ANNUAL REPORT 2018 SHARE REGISTRY Computershare Investor Services Pty Ltd Postal address: GPO Box 2975 Melbourne VIC 3001 Office address: Level 11, 172 St Georges Terrace Perth WA 6000 T: Australia T: International 1300 367 027 +61 3 9946 4421 TRANSACTIONAL BANKER ANZ Banking Group Limited 1275 Hay Street West Perth WA 6005 AUSTRALIAN SECURITIES EXCHANGE Shares in Vimy Resources Limited are quoted on the Australian Securities Exchange. ASX code: VMY BOARD OF DIRECTORS The Hon. Cheryl Edwardes, AM Non-Executive Chairman Mike Young Managing Director Julian Tapp Executive Director David Cornell Non-Executive Director Andy Haslam Non-Executive Director Mal James Non-Executive Director Dr Vanessa Guthrie Non-Executive Director Ron Chamberlain Company Secretary REGISTERED & PRINCIPAL OFFICE Ground Floor 10 Richardson Street West Perth WA 6005 T: +61 8 9389 2700 F: +61 8 9389 2722 E: info@vimyresources.com.au W: www.vimyresources.com.au AUDITOR KPMG Australia 235 St Georges Terrace Perth WA 6000 CORPORATE DIRECTORY TABLE OF CONTENTS CHAIRMAN’S LETTER 02 CEO’S REVIEW OF ACTIVITIES 04 MINERAL RESOURCE AND ORE RESERVE UPDATES TENEMENTS 2018 FINANCIAL REPORT ADDITIONAL INFORMATION CORPORATE GOVERNANCE STATEMENT 16 21 22 79 82 Nuclear is simply the most efficient, safest, and dependable source of low-emission, dispatchable electricity. VIMY RESOURCES ANNUAL REPORT 2018 1 CHAIRMAN’S LETTER The uranium market is in the midst of a long-awaited revival as the supply-side response to persistently low prices has begun to take effect. Despite the depressed market, Vimy has not merely ‘marked time’ but has continued to progress the Mulga Rock Project as well as acquiring a world-class project in the Northern Territory. So why continue these activities in a depressed market? Why not just fold up the tent and wait it out? The answer goes to the heart of our strategy and philosophy which is to be ‘mine ready’ when the upturn hits, and it would appear that our timing is almost perfect. In those circumstances then, 2018 has actually been a good year for Vimy. A very comprehensive Definitive Feasibility Study for the Mulga Rock Project was released in January 2018 and was the culmination of two years of intense work by the Vimy team. The DFS demonstrates that the Mulga Rock Project is a low-risk, simple operation with operating costs well inside the cost curve of today’s operating uranium mines. The acquisition of the Alligator River Project from Canadian uranium miner Cameco Corporation was an important milestone. Not only is the project located in one of the best uranium provinces in the world, but it provides Vimy with a pipeline of uranium projects. The Mulga Rock Project has a substantial mine-life of fifteen years; however, nuclear power utilities consider suppliers’ capacity to provide fuel for decades. The Alligator River Project provides encouragement to the utilities that we can achieve that long-term supply. A growing world needs dependable, dispatchable electricity. While power-hungry nations are building coal-fired power plants at a faster rate than they are being decommissioned, the world is ramping up to move away from traditional power sources. Nuclear is simply the most efficient, safest, and dependable source of low-emission, dispatchable electricity. Importantly, the Mulga Rock Project will produce enough uranium to power eight 1GWe nuclear power plants every year saving about 64Mt of CO2, or 12% of Australia’s total CO2 output. Currently, nuclear power provides 11% of the world’s electricity, but growth is expected globally, particularly in non-OECD countries. In the USA, nuclear power provides 20% of all electricity, and over 60% of low-emission electricity (followed by hydro, with wind and solar a distant third). China recently announced that it plans to install up to 150 GWe of additional nuclear generating capacity by 2035. The world currently has 400 GWe of installed capacity; with 59 GWe under construction, 154 GWe planned, and 376 GWe proposed. This level of build-out will more than make up for the premature closure or retirement of reactors in the Western world so this is a growth industry. Uranium oxide accounts for only a small part of the overall cost of electricity from a nuclear power plant. Security of supply is front of mind for nuclear fuel buyers who rely on Australia as a safe and secure supplier of uranium. Australia has been shipping uranium oxide for more than thirty years. In more than 12,000 container movements there have been no incidents that posed a risk to public health or to the environment. The same cannot be said for the transportation of hydrocarbons! About 3.5Mlbs of uranium oxide from Mulga Rock will be trucked to the port of Adelaide for export. This will only require 48-50 truckloads a year and is a small part of our overall costs. Australia’s uranium is sold for electrical power generation under extremely stringent safeguards. Australia was the first country to bring into force an additional protocol above the Nuclear Non-Proliferation Treaty (NPT) and requires all customer countries to have entered into a bilateral safeguards treaty which is more rigorous than NPT arrangements. 2 VIMY RESOURCES ANNUAL REPORT 2018 Stakeholders should already have the utmost confidence in Australia’s rigorous mining and environmental regulatory framework. All ground- disturbing activities, from building a suburb to mining, have a residual environmental impact. Australia’s regulatory framework manages this risk and moderates the impacts through the approval process, and through monitoring and reporting of environmental performance and impact. The Mulga Rock Project has undergone a very comprehensive Public Environmental Review process and has obtained approvals, with conditions, from both the Western Australian State Government and the Federal Government. The Company is now in the process of submitting all of the work plans required under its PER approval conditions. All the activities of the Vimy team are underpinned by the Company’s vision of ‘Mining a cleaner tomorrow’ which captures its strong environmental values and actions. The Definitive Feasibility Study also detailed the Mulga Rock Project’s benefits to Western Australia. The gains to the local economy are significant, with the Project expected to generate $200 million in state royalties over its fifteen-year mine life and create approximately 350 site-based permanent jobs. More than 550 people will work on the project during construction. When the mine is up and running, personnel will fly from Perth or Kalgoorlie by chartered aircraft. In the years of the Project’s development, Vimy has relied on many suppliers from the Kalgoorlie-Boulder region and will continue its ‘buy local’ approach when the Project is under construction and operating. RC drilling at Angularli, Alligator River Project, August 2018 We have seen some changes to the share register this year in response to changing market conditions. I welcome the new shareholders who joined the register following capital raisings in April this year and July last year. My thanks go to the Vimy board members for their tremendous effort during the year. I am always grateful for their combined experience and knowledge. On behalf of the Board, I would also like to thank Mike Young and the whole team for their achievements during the year. I have seen, first-hand, the huge amount of work they have done to bring the Mulga Rock Project through the DFS and approvals processes and how much enthusiasm has surrounded the acquisition and early work on the Alligator River Project. I would like to thank all members of the Vimy team – staff and consultants – for their enormous contribution. The Hon. Cheryl Edwardes AM Chairman The acquisition of the Alligator River Project from Canadian uranium miner Cameco Corporation was an important milestone. Not only is the project located in one of the best uranium provinces in the world, but it provides Vimy with a pipeline of uranium projects. VIMY RESOURCES ANNUAL REPORT 2018 3 CEO’S REVIEW OF ACTIVITIES It’s rare for a CEO to feel compelled to use the ‘F-word’ but I feel it’s warranted here. And that word is Focus. That’s been our team for these tough few years; focussed on, and achieving, three important outcomes: • approvals, • definitive feasibility study, and • company growth Last year we completed our State and Federal environmental approvals for the Mulga Rock Project. This year saw the release of the Definitive Feasibility Study (DFS) in January and the announcement of the acquisition of the Alligator River Project in March. These events demonstrate our focus on becoming a mid-tier, multi-mine uranium producer. The DFS lays the foundation for Vimy to become Australia’s next supplier of uranium oxide and the operator of Western Australia’s first uranium mine. You will see the results of the DFS detailed on the following pages. Most of our activities in the second half of CY2017 underpinned the DFS release. In July 2017 we announced an upgrade to the Mulga Rock Resource, which saw it crack the 90Mlb mark. Importantly, that update included details of high- grade zones within Ambassador of 25Mlbs at 0.15% (1,500ppm) U3O8 which will form the basis of our high-grade start-up strategy on the commencement of mining. In September 2017, we announced a major Ore Reserve update resulting in a thirteen year Reserve. The details of Mineral Resources and Ore Reserve are found on page 16 of this report. These upgrades were followed by the announcement that the uranium oxide concentrate (UOC) produced from samples from Mulga Rock had met the quality assurance standards of the international converters. The three samples were precipitated at the pilot plant using material from the geotechnical trenches excavated at Mulga Rock and were chosen as being closest to the quality we expect to see in final production. All three converters – Cameco Corporation in Canada, ConverDyn in the USA and New Areva (since renamed Orano) in France – confirmed the high quality of the product, thus providing the assurance required by nuclear utilities seeking to purchase our UOC under long-term offtake agreements. As well as a high-quality product, nuclear utilities are also looking for reliability of supply. While Mulga Rock remains our primary focus, the acquisition of the Alligator River Project from Cameco Australia shows our commitment to becoming a long-term, multi-mine producer. Cameco has been actively exploring in the Alligator River region for the past fifteen years and we were fortunate to be able to acquire not only the project but their high-quality data and key exploration staff. I’d like to say thank you to every member of the Vimy team for their hard work this year. I’d also like to pay particular thanks to the people who have departed from the Company as we migrated from high levels of activity during the DFS to our current phase of exploration and uranium marketing. Hopefully, they’ll be back with us soon as activities ramp back up. 4 VIMY RESOURCES ANNUAL REPORT 2018 MULGA ROCK PROJECT • Located in the Great Victoria Desert, Western Australia. Comprises four Mineral Resources: • • • • Ambassador and Princess, which form the Mulga Rock East Mining Centre, and Shogun and Emperor, which form the Mulga Rock West Mining Centre, approximately 20km away. The Project is situated on two granted Mining Leases (ML39/1104 and ML39/1105). Vimy holds title to approximately 750 square kilometres of exploration ground across the Mulga Rock Project and shares road access with the Tropicana Gold Mine. EMPEROR PRINCESS SHOGUN Kalgoorlie-Boulder Darwin AMBASSADOR Perth FOCUS ON THE MULGA ROCK PROJECT Adelaide Test pit at Ambassador VIMY RESOURCES ANNUAL REPORT 2018 5 MULGA ROCK PROJECT DFS The DFS Executive Summary was released to the ASX in January 2018 and confirmed the status of the Mulga Rock Project as Australia’s largest and most advanced uranium project. The DFS supports a low-risk, open pit mining operation at Mulga Rock, with production of 3.5Mlbs U3O8 per annum for at least fifteen years. It is our belief that a further five years of mine life is possible with further drilling and subsequent studies. The results show that the Mulga Rock Project has competitive cash operating costs, which for the initial five years of operations – the all-important pay-back period – are estimated to be US$25.11/lb U3O8. Over Life-Of-Mine, the cash operating costs are forecast to be US$27.95/lb with a pre-tax NPV8 of A$530 million, generating free cash flow of A$134 million per annum (EBITDA) after royalties. These metrics assume a contract uranium price of $60/lb U3O8 at the time of first production which is targeted for early 2022. Most pleasing of all was the fact that the DFS metrics were delivered on materially lower revenue factors than assumed in the Pre-Feasibility Study (PFS), released in November 2015, with the US$55/lb U3O8 coming at the bottom end of market consensus of price incentive for new uranium mines or restarts (see figure below). This translated in the DFS pit shells yielding the same uranium metal production at a significantly lower uranium price when compared to the PFS pit designs. The DFS also demonstrated that beyond the payback period, the pit shell designs are largely insensitive to changing metal prices. Optimised Pit Shell Cash Flow Analysis (Ambassador Resource) DFS PFS $4,000 $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $- -$500 US$25/lb US$35/lb US$45/lb US$55/lb US$65/lb US$75/lb US$85/lb US$95/lb Ambassador (Measured, Indicated, Inferred) Optimised Pit Shells US$25/lb US$65/lb US$/lb Metal Price US$35/lb US$75/lb US$45/lb US$85/lb US$55/lb US$95/lb VIMY RESOURCES ANNUAL REPORT 2018 ) M $ A ( w o fl h s a C l l e h S t i P l a t o T 6 Mulga Rock camp The key physical and financial metrics for the Mulga Rock Project are set out below. Key Metric Life-of-Mine (LOM) Plant Ore Throughput Unit Years Mtpa Run-of-Mine (ROM) Uranium Grade (Years 1-5) ppm U3O8 RESOURCE ROM Uranium Grade (LOM) ppm U3O8 Uranium Metallurgical Recovery % Annual Uranium Production Mlbs U3O8 pa PRODUCTION Total Uranium Production (LOM) Mlbs U3O8 Pre-Production Mining Costs (Pre-Strip) Mining, Plant, Infrastructure and Indirects Growth Allowance and Contingency CAPITAL Total Capital Exchange Rate A$ million A$ million A$ million A$ million AUD: USD Uranium Cash Operating Cost (Years 1-5)* US$/lb U3O8 Uranium Cash Operating Cost (LOM)* OPERATIONS Uranium AISC# Opex (LOM) US$/lb U3O8 US$/lb U3O8 Uranium Price Assumption US$/lb U3O8 Project NPV8 (inclusive of Royalties, pre-tax) A$ million PROJECT FINANCIALS Project IRR (inclusive of Royalties, pre-tax) Payback from Start of Production % Years * Cash operating costs include all mining, processing, maintenance, transport and administration costs, but exclude royalties and sustaining capital. # All-In Sustaining Cost DFS 15 2.4 1,010 770 87.3 3.50 47.1 36.3 415.0 41.7 493.0 0.70 25.11 27.95 34.00 60 530 25.3 3.1 VIMY RESOURCES ANNUAL REPORT 2018 7 I would like to bring your attention to the quality of our DFS Executive Summary. If you haven’t reviewed it yet, I strongly suggest you download it from our website. We deliberately designed the document to be informative and easy to read. It has plenty of maps, diagrams, tables and highlights so that it is more than just a tick-a-box ASX release. I am really proud of the publication produced by the Vimy team and it was very well received in the industry. LONG MINE LIFE AND SECURE SOURCE OF URANIUM LOW RISK AND LOW-COST MINING PROCESS LOW CASH COST, ROBUST FINANCIALS The Mulga Rock Project is the largest advanced uranium development project in Australia. Shallow, simple open pit mining operation with an average depth of 43 metres Cash operating cost for Life-of-Mine of US$27.95/lb U3O8 Total Ore Reserve of 42.3Mlbs U3O8 from 22.7Mt at 845ppm U3O8 Over 90% uranium mining inventory for first 10 years supported by Ore Reserve Robust pre-tax NPV8 of A$530M, 25% IRR and a 3.1 year payback at US$60/lb U3O8 Total resource estimate of 71.2Mt at 570ppm U3O8 for a contained 90.1Mlbs U3O8 Life-of-Mine of 15 years with an estimated total production of 47.1Mlbs U3O8 Process plant to use low-cost atmospheric acid leaching and resin-in-pulp Breakeven price of US$44.58/lb U3O8 (capital payback @ 8% discount rate) State and Federal Ministerial approvals received and secondary permitting well advanced The project generates A$134M free cash flow per year (EBITDA) after royalties Distribution of LOM Cash Operating Costs by Area 8 VIMY RESOURCES ANNUAL REPORT 2018 KING RIVER-WELLINGTON RANGE JV uuMurgenella u Oenpelli Jabiluka Jabiru Ranger ALGODO-BEATRICE PROJECT MT. GILRUTH PROJECT Darwin Perth Adelaide Aerial view of the King River camp, Alligator River Project FOCUS ON THE ALLIGATOR RIVER PROJECT With the Mulga Rock Project well advanced, we took the opportunity in March this year to turn our focus to future growth with the acquisition of the Alligator River Project from Cameco Australia. The acquisition comprises three separate tenement packages in Arnhem Land in the Northern Territory, covering a total area of 3,865km2 including 1,600km2 of granted exploration licences. Vimy now owns the largest granted tenement package in the Alligator River Uranium Province. ALLIGATOR RIVER PROJECT • • Located in Arnhem Land, Northern Territory Covering a total area of 3,865km2 Comprises three projects: • King River-Wellington Range JV - 1,600km2 of granted tenure - Vimy (JV manager) 75%: RTX 25% - Highly prospective with limited sandstone cover • Algodo-Beatrice Project (100%) - A group of tenement applications to the east of the Ranger and Jabiluka deposits • Mt Gilruth Project (100%) - A group of tenement applications to the southeast of the Ranger and Jabiluka deposits VIMY RESOURCES ANNUAL REPORT 2018 9 ALLIGATOR RIVER URANIUM PROVINCE The Alligator River Uranium Province is one of the most prospective uranium exploration districts on the planet, along with the Chu-Sarysu and Syrdarya Basins in Kazakhstan and the Athabasca Basin in Canada. In the last fifty years, these districts have seen discoveries such as the huge high-grade Cigar Lake and McArthur River deposits in Canada and the Inkai and Karamurun deposits in Kazakhstan. At the same time, exploration in Australia came to a standstill as a result of the Three Mine Policy. Exploration activities were slow to commence once that policy was lifted, which has given Vimy an excellent opportunity to be able to explore in what is virtually a new province. The Alligator River Uranium Province has a proven exploration track record with over 750Mlbs U3O8 in mineral resources (current and mined) and has produced a total of 312Mlbs of uranium over the past 65 years. It includes the Tier 1 deposits of Ranger, Jabiluka, and Nabarlek. The key to mineralisation in the Alligator River Uranium Province is the presence of an important rock unit called the Cahill Formation which hosts both the world- class Jabiluka and Ranger deposits. We like to think of the Cahill Formation as the ‘Golden Mile Dolerite’ of uranium (one for the gold tragics). The deposits of the Alligator River Uranium Province occur as either large tonnage, medium grade deposits such as Jabiluka (25Mt @ 0.55% U3O8 for 302Mlbs U3O8)1 or low tonnage, high grade deposits such as Nabarlek (which produced 24Mlbs U3O8 from 0.6Mt @ 1.84% U3O8) and Vimy’s Angularli (0.91Mt @1.29% for 25.9Mlbs U3O8) hosted by high-angle shear zones. 1. Energy Resources Australia Ltd – 2017 Annual Report Core yard at Alligator River Project 10 VIMY RESOURCES ANNUAL REPORT 2018 King River-Wellington Range Project Soil sampling at the Angularli prospect Exploration Pty Limited (Rio Tinto), a wholly owned subsidiary of Rio Tinto Ltd, with current JV interests of Vimy: 75% / Rio Tinto: 25%. As well as the maiden resource, we also announced an Exploration Target at Angularli of between 20Mlbs and 60Mlbs U3O8 for 1.2-1.8Mt of uranium mineralisation at a grade of 0.75-1.5% U3O8 (Vimy 75%). One of the important aspects of this project is the strong similarity between the geology of the Alligator River Uranium Province and the Athabasca Basin in Canada. Both are ‘unconformity-related’ deposits where crystalline basement rocks comprising metasedimentary rocks are overlain by much younger and unmetamorphosed sandstones. The contact between basement and sandstone marks a significant break, or unconformity, and provides a major chemical and physical contrast providing the right conditions for mineralisation. Uranium is hosted within low to high angle shear zones either in the basement or immediately at or above the unconformity. A number of advanced exploration targets have also been developed in the King River-Wellington Range project. Most of the targets are particularly attractive due to limited sandstone cover and the presence of a large area of the highly prospective metamorphic basement. PROGRESS AT THE ALLIGATOR RIVER PROJECT The Vimy team wasted no time in focussing on the Alligator River Project. During due diligence for the acquisition, we commissioned an independent JORC Mineral Resource estimate by Optiro Consultants. The acquisition of the Project was announced early in March 2018 and our first milestone quickly followed with the publication of a maiden Mineral Resource Estimate for the Angularli deposit, the most advanced target, based on drilling carried out by Cameco. The maiden Inferred Mineral Resource for Angularli (see page 20) 25.9Mlbs U3O8 for 0.91Mt at 1.29% U3O8, at a cut-off grade of 0.15% U3O8 (Vimy 75%). The Angularli deposit is located within the King River- Wellington Range project, which is being actively explored by Vimy for unconformity-related uranium deposits. The King River-Wellington Range project is the subject of a Joint Venture (JV) with Rio Tinto VIMY RESOURCES ANNUAL REPORT 2018 11 Geophysical and surface chemical surveys have been completed. Rockchip sampling along and around the structural corridor has identified elevated boron, gold and sulphur along a structural feature, analogous and parallel to the Angularli deposit. Termite mound sampling has also identified elevated uranium coincidental to the structural feature indicating the potential presence of uranium within the system. Field mapping at the Such Wow prospect has identified very strong similarities between that prospect at surface and features observed in drilling at Angularli. COMMUNITY ENGAGEMENT The Alligator River Project tenements are on Aboriginal land vested in the Arnhem Land Aboriginal Land Trust and managed by the Northern Land Council on behalf of the Traditional Landowners. Deeds of Agreement exist for all granted tenure covering exploration activity along with commercial terms and conditions for future mining activity, which ensures that the environment will be protected and that Traditional Landowners and local Aboriginal communities will benefit from royalties and jobs. Vimy recognises that positive engagement with Traditional Owners of the land on which it operates is key to future success. Field personnel engaged early with various Traditional Owners, to identify practical solutions to local issues where Vimy’s activities might benefit other land users, and build on existing relationships. SAFETY Vimy’s strong health and safety performance has continued in 2018 with frequency rates for Lost Time Injuries, Medically Treated Injuries and Minor Injuries well below the mining industry average. Our slogan ‘Safety – The Power is in U’ actively encourages a culture of safety while emphasising that safety is everyone’s responsibility. Our focus is on preventative measures highlighting leading indicators such as job hazard assessments, hazard reports and Take 5’s. ALLIGATOR RIVER PROJECT DRILLING PROGRAM Vimy’s first exploration season at Alligator River began in August 2018 with a 23-25 hole drill program planned to test the high priority targets along repeat structures at the Angularli deposit and Such Wow prospect, 15km south-southwest of Angularli. Drilling is focused on two outcomes. Firstly, to extend areas of known mineralisation at Angularli, both along strike of, and parallel to, the current resource. This program comprises up to fourteen holes for 4,650m at Angularli. The second is the drill program at Such Wow with up to eleven holes planned for 3,950m. This prospect has not been drilled previously and is highly prospective for ‘Angularli-like’ deposits based on Vimy’s assessment of surface sampling, and mapping of geology, alteration, and structures. The program is aimed at confirming that the alteration extends at depth and the system contains uranium mineralisation. Other planned field work includes surface geochemical sampling, mapping, rock-chip sampling, radon emanation testwork and passive seismic data collection. Part of this program is being carried out across the Angularli area to provide baseline data for other future surveys. Results of the drilling will be released later in 2018. Drilling at Angularli, Alligator River Project, October 2018 12 VIMY RESOURCES ANNUAL REPORT 2018 ANGULARLI URANIUM PROJECT SCOPING STUDY A Scoping Study is currently underway on the Angularli Uranium Project. The Engineering Scoping Study was awarded to Wood PLC (formerly Amec Foster Wheeler). Metallurgical testwork at the Australian Nuclear Science and Technology Organisation (ANSTO) is now complete and final reporting will take place in Q4 2018. Testwork results to date (ASX release 3 September 2018) have shown an exceptionally high uranium extraction of 98.5% at a very low sulphuric acid consumption of 14 kg/t, and an oxidant consumption of 1.4 kg/t hydrogen peroxide. The Scoping Study evaluated two metallurgical flowsheets: • Acid leach / solvent extraction • Acid leach / direct precipitation Both flowsheet options have identical front ends consisting of crushing, milling, acid leach and counter-current decantation (CCD) circuits. Uranium drying and packaging plant, tailings paste plant and water treatment are also essentially the same for both scenarios. The only difference between the two flowsheets is the uranium recovery circuits. The first flowsheet uses conventional solvent extraction to recover uranium from the leach solution and then precipitates uranium as uranyl peroxide (UO4 x H2O). The second flowsheet directly precipitates uranium from the leach solution after iron and other minor impurities are removed. The second flowsheet will have a very low capital cost but is dependent on the levels of impurities present in the ore. The Angularli Mineral Resource announced on 20 March 2018 is the basis for the Scoping Study. Results from drilling currently underway at Angularli, as detailed above, will not be incorporated into the Study as we are not drilling near the existing resource. MINE DEVELOPMENT The current conceptual mine development approach for Angularli which is being used as a basis for the Scoping Study is similar in approach to the historical Nabarlek mine located 65km from Angularli. The Nabarlek uranium mine operated successfully for eight years from 1980 and produced 24Mlbs U3O8 from 550,000 tonnes of ore at an average grade of 1.84% U3O8. It has since been successfully decommissioned and the site fully rehabilitated. The Nabarlek open cut resource was mined out in one dry season with the ore stockpiled on the surface and processed over an eight-year period. Hypothetically, the underground resource at Angularli could be similarly mined out over a very short time frame. The sterilised open stopes could then be used for tailings paste backfill. It is envisaged the resulting surface ore stockpile will be processed over a similar period to Nabarlek. Mining Plus completed the mine design and initial capital and operating estimates for the Angularli deposit earlier this year. Mining costs are currently being finalised along with stope sequencing and diluted mineral inventory expected from the underground operation. The table below provides a comparison between Angularli and historical operating data from the Nabarlek and Ranger uranium mines. The superior uranium extraction and reagents consumption obtained for the Angularli deposit are also illustrated. COMPARISON OF ANGULARLI, NABARLEK AND RANGER LEACH PARAMETERS Leach Parameters Temperature (ºC) pH Residence time Feed density Sulphuric acid consumption Oxidant consumption Uranium extraction Unit (ºC) - hours %w/w kg/t kg/t % Angularli 35-40 1.6 24 50 14 1.4 98.5 Nabarlek1 (Jul 1983-Jan 1984) Ranger2, 3 35-40 1.6 24 50 54.7 2.0# 97.5 35-45 1.9-2.0 24 55 30-40 5* 91.5 #Operating plant data using hydrogen peroxide mixed with concentrated sulphuric acid to form Caro’s Acid. * Ranger uses pyrolusite (MnO2) as an oxidant. 1. Fulton, E. J., Caro’s Acid – Its Introduction to Uranium Acid Leaching in Australia, The AusIMM Conference, Darwin 1984. 2. Uranium Evaluation and Mining Techniques, IAEA Proceedings of a Symposium, Buenos Aires, 1979. 3. Ring, B., Uranium Ore Processing in Australia – Past, Present and Future, ALTA Conference, Perth, 2006. VIMY RESOURCES ANNUAL REPORT 2018 13 FOCUS ON THE URANIUM MARKET This year the investment community became focussed on uranium, viewing it as significantly undervalued as the demand and supply dynamics have begun to rebalance. Kazatomprom announced that annual output continues to be reduced and Cameco Corporation announced the suspension of operations for an indeterminate period at the McArthur River - Key Lake Mine which accounts for primary supply of 18Mlbs U3O8 per year. Other important developments include the shuttering of Langer Heinrich in Namibia, the announcement of Ranger’s closure in 2020, and cuts by Orano in Niger. Actions by these suppliers that started during 2016 have removed approximately 40Mlbs from the market. The expected demand in 2018 is around 173Mlbs resulting in a shortfall of 47Mlbs. While some of this shortfall can be met by secondary supplies, most of it will be managed in the short term by stockpiling strategies which are simply not sustainable. New supply will require new contracts, and new contracts will need to be written at sustainable prices. The new investors into uranium include the London Stock Exchange listing of Yellow Cake PLC in July 2018, which was founded to purchase and hold U3O8, reinforcing the emerging supply side discipline seen in the market, and to leverage off any increase in the uranium price. Other players are expanding or entering this market, as well as the royalties and equities space. Importantly, Yellow Cake and the others who are buying physical uranium are doing so from the spot market. Combined with Cameco’s foray into the spot market, this is expected to put upward pressure on the spot price in the coming months and years. One could argue that there are strong similarities between today’s market and the uranium boom of 2004-2007, which culminated in a price spike of US$136/lb U3O8 in 2007. However, many of the dynamics are different, particularly on the supply side, and a uranium price above US$100/lb U3O8 is very unlikely. That said, the spot price has risen almost 40% since April, making uranium one of the best performing commodities this year. DEMAND TO OUTSTRIP SUPPLY Primary Supply 2016 200 8 3 ) 180 O U s b M 140 160 l ( l y p p u S y r a m i r P 120 100 80 60 40 20 0 162.1 Mlbs U3O8 -6.8 -3.4 -1.8 -18 Rabbit Lake and Cameco USA (2016) Kazatomprom 2017 cuts -4.1 -3.1 -3.4 +4.1 Areva cuts at Somair and Cominak Production suspended at McArthur River (70% Cameco, 30% Orano) Kazatomprom 2018 cuts DOE barter sales suspended Langer Heinrich Care and Maintenance Husab Ramp-up Expected Demand 2018 172.7 Mlbs U3O8 Supply 2018 ~125.6 Mlbs U3O8 Source: WNA, company reports, Vimy estimates 14 VIMY RESOURCES ANNUAL REPORT 2018 The spot price has risen almost 40% since April, making uranium one of the best performing commodities this year. VIMY’S MARKETING PLAN In the past three years, Executive Director Julian Tapp and I have ensured that the nuclear industry around the world is aware of the developments at Mulga Rock. The completion of the DFS meant that we could deepen our engagement with utilities with a view to obtaining strategic offtake agreements. In February this year we appointed Scott Hyman as US-based VP of Sales and Marketing. Scott has significant experience and knowledge in both the procurement and sale of uranium, through his previous roles at Cameco Inc (USA) and Dominion Energy. His expertise and network of industry contacts have already greatly enhanced our marketing strategy and increased our access to energy suppliers in the USA and Europe. Most of our focus is on the US and European markets. The US market comprises 25% of global uranium purchases. Furthermore, the US market begins to rapidly lose contract coverage at about the same time that Vimy proposes being in production. By 2022, 60% of requirement in the US utilities will be uncovered by contracts and by 2027, this goes out to 90%. Vimy is coming into the contracting sweet spot just as we come into production. From being a rank outsider, Vimy is now considered an important member of the nuclear industry. The Company is a member of two important organisations, the London-based World Nuclear Association (WNA), and the US-based Nuclear Energy Institute (NEI). We are active participants in the WNA’s working groups which give members the opportunity to share analyses of the market. Julian’s background as an economist has allowed him to play an important role in compiling the WNA’s biennial Nuclear Fuel Report. OUTLOOK FOR 2019 As shareholders, now it’s your turn to focus on the Company and its future. The market has been stubbornly difficult in the past two years and pressure on our share price has probably left you disappointed. And I know that because I am also a shareholder. You will have heard this before, but I’ll say it again. Our strategy is to be like the surfer in the take-off zone, waiting for the set of waves and not the guy on the beach waxing his board. We have stayed focussed on being ready for the waves that are coming. With supply at best static, demand growing, and most stockpiles inaccessible by market participants, the price has nowhere to go but up. With traders and financial institutions circling like sharks in the water, a feeding frenzy remains a distinct possibility. Vimy Resources is the single best leverage play to the uranium price. Mike Young Managing Director and CEO 15 VIMY RESOURCES ANNUAL REPORT 2018 MINERAL RESOURCE & ORE RESERVE UPDATES CONTAINED METAL BY DEPOSIT 5% PRINCESS 4% SHOGUN 58% AMBASSADOR 33% EMPEROR RESOURCE STATUS 14% MEASURED 50% INFERRED 36% INDICATED MULGA ROCK PROJECT On 12 July 2017, the Company announced that the Mulga Rock Project aggregate Mineral Resource had moved above the 90Mlb mark to 90.1Mlbs U3O8, from 71.2Mt at 570ppm U3O8, with 50% of the global Mineral Resource in Measured and Indicated status. On 4 September 2017, the Company announced that most of the Measured and Indicated material was converted to Proved and Probable Reserves. The Mulga Rock East mining centre, comprising the Princess and Ambassador deposits, will be the focus of initial mine development, with sufficient mineral inventory in the Ore Reserve (which also includes the Shogun deposit) to feed the process plant for the first thirteen years of production, at a nominal rate of 3.5Mlbs U3O8 per annum. The Mineral Resource at Mulga Rock East has increased by 30% for a total of 56.4Mlbs U3O8 at 680ppm U3O8 compared to the November 2016 estimate (17% increase in grade). The Princess and Ambassador resources represent 63% of the global resource as shown on the chart to the right. OVERVIEW • The Mulga Rock Project global uranium Mineral Resource estimate increased by 15% between 1 July 2017 and 30 June 2018, from 78.5Mlbs to 90.1Mlbs (from 67.9Mt at 525ppm U3O8 to 71.2Mt at 570ppm), all reported in accordance with the JORC Code 2012. • • • The Ambassador and Princess resources are grouped to form the Mulga Rock East Deposit and the Shogun and Emperor resources form the Mulga Rock West Deposit. The Ore Reserve for the Mulga Rock Project increased from 31.2Mlbs U3O8 (18.7Mt at 755ppm U3O8) to 42.3Mlbs U3O8 (22.7Mt at 845ppm U3O8), for a 36% increase in metal and 12% increase in grade in the Ore Reserve. This was accompanied by the definition of a maiden Proved Ore Reserve of 12.3Mlbs U3O8 (5.3Mt at 1,055ppm U3O8). That Proved Ore Reserve is derived from a maiden Measured Resource of 12.6Mlbs U3O8 (5.2Mt at 1,100ppm U3O8), announced on 12 July 2017. This Ore Reserve is based on optimised pit shells derived at US$55/lb U3O8, and remaining economic under a broad range of uranium prices. The optimised pit designs which form this Ore Reserve are the basis of the mine design for the DFS announced in January 2018. 16 VIMY RESOURCES ANNUAL REPORT 2018 Plan view of the Ambassador and Princess (Mulga Rock East) optimised pit designs and Ore Reserve classification Change in pit shell boundary with varying long-term uranium price assumptions VIMY RESOURCES ANNUAL REPORT 2018 17 MULGA ROCK PROJECT MINERAL RESOURCE, JULY 2017 Deposit / Resource Classification Cut-off Grade (ppm U3O8) Tonnes (Mt)1 Mulga Rock East Ambassador Ambassador Ambassador Princess Princess Sub-Total Mulga Rock West Shogun Shogun Emperor Sub-Total Total Resource Measured Indicated Inferred Indicated Inferred Indicated Inferred Inferred 150 150 150 150 150 150 150 150 5.2 14.8 14.2 2.0 1.3 37.4 2.2 0.9 30.8 33.8 71.2 1. t = metric dry tonnes; Appropriate rounding has been applied, and rounding errors may occur. 2. Using cut combined U3O8 composites (combined chemical and radiometric grades). MULGA ROCK PROJECT ORE RESERVE, AUGUST 2017 Deposit / Resource Classification Cut-off Grade (ppm U3O8) Tonnes (Mt)1,2 Mulga Rock East Ambassador Ambassador Princess Sub-Total Mulga Rock West Shogun Sub-Total Total Reserves Proved Probable Probable 150 150 150 Probable 150 5.3 14.1 1.7 21.1 1.6 1.6 22.7 1. Tonnages and grades are reported including mining dilution. 2. t = metric dry tonnes; appropriate rounding has been applied and rounding errors may occur. 3. Using cut combined U3O8 composites (combined chemical and radiometric grades). 4. Metallurgical plant recovery factors are not applied to Total Metal content. U3O8 (ppm)2 1,100 800 420 820 420 680 680 290 440 450 570 U3O8 (ppm)3 1,055 775 870 850 760 760 845 U3O8 (Mlbs) 12.6 26.0 13.1 3.6 1.2 56.4 3.2 0.6 29.8 33.6 90.1 U3O8 (Mlbs)4 12.3 24.0 3.3 39.6 2.7 2.7 42.3 18 VIMY RESOURCES ANNUAL REPORT 2018 MULGA ROCK PROJECT TOTAL MINERAL RESOURCE 30 June 2018 compared to 30 June 2017, reported at a 150ppm cut-off grade Deposit / Resource Classification Tonnes (Mt)1 Mulga Rock East Princess Ambassador Sub-total Mulga Rock West Emperor Shogun Shogun Sub-total Total Resource Indicated Inferred Measured Indicated Inferred Inferred Indicated Inferred 2.0 1.3 5.2 14.8 14.2 37.4 30.8 2.2 0.9 33.8 71.2 2018 U3O8 (ppm)2 820 420 1,100 800 420 680 440 680 290 450 570 U3O8 (Mlbs) Tonnes (Mt)2 2017 U3O8 (ppm) U3O8 (Mlbs) 3.6 1.2 12.6 26.0 13.1 56.4 29.8 3.2 0.6 33.6 90.1 1.3 2.5 5.1 14.0 11.3 34.2 30.8 1.9 1.1 33.7 67.9 690 380 1,105 655 335 595 440 680 390 450 525 1.9 2.1 12.4 20.1 8.3 45.0 29.8 2.9 0.9 33.6 78.5 t = metric dry tonnes; appropriate rounding has been applied and rounding errors may occur. 1 2 Using cut combined U3O8 composites (combined chemical and radiometric grades). The information in the table above is extracted from ASX announcement entitled ‘Significant Resource Update – Mulga Rock Cracks 90Mlbs’ released on 12 July 2017 and available to download from www.asx.com.au ASX:VMY. The Company is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources or Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement. MULGA ROCK PROJECT TOTAL ORE RESERVE 30 June 2018 compared to 30 June 2017, reported at a 150ppm cut-off grade Deposit / Resource Classification Tonnes (Mt)3 Mulga Rock East Ambassador Ambassador Princess Sub-total Mulga Rock West Shogun Sub-total Total Reserves Proved Probable Probable Probable 5.3 14.1 1.7 21.1 1.6 1.6 22.7 2018 U3O8 (ppm)4 1,055 775 870 850 760 760 845 U3O8 (Mlbs) Tonnes (Mt)3 12.3 24.0 3.3 39.6 2.7 2.7 42.3 - 16.4 1.1 17.5 1.2 1.2 18.7 2017 U3O8 (ppm)4 - 753 734 752 808 808 755 U3O8 (Mlbs) - 27.3 1.7 29.0 2.2 2.2 31.2 Tonnages and grades are reported including mining dilution. t = metric dry tonnes; appropriate rounding has been applied and rounding errors may occur. 1 2 3 Using cut combined U3O8 composites (combined chemical and radiometric grades). 4 Metallurgical plant recovery factors are not applied to Total Metal content. The information in the table above is extracted from ASX announcement entitled ‘Major Ore Reserve Update – Moving to the go line’ released on 4 September 2017 and available to download from www.asx.com.au ASX:VMY. The Company is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources or Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement. VIMY RESOURCES ANNUAL REPORT 2018 19 ALLIGATOR RIVER PROJECT Vimy announced the acquisition of the Alligator River Project from Cameco Australia on 1 March 2018. During due diligence for the acquisition, Vimy commissioned an independent JORC Mineral Resource estimate by Optiro Consultants. OVERVIEW • A Maiden Inferred Mineral Resource for the Angularli Deposit of 25.9Mlbs U3O8 for 0.91Mt at 1.29% U3O8, at a cut-off grade of 0.15% U3O8 was announced to the ASX on 20 March 2018. • The Angularli deposit is located within the King River-Wellington Range project. The King River-Wellington Range project is the subject of a Joint Venture with Rio Tinto Exploration Pty Limited (Rio Tinto), a wholly owned subsidiary of Rio Tinto Ltd, with current JV interests of Vimy: 75% / Rio Tinto: 25%. Chip tray sampling at Angularli ALLIGATOR RIVER PROJECT MINERAL RESOURCE, MARCH 2018 Deposit / Resource Classification Angularli Inferred Cut-off Grade (ppm U3O8) 0.10 0.15 0.20 0.25 0.30 Tonnes (Mt)1 U3O8 (ppm)2 U3O8 (Mlbs)3 0.95 0.91 0.88 0.77 0.72 1.24 1.29 1.33 1.49 1.58 26.0 25.9 25.8 25.2 24.9 t = metric dry tonnes; appropriate rounding has been applied and rounding errors may occur. 1 2 Using chemical U3O8 composites from drill core 3 Vimy: 75% / Rio Tinto: 25% 20 VIMY RESOURCES ANNUAL REPORT 2018 TENEMENTS Tenement details for the Mulga Rock Project are shown in the table below. On 1 March 2018 the Company announced the acquisition of the Alligator River Project in the Northern Territory. This acquisition was legally completed on 17 July 2018 and as a consequence the changes in granted tenements have been reported in the September 2018 quarter. MULGA ROCK PROJECT TENEMENT DETAILS AS AT 30 JUNE 2018 Tenement M39/1104 M39/1105 E39/876 E39/877 E39/1148 E39/1149 E39/1150 E39/1551 E39/1683 E39/1902 E39/1953 L39/193 L39/219 L39/239 L39/240 L39/241 L39/242 L39/252 L39/253 L39/254 L39/243 P39/5844 P39/5853 Nature of Interest Mineral Field Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Granted Mt Margaret Mt Margaret Mt Margaret Mt Margaret Mt Margaret Mt Margaret Mt Margaret Mt Margaret Mt Margaret Mt Margaret Mt Margaret Mt Margaret Mt Margaret Mt Margaret Mt Margaret Mt Margaret Mt Margaret Mt Margaret Mt Margaret Mt Margaret Mt Margaret Mt Margaret Mt Margaret Drilling at the Mulga Rock Project VIMY RESOURCES ANNUAL REPORT 2018 21 2018 FINANCIAL REPORT Vimy Resources Limited - Consolidated Entity TABLE OF CONTENTS DIRECTORS’ REPORT Directors Principal Activities Significant Changes in the State of Affairs Operating and Financial Review Likely Developments and Business Strategy Matters Subsequent to the End of the Year Meetings of Directors Directors’ Interests in Shares and Options Share Options Contingently Issuable Shares Environmental Regulations and Performance Remuneration Report (Audited) Auditor’s Independence Declaration FINANCIAL STATEMENTS Consolidated Statement of Profit or Loss and Other Comprehensive Income Consolidated Statement of Financial Position Consolidated Statement of Changes in Equity Consolidated Statement of Cash Flows Notes to the Financial Statements Directors’ Declaration Independent Auditor’s Report 23 25 25 26 27 27 28 28 28 28 29 29 41 42 43 44 45 46 73 74 This financial report covers Vimy Resources Limited as a Group consisting of Vimy Resources Limited and its subsidiaries. The financial report covers the year ended 30 June 2018 and is presented in Australian dollars. Vimy Resources Limited is a company limited by shares, incorporated and domiciled in Australia. Its registered office and principal place of business is: Ground Floor, 10 Richardson Street West Perth, Western Australia, 6005 The financial report was authorised for issue by the Directors on 18 September 2018. The Company has the power to amend and reissue the financial report. Through the use of the internet, we have ensured that our corporate reporting is timely, complete, and available globally at minimum cost to the Company. Public releases are available at asx.com.au by entering the Company’s ASX code ‘VMY’. Additional information on the Company is available on its website http://www.vimyresources.com.au. 22 VIMY RESOURCES ANNUAL REPORT 2018 DIRECTORS’ REPORT FOR THE YEAR ENDED 30 JUNE 2018 VIMY RESOURCES ANNUAL REPORT 2018 23 DIRECTORS’ REPORT FOR THE YEAR ENDED 30 JUNE 2018 24 VIMY RESOURCES ANNUAL REPORT 2018 DIRECTORS’ REPORT FOR THE YEAR ENDED 30 JUNE 2018 25 VIMY RESOURCES ANNUAL REPORT 2018 DIRECTORS’ REPORT FOR THE YEAR ENDED 30 JUNE 2018 26 VIMY RESOURCES ANNUAL REPORT 2018 DIRECTORS’ REPORT FOR THE YEAR ENDED 30 JUNE 2018 27 VIMY RESOURCES ANNUAL REPORT 2018 DIRECTORS’ REPORT FOR THE YEAR ENDED 30 JUNE 2018 28 VIMY RESOURCES ANNUAL REPORT 2018 DIRECTORS’ REPORT FOR THE YEAR ENDED 30 JUNE 2018 29 VIMY RESOURCES ANNUAL REPORT 2018 DIRECTORS’ REPORT FOR THE YEAR ENDED 30 JUNE 2018 30 VIMY RESOURCES ANNUAL REPORT 2018 DIRECTORS’ REPORT FOR THE YEAR ENDED 30 JUNE 2018 31 VIMY RESOURCES ANNUAL REPORT 2018 DIRECTORS’ REPORT FOR THE YEAR ENDED 30 JUNE 2018 32 VIMY RESOURCES ANNUAL REPORT 2018 DIRECTORS’ REPORT FOR THE YEAR ENDED 30 JUNE 2018 33 VIMY RESOURCES ANNUAL REPORT 2018 DIRECTORS’ REPORT FOR THE YEAR ENDED 30 JUNE 2018 34 VIMY RESOURCES ANNUAL REPORT 2018 DIRECTORS’ REPORT FOR THE YEAR ENDED 30 JUNE 2018 35 VIMY RESOURCES ANNUAL REPORT 2018 DIRECTORS’ REPORT FOR THE YEAR ENDED 30 JUNE 2018 36 VIMY RESOURCES ANNUAL REPORT 2018 DIRECTORS’ REPORT FOR THE YEAR ENDED 30 JUNE 2018 37 VIMY RESOURCES ANNUAL REPORT 2018 DIRECTORS’ REPORT FOR THE YEAR ENDED 30 JUNE 2018 38 VIMY RESOURCES ANNUAL REPORT 2018 DIRECTORS’ REPORT FOR THE YEAR ENDED 30 JUNE 2018 39 VIMY RESOURCES ANNUAL REPORT 2018 DIRECTORS’ REPORT FOR THE YEAR ENDED 30 JUNE 2018 40 VIMY RESOURCES ANNUAL REPORT 2018 CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2018 42 VIMY RESOURCES ANNUAL REPORT 2018 CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2018 43 VIMY RESOURCES ANNUAL REPORT 2018 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2018 44 VIMY RESOURCES ANNUAL REPORT 2018 CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2018 45 VIMY RESOURCES ANNUAL REPORT 2018 NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2018 46 VIMY RESOURCES ANNUAL REPORT 2018 NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2018 47 VIMY RESOURCES ANNUAL REPORT 2018 NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2018 48 VIMY RESOURCES ANNUAL REPORT 2018 NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2018 49 VIMY RESOURCES ANNUAL REPORT 2018 NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2018 50 VIMY RESOURCES ANNUAL REPORT 2018 NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2018 51 VIMY RESOURCES ANNUAL REPORT 2018 NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2018 52 VIMY RESOURCES ANNUAL REPORT 2018 NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2018 53 VIMY RESOURCES ANNUAL REPORT 2018 NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2018 54 VIMY RESOURCES ANNUAL REPORT 2018 NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2018 55 VIMY RESOURCES ANNUAL REPORT 2018 NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2018 56 VIMY RESOURCES ANNUAL REPORT 2018 NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2018 57 VIMY RESOURCES ANNUAL REPORT 2018 NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2018 58 VIMY RESOURCES ANNUAL REPORT 2018 NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2018 59 VIMY RESOURCES ANNUAL REPORT 2018 NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2018 60 VIMY RESOURCES ANNUAL REPORT 2018 NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2018 61 VIMY RESOURCES ANNUAL REPORT 2018 NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2018 62 VIMY RESOURCES ANNUAL REPORT 2018 NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2018 63 VIMY RESOURCES ANNUAL REPORT 2018 NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2018 64 VIMY RESOURCES ANNUAL REPORT 2018 NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2018 65 VIMY RESOURCES ANNUAL REPORT 2018 NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2018 66 VIMY RESOURCES ANNUAL REPORT 2018 NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2018 67 VIMY RESOURCES ANNUAL REPORT 2018 NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2018 68 VIMY RESOURCES ANNUAL REPORT 2018 NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2018 69 VIMY RESOURCES ANNUAL REPORT 2018 NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2018 70 VIMY RESOURCES ANNUAL REPORT 2018 NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2018 71 VIMY RESOURCES ANNUAL REPORT 2018 NOTES TO THE FINANCIAL STATEMENTS 30 JUNE 2018 72 VIMY RESOURCES ANNUAL REPORT 2018 DIRECTORS’ DECLARATION 30 JUNE 2018 73 VIMY RESOURCES ANNUAL REPORT 2018 ADDITIONAL INFORMATION AS AT 15 OCTOBER 2018 VIMY RESOURCES ANNUAL REPORT 2018 79 ADDITIONAL INFORMATION AS AT 15 OCTOBER 2018 80 VIMY RESOURCES ANNUAL REPORT 2018 ADDITIONAL INFORMATION AS AT 15 OCTOBER 2018 81 VIMY RESOURCES ANNUAL REPORT 2018 CORPORATE GOVERNANCE STATEMENT 82 VIMY RESOURCES ANNUAL REPORT 2018 CORPORATE GOVERNANCE STATEMENT 83 VIMY RESOURCES ANNUAL REPORT 2018 CORPORATE GOVERNANCE STATEMENT 84 VIMY RESOURCES ANNUAL REPORT 2018 CORPORATE GOVERNANCE STATEMENT 85 VIMY RESOURCES ANNUAL REPORT 2018 CORPORATE GOVERNANCE STATEMENT 86 VIMY RESOURCES ANNUAL REPORT 2018 CORPORATE GOVERNANCE STATEMENT 87 VIMY RESOURCES ANNUAL REPORT 2018 CORPORATE GOVERNANCE STATEMENT 88 VIMY RESOURCES ANNUAL REPORT 2018 CORPORATE GOVERNANCE STATEMENT 89 VIMY RESOURCES ANNUAL REPORT 2018 CORPORATE GOVERNANCE STATEMENT 90 VIMY RESOURCES ANNUAL REPORT 2018 CORPORATE GOVERNANCE STATEMENT 91 VIMY RESOURCES ANNUAL REPORT 2018 CORPORATE GOVERNANCE STATEMENT 92 VIMY RESOURCES ANNUAL REPORT 2018 CORPORATE GOVERNANCE STATEMENT Photos courtesy of: Morris Wu Tony Chamberlain Xavier Moreau Penny Sinclair Altitude Imaging VIMY RESOURCES ANNUAL REPORT 2018 93 vimyresources.com.au