual Report 2020

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FY2020 Annual Report · Shree Minerals Ltd

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S H R E E M I N E R A L S L I M I T E D

ACN 130 618 683

2020 ANNUAL REPORT

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S H R E E M I N E R A L S L T D

TABLE OF CONTENTS

Corporate Directory
Directors’ Report
Auditor’s Independence Declaration
Statement of Profit or Loss and Other Comprehensive Income
Statement of Financial Position
Statement of Changes in Equity
Statement of Cash Flows
Notes to the Financial Statements
Directors’ Declaration
Independent Auditor’s Report
Shareholder Information
Corporate Governance Statement

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C O R P O R A T E D I R E C T O R Y

DIRECTORS
Sanjay Loyalka
Davide Bosio
Andy Lau (Retired on 28th November 2019)
Amu Shah

COMPANY SECRETARY
Sanjay Loyalka

REGISTERED OFFICE
Unit 38
18 Stirling Highway
Nedlands
WA 6009
Ph:
Fax:
info@shreeminerals.com
www.shreeminerals.com

(08) 61181672
(08) 93891199

AUDITORS
Stantons International
Level 2, 1 Walker Avenue
West Perth WA 6005
Ph: (08) 94813188
Fax: (08) 9321 1204

SHARE REGISTRY
Boardroom Pty Limited
Level 12
225 George Street
Sydney NSW 2000
Ph: +61 (02) 9290 9600
Fax: +61 (02) 9279 0664

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D I R E C T O R S ’ R E P O R T

The Directors present this report together with the financial report of Shree Minerals Ltd (“SHH”, “Shree
Minerals” and/or “the Company”) for the year ended 30th June 2020.

DIRECTORS

The names of the Directors in office during the financial year and until the date of this report are as follows.
Directors were in office for this entire period unless otherwise stated.

Mr Sanjay Loyalka, Director and Company Secretary
Mr Andy Lau, Non-Executive Director (Retired 28th November 2019)
Mr Amu Shah, Non-Executive Director
Davide Bosio, Non-Executive Director

COMPANY SECRETARY

Mr Sanjay Loyalka

PRINCIPAL ACTIVITIES

The principal activities of the Company during the financial year consisted of mineral exploration, development
and mining.

OPERATING RESULTS

The net loss of the Company after providing for income tax amounted to $453,342. (2019: net loss $33,581.
The reduced loss in FY2019 was mainly due to Debt forgiveness of $610,000 by Directors towards unpaid
remuneration of earlier years.

DIVIDENDS PAID OR RECOMMENDED

The Directors do not recommend the payment of a dividend and no amount has been paid or declared by way
of a dividend to the date of this report.

REVIEW OF OPERATIONS AND ACTIVITIES

Highlights:

•

Farm-in and Joint Venture with Territory Lithium Pty Limited to explore for gold and base metals

o Gold and base metal projects acquired in the Northern Territory

o Previous drilling at the Edwards Creek prospect intersected 4.5m @ 2.5% Cu, 0.67% Pb from 17m

o Mineralised lead-zinc zone at the Box Hole prospect extends 6km

o Rock chip sampling at Bruce’s Gold prospect returns up to 53g/t Au

•

Secures highly prospective tenements for Gold in prolifically mineralised terrains

o Two exploration licence applications (“ELA”) in the Albany Fraser Belt, interpreted to occur along

strike of the well-endowed Boulder Lefroy Fault Zone (“BLFZ”) and the Zuleika Shear (“ZS”).

o Untested, large and continuous soil anomalies within the applications are spatially related to these

mineralised structural corridors.

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D I R E C T O R S ’ R E P O R T

o Historical drilling intersections up to 3 g/t Au remain open and the associated soil geochemistry

suggests the mineralisation is much more extensive than indicated by drilling.

o An ELA north of the Golden Chimney Project contains very anomalous gold geochemistry in RAB

drilling and remains untested by RC drilling.

•

Shree Minerals acquires additional area in the Golden Chimney Project.

o The WA Department of Mines, Industry Regulation and Safety has confirmed the grant of the

amalgamation application of Prospecting Licence P40/1354 with E40/378.

o P40/1354 surrounds excluded mining lease M40/09 (Lone Hand) which contains old gold workings.

o Production records indicate 358 kg of ore at a grade of 2.08 g/t Au was treated from the gold

workings in 1983-1984.

o Geological mapping and rock chip sampling to define new drill targets is recommended at Golden

Chimney West, where anomalous soil geochemistry has not been tested by drilling.

• RC Drilling successfully completed at the Golden Chimney Project

o Drilling evaluated the potential for lateral and down dip extensions to the mineralisation at the

Golden Chimney prospect, as well as soil anomalies at Golden Chimney East and West.

o Assays from drill hole 19GCRC01 suggest the mineralisation at Golden Chimney is open along strike

to the south west.

o Down dip extensions to the mineralisation are evident from drill hole 19GCRC03.

• Allocation to create exploration tax credits up to $600,000 for the 2021 income year in the Junior Minerals

Exploration Incentive (“JMEI”)

•

Progressing re-permitting of the direct shipping ore (“DSO”) project at Nelson Bay River Iron Project (“NBR”)

Iron Ore prices remain robust in current environment.

o Mine in ready state to recommence production at short notice with existing development in place.

The Company has successfully pursued its strategy for value creation, outlined last year, to focus on exploration
(both early stage and advanced) particularly in Gold & Base Metals sector while pursuing re-permitting as part of
development process of its NBR project.

Building on from the successful acquisition of Golden Chimney Project last year located in a world class Gold mineral
province within Western Australia, the company has added exciting exploration projects to its portfolio.

Arunta Joint Venture

Shree Minerals Ltd (“Shree” or “SHH” or the “Company”) has entered into a farm-in and joint venture
agreement (“Arunta Joint Venture”) with Territory Lithium Pty Limited (“TLPL”) to explore TLPL’s tenements
for gold and base-metals.

The projects of the Arunta Joint Venture are the Box Hole, Edwards Creek and Bruce Gold Projects located in
the Northern Territory. The tenements subject to these are EL 31225, EL32419 and EL32420 covering an area
of ~380 square kilometres of ground in the highly prospective Arunta Region and 100% owned by TLPL. (Figure
1). Significant projects in the area include the Jervois Copper Project and the Johnnies Reward Gold-Copper
Project.

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D I R E C T O R S ’ R E P O R T

Figure 1. Regional location of the Arunta Joint Venture projects and major resource projects in the region

The principal terms of the Arunta Joint Venture include:

•

•
SHH can earn a 50% equity interest in the Joint Venture through the total expenditure of $50,000.
• Once SHH has earned a 50% equity interest, further Joint Venture expenditure contributions will be
pro-rata, or else a non-contributing party’s equity will be diluted using the standard industry dilution
formula.
If SHH were doing sole expenditure, its share of equity in the Joint Venture would increase to 90% by it
making a total expenditure of $450,000.
Should a party’s equity in the Joint Venture fall to 10%, its share will be automatically acquired by the
other party in exchange for a 1% NSR Royalty.
SHH will manage the Joint Venture during the earn-in stage, and while ever it holds majority equity.

•

Edwards Creek Project
Previous exploration at the Edwards Creek prospect discovered copper-(gold) mineralisation that has been
interpreted to be metamorphosed volcanic massive sulphide. The style of mineralisation has similarities to the
Johnnies Creek copper-gold project and the Jervois Copper Project.

In 1980, CRAE identified an EM conductor associated with a prominent siliceous gossanous hill shown in Figure
2. Rock chip sampling of the gossan returned up to 0.64% Cu, 0.64% Pb, 1.28% Zn. Copper staining of the rocks
is common throughout gossanous areas, illustrated in Figure 3. Two diamond drill holes by CRAE (DD80EC01
and DD81EC02) intersected strata-bound base metal mineralisation.

4.5m at 2.25% Cu, 0.11% Pb, 1.54% Zn, 0.14 g/t Au from 47.45m
Including 0.72m at 7.11% Cu, 1.9% Zn, 0.24 g/t Au in hole DD80EC02.

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Figure 2: Edwards Creek ferruginous ridge (gossan)

Figure 3: Malachite staining on strongly oxidised ferruginous quartz rock

Shree considers the source of the strong conductor at Edwards Creek is not adequately explained. The gossan
remains open down dip and along strike. The project requires further assessment of the EM surveys discussed
above, using modern filtering and modelling techniques to design definitive drill programs. Additional holes
drilled to test the strong EM conductor identified by CRA will be surveyed with downhole electromagnetics to
assist modelling and targeting. SHH will also review previous exploration data to assist targeting of the
mineralised horizon along strike where drilling has not been conducted previously. Reconnaissance work and
sampling is required around the mapped syncline, as well as regional reconnaissance.

Box Hole Project
The project is prospective for large tonnage carbonate-hosted lead-zinc deposits of the Mississippi Valley Type
(MVT). Examples of this type of deposit in Australia include the Cadjebut and Blendevale Mines near Fitzroy
Crossing in Western Australia.

Box Hole is centred on the King’s Workings that were mined by hand in the 1960’s for galena. 15 tonnes of
galena with an average grade of 66% Pb, 58.5g/t Ag and 0.43% Bi was hand-picked and sold to the Broken Hill
Smelter.

The Pb-Zn mineralisation is hosted by a mixed carbonate and shale sedimentary sequence within the Georgina
Basin (Figure 1). The mineralisation is generally associated with silicified dolostone containing gossans that
extend for over 6km in a north-south orientation parallel to faulting and anticlinal hinges (Figure 4). The faults
could represent the growth faults that have acted as conduits for hydrothermal fluids derived from the basin.
The most significant exploration program was completed by Uramet Minerals in 2007-9 comprising various IP
and gravity surveys, geochemical surveys and shallow drilling. Uramet conducted RAB drilling of only selected
gravity and IP targets, interpreted to be less than 75m deep. The best intersection was:

12m at 2.8% Zn, 0.67% Pb from 17m in HDB045
Includes 1m @ 14.7% Zn, 0.3% Pb from 24m.

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D I R E C T O R S ’ R E P O R T

Figure 4. Geological plan of the Box Hole project area (Penna 2009).

There are several strong deep IP anomalies that were not RAB drilled by Intercept (Uramet). The IP anomalies
provide significant target positions, especially those that were considered too deep by Intercept Minerals.
Several IP anomalies are coincident with regional faulting (possible growth faults), adding weight to their
prospectivity. The IP anomalies may represent mineralisation leakage from a more substantial mineralising
system or significant mineralisation proximal to an unknown growth fault.

Processing and modelling of the gravity and IP data, using modern filtering and processing techniques will
refine target areas. Following target generation, close spaced soil sampling, followed by drilling of the high
priority coincident gravity, IP and geochemical anomalies is highly recommended. Shree intends to update the
review of the project and to assist with the generation of targets for follow up work and drill testing.

Bruce Gold-Copper Project
Rock chip sampling of gossanous quartz veins at the project by the Northern Territory Geological Survey (NTGS)
returned grades of up to 53g/t Au.

The veins are hosted by a mixed rock sequence including mica schist, calc-silicate and amphibolite that form
part of the Irindinia Gniess. The veins are related to an east-west striking and south dipping shear zone.
Prospecting along the veins by Olympia Resources in 2005 located intermittent exposures of the gossanous
quartz veins over a 2km strike length. A literature review found little evidence of previous exploration. The
veins have a brecciated texture containing clasts of mica schists, sulphidic sediment, and massive sulphides.
Copper staining of the rocks is common, illustrated in Figure 5. Typical outcrop of the quartz gossan veins is
shown in Figure 6.

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D I R E C T O R S ’ R E P O R T

Figure 5. Malachite in gossanous veins at Bruce’s Prospect; samples from here yielded 1.9g/t Au and 1.6% Cu.

Figure 6: Outcropping gossanous quartz veins at Bruce’s Gold Prospect.

A soil sampling program by Olympia identified a low-level gold anomaly that indicated soil sampling was only
partially effective at delineating the mapped mineralised veins. Follow up drilling targeted the soil anomalies
rather than the mapped quartz veins returning only narrow intervals of gold mineralisation.

Regional aerial imagery interpretation by Shree has identified several other quartz veins throughout the project
area, illustrated in Figure 7. Field reconnaissance is required to determine if these veins have the same
gossanous characteristics seen at Bruce’s Prospect.

Ultra-fine soil sampling is a relatively new and inexpensive technique that has had success in identifying
anomalous geochemistry in areas of transported soil cover. Ultra-fine soil sampling may identify a much longer
and substantial mineralised halo. Alternatively, auger or RAB drilling to collect meaningful geochemical samples
is well suited to the desert sands.

Figure 7. Shree has identified several other unsampled quartz veins throughout the project area. Image is the
aerial photo of the very large exploration licence.

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D I R E C T O R S ’ R E P O R T

Dundas Project
The Company has lodged applications for two Exploration Licences (ELA), 60 kms east of Norseman Western
Australia, E63/2046 and E63/2048 (Dundas project), illustrated Figure 8.

Figure 8. Regional Location of the Dundas Project

Only very limited historical exploration has been carried out in the area due to the thin blanket (usually 5 – 10m) of
transported cover. One km spaced auger soil traverses undertaken by AngloGold Ashanti Australia (AngloGold) and a
localised RAB/RC drilling program by Pan Australian Resources during the 1990’s has identified the presence of gold
mineralisation hosted by mafic rocks in
E63/2046. Reported intersections include:

T4RC032
23m

T4RC042
87m

T4RC0018
53m

2m @ 3.5g/t Au from

1m @ 2.1g/t Au from

1m @ 1.2g/t Au from

data)

suggests

The mineralisation remains open and the
associated Au and Cu soil geochemistry
the
(AngloGold’s
mineralisation is much more extensive than
indicated by drilling, as illustrated in Figure
9. Several large and robust gold in soil
geochemical anomalies, up to 6 kms in
length, are spatially associated with the
interpreted BLFZ
and
represents a high priority for drilling for
Shree Minerals (Figure 9).

E63/2048

Figure 9. Historical data summary showing
soil geochemical contours and anomalous
drilling
intersections of the exploration
licence applications. Underlying image is
image. The
the regional aeromagnetic
location of the BLFZ and the ZS
is
interpreted from the aeromagnetic data.

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D I R E C T O R S ’ R E P O R T

Ulysses South Project.

The project area consists of 1 ELA (E40/384) and is located 30 kms south of Leonora and 6 kms north of Shree’s
Golden Chimney exploration licence (E40/378). The new tenement is located 15 kms south of the developing Ulysses
Group of Gold Mines.

Figure 10. Regional location of the Ulysses South & Golden Chimney Projects

The 100% owned tenement has been previously explored by several companies including Money Mining (1992-
1996), Asarco Pty Ltd (1984-1988), and Consolidated Gold Operations (1995-1996). The most comprehensive
exploration within the area of E40/384 was conducted by Aberfoyle during the period from 1995-1996. Aberfoyle
conducted aeromagnetic interpretation, soil and vacuum drilling and RAB and RC drilling. Figure 10 summarises
Aberfoyle’s soil geochemistry contours and the maximum gold (ppm) in RAB drilling.

Regolith mapping by previous workers and drilling has shown this tenement is mostly underlain by laterite and
weathered transported overburden, sometimes up to 60m deep in the western edge of the tenement. As such,
subtle soil anomalies, illustrated in Figure 11, may be more significant here than less covered terrains.

Of note is RAB hole ROCW375 where 4 separate gold intervals were intersected within the weathered saprolitic zone.
Best intersections include:

ROCW0385

1m @ 0.31g/t Au from 42m

1m @ 0.14g/t Au from 45m

RAB hole ROCW0387 is also anomalous to the north.

ROCW0387

4m @ 0.18g/t Au from 30m

No follow up drilling was conducted.

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D I R E C T O R S ’ R E P O R T

Figure 11. Historical data summary of application E40/384. Underlying image is the aerial satellite image of the
area.

Upon granting of the tenement, Shree will conduct reconnaissance aircore drilling in the vicinity and the
surrounds of holes ROCW0375 and ROCW0387. Drill holes with anomalous drilling intersections will then be
evaluated by RC drilling.

Amalgamation of P40/1354 with Golden Chimney Project (E40/378).

Shree Minerals decided to apply for the amalgamation of P40/1354 following its surrender in 2019. The
location of the prospecting licence is illustrated in Figure 12. P40/1354 surrounds excluded mining lease
M40/09. The tenement shows extensive gold mining activity, as illustrated in Figure 13. Gold production
records from the Mines and Mineral Deposits database (MINEDEX) from the WA Department of Mines,
Industry Regulation and Safety indicate 358 kgs of ore at a grade of 2.08 g/t Au was treated from both the
Lone Hand and the Blue-Ribbon gold workings during the period from 1983-1984.

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D I R E C T O R S ’ R E P O R T

Figure 12. Aerial photo of Shree’s Golden Chimney Project, E40/378 and the prospecting licence P40/1354.

Figure 13. Close-up of P40/1354 and the mining lease M40/09. The tenement
contains the Lone Hand and Blue-Ribbon gold workings.

The amalgamation of P40/1354 allows Shree Minerals to assess the exploration potential of the area and
identify prospective structures that may strike onto Shree’s surrounding E40/378 from M40/09. Identification
techniques may include geochemical soil and rock chip sampling and geological mapping.

GOLDEN CHIMNEY PROJECT

The project is located 40km south of Leonora (Figure 10). The world class deposit known as the Sons of Gwalia
Gold mine occurs within this geological terrain (1.9 Moz Au in reserve at a grade of 7.5 g/t Au and past
production of 4 Moz Au). Other significant and economic deposits include King of the Hills Mine (resources of

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380,000oz Au), Tower Hill (625,000oz Au in resources), and Kallis– Trump and Ulysses (760,000oz Au in
resources).

Figure 14 illustrates the geochemical soil contours derived from the auger traverses completed in July 2019.
Coherent near - surface gold anomalism is located over mostly mafic and felsic rocks as interpreted from
aeromagnetic images and geological mapping. Three prospects were RC drilled (Figure 2): The Golden
Chimney prospect, the Golden Chimney East and Golden Chimney West prospects. Only the Golden Chimney
prospect, has been drilled by previous workers. Table1 below illustrates the specifications of the drilling
program.

Figure 14. Multi-element (Au, Cu) soil contours derived from Shree’s auger program. Also illustrated is the
location of all auger samples and the interpreted position of the regional fold axis. The underlying image is the
aerial magnetics.

Table 1. RC drill hole details.

Hole

Prospect

MGA_East MGA_North Depth_m Azimuth° Dip°

19GCRC01 Golden Chimney

19GCRC02 Golden Chimney

19GCRC03 Golden Chimney

19GCRC04 Golden Chimney

336615

336630

336653

336718

19GCRC05 Golden Chimney East

337510

19GCRC06 Golden Chimney East

337472

19GCRC07 Golden Chimney East

337655

19GCRC08 Golden Chimney East

337610

19GCRC09 Golden Chimney West 335261

19GCRC10 Golden Chimney West 334390

19GCRC11 Golden Chimney West 334357

315

225

-60

6753330

6753310

6753337

6753467

6753136

6753205

6753220

6753291

6752405

6752864

6752835

120

180

186

114

127

138

114

108

100

TOTAL

1351

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Golden Chimney Prospect.

In 1993, historical RC drilling of soil and rock chip anomalies at the Golden Chimney prospect intersected broad
zones of low-grade gold mineralisation including 26m @ 0.36 g/t Au in RCGC014 from 6m, 15 m @ 0.46 g/t Au
in RCGC07 from 12m and 5 m @ 0.47 g/t Au in RCGC011 from 102 m. These intersections are illustrated in
Figure 15. Drilling encountered a mineralised structure containing common coarse crystalline arsenopyrite and
pyrite.

The positions of the recently completed RC drill holes at the Golden Chimney prospect are also illustrated in
Figure 15. Drilling was aimed at extending the mineralisation in a south westerly direction (holes 19GCRC01,
19GCRC02) and in a north-easterly direction (hole 19GCRC04). A 45° south westerly plunge to the
mineralisation was also tested by hole 19GCRC03. Altered quartz gabbros and dolerites containing common
arsenopyrite and pyrite, was seen in the four drill holes. Extensive carbonate haloes were a feature of the
alteration.

Best assays received were from drill hole 19GCRC01 where 12 m @ 83 ppb Au from 28-40 m was intersected
(4m composite samples). This drill hole suggests the mineralisation remains open along strike to the south
west in Figure 6. In hole 19GCRC03 12 m @ 67 ppb Au from 128–140 m was intersected (also 4m composite
samples). This drill hole suggests the mineralisation remains open down dip to the south east in Figure 6. No
anomalous assays were received from hole 19GCRC04 and the south westerly striking mineralisation now
appears to be closed off to the north east.

Table 2 lists all assays > 25 ppb Au received from the 4m composite samples.

Table 2 : Anomalous drilling assays. (> 25 ppb Au).

Hole No.

Hole
Type

19GCRC01

19GCRC03

19GCRC03
19GCRC05
19GCRC05
19GCRC06
19GCRC07
19GCRC09

RC
RC
RC
RC
RC
RC

Prospect

Golden
Chimney
Golden
Chimney
Golden
Chimney
Golden
Chimney
Golden
Chimney
Golden
Chimney
Golden
Chimney
Golden
Chimney
Golden
Chimney
GC East
GC East
GC East
GC East
GC West

From
(m)

To
(m)

Sample
No.

Sample Type

Au
ppb

As
ppm

Cu
ppm

Zn
ppm

Bi
ppm

43508

composite

175

150

198

1.48

43509

composite

42.5

123

0.24

43510

composite

30.5

111

0.3

43592

composite

5.6

109

43596

composite

38.5

3.8

129

1.14

104

108

43602

composite

28.5

5.8

215

0.34

116

120

43605

composite

29.5

3.2

400

0.9

128

132

43608

composite

146

6.4

0.42

136
72
120
132
56
12

140
76
127
138
60
16

43610
43668
43682
43716
43731
43776

composite
composite
composite
composite
composite
composite

44
118
26.5
38.5
54
46

1.6
5
19.6
189
942
0.4

148
7
13
9
13
103

65
47
51
32
44
28

0.66
0.08
1.16
0.18
2.4
1.94

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Figure 15. Location of the historical and the recent RC drilling at the Golden Chimney prospect. Auger soil
geochemistry contours (Au, ppb and As, ppm) are also shown.

Golden Chimney East Prospect.
Four RC drill holes tested the auger soil anomaly at Golden Chimney East. Drill hole positions with respect to
the anomalous geochemistry are illustrated in Figure 16. Mainly dolerites and gabbros were intersected. The
highest assay in drilling was from hole 19GCRC05 (hole 8 in figure 4) where 4m @ 118 ppb was received from
72-76m (4m composite sample).

Figure 16. Location of the recently completed RC drill holes at the Golden Chimney East prospect.

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Golden Chimney West Prospect.
Three RC drill holes tested the auger soil anomaly at Golden Chimney West. The regional location of this
prospect is shown in Figure 5. Drilling intersected two silicified quartz feldspar porphyries within a suite of
dolerites and gabbros. Very fine sulphides (possibly pyrite) were visible within the extremely calcareous
porphyries. Drilling assays (4m composite samples) did not exceed 50 ppb Au.

Golden Chimney West is located 2.2 kms west of the Golden Chimney Prospect in E40/378, illustrated in Figure
17. An auger soil exploration program completed during the September quarter 2019 (see 2019 September
Quarterly Report) generated Au anomalism in several auger holes with grades up to 27 ppb Au. Three separate
areas were outlined by the anomalous 20ppb Au geochemical contour (Figure 18). Two RC drill holes
(19GCRC010 and 19GCRC011) tested only one of the 20 ppb soil anomalies in November 2019. Holes were
drilled to 108m and 100m respectively.

Figure 17. Local geology and location of the Golden Chimney West prospect.

Drilling intersected two silicified quartz feldspar porphyries within a suite of dolerites and gabbros. Very fine
sulphides (possibly pyrite) were visible within the extremely calcareous porphyries. Drilling assays (4m
composite samples) did not exceed 50 ppb Au.

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Figure 18. Golden Chimney West auger soil geochemistry (ppb Au) on the aerial photo. 2019 RC drill holes are
also shown. Two 20 ppb Au soil geochemical anomalies remain to be evaluated.

As there are two soil anomalies, outlined by the 20 ppb Au soil contour, yet to be evaluated by drilling, in
Figure 18, further work is recommended at Golden Chimney West. A thin (0.3m) veneer of transported
colluvium and alluvium over the area suggests geological mapping and the collection of rock chips is ideally
suited to defining new drill targets.

Next Steps.
In order to target further drilling, Induced Polarization (IP) geophysics may be applicable to the pyrite altered
mafic sequence at Golden Chimney. IP is a commonly-used geophysical survey method for measuring the
electrical properties of subsurface rock. Measurements are made by introducing a controlled electrical current
into the ground using two current electrodes, thus energizing the ground, and then measuring the induced
potential-field gradient voltage between two non-polarizable receiver electrodes. The measured IP phase
indicates the ability of rocks to briefly hold an electrical charge after the transmitted voltage is turned off.
Metallic minerals (pyrite) hold an electrical charge longer than non-metallic minerals and this is measured in
an IP survey. Higher IP voltages reflect higher concentrations of metallic minerals (pyrite) and hence can be an
effective targeting tool. IP responses can be received from 400 m below surface using higher electrical
currents.

Extensional drilling at Golden Chimney may be warranted. In figure 6, auger Au and As geochemistry contours
suggest the mineralisation may be open to the south-west of hole 19GCRC01. Additionally, assays received
from drill hole 19GCRC03 confirm the down dip continuity of the south easterly dipping mineralisation and a
new drill hole in between 19GCRC03 and RCGC11 (in figure 17) may be warranted.

Competent Person Statement

The review of historical exploration activities and results contained in this report is based on information compiled by
Michael Busbridge, a Member of the Australian Institute of Geoscientists and a Member of the Society of Economic
Geologists. He is a consultant to Shree Minerals Ltd. He has sufficient experience which is relevant to the style of

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mineralisation and types of deposits under consideration and to the activity which he is undertaking to qualify as a
Competent Person as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves (the JORC Code).

Michael Busbridge has consented to the inclusion in the report of the matters based on his information in the form
and context in which it appears.

The Company confirms that it is not aware of any new information or data that materially affects the information in
the original reports, and that the form and context in which the Competent Person’s findings are presented have not
been materially modified from the original reports.

Where the Company refers to the Mineral Resources in this report (referencing previous releases made to the ASX),
it confirms that it is not aware of any new information or data that materially affects the information included in that
announcement and all material assumptions and technical parameters underpinning the Mineral Resource estimate
with that announcement continue to apply and have not materially changed.

Cautionary Statement (for Box Hole, Edwards Creek, Bruce Gold, Dundas and Ulysses South Gold Projects)

•

The Exploration Results for Box Hole, Edwards Creek, Bruce Gold, Dundas and Ulysses South Gold Projects
have been reported by former owners;

The source and date of the Exploration Results reported by the former owners have been referenced in the
company’s announcement to ASX dated 30/6/2020 and 15/07/2020;

The historical Exploration Results have not been reported in accordance with the JORC Code 2012;

• A Competent Person has not done sufficient work to disclose the historical Exploration Results in accordance

with the JORC Code 2012;

•

It is possible that following further evaluation and/or exploration work that the confidence in the prior
reported Exploration Results may be reduced when reported under the JORC Code 2012;

That nothing has come to the attention of the acquirer that causes it to question the accuracy or reliability
of the historical Exploration Results; but

Shree has not independently validated the historical Exploration Results and therefore is not to be regarded
as reporting, adopting or endorsing those results

• A summary of the work programs on which the Exploration Results quoted in this announcement are

included as Appendices in the company’s announcement to ASX dated 30/6/2020 and 15/07/2020;

•

There are no more recent Exploration Results or data relevant to the understanding of the Exploration
Results;

• An assessment of the additional exploration or evaluation work that is required to report the Exploration
Results in accordance with JORC Code 2012 will be undertaken following acquisition & will be funded by the
Company.

Junior Minerals Exploration Incentive (“JMEI”)

The Company is pleased to advise that it has been successful in its application to participate in the Junior Minerals
Exploration Incentive and has received an allocation to create exploration credits up to $600,000 for the 2021 income
year. This allows the Company to create exploration tax credits by raising capital and conducting eligible exploration
activities. The exploration credits can subsequently be distributed to eligible
investors. Australian resident
shareholders who are issued an exploration credit will be entitled to a refundable tax offset or, if the shareholder is a
corporate tax entity, additional franking credits. Exploration credits issued to the eligible investors must be in
proportion to their exploration investment. Eligible investors are those investors who have participated in any new
capital raising issued in the form of ordinary shares.

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Nelson Bay River Iron Ore Project (“NBR Project”)

Shree’s wholly owned Nelson Bay River Project (“NBR” or the “Project”) including Mining Lease 3M/2011 is engaged
in the mining and shipment of iron ore. The location of the Mining Lease 3M/2011 is shown in Figure 19.

Figure 19: Location Plan – NW Tasmania

The Project is within an established mineral province in the region. Operating mines include Grange Resources’ (ASX:
GRR) Savage River Iron Ore and MMG’s Roseberry Mine.

The project has three types of resources: Direct Shipping Ore (“DSO”), Beneficiable low-grade resource (“BFO”) and a
Magnetite Resource.

The NBR occurrence is a 4km long magnetic feature (anomaly). The iron mineralisation is hosted by a steeply SW
dipping mafic dyke, intruded into siliciclastic country rocks. The magnetic feature has been divided into two parts,
northern and southern.

NBR was previously producing direct shipping Iron Ore (Fines and Lump) products until being placed on care and
maintenance since June 2014 following sharp iron ore price falls.

Following the recent improvement in Iron Ore Prices, Shree is proposing to re-open the mine and is seeking
environmental permit from Tasmanian EPA. These would allow the company to complete the existing DSO pit
(“SDSO”) by extracting, processing (crushing and screening) and shipping the remaining hematite ore. The NBR
product (DSO Lump and Fines) has been very well received and is in demand by customers due to its low impurities
like alumina (Al2O3) at only 1.3%.

As part of the process, a working Draft Development Proposal & Environment Management Plan (“DPEMP”) has been
prepared earlier this year to facilitate finalisation of various technical studies & plans. While the progress during the
quarter was hampered due to COVID issues, the company is working in consultation with EPA to finalise the DPEMP.

The SDSO pit is proposed to be deepened to mine the remains of the near-surface oxidised ore body, comprising DSO
hematite, to a depth of approximately 80 m.

Resource and Reserves

Mineral Resources and Reserves Estimates, summarised by JORC classification are as follows:

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The in situ DSO Mineral Resource Estimates, September 2015

Category

M tonnes

Fe %

Al2O3 %

P %

S %

SiO2 %

LOI %

Proved

Probable

Total

0.27

0.19

0.46

56.5

1.4

1.5

1.4

0.091

0.035

0.092

0.036

0.091

0.035

8.7

8.8

8.7

6.5

(Minor rounding errors; cut off based on a nominal 54% Fe; default density of 3t/m3)

Competent Person Statement
The information in this report that relates to Mineral Resources is based on information evaluated by Mr Simon
Tear, who is a Member of The Australasian Institute of Mining and Metallurgy (MAusIMM). And who has
sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the
activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the
‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (“the JORC
Code”). Mr Tear is a Director of HandS Consultants Pty Ltd and he consents to the inclusion in the report of the
Mineral Resources in the form and context in which they appear.
The information in this report that relates to Ore Reserve Estimates for the Nelson Bay deposit is based on
information evaluated by Mr Richard Beazley who is a Member of The Australasian Institute of Mining and
Metallurgy and a Chartered Professional (MAusIMM CP(Min)) and who has sufficient experience relevant to the
style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to
qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of
Exploration Results, Mineral Resources and Ore Reserves (the “JORC Code”). Mr Richard Beazley is the Principal
of Altair Mining Consultancy Pty Ltd and consents to the inclusion in the report of the matters based on his
information in the form and context in which it appears.

Tenements

The mining tenements held at the end of the reporting period and their locations are as following:

Mine Lease/
Exploration License
3M/2011
E40/378
E40/384
E63/2046

Locality

Remarks

Nelson Bay River
Golden Chimney
Ulysses South
Dundas

100% Shree Minerals Ltd
100% Shree Minerals Ltd
*ELA, 100% Shree Minerals Ltd
*ELA, 100% Shree Minerals Ltd

*ELA: Exploration Licence Application
The above table does not include ELA made after 30/6/2020 being E63/2048 & ELA6044.

•

The mining tenement interests relinquished during the year and their location

NIL

•

The mining tenements interests acquired and disposed of during the year and their location

E40/384, E63/2046.

•

The beneficial percentage interests held in farm-in or farm-out agreements at the end of the year

NIL (The Company has entered into a farm-in and joint venture agreement (“Arunta Joint Venture”)
with Territory Lithium Pty Limited (“TLPL”) to explore TLPL’s tenements for Gold & base metals but
has not yet earned any beneficial percentage interest).

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D I R E C T O R S ’ R E P O R T

•

The beneficial percentage interests in farm-in or farm-out agreements acquired or disposed of during
the year

OTHER TENEMENTS

Shree Minerals’ exploration activities for the year in review were confined to those referred to in this report.
However, the Company can report that all other tenements remain in good standing and meet statutory
requirements.

OUTLOOK

The Company has now assembled an exciting portfolio of exploration projects in Gold & Base metals in Australia.

Securing these new tenements along with our current exploration projects, now provides the Company an
exciting portfolio of early to mid-stage highly prospective opportunities in Gold & Base Metals. These projects
have not benefited from modern exploration techniques, in an emerging area which has an established reputation as
a world-class mineral province. We believe this will be an inflection point in our journey as an emerging explorer in
this very exciting sector.

Additionally, iron ore price environment since late 2018 has been supportive for restart of NBR operations.

The Company is targeting DPEMP finalisation this year to facilitate progress to next stage of approval process. On
that basis, the Company hopes to be in a position to consider decision for recommencement of the mine in 2021.

SIGNIFICANT CHANGES IN STATE OF AFFAIRS

In the opinion of the Directors, there were no other significant changes in the state of affairs of the Company
that occurred during the financial year under review other than those disclosed in this report.

FINANCIAL POSITION

The net assets of the Company at 30th June 2020 are $1,201,144 (2019: $1,580,148)

AFTER BALANCE DATE EVENTS

Share Placement completed in August 2020 for $0.9 million. Additionally, a share placement of $0.3 million to
Directors has been announced which is subject to Shareholders approval in the next general meeting of the
Company.

There has not arisen in the interval between the end of the financial year and the date of this report any other
item, transaction or event of a material or unusual nature likely, in the opinion of the Directors of the
Company to affect substantially the operations of the Company, the results of those operations or the state of
affairs of the Company in subsequent financial years.

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D I R E C T O R S ’ R E P O R T

FUTURE DEVELOPMENTS, PROS PECTS AND BUSINESS STRATEGIES

The Company intends to continue to pursue its goals to acquire and explore mineral deposits and pursue
development and mining operations of these deposits.

ENVIRONMENTAL REGULATIONS

The Company holds exploration and mining licences to regulate its activities in the States of Tasmania and
Western Australia, Australia. These licences include conditions and regulations with respect to the
rehabilitation of areas disturbed during the course of its activities. As far as the Directors are aware, there has
been no known breach of the Company’s licence conditions other than those disclosed in this report.

DIRECTORS’ INTERESTS
The relevant interests of each Director in the securities of Shree Minerals as at date of this report are as
follows:

Mr S Loyalka
Mr A Shah
Mr D Bosio
Total

ORDINARY SHARES
FULLY PAID
47,840,358
8,121,367
38,733,054
94,694,779

OPTIONS

12,500,000
5,000,000
12,500,000
30,000,000

Mr. Andy Lau retired on 28th November 2019, holds 2,877,907 Shares as at date of this report.

INFORMATION ON DIRECTORS

Mr Sanjay Loyalka, Director and Company Secretary, FAIM,ACA, B Com (Hons)
Director of Shree Minerals Ltd since April 2008
Mr Sanjay Loyalka has experience in various functional roles including CEO, General Management, and
Corporate finance experience in mining and metals, manufacturing, and logistics based industries in a
multinational environment.
Mr Loyalka is the founder of Investment advisory firm IACG Pty Ltd in Australia which has been engaged in
cross border MandA, strategic consulting as well as a mineral commodity trading business.
As the founding CEO and Managing Director, he was instrumental in the development of the Aditya Birla
Group’s operations within Australia. He led the acquisition of Nifty and Mount Gordon Copper mines,
successful development of the Nifty Sulphide project (a remote site, 2.5 million TPA underground mine,
concentrator plant and associated infrastructure) and operational restructure of Mount Gordon Copper
Operations. These led to a successful listing of the Company on the Australian Securities Exchange under an
IPO raising $300 million and inclusion in the ASX S&P 300 index.
Mr Loyalka has been a member of the Executive Council of Chamber of Minerals and Energy (Western
Australia) in 2005 and 2006.
Directorship in other listed companies in last 3 years: N/A

Mr Amu Shah, Non-Executive Director
Director of Shree Minerals Ltd since March 2011
Mr Amu Shah is a director and shareholder in various businesses ranging from retail trade, distribution of
office and stationery products, services to the mining industry, manufacturing, and property development and
ownership.
Mr Amu Shah is the Honorary Consul for Kenya in Perth.
Mr Amu Shah has extensive international and local business experience.
Directorship in other listed companies in last 3 years: N/A

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D I R E C T O R S ’ R E P O R T

Mr Davide Bosio, Non-Executive Director, BComm, FFin, GAICD
Director of Shree Minerals Ltd since October 2018
Mr Davide Bosio is the WA State Manager and Director, Corporate Finance at Shaw and Partners Limited.
Davide has over 18 years' experience in the stockbroking industry with a focus on corporate services to listed
companies, specifically in relation to capital raisings and M&A advice.
Directorship in other listed companies in last 3 years: Connected IO Limited (ASX:CIO), March 2019 – Present ;
Spectrum Metals Limited (ASX:SPX), Dec 2017 – November 2018 ; De Grey Mining Limited, Dec 2015 –
November 2017.

Mr Andy Lau, Independent Non-Executive Director, MBA
Director of Shree Minerals Ltd since Nov 2009. Retired as Director of Shree Minerals on 28th November 2019.
Mr Andy Lau is a professional engineer and held senior management responsibilities for over 10 years in
computer information and financing industry.
Mr Lau holds a MBA and graduate majoring in Computer Technology and held the certificates of MCSE,
MCDBA, MCP, and CCNA. He worked for a number of large international companies in securities, venture
capital, and high-tech industries.
Directorship in other listed companies in last 3 years: N/A

REMUNERATION REPORT (AUDITED)

The full Board fulfils the roles of remuneration committee (the “Committee”) and is governed by the
Company’s adopted remuneration policy. The information provided in this remuneration report has been
audited as required by Section 308 (3c) of the Corporations Act 2001.

Remuneration Policy

This policy governs the operations of the Committee. The Committee shall review and reassess the policy at
least annually and obtain the approval of the Board.

General Director Remuneration

Shareholder approval must be obtained in relation to the overall limit set for non-executive directors’ fees. The
Directors shall set individual Board fees within the limit approved by shareholders.

Shareholders must also approve the framework for any broad-based equity-based compensation schemes and
if a recommendation is made for a director to participate in an equity scheme, that participation must be
approved by the shareholders.

Executive remuneration

The Company’s remuneration policy for executive directors and senior management is designed to promote
superior performance and long-term commitment to the Company. Executives receive a base remuneration
which is market related, and may be entitled to performance-based remuneration at the ultimate discretion of
the Board.

Overall remuneration policies are subject to the discretion of the Board and can be changed to reflect
competitive market and business conditions where it is in the interests of the Company and shareholders to do
so.

Executive remuneration and other terms of employment are reviewed annually by the Remuneration
Committee having regard to performance, relevant comparative information, and expert advice.

The Committee’s reward policy reflects its obligation to align executive’s remuneration with shareholders’
interests and to retain appropriately qualified executive talent for the benefit of the Company. The main
principles of the policy are:

reward reflects the competitive market in which the Company operates;

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D I R E C T O R S ’ R E P O R T

individual reward should be linked to performance criteria; and

c. Directors and executives should be rewarded for both financial and non-financial performance.

The total remuneration of executives and other senior managers consists of the following:

salary - directors, executives and senior manager receive a fixed sum payable monthly in cash;

b. bonus - directors, executives and nominated senior managers are eligible to participate in a profit

participation plan if deemed appropriate;

Long-term incentives - directors, executives, and nominated senior managers may also participate in
employee share-option schemes, with any option issues generally being made in accordance with
thresholds set in plans approved by shareholders. The Board however, considers it appropriate to retain
the flexibility to issue options to executives outside of approved employee option plans in exceptional
circumstances; and

d. Other benefits - directors, executives and senior managers are eligible to participate in superannuation

schemes and other appropriate additional benefits.

Remuneration of other executives consists of the following:

salary - senior executive receives a fixed sum payable monthly in cash;

b. bonus - each executive is eligible to participate in a profit participation plan if deemed appropriate;

long term incentives - each senior executive may, where appropriate, participate in share option schemes
which have been approved by shareholders; and

d. Other benefits – senior executives are eligible to participate in superannuation schemes and other

appropriate additional benefits.

Non-executive remuneration

Shareholders approve the maximum aggregate remuneration for non-executive directors. The Remuneration
Committee recommends the actual payments to directors and the Board is responsible for ratifying any
recommendations, if appropriate. The maximum aggregate remuneration approved for non-executive
directors is currently $200,000.

It is recognised that non-executive directors’ remuneration is ideally structured to exclude equity-based
remuneration. However, whilst the Company remains small and the full Board, including the non-executive
directors, are included in the operations of the Company more intimately than may be the case with larger
companies the non-executive directors are entitled to participate in equity-based remuneration schemes.

All directors are entitled to have their indemnity insurance paid by the Company.

Profit participation plan

Performance incentives may be offered to directors, executives, and senior management of the Company
through the operation of a profit participation plan at the ultimate discretion of the Board. Currently, there is
no such plan in practice for last 5 years.

Details of remuneration

Key Management Personnel (KMP) comprises the executive and non- executive directors only during FY2020.

The Company has paid insurance premiums in respect of directors’ and officers’ liability and legal expenses
insurance contracts for current and former directors, executive officers and secretary. The directors have not
included details of the premium paid in respect of the directors’ and officers’ liability; as such disclosure is
prohibited under the terms of the contract.

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D I R E C T O R S ’ R E P O R T

The remuneration for Key Management Personnel of the Company during the year and the previous year was
as follows:

2020

Mr S
Loyalka

Mr Andy
Lau**

Mr
Davide
Bosio

Mr Amu
Shah

Short-term Employee Benefits

Post-

employment
Benefits

Cash,
salary,
Directors
Fees
109,589

Cash
profit
share,
bonuses
0

27,397

13,699

150,685

Non-cash

benefits Allowances

Other
Long-
term
Benefits
0

Share
Based
Payments
*
30,974

Super-
annuation
10,411

Total
150,974

2,603

1,301

14,315

30,974

60,974

12,390

27,390

74,338

239,338

Performance
Based

*Option Valuation using Black Scholes model as per Note 22.

** Mr Andy Lau retired on 28th November 2019. He was not paid any remuneration for the period 1 July to 28
November 2019 as he neither attended any Board meetings nor had any engagement / communication with
the Company during the period.

2019

Mr S
Loyalka

Mr Andy
Lau

Mr
Davide
Bosio

Mr Amu
Shah

Short-term Employee Benefits

Post-

employment
Benefits

Cash,
salary,
Directors
Fees
109,589

Cash
profit
share,
bonuses
0

15,000

20,548

13,699

158,836

Non-cash

benefits Allowances

Other
Long-
term
Benefits
0

Share
Based
Payments
0

Super-
annuation
10,411

Total
120,000

1,952

1,301

13,664

15,000

22,500

15,000

172,500

Performance
Based

The table above do not include cash & equity payments made by the Company in relation to the settlement of
earlier year’s outstanding remuneration, as per detailed below.

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D I R E C T O R S ’ R E P O R T

To conserve cash resources of the Company during the period the operations are under suspension, the key
managerial personnel had voluntarily elected to take reduced drawings of their remuneration. The undrawn
amount of remuneration has been accrued each month as a liability, as disclosed in previous published
financial reports. The Directors have agreed to waive any further accruals effective 1st January 2018 so that
the Company’s total liability on this account does not increase. The total liability on this account was $860,000
as at 30th June 2018. In FY 2019, the directors agreed to settle (as approved in AGM) the amount of $860,000
outstanding for their remuneration as at 30th June 2018 as follows:

➢ Waived $610,000 (presented as debt forgiveness in statement of Profit or Loss and other

Comprehensive income)

➢ $150,000 payment by way of issue of 30,000,001 fully paid ordinary shares at $0.005 per share
➢ $100,000 cash payment

For financial years ended 30th June 2020 and 2019 the KMPs held the positions and dates of change in
responsibilities are as follows:

Mr. Sanjay Loyalka: Executive Chairman up to 27th July 2016. Continuing as Director and Company
Secretary.
Mr. Andy Lau: Non-Executive Director. Retired 28th November 2019.
Mr. Amu Shah: Non-Executive Director
Mr. Davide Bosio: appointed as Non-Executive Director , effective 4th October 2018

Options, Performance shares and Shares issued as part of remuneration for the year ended
30 June 2020

During the year, unlisted options were issued to Directors as following:

Mr. Sanjay Loyalka: 12,500,000
Mr. Amu Shah: 5,000,000
Mr. Davide Bosio: 12,500,000

These Options have an expiry date of 30 November 2023 and an exercise price equal to 1.0 cents.

There were no other Options, Performance shares and Shares issued as part of remuneration for the year
ended 30 June 2020. Please refer to Note 22 for further information.

Shares Issued on Exercise of Comp ensation Options

No options granted as compensation in prior periods were exercised during the year or in the previous year.

Number of Shares Held by Key Management Personnel
30 June 2020
Key Management Person

Balance
1 July 2019

Received as
Compensation

Options
Exercised

Net Change
Other

Mr Sanjay Loyalka

47,840,358

Mr Andy Lau *

Mr Amu Shah

Mr Davide Bosio **

2,877,907

8,121,367

2,619,048

61,458,680

36,114,006

Balance on
Resignation

Balance
30 June 2020

47,840,358

(2,877,907)

8,121,367

38,733,054

(2,877,907)

94,694,779

* Mr. Andy Lau retired on 28th November 2019. He continues to hold these shares as at date of this report.

** Following a share buy-back and cancellation within DJ Carmichael Pty Ltd, Pareto Nominee’s Pty Ltd
have acquired a relevant interest in shares held by DJ Carmichael Pty Ltd by virtue of now having an
interest greater than 20% in DJ Carmichael Pty Ltd.

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D I R E C T O R S ’ R E P O R T

Number of Options Held by Key Management Personnel
30 June 2020
Key Management Person

Balance
1 July 2019

Received as
Compensation

Options
Exercised

Net Change
Other

Mr Sanjay Loyalka

Mr Andy Lau *

Mr Amu Shah

Mr Davide Bosio

12,500,000

5,000,000

12,500,000

30,000,000

* Mr Andy Lau retired on 28th November 2019.

Balance on
Resignation

Balance
30 June 2020

12,500,000

5,000,000

12,500,000

30,000,000

Number of Share Performance Rights Held by Key Managem ent Personnel

Key Management Personnel did not hold any Share Performance Rights (“SPR”) at the beginning of the year
and no SPRs were issued to them during the year.

Employment contracts of directors and senior executives

The employment arrangements for Davide Bosio are as follows:

Term: to retire by rotation at least once every 3 years.

•
• Remuneration: comprising salary and superannuation totalling $30,000 per annum.
•

Termination: Mr. Bosio may resign from the office by notice in writing to the Company. He may also
cease to be a director if any of the disqualifying events prescribed in the Constitution occur. In
addition, Mr. Bosio’s appointment is subject to re-election by shareholders at least every 3 years.

The employment arrangements for Sanjay Loyalka are as follows:

Term: to retire by rotation at least once every 3 years.

•
• Remuneration: comprising salary and superannuation totalling $120,000 per annum.
•

Termination: Mr. Loyalka may resign from the office by notice in writing to the Company. He may also
cease to be a director if any of the disqualifying events prescribed in the Constitution occur. In
addition, Mr. Loyalka’s appointment is subject to re-election by shareholders at least every 3 years.

The employment arrangements for Amu Shah are as follows:

Term: to retire by rotation at least once every 3 years.

•
• Remuneration: comprising salary and superannuation totalling $30,000 per annum.
•

Termination: Mr. Shah may resign from the office by notice in writing to the Company. He may also
cease to be a director if any of the disqualifying events prescribed in the Constitution occur. In
addition, Mr. Shah’s appointment is subject to re-election by shareholders at least every 3 years.
• Mr. Shah has voluntarily decided to a reduced remuneration of $15,000 per annum effective 1st July

2019 until further notice and Board approval of any change.

The changes to remuneration of Directors over the years are Board approved and there is no formal
agreement between the Company and Directors in this regard.

There have been no remuneration consultants used during the year.

END OF REMUNERATION REPORT

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D I R E C T O R S ’ R E P O R T

COVID 19

The COVID-19 crisis continues to cause significant damage to communities across Australia and the world.
Since the outbreak in January 2020, SHH has continuously monitored developments around the world along
with guidelines introduced by the Federal and State Governments and health authorities to minimise the risks
that COVID-19 presents to us. As the Company does not currently have any Revenue generating activities,
there were no financial impacts on the Company. However, the progress of re-permitting activities as well as
field exploration activities were adversely impacted during April to June 2020.

Meetings of Directors

During the financial year, 6 formal meeting of Directors (including committees of directors) was held.
Attendances by each Director during the year were as follows:

Director
Sanjay Loyalka
Andy Lau
Amu Shah
Davide Bosio

Board Meetings

Meetings
attended
6
0
5
5

Meetings held
whilst in office
6
2
6
6

The full Board fulfils the role of remuneration, nomination, and audit committees.

Indemnifying Officers or Audi tor
The Company has paid insurance premiums in respect of directors’ and officers’ liability and legal expenses
insurance contracts for current and former directors, executive officers and secretary. The directors have not
included details of the premium paid in respect of the directors’ and officers’ liability; as such disclosure is
prohibited under the terms of the contract.

Options
142,184,223 Unlisted Options exercisable at $0.01 Expired on 29 November 2019. At the date of this report,
the unissued ordinary shares of Shree Minerals Limited under option are 30,000,000 Unlisted Options
exercisable at $0.01 Expiring 30 November 2023.

Proceedings on Behalf of Company

No person has applied for leave of Court to bring any proceedings on behalf of the Company or intervene in
any proceedings to which the Company is a party for taking responsibility on behalf of the Company for all or
any part of these proceedings. The Company is not a party to any other proceedings as at date of this report.

Non-audit Services

There was no non-audit service provided by the external auditors during the year.

Auditor’s Independence Declarat ion
The lead auditor’s independence declaration for the financial year ended 30 June 2020 has been received and
can be found on page 29 of annual report.

Signed in accordance with a resolution of the Board of Directors.

Sanjay Loyalka
Director

Signed in Perth the 14th day of August 2020.

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Stantons International Audit and Consulting Pty Ltd
trading as

Chartered Accountants and Consultants

14 August 2020

Board of Directors
Shree Minerals Limited
Unit 38
18 Stirling Highway
NEDLANDS WA 6009

Dear Directors

PO Box 1908
West Perth WA 6872
Australia

Level 2, 1 Walker Avenue
West Perth WA 6005
Australia

Tel: +61 8 9481 3188
Fax: +61 8 9321 1204

ABN: 84 144 581 519
www.stantons.com.au

RE:

SHREE MINERALS LIMITED

In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the
following declaration of independence to the directors of Shree Minerals Limited.

As Audit Director for the audit of the financial statements of Shree Minerals Limited for the year
ended 30 June 2020, I declare that to the best of my knowledge and belief, there have been no
contraventions of:

(i)

the auditor independence requirements of the Corporations Act 2001 in relation to the audit;
and

(ii)

any applicable code of professional conduct in relation to the audit.

Yours faithfully

STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD
(Trading as Stantons International)
(An Authorised Audit Company)

Samir Tirodkar
Director

West Perth, Western Australia

Liability limited by a scheme approved
under Professional Standards Legislation

For personal use only

S H R E E M I N E R A L S L T D

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2020

Revenue from continuing operations
Interest
Government Grants

Expenses from continuing operations
Care and maintenance expenses of mine
Depreciation expense
Finance charges
Employee and consulting fees
Debt Forgiveness (Directors unpaid remuneration of earlier years)

Regulatory costs
Occupancy and communication
Foreign exchange gain
Accounting and legal fees
Provision for impairment of mine development
Other expenses

Loss before income tax

Income tax benefit

Loss for the year

Other comprehensive income

Total Comprehensive loss for the year

Note

30 June 2020
$

30 June 2019
$

28,198
33,503

47,028
0

10A

(49,237)
(9,986)
(12,954)
(287,778)
0

(23,811)
(2,563)
340
(30,648)
(71,449)
(26,957)

(453,342)

(175,934)
(0)
(13,314)
(199,066)
610,000

(26,505)
(11,947)
24
(50,668)
(171,624)
(41,575)

(33,581)

Loss per share attributable to ordinary equity holders of the
Company:
Basic and diluted (loss) per share (cents per share)

(0.07)

(0.01)

The accompanying notes form part of these financial statements.

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S H R E E M I N E R A L S L T D

STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2020

Note

30 June 2020
$

30 June 2019
$

Assets
Current Assets

Cash and cash equivalents
Other receivables

Prepayments
Inventories

Total Current Assets

Non-Current Assets
Exploration and evaluation

Mine Development

Other Assets
Right-of-Use Asset

Plant and equipment

Total Non-Current Assets

Total Assets

Liabilities

Current Liabilities
Trade and other payables

Lease Liability
Provision for employee entitlements

Total Current Liabilities

Non-Current Liabilities
Rehabilitation Provision

Total Non-Current Liabilities

Total Liabilities

Net Assets

Equity

Contributed equity
Reserves

Retained (losses)

Total Equity

6
7

10A

6A
11

854,153
39,446

24,149
0

917,748

320,115

838,700
6,320

2,132

1,167,267

2,085,015

48,472

6,630
1,769

56,871

827,000

883,871

1,524,849
50,843

0
0

1,575,692

121,492

838,700
0

960,192

2,535,884

116,967

0
11,769

128,736

827,000

955,736

1,201,144

1,580,148

14
15

19,049,690
654,446

(18,502,992)

19,049,690
580,108

(18,049,650)

1,201,144

1,580,148

The accompanying notes form part of these financial statements.

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S H R E E M I N E R A L S L T D

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2020

Contributed Retained

Note

Equity

Losses

Reserves

Total

BALANCE AT 1 JULY 2018

17,897,568

(18,016,069)

284,587

166,086

Total comprehensive loss for the
year

(33,581)

Shares issued during the year

1,616,843

Options issued during the year

Capital raising costs

(464,721)

(33,581)

1,616,843

14,218

281,303

(183,418)

BALANCE AT 30 JUNE 2019

19,049,690

(18,049,650)

580,108

1,580,148

BALANCE AT 1 JULY 2019

19,049,690

(18,049,650)

580,108

1,580,148

Total comprehensive loss for the
year

Options issued during the year

(453,342)

74,338

BALANCE AT 30 JUNE 2020

19,049,690

(18,502,992)

654,446

1,201,144

The accompanying notes form part of these financial statements.

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S H R E E M I N E R A L S L T D

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2020

Cash flows from operating activities
Payments to suppliers and employees
Government grants received
Interest received

Note

30 June 2020
$

30 June 2019
$

(482,931)
33,503
42,216

(638,546)
0
38,597

Net cash (used in) operating activities

(407,212)

(599,949)

Cash flows from investing activities
Payment for plant and equipment
Payment for mineral exploration
Payment for mine development

Net cash (used in) investing activities

Cash flows from financing activities
Proceeds from issue of shares and options
Repayment of lease liability
Payments for share issue costs

Net cash (used in) / generated from financing activities

Net (decrease)/ increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year

(2,638)
(179,461)
(71,449)

(253,548)

0
(9,936)
0

(9,936)

(670,696)
1,524,849

0
(57,835)
(171,624)

(229,459)

1,436,061
0
(183,418)

1,252,643

423,235
1,101,614

Cash and cash equivalents at the end of the financial year

854,153

1,524,849

The accompanying notes form part of these financial statements.

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S H R E E M I N E R A L S L T D

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

This financial report includes the financial statements and notes of Shree Minerals Limited, a Company
domiciled and incorporated in Australia.

Statement of Compliance

The financial report is a general purpose financial report that has been prepared in accordance with Australian
Accounting Standards, Australian Accounting Interpretations, other authoritative pronouncements of the
Australian Accounting Standards Board and the Corporations Act 2001.

Accounting standards include Australian equivalents to International Financial Reporting Standards (“AIFRS”).
Compliance with AIFRS ensures that the financial statements and notes thereto comply with International
Financial Reporting Standards (“IFRS”). Shree Minerals Limited is a for-profit entity for the purpose of
preparing the financial statements.

The financial report is presented in Australian dollars.

Basis of Preparation

Historical cost convention

The financial report has been prepared on an accruals basis and is based on historical costs, modified, where
applicable, by the measurement at fair value of selected non-current assets, financial assets and financial
liabilities.

Going concern
These financial statements have been prepared on a going concern basis and, as a result, the financial report
for the year ended 30 June 2020 does not include any adjustments relating to the recoverability and
classification of the recorded asset amounts or to the amounts and classification of liabilities that might be
necessary should the Company not continue as a going concern.

Significant efforts have been made to preserve cash and reduce costs and secure additional finance, however
material uncertainties over the future cash flows exist.

The Company continues to engage with its stakeholders and continues to monitor opportunities from
interested investors to raise additional equity for the business. In addition, the Company continues to focus
efforts on improving liquidity through:

•
the implementation of further cost improvement initiatives;
•
continuation of voluntary payroll reductions; and
• Raising share capital or debt as and when required.

The Company also carefully manages discretionary expenditure in line with the Company’s cash flow.

The financial report has therefore been prepared on a going concern basis, which assumes continuity of
normal business activities and the realisation of assets and the settlement of liabilities in the ordinary course
of business. Should the Company be unable to continue as a going concern, it may be required to realise assets
and extinguish liabilities other than in the ordinary course of business, and at amounts that differ from those
stated in the financial statements.

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S H R E E M I N E R A L S L T D

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020

The significant accounting policies set out below have been applied in the preparation and presentation of the
financial report for the year ended 30 June 2020 and comparative information.

New and amended standards adopted by the Company for these financial
statements

The Company has considered the application of new standards and amendments for the first time in the
annual reporting period commencing 1 July 2019.

AASB 16: Leases

The Company has adopted AASB16: Leases using modified retrospective approach with the cumulative effect
of initially applying AASB 16 recognised as at 1 July 2019. In accordance with AASB 16, the comparatives for
2019 reporting period have not been restated. The impact of the adoption of this Standard and the respective
accounting policies is disclosed below.

Changes in Accounting Policies

This note describes the nature and effect of the adoption of AASB 16: Leases on the Company’s financial
statements and discloses the new accounting policies that have been applied from 1 July 2019, where they are
different to those applied in prior periods.

As a result of the changes in Company’s accounting policies, prior year financial statements were required to
be restated. However, the Company has adopted AASB 16: Leases retrospectively with the cumulative effect of
initially applying AASB 16 recognised as 1 July 2019.

Leases

The Company as lessee
At inception of a contract the Company assesses if the contract contains or is a lease. If there is a lease
present, a right-of-use asset and a corresponding liability are recognised by the Company where the Company
is a lessee. However, all contracts that are classified as short-term leases (i.e. leases with a remaining lease
term of 12 months or less) and leases of low-value assets are recognised as an operating expense on a straight-
line basis over the term of the lease.

Initially, the lease liability is measured at the present value of the lease payments still to be paid at the
commencement date. The lease payments are discounted at the interest rate implicit in the lease. If this rate
cannot be readily determined, the Company uses incremental borrowing rate.

Lease payments included in the measurement of the lease liability are as follows;

fixed lease payments less any lease incentives;

-
- variable lease payments that depend on index or rate, initially measured using the index or rate at the

commencement date;
the amount expected to be payable by the lessee under residual value guarantees;
the exercise price of purchase options if the lessee is reasonably certain to exercise the options;

-
-

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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020

lease payments under extension options, if the lessee is reasonably certain to exercise the options;
and

- payments of penalties for terminating the lease, if the lease term reflects the exercise of options to

terminate the lease.

The right-of-use asses comprise the initial measurement of the corresponding lease liability, any lease
payments made at or before the commencement date and any initial direct costs. The subsequent
measurement of the right-of-use assets is at cost less accumulated depreciation and impairment losses.

Right-of-use assets are depreciated over the lease term or useful life of the underlying asset, whichever is the
shortest.

Where a lease transfers ownership of the underlying asset or the costs of the right-of-use asset reflects that
the Company anticipates to exercise a purchase option, the specific asset is depreciated over the useful life of
the underlying asset.

AASB 3 Business Combinations

The amendments clarify that, when an entity obtains control of a business that is a joint operation, it applies
the requirements for a business combination achieved in stages, including remeasuring previously held
interests in the assets and liabilities of the joint operation at fair value. In doing so, the acquirer remeasures its
entire previously held interest in the joint operation.

An entity applies those amendments to business combinations for which the acquisition date is on or after the
beginning of the first annual reporting period beginning on or after 1 January 2019, with early application
permitted.

These amendments had no impact on the financial statements of the Company as there is no transaction
where joint control is obtained.

AASB 112 Income Taxes

The amendments clarify that the income tax consequences of dividends are linked more directly to past
transactions or events that generated distributable profits than to distributions to owners. Therefore, an entity
recognises the income tax consequences of dividends in profit or loss, other comprehensive income or equity
according to where it originally recognised those past transactions or events.

An entity applies the amendments for annual reporting periods beginning on or after 1 January 2019, with
early application permitted. When the entity first applies those amendments, it applies them to the income tax
consequences of dividends recognised on or after the beginning of the earliest comparative period.

Since the Company has not previously and is unlikely to pay a dividend in the near future these amendments
had no impact on the financial statements of the Company.

Income Tax

The income tax expense (benefit) for the year comprises current income tax expense (income) and deferred
tax expense (income).

Current income tax expense charged to the profit or loss is the tax payable on taxable income calculated using
applicable income tax rates enacted, or substantially enacted, as at reporting date. Current tax liabilities
(assets) are therefore measured at the amounts expected to be paid to (recovered from) the relevant taxation
authority.

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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020

Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability balances
during the year as well unused tax losses.

Current and deferred income tax expense (income) is charged or credited directly to equity instead of the
profit or loss when the tax relates to items that are credited or charged directly to equity.

Deferred tax assets and liabilities are ascertained based on temporary differences arising between the tax
bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets also
result where amounts have been fully expensed but future tax deductions are available. 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 accounting or taxable profit or loss.

Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when
the asset is realised or the liability is settled, based on tax rates enacted or substantively enacted at reporting
date. Their measurement also reflects the manner in which management expects to recover or settle the
carrying amount of the related asset or liability.

Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent
that it is probable that future taxable profit will be available against which the benefits of the deferred tax
asset can be utilised.

b. Property, Plant and Equipment

Each class of property, plant and equipment is carried at cost less, where applicable, any accumulated
depreciation and impairment losses.

Plant and equipment

Plant and equipment are measured on the cost basis.

The carrying amount of plant and equipment is reviewed by directors first when indicators of impairment exist
and thereafter annually to ensure it is not in excess of the recoverable amount from these assets. The
recoverable amount is assessed on the basis of the expected net cash flows that will be received from the
asset’s employment and subsequent disposal. The expected net cash flows have been discounted to their
present values in determining recoverable amounts.

The cost of fixed assets constructed within the company includes the cost of materials, direct labour,
borrowing costs and an appropriate proportion of fixed and variable overheads.

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate,
only when it is probable that future economic benefits associated with the item will flow to the group and the
cost of the item can be measured reliably. All other repairs and maintenance are charged to the profit or loss
statement during the financial period in which they are incurred.

Depreciation

The depreciable amount of all fixed assets including capitalised lease assets, but excluding freehold land, is
depreciated on a straight-line basis over their useful lives 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.

The depreciation rates used for each class of depreciable assets are:

Class of Fixed Asset

Plant and equipment

Depreciation Rate

20%

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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020

Motor Vehicle

Leased Assets

20%

50%

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet
date.

An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying
amount is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains
and losses are included in the profit or loss. When revalued assets are sold, amounts included in the
revaluation reserve relating to that asset are transferred to retained earnings.

c. Exploration, Evaluation Expenditure

Exploration and evaluation expenditure incurred is accumulated in respect of each identifiable area of interest.
These costs are only carried forward to the extent that they are expected to be recouped through the
successful development of the area or where activities in the area have not yet reached a stage that permits
reasonable assessment of the existence of economically recoverable resources.

Accumulated costs in relation to an abandoned area are written off in full against profit or loss 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 transferred to Mine
Development and amortised over the life of the area according to the rate of depletion of the economically
recoverable resources (refer to Mine Development below).

A regular review for impairment is undertaken of each area of interest to determine the appropriateness of
continuing to carry forward costs in relation to that area of interest.

Any changes in the estimates for the costs are accounted on a prospective basis. In determining the costs of
site restoration, there is uncertainty regarding the nature and extent of the restoration due to community
expectations and future legislation. Accordingly the costs have been determined on the basis that the
restoration will be completed within one year of abandoning the site.

d. Mine Development

Mine development represent the accumulation of all exploration, evaluation and development expenditure
incurred in respect of a project in which mining has commenced or in the process of commencing. When
further development expenditure is incurred in respect of mine property after the commencement of
production, such expenditure is carried forward as part of the mine property only when substantial future
economic benefits are thereby established, otherwise such expenditure is classified as part of the cost of
production.

Amortisation is provided on a unit of production basis (other than restoration and rehabilitation expenditure
detailed below) which results in a write off of the cost proportional to the depletion of the proven and
probable mineral reserves.

The Company defers waste stripping costs for matching costs with the related economic benefits. Stripping
costs incurred in the period are deferred to the extent that the current period ratio exceeds the life of mine or
pit ratio. Such deferred costs are then charged in subsequent periods, the ratio falls short of the life of mine or
pit ratio. The life of mine or pit ratio is obtained by dividing the volume of waste mined either by the volume of
ore mined. The life of mine or pit waste-to-ore ratio is a function of an individual mine's pit design and

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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020

therefore changes to that design will generally result in changes to the ratio. Changes to the life of mine or pit
ratio are accounted for prospectively. Deferred stripping costs are included in Mine development costs.

The net carrying value is reviewed regularly and to the extent to which this value exceeds its recoverable
amount, the excess is either fully provided against or written off in the financial year in which this is
determined.

The Company provides for environmental restoration and rehabilitation at site which includes any costs to
dismantle and remove certain items of plant and equipment. The cost of an item includes the initial estimate
of the costs of dismantling and removing the item and restoring the site on which it is located, the obligation
for which an entity incurs when an item is acquired or as a consequence of having used the item during that
period. This asset is depreciated on the basis of the current estimate of the useful life of the asset.

In accordance with AASB 137 Provisions, Contingent Liabilities and Contingent Assets an entity is also required
to recognise as a provision the best estimate of the present value of expenditure required to settle the
obligation.

e. Financial Instruments

Recognition, initial measurement and derecognition

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual
provisions of the financial instrument. Financial instruments (except for trade receivables) are measured
initially at fair value adjusted by transactions costs, except for those carried “at fair value through profit or
loss”, in which case transaction costs are expensed to profit or loss. Where available, quoted prices in an active
market are used to determine the fair value. In other circumstances, valuation techniques are adopted.
Subsequent measurement of financial assets and financial liabilities are described below.

Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire,
or when the financial asset and all substantial risks and rewards are transferred. A financial liability is
derecognised when it is extinguished, discharged, cancelled or expires.

Classification and sub sequent measurement

Financial assets

Except for those trade receivables that do not contain a significant financing component and are measured at
the transaction price in accordance with AASB 15, all financial assets are initially measured at fair value
adjusted for transaction costs (where applicable).

For the purpose of subsequent measurement, financial assets other than those designated and effective as
hedging instruments, are classified into the following categories upon initial recognition:

–

amortised cost;

fair value through other comprehensive income (FVOCI); and

fair value through profit or loss (FVPL).

Classifications are determined by both:

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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020

–

the contractual cash flow characteristics of the financial assets; and

the entities business model for managing the financial asset.

Financial assets at amortised cost

Financial assets are measured at amortised cost if the assets meet the following conditions (and are not
designated as FVPL):

–

they are held within a business model whose objective is to hold the financial assets and collect its
contractual cash flows; and

the contractual terms of the financial assets give rise to cash flows that are solely payments of
principal and interest on the principal amount outstanding.

After initial recognition, these are measured at amortised cost using the effective interest method. Discounting
is omitted where the effect of discounting is immaterial. The Company’s cash and cash equivalents, trade and
most other receivables fall into this category of financial instruments.

ii.

Financial assets at fair value through other comprehensive income

The Company measures debt instruments at fair value through OCI if both of the following conditions are met:

The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments
of principal and interest on the principal amount outstanding; and

The financial asset is held within a business model with the objective of both holding to collect contractual
cash flows and selling the financial asset.

For debt instruments at fair value through OCI, interest income, foreign exchange revaluation and impairment
losses or reversals are recognised in the statement of profit or loss and computed in the same manner as for
financial assets measured at amortised cost. The remaining fair value changes are recognised in OCI.

Upon initial recognition, the Company can elect to classify irrevocably its equity investments as equity
instruments designated at fair value through OCI when they meet the definition of equity under AASB 132
Financial Instruments: Presentation and are not held for trading.

iii.

Financial assets at fair value through profit or loss (FVPL)

Financial assets at fair value through profit or loss include financial assets held for trading, financial assets
designated upon initial recognition at fair value through profit or loss, or financial assets mandatorily required
to be measured at fair value. Financial assets are classified as held for trading if they are acquired for the
purpose of selling or repurchasing in the near term.

Financial liabilities

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss,
loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as
appropriate.

Financial liabilities are initially measured at fair value, and, where applicable, adjusted for transaction costs
unless the Company designated a financial liability at fair value through profit or loss.

Subsequently, financial liabilities are measured at amortised cost using the effective interest method except
for derivatives and financial liabilities designated at FVPL, which are carried subsequently at fair value with
gains or losses recognised in profit or loss.

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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020

All interest-related charges and, if applicable, gains and losses arising on changes in fair value are recognised in
profit or loss.

Impairment

From 1 July 2018, the Company assesses on a forward looking basis the expected credit losses associated with
its debt instruments carried at amortised cost and FVOCI. The impairment methodology applied depends on
whether there has been a significant increase in credit risk. For trade receivables, the Company applies the
simplified approach permitted by AASB, which requires expected lifetime losses to be recognised from initial
recognition of the receivables.

Impairment of Non-Financial Assets

At each reporting date, the Company 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. In assessing value in use, the estimated future cash flows are
discounted to their present value using a pre-tax discount rate that reflects current market assessments of the
time value of money and the risks specific to the asset for which the estimates of future cash flows have not
been adjusted.

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 the cash-generating unit to which the asset belongs.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of
the asset is reduced to its recoverable amount.

An impairment loss is recognised in profit or loss immediately, unless the relevant asset is carried at fair
value, in which case the impairment loss is treated as a revaluation decrease.

Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised
estimate of its recoverable amount, but only to the extent that the increased carrying amount does not exceed
the carrying amount that would have been determined had no impairment loss been recognised for the asset
(cash-generating unit) in prior years. A reversal of an impairment loss is recognised in profit or loss
immediately, unless the relevant asset is carried at fair value, in which case the reversal of the impairment loss
is treated as a revaluation increase.

Interests in Joint Operations

g.
The Company’s share of the assets, liabilities, revenue and expenses of joint operations are included in the
appropriate items of the financial statements.

h. Employee Benefits
Provision is made for the Company’s liability for employee benefits arising from services rendered by
employees to balance date. Employee benefits that are expected to be settled within one year have been
measured at the amounts expected to be paid when the liability is settled. 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. Those cash flows are discounted using market yields on national government bonds with terms
to maturity that match the expected timing of cash flows.

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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020

Equity-settled compensation
The Company operates equity-settled share-based payment employee share and option schemes. The fair
value of the equity to which employees become entitled is measured at grant date and recognised as an
expense over the vesting period, with a corresponding increase to an equity account. The fair value of shares is
ascertained as the market bid price. The fair value of options is ascertained using a Black–Scholes pricing
model which incorporates all market vesting conditions. The number of shares and options expected to vest is
reviewed and adjusted at each reporting date such that the amount recognised for services received as
consideration for the equity instruments granted shall be based on the number of equity instruments that
eventually vest.

i. Provisions
Provisions are recognised when the Company has a legal or constructive obligation, as a result of past events,
for which it is probable that an outflow of economic benefits will result and that outflow can be reliably
measured.

j. Cash and Cash Equivalents
Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid
investments with original maturities of 3 months or less, and bank overdrafts. Bank overdrafts are shown
within short-term borrowings in current liabilities on the balance sheet.

k. Revenue and other income

Interest income is recognised using the effective interest method.

Government grants are recognised at fair value where there is reasonable assurance that the grant will be
received and all grant conditions will be met.

Inventories

Crushed Ore at site and port and run of mine ore stockpiles are physically measured or estimated and valued
at the lower of cost or net realisable value. Net realisable value is the estimated selling price (in the ordinary
course of business assuming sales are made at the end of the reporting period such that applicable price for
the next month to coincide with time it reaches customer’s discharge port), less estimated costs of completion
and costs of selling final product.

Cost is determined using the weighted average method and comprises direct purchase costs and an
appropriate portion of fixed and variable overhead costs, including depreciation and amortisation, incurred in
converting materials into finished goods.

m. Goods and Services Ta x (“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 (“ATO”). In these circumstances the GST is
recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and
payables in the statement of financial position are shown inclusive of GST.

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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020

The net amount of GST recoverable from, or payable to, the ATO is included as a current asset or liability in the
statement of financial position.

The GST components of cash flows arising from investing and financing activities which are recoverable from,
or payable to, the ATO are classified as operating cash flows.

n. Comparative Figures
When required by Accounting Standards, comparative figures have been adjusted to conform to changes in
presentation for the current financial year.

o. Critical Accounting Estimates and Judgments
The directors evaluate estimates and judgments incorporated into the financial report based on historical
knowledge and best available current information. Estimates assume a reasonable expectation of future
events and are based on current trends and economic data, obtained both externally and within the Company.
The Company’s mining and exploration activities are subject to various laws and regulations governing the
protection of the environment. The Company recognises management’s best estimate for asset retirement
obligations in the period in which they are incurred. Actual costs incurred in the future periods could differ
materially from the estimates. Additionally, future changes to environmental laws and regulations, life of mine
estimates and discount rates could affect the carrying amount of this provision.

Key Judgements – Ore reserve and resource estimates
The Company estimates its ore reserves and mineral resources based on information compiled by Competent
Persons (as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral
Resources and Ore Resources (the JORC Code). These are taken into account in the calculation of depreciation,
amortisation, impairment, deferred mining costs, rehabilitation and environmental expenditure.

In estimating the remaining life of the mine for the purposes of amortisation and depreciation calculations,
due regard is given, not only to remaining recoverable ore contained in reserves and resources , but also to
limitations which could arise from the potential for changes in technology, demand, and other issues which are
inherently difficult to estimate over a lengthy time frame.

Where a change in estimated recoverable ore over the remaining life of the mine is made, depreciation and
amortisation is accounted for prospectively.

The determination of ore reserves and remaining mine life affects the carrying value of a number of the
Company’s assets and liabilities including deferred mining costs and the provision for rehabilitation.

Key Judgements – Units-of-production deprec iation
Estimated recoverable ore over the remaining life of the mine are used in determining the depreciation and /
or amortisation of mine specific assets. This results in a depreciation / amortisation charge proportional to the
depletion of the anticipated remaining life of mine production. Each item’s life, which is assessed annually, has
regard to both its physical life limitations and to present assessments of economically recoverable ore over the
remaining life of the mine of the mine property at which the asset is located. These calculations require the
use of estimates and assumptions, including the amount of recoverable ore over the remaining life of the mine
and estimates of future capital expenditure.

Key Judgements – Inventories
Costs incurred in or benefits of the productive process are accumulated as Crushed Ore at site and port and
run of mine ore stockpiles. Net realisable value tests are performed at least annually and represent the

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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020

estimated future sales price of the product based, less estimated costs to complete production and bring the
product to sale. Stockpiles are measured by estimating the number of tonnes added and removed from the
Stockpile. Stockpile tonnages are verified by periodic surveys.

Key Judgements – Deferred exploration and evaluation expenditure
Exploration and evaluation costs are carried forward where right of tenure of the area of interest is current.
These costs are carried forward in respect of an area that has not at balance sheet date reached a stage that
permits reasonable assessment of the existence of economically recoverable reserves, refer to the accounting
policy stated in note 1(c). The application of the Company’s accounting policy for exploration and evaluation
expenditure requires judgment in determining whether it is likely that future economic benefits are likely
either from future exploitation or sale or where activities have not reached a stage which permits a reasonable
assessment of the existence of reserves. The determination of a Joint Ore Reserves Committee (JORC)
resource is itself an estimation process that requires varying degrees of uncertainty depending on sub-
classification and these estimates directly impact the point of deferral of exploration and evaluation
expenditure. The deferral policy requires management to make certain estimates and assumptions about
future events or circumstances, in particular whether an economically viable extraction operation can be
established. Estimates and assumptions made may change if new information becomes available.

Key Judgements – Mine Development expenditure
Mine Development expenditure are carried forward in respect of each identifiable area of interest where a
mineable resource has been established and published as per JORC guidelines and has reached a stage that
permits reasonable assessment that necessary steps to commence a mining development for that area have
been commenced. Refer to the accounting policy stated in note 1(d). The net carrying value of each area of
interest is reviewed using long term commodity price forecasts from within the range of forecasts by Industry
analysts as per note 1(d).

Key Judgements Impairment of Property, Plant and Equipment
The Company assesses each asset at the end of each reporting period to determine whether any indication of
impairment exists. Where an indicator of impairment exists, an estimate of the recoverable amount is made,
which is considered to be the higher of the fair value less costs to sell and Value in Use (VIU).
Future cash flows
VIU calculation use pre-tax free cash flows based on projections approved by the Company. The key operating
assumptions and their basis of estimation are:

•
•

•

Future production based on latest mine plan available
Commodity price forecast derived from public available information and a range of external global
commodity forecasters; and
Future cost of production and future capital expenditure

Discount rate
The discount rate applied to the cash flow projections has been assessed to reflect the time value of money
and the perceived risk profile of the industry. These estimates and assumptions are subject to risk and
uncertainty. Therefore, there is a possibility that changes in circumstances will impact these projections, which
may impact the recoverable amount of assets.

Key Judgements Rehabilitation Provision
The Company’s mining and exploration activities are subject to various laws and regulations governing the
protection of the environment.
The Company makes a provision for restoration, rehabilitation and environmental costs as soon as the
obligation arises. Cost estimates at the start of each project / stage are capitalised and charged to the income
statement over the life of the project through depreciation and amortisation of the asset.

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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020

Costs are estimated using either the work of external consultants or internal experts. Management uses its
judgement and experience to provide for these estimated costs at higher of the estimated costs or the security
for rehabilitation costs provided to the Government authorities.
Significant estimates and assumptions are made in determining the provision for mine rehabilitation as there
are numerous factors that will affect the ultimate costs incurred. These factors include estimates of the extent
and costs of rehabilitation activities, technological changes, regulatory changes etc. These uncertainties may
result in future actual expenditure differing from the amounts currently provided.

p. Operating segments
Identification and measurement of segments – AASB 8 requires the ‘management approach’ to the
identification measurement and disclosure of operating segments. The ‘management approach’ requires that
operating segments be identified on the basis of internal reports that are regularly reviewed by the entity’s
chief operating decision maker, for the purpose of allocating resources and assessing performance. This could
also include the identification of operating segments which sell primarily or exclusively to other internal
operating segments.

q. Accounting standards not yet effective
A number of new standards, amendments to standards and interpretations issued by the AASB which are not
yet mandatorily applicable to the Company have not been applied in preparing these financial statements. The
Board expects no impact on the financial statements of the Company.

r. Contributed equity
Ordinary shares

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares
are recognised as a deduction from equity, net of any tax effects.

s. Earnings per share

Basic Earnings per Share

Basic earnings per share is determined by dividing net profits after income tax attributable to members
of the Company, 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 during the year.

Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share by taking
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.

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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020

NOTE 2: KEY MANAGEMENT PERSONNEL COMPENSATION
Key management personnel (“KMP”) remuneration has been included in the Remuneration Report section of
the Directors’ Report. Total amount payable was as follows:

Short term employee benefits

Salaries including bonuses and fees

Total short term employee benefits

Long service leave

Share Options

Total other long-term benefits

Superannuation

Total post-employment benefits

Total remuneration

2020

150,685

74,338

14,315

239,338

2019

158,836

13,664

172,500

Total KMP remuneration is included in “Employee and Consulting Fees” in the statement of Profit or Loss and
other Comprehensive income.

NOTE 3: EXPENSES INCLUDED IN INCOME STATEMENT

Depreciation of plant and equipment and right of
use asset

Employee benefit expenses (including writeback
of $610,000 being debt forgivness of earlier year’s
outstanding remuneration in FY 2019)
Operating lease rental expenses

NOTE 3A: AUDITOR’S REMUNERATION

Remuneration paid or payable to the auditor for:

– Auditing or reviewing the financial report

30 June 2020
$
9,986

30 June 2019
$
0

287,778

(483,308)

9,646

30 June 2020

30 June 2019

19,811

23,236

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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020

NOTE 4: INCOME TAX EXPENSE NOTE

The major components of tax expense and the reconciliation of
the expected tax expense based on the effective tax rate of
Shree Minerals Limited at 27.5% (2019: 27.5%) and the reported
tax expense in profit or loss are as follows:

Tax expense comprises:

(a) Current tax expense

Under provision in respect of prior years

Deferred tax expense

Under provision in respect of prior years

Tax expense

30 June 2020

0
0
0

(b) Prima Facie Tax expense

Non-Deductible expenses

Deferred Tax Asset not brought to account
Deferred Tax Asset Losses not previously brought to
account, now brought to account

Under provision in respect of prior years

Income tax expense

(124,669)

11,365

113,304

0
0
0

NOTE 4A: DEFERRED TAX ASSET / LIABILITY NOTE

30 June 2019
$

0
0
0

9,235

1,852

(11,087)

0
0
0

Recognised Deferred Tax Balances

DTA - Temp Differences
DTA - Losses
DTA - Non-refundable R&D

DTL
Net DTA

The applicable weighted average effective tax rates are
as follows:

Balance of franking account at year end

Page 47

30 June 2020
$

30 June 2019

1,813,542
0
0

(1,813,542)
0

Nil

1,691,183
0

(1,691,183)
0

Nil

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S H R E E M I N E R A L S L T D

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020

c. Deferred tax assets
Tax Losses
Provisions
Other

Set-off deferred tax liabilities
Net deferred tax assets

d. Deferred tax liabilities
Exploration expenditure
Mine development costs

Set-off deferred tax assets
Net deferred tax liabilities

e. Deferred Tax Assets
Provisions (balance of DTA)
Tax Effect of Tax losses - offset to DTA
Tax Effect of Unused tax losses for which no deferred tax
asset has been recognised
Total

30 June 2020
$

-
1,736,339
77,203

(1,813,542)
0

88,032
1,725,510

(1,813,542)
0

674,642
0

3,634,439
4,309,081

30 June 2019

-
1,586,196
104,987

(1,691,183)
0

33,410
1,657,773

(1,691,183)
0

806,157
0

3,548,644
4,354,801

NOTE 5: EARNINGS PER SHARE

a. Loss used to calculate basic EPS

b. Weighted average number of ordinary shares outstanding
during the year used in calculating basic and diluted EPS

30 June 2020

30 June 2019

(453,342)

Number of
Shares

(33,581)

Number of
Shares

607,736,893

471,722,463

Basic and diluted (loss) per share (cents per share)

(0.07)

(0.01)

Options totalling 30,000,000 (2019: 142,184,223) are anti – dilutive and not included in the calculation of
diluted earnings per share.

NOTE 6: CASH AND CASH EQUIVALENTS

Cash at bank / on deposits and in hand

30 June 2020
$

854,153

30 June 2019
$

1,524,849

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S H R E E M I N E R A L S L T D

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020

NOTE 6A: OTHER ASSETS

Cash deposits supporting Guarantees for Rehabilitation Bonds

NOTE 7: OTHER RECEIVABLES

Interest receivable

Other receivables

Advances - exploration

GST and ABN withholding tax receivables

NB: At the reporting date, none of the trade and other receivables were
past due or impaired.

NOTE 8: INVENTORIES

Iron ore (crushed and uncrushed) at lower of cost and net
realisable value

Provision for Impairment

Iron ore (crushed and uncrushed) at lower of cost and net
realisable value

30 June 2020

30 June 2019

838,700

30 June 2020

30 June 2019
$

10,295

210

11,162

17,779

39,446

24,313

210

26,320

50,843

30 June 2020

30 June 2019
$

255,630

(255,630)

Inventory comprises iron ore stocks that are sub grade material of 27,470 tonnes of uncrushed ROM stocks
and 15,007 of crushed ore. The accounting policy in this regard is Crushed Ore at site and port and run of mine
ore stockpiles are physically measured or estimated and valued at the lower of cost or net realisable value. Net
realisable value is the estimated selling price (in the ordinary course of business assuming sales are made at
the end of the reporting period such that applicable price for the next month to coincide with time it reaches
customer’s discharge port), less estimated costs of completion and costs of selling final product less
impairment. Cost is determined using the weighted average method and comprises direct purchase costs and
an appropriate portion of fixed and variable overhead costs, including depreciation and amortisation, incurred
in converting materials into finished goods.

NOTE 9: PLANT AND EQUIPMENT

a. Movements in Carrying Amounts
Movements in the net carrying amounts for each class of plant and equipment between the beginning and the
end of the financial year are as follows:

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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020

Plant and
Equipment

Motor
Vehicles

Total

0
0
0
0

387,374

(387,374)

30,067

(30,067)

417,441

(417,441)

2,638

(506)

2,132

2,638

(506)

2,132

390,012

(387,880)

2,132

30,067

(30,067)

420,079

(417,947)

2,132

Opening balance at 1 July 2018
Additions
Disposals
Depreciation

Impairment

Balance at 30 June 2019

At Cost

Accumulated depreciation/impairment Losses

Balance at 1 July 2019

Additions

Disposals

Depreciation

Impairment

Balance at 30 June 2020

At Cost

Accumulated depreciation/impairment Losses

Balance at 30 June 2020

NOTE 10: EXPLORATION EXPENDITURE

Exploration and evaluation phase expenditure capitalised

Movements

Opening balance
Exploration capitalised

Balance

30 June 2020
$

320,115

30 June 2019

$
121,492

121,492
198,623

320,115

0
121,492

121,492

The value of the Company’s interest in exploration expenditure is dependent upon the:

•
•
•

the continuance of the economic entity rights to tenure of the areas of interest;
the results of future exploration; and

the recoupment of costs through successful development and exploitation of the areas of
interest, or alternatively, by their sale.

The exploration properties may be subjected to claim(s) under native title, or contain sacred sites, or sites
of significance to Aboriginal people. As a result, exploration properties or areas within the tenements may
be subject to exploration restrictions, mining restrictions and/or claims for compensation. At this time, it
is not possible to quantify whether such claims exist, or the quantum of such claims.

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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020

NOTE 10A: MINE DEVELOPMENT

30 June 2020

30 June 2019

Opening Balance

Mine Development capitalised

Provision for Impairment

71,449

(71,449)

171,624

(171,624)

NOTE 11: RIGHT OF USE ASSET AND LEASE LIABILITY

The Company’s lease portfolio includes the office lease. The average term of the lease is 1-2 years.
(a) Carrying Value

Balance at inception of the lease

Accumulated depreciation

(b) AASB 16 related amounts recognised in the Statement of Profit or

Loss and Other Comprehensive Income

Depreciation expense

Interest expense (included in Finance charges)

Repayment of lease liabilities

(d) Option to extend or terminate

The Company uses hindsight in determining the lease term where the

contract contains options to extend or terminate the lease.

(e) Lease Liability

Recognised on 1 July 2019

Less: Principal repayments

add: interest expense on lease liability

Page 51

Office
$

15,800

(9,480)

6,320

9,480

588

10,068

(9,936)

15,978

(9,936)

588
6,630

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S H R E E M I N E R A L S L T D

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020

NOTE 12: TRADE AND OTHER PAYABLES

Current
Trade creditors

Other creditors and accruals

NOTE 13: REHABILITATION PROVISION

Opening Balance

Closing Balance

30 June 2020

30 June 2019
$

23,391

25,081

48,472

62,731

54,236

116,967

30 June 2020

30 June 2019

827,000

These are security deposits/Bond with Mineral Resources Tasmania and this amount is included in the Other
Assets as per note 6A.

NOTE 14: CONTRIBUTED EQUITY

607,736,893 (2019: 607,736,893) Fully paid ordinary shares

19,049,690

30 June 2020

30 June 2019

Movements

Opening balance

Shares issued (for acquisition of Golden Chimney)

Shares issued (for settlement of unpaid Remuneration)

Shares issued (Non-Renounceable Rights issue)

Capital raising costs

Closing balance

(a) Ordinary Shares

At the beginning of the reporting year

Shares issued (for acquisition of Golden Chimney)

Shares issued (for settlement of unpaid Remuneration)

Shares issued (Non-Renounceable Rights issue)

At end of year

Page 52

19,049,690

17,897,568

19,049,690

45,000

150,000

1,421,843

(464,721)

19,049,690

Number of
Shares

30 June 2020

30 June 2019

607,736,893

284,368,446

607,736,893

9,000,000

30,000,001

284,368,446

607,736,893

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S H R E E M I N E R A L S L T D

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020

(b) Options

Opening balance

Issued during the year

Expired during the year

Closing balance

Number of
Options

30 June 2020

30 June 2019

142,184,223

30,000,000

(142,184,223)

142,184,223

30,000,000

142,184,223

There were no Share Performance Rights (“SPR”) at the beginning and end of financial year.

(d) Capital risk management

The Company’s objectives when managing capital are to safeguard their ability to continue as a going concern, so
that they may continue to provide returns for shareholders and benefits for other stakeholders.

Due to the nature of the Company’s activities, being mineral exploration, the Company does not have ready access
to credit facilities, with the primary source of funding being equity raisings. Therefore, the focus of the Company’s
capital risk management is the current working capital position against the requirements of the Company to meet
exploration programmes and corporate overheads. The Company’s strategy is to ensure appropriate liquidity is
maintained to meet anticipated operating requirements, with a view to initiating appropriate capital raisings as
required. The working capital position of the Company at 30 June 2020 and 30 June 2019 are as follows:

Cash and cash equivalents
Other receivables
Prepayments
Trade and other payables and provisions

Working capital position

30 June 2020

30 June 2019

$
854,153
39,446
24,149
(56,871)

860,877

$
1,524,849
50,843

(128,736)

1,446,956

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S H R E E M I N E R A L S L T D

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020

NOTE 15: ACCUMULATED LOSSES AND RESERVES

a. Accumulated Losses

At the beginning of the year

Net loss for the year

At end of year

b. Option Reserve

30 June 2020

30 June 2019

(18,049,650)

(18,016,069)

(453,342)

(33,581)

(18,502,992)

(18,049,650)

The option reserve represents the fair value of the actual or estimated number of unexercised share options
granted to management, advisors and suppliers of the Company recognised in accordance with the accounting
policy adopted for share- based payments. Please refer note 22 for more information.

During the year 30,000,000 (2019: 142,184,223) options and nil (2019: nil) Share Performance Rights were
issued.

NOTE 16: COMMITMENTS

The Company has tenements rental and expenditure
commitments of:

Payable:

– not later than 12 months

– between 12 months and 5 years

– greater than 5 years

30 June 2020

30 June 2019

75,036

126,144

71,072

25,036

122,144

100,108

NB: The rental and expenditure commitments for Exploration Licence Applications have not been considered
pending grant of the tenements.

NOTE 17: CONTINGENT LIABILITIES AND CONTINGENT ASSETS
The Directors are not aware of any other contingent liabilities or contingent assets other than mentioned elsewhere
in the financial report.

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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020

NOTE 18: CASH FLOW INFORMATION

30 June 2020
$

30 Jun 2019
$

Reconciliation of Cash Flow from Operations with
Loss for the year
Loss for the year
Non-cash flows:
Debt Forgiveness (income)
Depreciation
Interest on lease liability
Provision- Impairment of Mine Development
Share-based Payment expense
Changes in assets and liabilities
(Increase) in other receivables
Increase/(decrease) in trade and other payables
(Decrease) in provision for employee entitlements

(453,342)

0
9,986
588
71,449
74,338

(12,752)
(87,479)
(10,000)

(407,212)

(33,581)

(610,000)
0
0
171,624
0

(26,753)
(101,239)
0

(599,949)

During the year, there were no non-cash financing or investing activities.

NOTE 19: RELATED PARTY TRANSACTIONS
There are no related party transactions except for payments in normal course of business at arm’s length.

NOTE 20: FINANCIAL INSTRUMENTS

a. Financial Risk Management
The Company’s financial instruments consist mainly of deposits with banks and receivables and payables.

The main purpose of non-derivative financial instruments is to raise finance for the Company’s operations.

Derivatives are not currently used by the Company for hedging purposes. The Company does not speculate in
the trading of derivative instruments.

i. Treasury Risk Management
The senior executives of the Company meet on a regular basis to analyse currency and interest rate exposure
and to evaluate treasury management strategies in the context of the most recent economic conditions and
forecasts.

ii. Financial Risks
The risks the Company is exposed to through its financial instruments are interest rate risk, liquidity risk and
credit risk.

Interest rate risk
The Company does not have any debt that may be affected by interest rate risk.

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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020

Sensitivity analysis
At 30 June 2020, if interest rates had changed by -/+ 25 basis points from the weighted average rate for the
year with all other variables held constant, post-tax loss for the Company would have been $7,600
lower/higher (2019 $6,000 lower/higher) as a result of lower/higher interest income from cash and cash
equivalents.

Liquidity risk
The Company manages liquidity risk by monitoring forecast cash flows. The decision on how the Company will
raise future capital will depend on market conditions existing at that time. All the financial liabilities of the
Company will mature within 12 months.

Credit risk
The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance 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.

The Company does not have any material credit risk exposure to any single receivable or group of receivables
under financial instruments entered into by the economic entity.

b. Fair value estimation
The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or
for disclosure purposes. All financial assets and financial liabilities of the Company at the balance date are
recorded at amounts approximating their carrying amount.

The carrying value of other receivables and trade and other payables and lease liability are assumed to
approximate their fair values due to their short-term nature.

c. Interest Rate Risk-
The Company’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 and the effective weighted average interest rate for each class of
financial assets and financial liabilities comprises:

Floating Interest
Rate

Fixed Interest Rate

1 Year or Less

1 to 5 Years

Non Interest
Bearing

Total

Weight
Effective
Interest Rate

2020

2019

2020

2019

2020

2019

2020

2019

2020

2019

2020

2019

Cash

95,776

516,321

753,063

1,003,555

Other Assets (Security
Deposits)
Trade and other
receivables

735,000

Total Financial Assets

95,776

516,321

1,488,063

1,738,555

Financial Liabilities

Trade and other
payables

Total Financial Liabilities

5,314

4,974

854,153

1,524,850

0.71%

1.71%

103,700

838,700

1.36%

2.20%

39,446

50,843

39,446

50,843

N/A

148,460

159,517

1,732,299

2,414,393

48,472

116,967

48,472

116,967

N/A

48,472

116,967

48,472

116,967

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S H R E E M I N E R A L S L T D

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020

NOTE 21: OPERATING SEGMENTS
The Company operates predominately in one segment involved in mineral exploration and development.
Geographically, the entity is domiciled and operates in one segment being Australia. In accordance with AASB
8 Operating Segments, a management approach to reporting has been applied. The information presented in
the Statement of Profit or Loss and other Comprehensive Income and the Statement of Financial Position
reflects the sole operating segment.

NOTE 22: SHARE-BASED PAYMENTS
Issue of Options:

During the year, unlisted options were issued to Directors as following:

Mr. Sanjay Loyalka: 12,500,000
Mr. Amu Shah: 5,000,000
Mr. Davide Bosio: 12,500,000

These Options have an expiry date of 30 November 2023 and an exercise price equal to 1.0 cents.

As the options to Directors are share based payments, they have been valued using Black Scholes Model for a
fair value of $74,338 with credit to share based payment reserve in Equity.

Details of Fair valuation:

P= Current Price of share
X=Strike price
r=Risk free rate

t=expiry period
ό=volatility

$ 0.0050 On Grant date 23/11/2019 - AGM date
$ 0.0100

0.650% 2 year Australian Govt. Bond rate

1,463 Days

107.96%

Value of call option

$ 0.003097 per option

OPTIONS:
Number of options
Valuation of options:

Less: Discount since unlisted

30,000,000
$ 92,922

$ 18,584
$ 74,338

In FY 2019, Share based payments were made as follows:

(a) 9,000,000 shares valued at $45,000 towards acquisition of Golden Chimney.
(b) 142,184,223 unlisted options to DJ Carmichael at an issue price of $0.0001 per option to raise
approximately $14,218. The expiry date of the option was 29 November 2019. The exercise price of
options was $0.01 per option. As the options to DJC are share based payments, they have been
valued using Black Scholes Model for a fair value of $295,521 with credit to share based payment
reserve in Equity. The consideration of $14,218 received from DJC has been reduced from the Fair
value arrived at using the Black Scholes Model and the balance of $281,303 has been expensed as
capital raising cost.

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S H R E E M I N E R A L S L T D

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2020

NOTE 23: AFTER BALANCE SHEET DATE EVENTS

NOTE 24: SUBSIDIARY

The Company has 100% interest in SHH Prospecting Pty Ltd. incorporated in Australia during the year for $1.
The subsidiary has been dormant since incorporation. As the subsidiary has no assets or liabilities,
consolidated financial statements have not been prepared.

Page 58

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S H R E E M I N E R A L S L T D

DIRECTORS’ DECLARATION

1. in the opinion of the directors of Shree Minerals Limited (‘the Company’):

(a) The financial statements and notes as set out on pages 30 to 58 are in accordance with the Corporations

Act 2001, including:

(i) giving a true and fair view of the financial position of the Company as at 30 June 2020 and of
its performance, as represented by the results of its operations and its cash flows, for the
financial year ended on that date; and

(ii) complying with Australian Accounting Standards, the Corporations Regulations 2001, and

other mandatory professional reporting requirements; and

(b) The audited remuneration disclosures included in the Directors’ report for the year ended 30 June 2020,

comply with section 300A of the Corporations Act 2001.

will be able to pay its debts as and when they become due and payable.

(d) The Company has included in the notes to the financial statements an explicit and unreserved statement of

compliance with International Financial Reporting Standards.

2. The directors have been given the declarations required by Section 295A of the Corporations Act from the
chief executive officer and chief financial officer for the financial year ended 30 June 2020.

Dated at Unit 38, 18 Stirling Highway, Nedlands, WA 6009 this 14th day of August 2020.

Signed in accordance with a resolution of the directors:

_______________________

Sanjay Loyalka

Director

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Stantons International Audit and Consulting Pty Ltd
trading as

Chartered Accountants and Consultants

PO Box 1908
West Perth WA 6872
Australia

Level 2, 1 Walker Avenue
West Perth WA 6005
Australia

Tel: +61 8 9481 3188
Fax: +61 8 9321 1204

ABN: 84 144 581 519
www.stantons.com.au

INDEPENDENT AUDITOR’S REPORT
TO THE MEMBERS OF
SHREE MINERALS LIMITED

Report on the Audit of the Financial Report

Our Opinion

We have audited the financial report of Shree Minerals Limited (the Company), which comprises the
statement of financial position as at 30 June 2020, the statement of profit or loss and other comprehensive
income, the statement of changes in equity and the statement of cash flows for the year then ended, and
notes to the financial statements, including a summary of significant accounting policies, and the directors'
declaration.

In our opinion, the accompanying financial report of the Company is in accordance with the Corporations
Act 2001, including:

(i)

giving a true and fair view of the Company’s financial position as at 30 June 2020 and of its
financial performance for the year then ended; and

(ii)

complying with Australian Accounting Standards and the Corporations Regulations 2001.

Basis for Opinion

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report
section of our report. We are independent of the Company in accordance with the auditor independence
requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional
and Ethical Standards Board's APES 110 Code of Ethics for Professional Accountants (the Code) that are
relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical
responsibilities in accordance with the Code.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.

Key Audit Matters

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

We have determined that there are no key audit matters to communicate in our report.

Liability limited by a scheme approved
under Professional Standards Legislation

For personal use only

Other Information

The directors are responsible for the other information. The other information comprises the information
included in the Company's annual report for the year ended 30 June 2020 but does not include the
financial report and our auditor's report thereon.

Our opinion on the financial report does not cover the other information and accordingly we do not express
any form of assurance conclusion thereon.

In connection with our audit of the financial report, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial report or our
knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the Directors for the Financial Report

The directors of the Company are responsible for the preparation of the financial report that gives a true
and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for
such internal control as the directors determine is necessary to enable the preparation of the financial
report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

In preparing the financial report, the directors are responsible for assessing the Company’s ability 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 Company or to cease
operations, or has no realistic alternative but to do so.

Auditor's Responsibilities for the Audit of the Financial Report

Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes
our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit
conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of this financial report.

As part of an audit in accordance with Australian Auditing Standards, we exercise professional judgement
and maintain professional scepticism throughout the audit. An audit involves performing procedures to
obtain audit evidence about the amounts and disclosures in the financial report.

The procedures selected depend on the auditor's judgement, including the assessment of the risks of
material misstatement of the financial report, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the entity's preparation of the financial
report that gives a true and fair view in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal
control.

The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.

An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness
of accounting estimates made by the Directors, as well as evaluating the overall presentation of the
financial report.

For personal use only

We conclude on the appropriateness of the Directors' use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions
that may cast significant doubt on the company's ability to continue as a going concern. If we conclude
that a material uncertainty exists, we are required to draw attention in our auditor's report to the related
disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However,
future events or conditions may cause the company to cease to continue as a going concern.

We evaluate the overall presentation, structure and content of the financial report, including the
disclosures, and whether the financial report represents the underlying transactions and events in a
manner that achieves fair presentation.

We communicate with the Directors regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in Internal control that we identify
during our audit.

The Auditing Standards require that we comply with relevant ethical requirements relating to audit
engagements. We also provide the Directors with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters
that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

Report on the Remuneration Report

We have audited the Remuneration Report included in pages 23 to 27 of the directors’ report for the year
ended 30 June 2020. 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.

Opinion on the Remuneration Report

In our opinion, the Remuneration Report of Shree Minerals Limited for the year ended 30 June 2020
complies with section 300A of the Corporations Act 2001.

STANTONS INTERNATIONAL AUDIT AND CONSULTING PTY LTD
(Trading as Stantons International)
(An Authorised Audit Company)

Samir Tirodkar
Director
West Perth, Western Australia
14 August 2020

For personal use only

S H R E E M I N E R A L S L T D

SHAREHOLDER INFORMATION

ADDITIONAL INFORMATION

The following additional information not shown elsewhere in the report is required by the Australian Securities
Exchange Ltd in respect of listed public companies only. This information is current as at 7th August 2020.

SUBSTANTIAL SHAREHOLDERS
The company has received substantial shareholder notices from;

– Mr Sanjay Loyalka (47,840,358 ordinary shares & 12,500,000 unlisted options)
– Rajesh Bothra (175,499,630 ordinary shares)
– DJ Carmichael Pty Ltd (36,114,006 ordinary shares)
– Davide Bosio (38,773,954 ordinary shares & 12,500,000 unlisted options) Including 36,114,006 (FPO)
held by DJ Carmichael Pty Ltd (Following a share buy-back and cancellation within DJ Carmichael Pty
Ltd, Pareto Nominee’s Pty Ltd have acquired a relevant interest in shares held by DJ Carmichael Pty Ltd
by virtue of now having an interest greater than 20% in DJ Carmichael Pty Ltd).

ISSUED SECURITIES
Refer note 14 of the financial statements.

VOTING RIGHTS
The voting rights attached to the Fully Paid Ordinary shares of the Company are:
1. At a meeting of members or classes of members each member entitled to vote may vote in person or by

proxy or by attorney; and

2. On a show of hands every person present who is a member has one vote, and on a poll every person

present in person or by proxy or attorney has one vote for each ordinary share held.

DISTRIBUTION SCHEDULE – SHAREHOLDINGS AS AT 7th August 2020
Securities
Fully Paid Ordinary
Shares

Holdings Ranges
1-1,000
1,001-5,000
5,001-10,000
10,001-100,000
100,001-999,999,999
Totals

Holders
12
16
161
206
268
663

Total Units
4,423
56,744
1,571,244
10,325,657
595,778,825
607,736,893

%
0.000
0.010
0.260
1.700
98.030
100.000

UNMARKETABLE PARCELS
There are 334 unmarketable parcels as at 7th August 2020 totalling 6,434,652 ordinary shares.

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S H R E E M I N E R A L S L T D

SHAREHOLDER INFORMATION

20 LARGEST SHAREHOLDERS AS AT 7th August 2020

Holder Name
RB INVESTMENTS PTE LTD
DJ CARMICHAEL PTY LTD
IACG PTY LTD
CHINA ALLIANCE INTERNATIONAL
MR SANJAY KUMAR LOYALKA
OCEANIA COAL RESOURCES NL
COMSEC NOMINEES PTY LIMITED
MEGAWILD ENTERPRISES PTY LTD
AYERS CAPITAL PTY LTD
YUCAJA PTY LTD
MR SUKHDEEP SINGH
MRS ENID HOON HOON WONG
MR WAYNE JEFFERY MARCH &
MISS SANDRA JOY FEELEY
MR PAUL IVOR WILLIAM DAVIES
AYMON PACIFIC PTY LTD
KOOMBA HOLDINGS PTY LTD
MS CHUNYAN NIU
SABA NOMINEES PTY LTD
ULLAPOOL INVESTMENTS PTY LTD

Total Securities of Top 20 Holdings
Total of Securities

Balance
172,621,723
36,114,006
25,809,078
23,223,632
21,931,280
15,000,000
10,778,738
7,402,907
7,390,648
6,800,000
5,818,014
5,700,000
5,000,000
5,000,000
5,000,000
4,912,989
4,800,000
4,768,925
4,500,000
4,400,000

376,971,940
607,736,893

%
28.404%
5.942%
4.247%
3.821%
3.609%
2.468%
1.774%
1.218%
1.216%
1.119%
0.957%
0.938%
0.823%
0.823%
0.823%
0.808%
0.790%
0.785%
0.740%
0.724%

62.029%

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S H R E E M I N E R A L S L T D

CORPORATE GOVERNANCE STATEMENT

This statement outlines the main corporate governance practices in place during the financial year.

The Directors on behalf of the shareholders monitor the business affairs of the Company. For this, they
formally have adopted a Corporate Governance Charter, which is designed to encourage Directors and other
Shree personnel to focus their attention on accountability, risk management, and ethical conduct. The
Company has adopted the following policies, protocols, and corporate governance structures:

• Structure of Board and Committees

• Nominations and Remuneration Committee Charter

• Audit and Risk Management Committee Charter

• Board Members’ Code of Conduct

• Conflict of Interest Protocol

• Group Code of Conduct/Values

• Risk Management Policy

• Policy on the Trading of Company’s Shares

• Release of Price Sensitive Information

• Board Calendar (Strategic Governance Issues)

• Board and Management Performance Enhancement Policy

This statement describes Shree Minerals Ltd’s position in relation to each of the recommendations set by the
ASX Corporate Governance Council (“Recommendations”). The Recommendations are set out
in the
ASX Corporate Governance Council’s Corporate Governance Principles and recommendations (3rd Edition) so
as to ensure that its practices are largely consistent with those Recommendations from time to time. The
Corporate Governance Charter will be reviewed and adjusted, as required, on an on-going basis including in
line with the ASX Corporate Governance Council amendments to the Recommendations.

The Company is committed to implementing high standards of corporate governance. In determining what
those high standards should involve the Company has turned to the ASX Corporate Governance Council’s
Principles of Good Corporate Governance and Best Practice Recommendations. The Company is pleased to
advise that the Company’s practices are largely consistent with those ASX guidelines.

Unless disclosed below, all the best practice recommendations of the ASX Corporate Governance Council have
been applied for the entire financial year ended 30 June 2020.

Board Composition

The skills, experience, and expertise relevant to the position of each director who is in office at the date of the
annual report and their term of office are detailed in the director’s report.

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S H R E E M I N E R A L S L T D

CORPORATE GOVERNANCE STATEMENT

The Board sets out below its “if not why not” report in relation to those matters of corporate governance
where the Company’s practices depart from the Recommendations

RECOMMENDATION

SHREE MINERALS LIMITED CURRENT PRACTICE

1.1

The role of the Board and Management.

1.2

Appointment and re-election of Board members.

1.3 Written agreements.

1.4

Company Secretary

1.5

Diversity

1.6

Board Evaluation

1.7

Performance evaluation of senior executives

2.1

Nomination Committee

2.2

Board and skills matrix

Board

Satisfied.
at
Charter
www.shreeminerals.com in the Corporate Governance
Statement.

available

Satisfied. Procedures For Selection And Appointment Of
Directors is available at www.shreeminerals.com in the
Corporate Governance Statement.

Satisfied. All directors and senior executives are provided
with formal letter of appointment which sets out the
terms and conditions of appointment including their
duties, rights, responsibilities and expectations.

Satisfied. The company secretary is accountable directly
to the board on all matters to do with the proper
functioning of the board.

Not satisfied. The company considers that given the
current small size of the company’s operations where
there are very few employees, this objective is not
practical to be achieved till such time that the company’s
operations are increased. Accordingly, the company has
not established a policy concerning diversity.

It is the policy of the Board to conduct annual evaluations
of its effectiveness and that of individual Directors.

Whilst the performance of the Board is appraised on an
ongoing basis, during the year no formal appraisal was
conducted.

Whilst the performance of management is appraised on
an ongoing basis.

During the year no formal appraisal of management was
conducted.

Not satisfied. The Board consider that given the current
size of the board, this function is efficiently achieved with
full board participation. Accordingly, the Board has not
established a nomination committee.

Satisfied. The Board has been formed so that it has
effective
to
adequately discharge its responsibilities and duties given
its current size and scale of operations.

composition,

commitment

size and

Please also refer to the Procedures For Selection And
is available at
Appointment Of Directors which

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S H R E E M I N E R A L S L T D

CORPORATE GOVERNANCE STATEMENT

RECOMMENDATION

SHREE MINERALS LIMITED CURRENT PRACTICE

www.shreeminerals.com in the Corporate Governance
Statement.

2.3

2.4

Size and Composition of the Board

Disclosed in the Directors report.

A majority of the board should be
directors.

independent

Not Satisfied. Due to the size of the company and its
operations the Board has determined increasing the size
of the Board to achieve this would not be efficient.

2.5

The chair should be an independent director.

Not Satisfied. Due to the size of the company and its
operations.

2.6

Induction Program.

3.1

Companies should have a code of conduct and disclose
the code or a summary of the code

4.1

The board should establish an audit committee.

4.2

The board should receive assurance from the chief
executive officer (or equivalent) and the chief financial
officer (or equivalent) that the declaration provided in
accordance with section 295A of the corporations Act
is founded on a sound system of risk management and
internal control and that the system is operating
effectively
in relation to
financial reporting risks.

in all material respects

4.3

External Auditor at AGM

5.1 Make timely and balanced disclosure

informal

Non
induction process exists. The process
includes the new Directors meeting with the other Board
members and the senior management in order to gain an
insight into the key issues and culture of the Company.

Satisfied. The Code of conduct is available at

www.shreeminerals.com in the Corporate Governance
Statement.

Satisfied.
declaration pursuant to the 2019 financial period.

The Board has received a section 295A

The Company has ensured that its external auditor
attends its AGM and is available to answer questions from
security holders relevant to the audit.

Satisfied. Continuous disclosure policy is available at
www.shreeminerals.com in the Corporate Governance
statement.

6.1

Information on website

The company has provided information about itself and

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S H R E E M I N E R A L S L T D

CORPORATE GOVERNANCE STATEMENT

RECOMMENDATION

SHREE MINERALS LIMITED CURRENT PRACTICE

6.2

Investor relations

6.3

Security holders meetings

6.4

Electronic communication

7.1

Companies should establish policies for the oversight
and management of material business risks and
disclose a summary of those policies.

7.2

Implementation of risk management systems and risk
review.

7.3

Internal Audit function

7.4

Sustainability risks.

Page 68

its governance to investors via its website.

Shareholders communication strategy

Satisfied.
is
available at www.shreeminerals.com in the Corporate
Governance statement.

The Company has adopted the ASX Guidelines for Notice
of Meetings.

Shareholders communication strategy
is available at
www.shreeminerals.com in the Corporate Governance
statement.

The Board consider that given the current size of the
board, this function is efficiently achieved with full board
participation. Accordingly, the Board has not established
a Risk committee.

at
program
Risk management
www.shreeminerals.comin the Corporate Governance
statement.

available

The Board is responsible for reviewing annually its risk
management system. The review for this year is yet to be
completed.

Given the size of the current operations, currently there is
no internal audit activity undertaken.

The Company manages its exposure to economic risk and
environmental risk while it does not consider that it
currently has any material exposure
social
sustainability risks, however will monitor the exposure.

External Risk factors that materially have an impact
include :

1. Fluctuations in commodity prices and impacts of

ongoing global economic volatility may
negatively affect our results, including cash flows
and asset values.

2. Currency exchange rate fluctuations
3. Financial : Liquidity and cash flow risks
4.
5. Unexpected natural and operational

Increased costs

catastrophes

EPA Tasmania has notified the company that that the
variation of the Environment permit in Nov’13 to allow a
temporary PAF rock dump for DSO south pit has been
rendered invalid in a judicial review by the Court in
Dec’14. As a consequence, the current PAF storage
temporary dump is not compliant. To resolve the issue,
the Company is pursuing a new permit and is in

For personal use only

S H R E E M I N E R A L S L T D

CORPORATE GOVERNANCE STATEMENT

RECOMMENDATION

SHREE MINERALS LIMITED CURRENT PRACTICE

discussions with the EPA to finalise DPEMP.

All other government approvals for the project remain
valid. These
include the Mining Lease and Federal
Government Environmental Approval.

licences

The Company holds various exploration and mining
licences to regulate its activities in the State of Tasmania,
conditions and
Australia. These
regulations with respect to the rehabilitation of areas
disturbed during the course of its activities. As far as the
Directors are aware, there has been no known breach of
licence conditions other than those
the Company’s
disclosed in the Directors report.

include

implementation of best practice

The
social and
environmental practices, well beyond simple compliance,
has been an integral part of Company's philosophy. Shree
Minerals also recognises the opportunities that the
presence of our project creates to support Devil Facial
Tumour research. Hence, Devil numbers around the mine
site are monitored as part of the mine’s operational
monitoring of the effectiveness of its devil (and quoll)
impact mitigation measures, and these observations will
be valuable data for the Save the Tasmanian Devil
Program (STDP).

The Company recognises the importance of identifying
and managing risks and ensuring appropriate control
measures are in place.

8.1

The board should establish a remuneration committee. Not Satisfied. The Board consider that given the current
size of the board, this function is efficiently achieved with
full board participation. Accordingly, the Board has not
established a remuneration committee.

8.2

Executive versus non- executive remuneration.

Current Remuneration policies are set out
Company’s Remuneration Report.

in the

8.3

Equity based remuneration.

Securities

The
at
www.shreeminerals.com in the Corporate Governance
statement.

available

Policy

Other Information

Further information relating to the company’s corporate governance practices and policies has been made
publicly available on the company’s web site at www.shreeminerals.com.

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