Yandal Resources Limited
Annual Report 2022

Plain-text annual report

ANNUAL REPORT 2022  DIRECTORS Mr Tim Kennedy Mr Greg Evans Ms Katina Law Managing Director Non-Executive Chairman Non-Executive Director COMPANY SECRETARY Mrs Bianca Taveira PRINCIPAL PLACE OF BUSINESS 159 Stirling Highway Nedlands WA 6009 Telephone +61 8 9389 9021 www.yandalresources.com.au REGISTERED OFFICE 159 Stirling Highway Nedlands WA 6009 SHARE REGISTRY AUDITORS STOCK EXCHANGE LISTING Boardroom Pty Limited Level 12 225 George Street Sydney NSW 2000 Telephone 1300 737 760 HLB Mann Judd (WA Partnership) Level 4, 130 Stirling Street Perth WA 6000 Australian Securities Exchange Home Exchange: Perth Code: YRL Dear Shareholder As the new Chair of Yandal Resources Limited, I send you our valued shareholders warm greetings and thank you for your continued support for your gold exploration company. 2022 has seen change in the Company including the Board and the management team and importantly a reaffirming of the strategy of the Company. With a new Chair, Managing Director and a strategic lens of providing a foundation for growth we continue to focus our capital and resources to drill our most prospective targets within the Yandal and Norseman-Wiluna greenstone belts and to look at existing and new opportunities within the region. We also seek to add value by converting recent and historical drill data into initial Mineral Resource Estimates such as the recently announced combined 119,000 ounces from Challenger and Success at Mt McClure. These additional low cost ounces further strengthen our resource base. In recent times have taken steps to ensure we retain our highly valued and important staff, have implemented a rigorous cost management and budgeting plan, conducted a review of the assets of the Company, prioritised our drilling programs and restated our objectives. In doing so your Board has made positive steps towards enhancing shareholder value. The Board will continue to focus on our people and our culture encouraging an inclusive, diverse and participatory culture where important decisions are enhanced by technical expertise, thorough investigation, broad experiences, learnings and ideas. Our sustainability footprint will also come under scrutiny as we continue to seek ways to improve our ESG policies, strategies and impact. I would like to take this opportunity to thank former Managing Director and Company Founder Mr. Lorry Hughes for his work in establishing Yandal and wish him well in his new endeavours. I would also like to thank my fellow Board members for their contributions and make particular note of the energy and enthusiasm that our new Managing Director and CEO Mr. Tim Kennedy has bought to the role. Your Board is optimistic about the future and looks forward to a positive year in 2023. Mr Greg Evans Chairman 16 September 2022 Perth, WA INTRODUCTION The principal activities of the Company are gold exploration, discovery and development in the North-Eastern and Eastern Goldfields of Western Australia. The Company is targeting the definition of strategically located resources and the discovery of large structurally controlled Archaean lode or orogenic gold deposits such as the very large Jundee, Bronzewing and Kanowna Belle gold mines located in the vicinity of our tenure. Regional map of the Company’s gold projects, greenstone belts, regional towns and significant gold deposits YANDAL GREENSTONE BELT Exploration drilling during the year successfully intercepted new high-grade mineralisation at a number of prospects within the Company’s portfolio and has substantially enhanced the exploration discovery and resource potential in a number of project areas. Ongoing exploration reviews and targeting enabled the Company to focus on areas of highest potential to cost-effectively add value. A significant amount of time and resources were focussed on developing mutually beneficial long-term relationships with key stakeholders including Native Title holders. CORPORATE The Company maintained a high level of activity throughout the year spending a total of approximately $9m on exploration across its four exploration projects. Due to the high quality of its prospect pipeline a very high proportion of this spend was on drilling related activities which included 26,217m of aircore drilling, 32,476m of RC drilling and 5,012m of diamond drilling. To sustain these activities the Company undertook a capital raise of $4,280,825 via strongly supported Entitlement Issue launched in November 2021. The Company’s exploration activities were further bolstered through the exercise of unlisted options to raise an additional $1,222,926. Yandal’s cash position at 30 June 2022 was $3.73m. There were a number of important changes to the board and management of the Company during the year. In July, Non-Executive Director Mr Tim Kennedy was appointed Independent Non-Executive Chairman replacing Katina Law who continued with the Company as Non-Executive Director. In May, Founding Managing Director Mr Lorry Hughes resigned to pursue other opportunities and was replaced by Mr Tim Kennedy who agreed to step into the role. Mr Greg Evans, a highly regarded corporate executive was appointed Non-Executive Chairman to fill the position upon Mr Kennedy’s transition to a full-time executive position. We are pleased to advise that during the course of these changes there was strong commitment to maintain the Company’s strategic focus to ensure there was no impact to ongoing exploration efforts. Our small but dedicated exploration team is to be commended for their enthusiastic and unwavering efforts to advance our projects during the year. ENVIRONMENT, SUSTAINABILITY AND GOVERNANCE The Company ESG responsibilities are a key consideration when planning and conducting its activities whether in the corporate office or in the field. Our core responsibilities are outlined in our Corporate Governance Codes and Policies. The areas of particular focus are: ▪ ▪ ▪ ▪ People: We aim to foster a working environment that is collaborative, enjoyable, and stimulating and where our employees can fully use their expertise and develop new skills to the benefit of the Company and their ongoing careers. Our people drive our ESG efforts, so we value and place high value on new initiatives in this regard. Safety: The health safety and wellbeing of our people including employees and contractors is of utmost importance. We have well developed safety procedures and recognise that a safe work environment comes when a culture of safety is fostered amongst our people such that it becomes an inherent part of all we do. We are pleased to advise there were no injuries incurred by our workforce during the period. Stakeholders: We value and respect all stakeholders in the regions in which we work and recognise the unique long-term relationship Indigenous Stakeholders have to the land. We respect the traditional owners of the land on which we work and endeavour to build long- term mutually beneficial relationships with our Indigenous stakeholders. With this in mind the Company negotiated a Exploration and Prospecting Deed of Agreement with the Kultju (Aboriginal Corporation) RNTBC (“Kultju AC”) who hold native title over much of the Ironstone Well and Barwidgee Project area. Environment: We have a dual focus when it comes to our environmental impact. Firstly, we strive to minimise the impact that our activities have in the areas in which we work. Secondly, we place high importance on our land rehabilitation obligations and aim to leave no long- term adverse environmental impact. GORDONS GOLD PROJECT The Gordons Gold project comprises a number of priority prospects within close proximity to the City of Kalgoorlie-Boulder, ore haulage infrastructure and operating mines. During the year exploration was directed towards defining controls on mineralisation and the extents of a number of new high-grade prospects in the vicinity of our advanced Gordon’s Dam Prospect including Malone and Star of Gordon which is along strike from the nearby Gordon-Sirdar Mine, currently being operated by FMR Investments. Regional geology map of part of the Gordons gold project showing tenure, individual prospects tested in 2021/22 with completed and drill holes. GORDONS GOLD PROJECT continued At the Gordons Dam prospect high grade oxide mineralisation was discovered in 2019 and has been defined over a strike length of ~400m occurring beneath ~30m of depleted surficial cover. The highest gold grades at depth occur within sulphide accumulations and steeply dipping north-south striking narrow quartz veins within basalts and an intrusive granite porphyry unit. Compilation of an initial Mineral Resource Estimate was placed on hold pending the results of complimentary exploration on nearby prospects. This exploration continued throughout the year producing positive results. It is likely the Company will revisit the Gordon’s Dam MRE over the course of the coming year. The high-grade Malone prospect located ~500m to the west of Gordons Dam was a particular focus during the year. Mineralisation at Malone is related to a pronounced flexure in a major regional geological contact between mafic and felsic rocks units which is a highly favourable location for the accumulation of significant mineralisation. Initial RC drilling at Malone in the immediate footwall to the felsic-mafic contact included the following results: ▪ 5m @ 7.7 g/t Au from 210m within a broader zone of 16m @ 2.8g/t Au from 204m (YRLRC0727)1 ▪ 3m @ 8.8g/t Au from 190m (YRLRC0811)1 A follow-up program of two diamond holes, to provide lithological and structural information and four step out RC holes were completed late in the year. The diamond holes confirmed high-grade mineralisation returning intercepts of: ▪ 3.58m @ 1.5g/t Au from 206.42m including 0.58m @ 8.2g/t Au (YRLDD021)2 ▪ 7.00m @ 2.2g/t Au from 271.00m including 1.00m @ 6.9g/t Au (YRLDD021)2 ▪ 4.00m @ 2.3g/t Au from 87.00m including 1.00m @ 5.5g/t Au (YRLDD022)2 Data indicates a broad westerly apparent dip of mineralisation though structural core logging shows that individual high-grade zones are generally associated with steeply dipping and north to north-north-west trending quartz-carbonate-sulphide veins within the host mafic lithology. Immediately following the diamond drilling, four RC holes were completed on three 100m spaced lines north-west and south-east of high-grade intercepts in YRLRC0727 and YRLRC0811, testing for strike extensions of mineralisation. Hole YRLRC0819 drilled on the southern step-out line intersected 2m @ 2.1g/t Au potentially representing a southern extension of mineralisation. Of the three holes drilled on the northern step-out lines YRLRC0822 intersected anomalism (1m @ 0.7g/t Au)2 and the current interpretation indicates they may be located west of the north-north-west trending high-grade mineralisation intersected in the initial discovery holes. Follow- up drilling is being planned following a full review of results to date. In addition to prioritising exploration drilling along the Malone Contact, reconnaissance AC drilling commenced last year along the Alderman felsic/mafic contact returned an encouraging intercept of 8m @ 1.7gt/t Au (YRLAC0898)5 from 52m at the Meuleman Prospect approximately 3.5km south-south-east of Malone. A single RC follow-up test hole late in the year confirmed mineralisation returned 4m @ 5.1g/t Au from 44m including 2m @ 9.7g/t Au (YRLRC0823)2 This area which is adjacent to a prominent flexure in the felsic-mafic contact similar to Malone, is mostly untested by historic drilling though one nearby shallow RAB drilled on a broad spaced traverse in 1992 did return up to 0.23g/t Au (WAMEX Accession number 97877). This prospect is also located 740m south-east of an intercept of 16m @ 1.3g/t Au (YRLDD0015) reported in the March quarter 2022. Further drill testing is planned. A further 3.5km to the east from the Gordons Dam prospect is the Star of Gordon prospect where significant shallow historic mine workings occur less than 2km directly along strike from the Gordon Sirdar gold mine. The mine is owned by FMR Investments Pty Ltd and utilises conventional underground mining methods at vertical depths below 600m with ore haulage to Coolgardie for conventional processing. Early in the year, follow-up RC drilling at Star of Gordon directly down-dip of encouraging intercepts reported last year including 8m @ 4.7g/t Au from 15m (YRLRC513)3 and 10m @ 2.5g/t Au from 27m (YRLRC514)3 returned a very strong intercept: ▪ 10m @ 8.4g/t Au from 43m including 1m @ 52.5g/t Au (YRLRC630)4, On the basis of these results Yandal acquired six new mining tenements via two separate agreements to bolster its land position in the immediate vicinity of, and along strike from, the Star of Gordon workings. A further agreement was reached in respect of another prospecting licence to the immediate west of Malone. GORDONS GOLD PROJECT continued Five diamond holes were completed at Star of Gordon to provide high quality geological and structural data to guide further exploration. These holes also returned a number of significant intercepts including: ▪ 4.41m @ 4.8g/t Au from 226.49m including 0.44m @ 46.4g/t Au (YRLDD0018)1 An initial structural interpretation of core indicates that the Star of Gordon mineralisation may be offset by late cross-cutting faults making correlation between holes difficult. Further geological investigation is required before additional follow-up drilling can be planned. Given the grades and extent of shallow mineralisation together with proximity to nearby operations, Star of Gordon remains a priority target. 1 Refer to YRL ASX announcement dated 29 March 2022, 2 Refer to YRL ASX announcement dated 11 July 2022, 3Refer to YRL ASX Announcement dated 1 July and 27 May 2021, 4 Refer to YRL Announcement dated 28 September 2021, 5 Refer to YRL ASX Announcement dated 23 May 2022 6 Refer to YRL ASX Announcement of 11 July 2022 IRONSTONE WELL AND BARWIDGEE PROJECTS The Ironstone Well and adjacent Barwidgee projects cover over 470km2 of highly prospective and under-explored Yandal Greenstone Belt, east of Wiluna and south of the Jundee Mine in Western Australia The Company’s broad strategy is to identify areas with high potential from geological and geophysical interpretation which have not been adequately tested then undertake systematic and effective drill testing of these areas. Vertical holes drilled in steeply dipping terrain can have limited effectiveness as they do not test across stratigraphy, whilst shallow holes often do not penetrate beneath widespread transported cover and deep weathering and can easily miss underlying or nearby bedrock mineralisation. On this basis the initial filter for determining if areas are effectively tested includes whether holes are vertical or angled and whether they have been drilled to vertical depths greater than 50m. During the year an Exploration and Prospecting Deed of Agreement was executed with the Kultju (Aboriginal Corporation) RNTBC (“Kultju AC”). The Kultju AC hold native title rights to an area which includes the much of Ironstone Well and Barwidgee projects. Following execution of the agreement the Company worked with representatives of the Kultju AC to complete heritage surveys over the next round of priority exploration targets within Ironstone Well and Barwidgee Prospects. Final heritage clearance was not received until after years end. The Company looks forward to a long-term and positive relationship with the Kultju AC in relation to conducting exploration activities whilst respecting and adhering to all cultural and heritage protection matters. Whilst only minimal field exploration activities could be undertaken during the year due to the timing of negotiations and heritage surveys, further time was available to assess prior results and refine key drill targets for future testing. Subsequent to the end of the year, heritage approval was received, and the next round of drilling commenced in August 2022. Ongoing targeting has identified two key areas that contain recent and historically defined mineralisation which will become the Company’s focus of exploration in the near term as described below. Within the Ironstone Well project the priority target zone is the area immediately surrounding the Flushing Meadows gold deposit (268,000oz). The area covers some 160km2 extending north-west from the Flinders Park prospect for ~16km toward the Oblique prospect. The area, up to ~10km wide and centred on Flushing Meadows, includes prospective mafic and felsic rock sequences that have received very little effective exploration. IRONSTONE WELL AND BARWIDGEE PROJECTS continued Regional geology plan showing key prospects and tenure at the Ironstone Well and Barwidgee projects IRONSTONE WELL AND BARWIDGEE PROJECTS continued Regional geology plan showing the Flushing Meadows deposit, tenure, significant prospects and drill holes over 50m and angled. IRONSTONE WELL AND BARWIDGEE PROJECTS continued Within the contiguous Barwidgee project priority target area is the Sims Find Prospect extensions plus an area covering ~40km2 of tenure south of the Sims Find prospect including granite-mafic contacts along the Barwidgee Shear and the New England Granite. At Sims Find, RC drilling has intersected significant high-grade gold mineralisation beneath earlier shallow RC intercepts and historic workings. High-grade gold mineralisation is associated with quartz veins, sulphides and shears hosted within and at the contacts of a coarse-grained dolerite unit. Previous intercepts include; ▪ 8m @ 24.3g/t Au from 9m including 1m @ 129g/t Au (YRLRC0457)1 ▪ 3m @ 20.8g/t Au from 30m including 1m @ 62.2g/t Au (YRLRC0447)1 ▪ 5m @ 6.5g/t Au from 17m including 1m @ 30.4g/t Au (YRLRC0445)1 1 Refer to YRL ASX announcements dated 22 December 2020 and 2 March 2021 Sims Find mineralisation has been confirmed for over 400m of strike and to at least 150m vertical depth with possible extensions covering up to 2.4km of strike to the north-west and south-east. The high-grade nature of Sims Find mineralisation makes it a potential favourable source of blending material with Flushing Meadows should this progress to development in the future, thus these extensions are a high-priority for testing in the coming year. The New England Granite target comprises a ~4.3km long x ~2km wide granitic batholith cross-cut with large scale tensional faults. Historic gold occurrences and workings and elevated gold in drilling are recorded along the granite margins. First pass RC drilling is planned to test the areas of highest potential The Cash Prospect is located immediately along strike from the Corboy’s Deposit currently being developed by Northern Star (ASX: NST). Cash has a very similar magnetic signature to Corboys and exhibits similar flexure in the Barwidgee shear along the granite- greenstone contact. A Single hole test by Yandal last year confirmed mineralisation returning up to 4.6g/t Au1. RC drilling is planned to systematically test the prospective structure on several traverses. Further to the north-west of Cash along the prospective granite-greenstone contact, the Barwidgee Shear prospect is defined by a magnetic high response coincident with cross-cutting fault, a subtle flexure and elevated gold in limited historic drilling, a combination of features, highly favourable for gold mineralisation. This is an early-stage prospect with the potential for a significant discovery given the geological setting and footprint. A large aircore program is planned to test the prospective trend over a strike length of 1.2km. 1 YRL ASX announcement dated 23 August 2021 IRONSTONE WELL AND BARWIDGEE PROJECTS continued Regional geology plan showing the location of the Barwidgee Project priority targets and drill holes over 50m and angled Sims Find Prospect New England Granite Granite contact targets Sims Find 2.4km high grade trend Cash Prospect Barwidgee Shear Prospect Large shear hosted target Cash Prospect Corboys lookalike Corboys (ASX: NST) +125Koz MT MCCLURE PROJECT The Mt McClure project contains a number of historic prospects and open pit mines in close proximity to Northern Star Resources Ltd’s (ASX: NST) Orelia open pit mine, the ore from which is being trucked to NST’s Thunderbox Processing facility. Plan view of the Mt McClure project showing the regional geology, tenements, location of key prospects and drilling completed during the year MT MCCLURE PROJECT continued During the year an RC drilling program comprising 18 holes for 4,969m was undertaken to test mineralisation beneath the Success, Parmelia and historic open pits and to further assess the HMS Prospect, located in the footwall to the north of the Success deposit. Drilling beneath the open pits was done on 300m to 400m spacing and designed as a follow-up to initial confirmation drilling completed by Yandal between 2019-2021. This drilling confirmed that mineralisation continues for at least 240 – 300m down dip from each mined area. Drilling by previous explorers confirmed the presence of high-grade mineralisation immediately blow the pits and when combined with recent deep results from Yandal highlight the potential to establish significant resources in these positions (for example refer long section of Success – below). The Company intends to complete Initial Mineral Resource Estimates on available drilling to be followed by targeted drilling programs to test and expand the initial MRE’s. Drilling at HMS Sulphur was hampered by drilling problems; however the program did manage to confirm a shallow strike extension of mineralisation with results including; ▪ 16m @ 0.4g/t Au from 40m including 1m @ 2.6g/t Au from 45m (YRLRC1021)1 ▪ 4m @ 0.7g/t Au from 76m including 1m @ 2.5g/t from 76m (YRLRC1024)1 HMS Sulphur is one of a number of footwall and along-strike targets that will be tested in the coming year. Schematic long section plan of the Success prospect showing the mined open pit, interpreted weathering profile and selected recent and historic drilling intercepts1 1 Refer to YRL ASX announcement dated 21 April 2022. COMPETENT PERSONS STATEMENT The information in this document that relates to Exploration Results, geology and data compilation is based on information compiled by Mr Trevor Saul, a Competent Person who is a Member of The Australasian Institute of Mining and Metallurgy (AusIMM). Mr Saul is the Exploration Manager of Yandal Resources. He is a full-time employee of Yandal Resources and holds shares and options in the Company. Mr Saul has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Saul consents to the inclusion in this announcement of the matters based on this information in the form and context in which it appears. The information in this announcement that relates to the Flushing Meadows Mineral Resource Estimate is based on information compiled and generated by Andrew Bewsher, an employee of BM Geological Services Pty Ltd (“BMGS”). Both Andrew Bewsher and BMGS hold shares in the Company. BMGS consents to the inclusion, form and context of the relevant information herein as derived from the original resource reports. Mr Bewsher has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which is being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the JORC ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Your Directors present their report on Yandal Resources Limited for the financial year ended 30 June 2022. DIRECTORS The following persons held office as Directors of Yandal Resources Limited during the financial period and up to the date of this report unless otherwise noted: Mr Tim Kennedy Mr Greg Evans Ms Katina Law Mr David (Lorry) Hughes Managing Director Non-Executive Chairman Non-Executive Director Managing Director Appointed 17 February 2021 Appointed 4 April 2022 Appointed 1 July 2018 Resigned 17 May 2022 INFORMATION ON DIRECTORS AND OFFICERS TIMOTHY KENNEDY B.App Sc (Geology), MBA, MAusIMM, MGSA MANAGING DIRECTOR (appointed 17 February 2021, appointed Chair 1 July 2021, resigned as Chair 4 April 2022, appointed Managing Director 4 April 2022) Mr Kennedy is a geologist with a successful 30+ year career in the mining industry, including extensive involvement in the exploration, feasibility and development of gold, nickel, platinum group elements, base metals and uranium projects throughout Australia. His most recent executive role was as exploration manager with Independence Group NL, which during his 11 years IGO grew from being a junior explorer to a multi-commodity mining company. Mr Kennedy played a key role as part of the team that represented IGO on the exploration steering committee with AngloGold Ashanti during the multi-million ounce Tropicana, Havana and Boston Shaker discoveries and the discoveries by IGO of the Rosie magmatic nickel sulphide deposit; the Triumph VMS deposit and the Bibra orogenic gold deposit. Prior to that Mr Kennedy held senior positions with global miner Anglo American, including as Exploration Manager – Australia and Principal Geologist/Team Leader – Australia. He also held senior technical positions with Resolute Limited, Hunter Resources and PNC Exploration Pty Ltd. Current and Former Directorships held in the past three years: Helix Resources Limited Sipa Resources Limited Non-Executive Director Non-Executive Director/Chair Millennium Minerals Limited Non-Executive Director GREG EVANS BCom, DipApp Fin, GAICD NON-EXECUTIVE CHAIRMAN (appointed 4 April 2022) Appointed 16 February 2018, Resigned 18 March 2022 Appointed 13 December 2016, Chair 28 August 2018 Resigned 28 February 2022 Appointed 2 May 2016, Resigned February 2020 Mr Evans has over 25 years in advising corporates, boards, directors, executive management teams, and providers of debt and equity and other financial sponsors on capital raisings, mergers and acquisition transactions, equity and debt structuring, public offers, takeover defence, strategic options and growth strategies. He specialises in energy and natural resources with a particular focus on the mining sector. He has a Bachelor of Commerce, a Diploma in Applied Finance and is a Graduate of the Australian Institute of Company Directors. Mr Evans is currently part-time Principal Director – Mergers and Acquisitions with KPMG Australia as well as Chief Investment Officer of a Private Family office. Current and Former Directorships held in the past three years: None. Mr Evans has no other public company directorships. INFORMATION ON DIRECTORS AND OFFICERS continued MS KATINA LAW BCom, FCPA, MBA, GAICD NON-EXECUTIVE DIRECTOR (appointed 1 July 2018, resigned Chair on 1 July 2021) Katina Law has over 30 years’ experience in the mining industry covering corporate and site based roles across several continents. She has worked with a number of ASX listed resources companies in strategic financial advisory and general management roles. Ms Law has worked on several development and evaluation projects which were later subject to corporate transactions including the Deflector gold and copper project and the King Vol polymetallic zinc project. Ms Law was Executive Director and CEO of East Africa Resources Limited from 2012 to 2015, and also held senior positions at Newmont Mining Corporation’s Batu Hijau copper gold project in Indonesia and their head office in Denver, USA and at LionOre International based in Perth. Ms Law has a Bachelor of Commerce degree from UWA, is a Certified Practising Accountant and has an MBA from London Business School. She is currently a non-executive Director of headspace National Youth Mental Health Foundation. Current and Former Directorships held in the past three years: Ardea Resources Limited DGO Gold Limited Non-Executive Director/Chair Non-Executive Director Appointed 7 November 2016, Resigned 31 July 2020 Appointed 1 June 2020 Takeover from Gold Road Resources occurred on 30 June 2022 Ms Law has no other public company directorships. MR DAVID (LORRY) HUGHES BSc (Geol) MAusImm MANAGING DIRECTOR (appointed 6 April 2018, resigned 17 May 2022) Mr Hughes is an Economic Geologist with over 25 years’ experience and was recently Executive Director of Horizon Minerals Limited formerly Intermin Resources Ltd (ASX: HRZ formerly IRC) and Managing Director and CEO of South Boulder Mines Ltd (now ASX: DNK and ASX: DKM) from 2008 – 2013. He has held executive and senior management positions on mining and development projects for companies including Energy Metals Ltd, CSA Global, Rio Tinto and Barrick. Mr Hughes has comprehensive mining, exploration and development experience from numerous gold mining projects in Western Australia. Current and Former Directorships held in the past three years: None. Mr Hughes has no other public company directorships. MRS BIANCA TAVEIRA, COMPANY SECRETARY Mrs Taveira is an experienced company administrator and manager who has acted as Company Secretary to a number of unlisted public and ASX listed natural resource companies for over two decades. During this time Mrs Taveira has been involved in a number of initial public offerings, reverse takeover transactions, corporate transactions and capital raisings. Mrs Taveira has a corporate and compliance background and is experienced with administration of the shareholder registry, the ASX Listing Rules, mining tenement management and the Department of Mines regulations. Mrs Taveira is currently the Company Secretary of Reward Minerals Ltd (ASX: RWD). CORPORATE INFORMATION Yandal Resources Limited is a Company limited by shares that was incorporated on 16 April 2004 and is domiciled in Australia. The Company was converted to a public company and changed its name from Orex Mining Pty Ltd to Yandal Resources Limited on 27 March 2018. The Company listed on the Australian Stock Exchange on 14 December 2018 (ASX: YRL). PRINCIPAL ACTIVITIES The principal continuing activity of the Company during the year was gold exploration. RESULTS OF OPERATIONS The results for the year ended 30 June 2022 was a loss after income tax benefit of $978,228 (2021: $599,542 loss). EARNINGS/(LOSS) PER SHARE Basic earnings/(loss) per share Diluted earnings/(loss) per share REVIEW OF OPERATIONS 2022 ¢ (0.89) (0.89) 2021 ¢ (0.67) (0.63) Refer to the Operations Report for detailed information on the Company’s exploration activities over the past year. SIGNIFICANT CHANGES IN STATE OF AFFAIRS Other significant changes to the state of affairs during the year, other than outlined in the Operations Report, are as follows: • • • • • • • In July 2021, DGO Gold Ltd moved to ownership of 19.90% of Yandal Resources to became the Company’s largest individual shareholder via an off-market purchase of shares from Northern Star Resources Ltd. In November 2021, the Company launched a Pro-rata Non-renounceable Rights Issue Offer (“Rights Issue”), which was completed in December 2021. A total of $4,280,825 was raised by the issue of 10,702,063 New Shares at an issue price of 40 cents per New Share. The New Shares include and attached free New Option for every two New Shares with an exercise price of 65 cents and an expiry date of 31 December 2022. The new capital raised was to specifically accelerate the Company’s exploration programs. During the year, the Company’s option holders had exercised: o o 4,888,182 options at $0.25 to raise $1,222,045 1,355 options at $0.65 to raise $881. Class C and D Performance Rights were granted to the Company’s employees on 6 December 2021. Class B, C and D Performance Rights were granted to the Company’s directors on 22 November 2021. On 4 April 2022, founding Managing Director and Chief Executive Officer (CEO) Mr Lorry Hughes stepped down from the role and continued with the Company as a Non-Executive Director until 17 May 2022. Mr Tim Kennedy was appointed Managing Director and CEO on 4 April 2022. Mr Greg Evans was appointed to the Board on 4 April 2022 as Non-Executive Chairman. A Heads of Agreement (HOA) was executed with Moho Resources Ltd (ASX: MOH, Moho) that provides for the Company to acquire a 100% interest in the gold and related metal rights over granted Prospecting Licences P27/2226, P27/2216-18 and Prospecting Licence application P27/2456. Moho will retain a 1% royalty over gold production. The HOA also provides for Moho to acquire from the Company a 100% interest in the nickel, copper, cobalt and platinum group elements and related metal rights over Exploration and Prospecting Licences E24/198, P27/2206, E27/536, M27/237 (“Mulgarrie North Tenements”) and E27/601, P27/2325, P27/2331, P27/2340-41, P27/2355-64. Yandal with retain a 1% royalty over any Ni-Cu-Co-PGE production. Consideration for the Moho transaction is $50,000 cash + GST and this was paid in May 2022. Moho’s consideration is to provide 50% of the minimum expenditure commitments otherwise attributable to the Mulgarrie North Tenements for two years from the date of execution of the HOA. Other than the matters above, there were no significant changes in the state of affairs of the Company during the period. EVENTS AFTER REPORTING DATE In September 2022, the Company issued 1,000,000 unlisted options to employees under its Employee Incentive Scheme, the unlisted options vest immediately and are exercisable on or before 1 September 2025 at an exercise price of 30 cents. No other matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the Company, the results of those operations, or the state of affairs of the Company in future financial years. FUTURE DEVELOPMENTS In the opinion of the Directors it would prejudice the interests of the Company to provide additional information, beyond that reported in this Annual Report, relating to likely developments in the operations and the expected results of those operations in financial years ended subsequent to 30 June 2022. COVID-19 IMPACT The full impact of the COVID-19 pandemic continues to evolve at the date of this report. The Company is therefore uncertain as to the full impact that the pandemic will have on its financial condition, liquidity and future results of operations during 2021 or 2022. Management continues to actively monitor the global situation and its impact on the Company’s financial condition, liquidity, operations, suppliers, industry and workforce. Given the daily evolution of the COVID-19 outbreak and the global responses to curb its spread, the Company is not able to estimate the effects of the COVID-19 outbreak on its results of operations, financial condition or liquidity for the 2021/22 financial year. The health and wellbeing of all Yandal employees remain a key focus in response to the ongoing COVID-19 pandemic. The work practices and measures implemented to mitigate COVID-19 related risks have so far proven successful with no known COVID-19 cases across our workforce and minimal disruption to our operations to date. DIVIDENDS No amount has been paid or declared by way of dividend. The Directors do not recommend that any dividend be paid. MEETINGS OF DIRECTORS The number of meetings held during the year ended 30 June 2022, and the number of meetings attended by each Director were: Full Meetings of Directors Audit & Risk Committee Meetings Remuneration Committee Meetings Eligible to Participate Number Attended Eligible to Participate Number Attended Eligible to Participate Number Attended 8 4 8 7 8 4 8 7 2 - 2 2 2 - 2 2 1 - 1 1 1 - 1 1 Director T Kennedy G Evans K Law D Hughes* *resigned 17 May 2022 In addition to the above meetings several matters were dealt with by circular resolution. DIRECTOR SHARE AND OPTION HOLDINGS As at the date of this report, the interests of the Directors in the shares of the Company were: Unlisted Options Exercise price 65 cents, expiry 31 December 2022 Direct Interest - - - Indirect Interest 3,334 - - Unlisted Options Exercise price 50 cents, expiry 4 April 2025 Direct Interest - - - Indirect Interest 1,000,000 300,000 - Unlisted Options Exercise price $1, expiry 4 April 2026 (The options may only be exercised if the Director being, or associated with, the holder continues as a Director until 4 April 2023) Direct Interest - - - Indirect Interest 1,000,000 300,000 - Ordinary Shares Direct Interest - - - Indirect Interest 116,667 60,000 1,627,500 Director T Kennedy G Evans K Law SHARES UNDER OPTION Unissued ordinary shares of Yandal Resources Limited under option as at the date of this report are as follows: Nature Expiry Date Exercise Price of Options Number under Option Unlisted options Unlisted options Unlisted options Unlisted options 31 December 2022 4 April 2025 4 April 2026 1 September 2025 65 cents 50 cents $1 30 cents 5,349,695 1,300,000 1,300,000 1,000,000 Option holders do not have any rights to participate in any issues of shares or other interests in the Company or any other entity. There have been no unissued shares or interests under option of any controlled entity within the Company during or since the end of the reporting period. No person entitled to exercise the option had or has any right by virtue of the option to participate in any share issue of any other body corporate. Remuneration Report (Audited) The information provided in this remuneration report has been audited as required by section 300A of the Corporations Act 2001. A Principles Used to Determine Amount and Nature of Remuneration All remuneration paid to Directors and Executives is valued at the cost to the Company and expensed. Shares given to Directors and Executives are valued as the difference between the market price of those shares and the amount paid by the Director or Executive. Options are valued using the Black-Scholes or Binomial methodologies. The Board policy is to remunerate Non-Executive Directors at market rates for comparable companies for time, commitment and responsibilities. The Board determines payments to the Non-Executive Directors and reviews their remuneration annually based on market practice, duties and accountability. Independent external advice is sought when required. The maximum aggregate amount of fees that can be paid to Non-Executive Directors is subject to approval by shareholders at the annual general meeting (currently $300,000). Fees for Non-Executive Directors are not linked to the performance of the Company. However, to align Directors’ interests with shareholder interests, the Directors are encouraged to hold shares in the Company and are able to participate in employee option plans. A Principles Used to Determine Amount and Nature of Remuneration continued The objective of the Company’s executive reward framework is set to attract and retain the most qualified and experienced Directors and Senior Executives. The Board ensures that executive reward satisfies the following criteria for good reward governance practices: • • • • competitiveness and reasonableness acceptability to shareholders transparency capital management Directors’ Fees A Director may be paid fees or other amounts as the Directors determine where a Director performs special duties or otherwise performs services outside the scope of the ordinary duties of a Director. A Director may also be reimbursed for out-of-pocket expenses incurred as a result of their directorship or any special duties. Performance Based Remuneration The Company uses both short term and long term incentive programs to balance the short and long term aspects of business performance, to reflect market practice, to attract and retain key talent and to ensure a strong alignment between the incentive arrangements of Executives and the creation and delivery of shareholder return. Executives are encouraged by the Board to hold shares in the Company, and it is therefore the Company’s objective to provide incentives for participants to partake in the future growth of the Company and, upon becoming shareholders in the Company, to participate in the Company’s profits and dividends that may be realised in future years. The Board considers that this equity performance linked remuneration structure is effective in aligning the long-term interests of Company executives and shareholders as there exists a direct correlation between shareholder wealth and executive remuneration. The Company provides benefits to employees and directors of the Company in the form of share-based payment transactions, whereby performance rights and options were granted at nil consideration as an employment incentive. The performance rights and options were issued with vesting conditions, see Note 20 of the financial statements for details. Company Performance, Shareholder Wealth and Directors’ and Executives’ Remuneration The remuneration policy has been tailored to increase goal congruence between shareholders, Directors and Executives. This is facilitated through the issue of options or performance rights to Directors and Executives to encourage the alignment of personal and shareholder interests. The Company believes this policy will be effective in increasing shareholder wealth. The factors that are considered to affect total shareholders’ return are summarised below: EPS (cents) Dividends (cents per share) Loss ($’000) Share Price at 30 June (cents) 2022 (0.89) - 978 15.0 2021 (0.67) - 599 58.5 2020 (0.77) - 503 27.0 2019 (1.69) - 670 22.0 2018 - - - - B Details of Remuneration of Key Management Personnel of the Company Details of the nature and amount of each element of remuneration of each Director and key management personnel of the Company for the financial year are as follows:- Directors Year Consulting Fees $ Salary $ Directors’ Fee $ T Kennedy Managing Director (appointed 4 April 2022) 2022 2021 - - 75,833 - 43,333 13,217 G Evans Non-Executive Chairman (appointed 4 April 2022) 2022 2021 - - K Law Non-Executive Director 2022 2021 - - - - - - 16,000 - 55,000 48,033 D Hughes Director (resigned 17 May 2022) 2022 2021 - - 327,886 279,500 - - K Ross Non-Executive Director (resigned 17 February 2021) Totals 2022 2021 2022 2021 - - - - - - - 22,715 403,719 114,333 279,500 83,965 Post Employment Superannuation $ Share Based Payments Expense (Performance Rights) $ Share Based Payments Expense (Options) $ Total $ Performance Related % 11,917 24,915 74,436 230,434 1,256 1,600 - 5,500 4,563 24,192 26,552 - 2,158 43,209 34,529 - - - 24,915 - -* - - - - 14,473 22,331 39,931 - - - - - - - - 85,415 52,596 352,078 306,052 - 24,873 49,830 96,767 707,858 - - 397,994 43% - 56% - 29% - - - - - There were no termination benefits paid during the year to any Director or key management personnel. *Performance rights had been issued to Mr Hughes however upon resignation these rights were cancelled as the milestone was not met and any amounts expensed were reversed. Accordingly there were Nil share based payments expense for Mr Hughes. C Share-Based Compensation Options 2022 Options (i) There were options issued to Mr Evans and Mr Kennedy as remuneration during the year ended 30 June 2022. The options were issued in two tranches as follows: Tranche 1: The fair value of the incentive options issued to the Directors is $86,839 as determined using the Black-Scholes valuation methodology. The options were granted on 19 May 2022 with an expiry date of 4 April 2025 and an exercise price of $0.50 per option. The option values are as follows: Directors Grant Date No of Options Granted Fair value per option at Grant Date Vested at 30 June 2022 Total value of Options $ T Kennedy 19 May 2022 1,000,000 $0.0668 1,000,000 G Evans 19 May 2022 300,000 $0.0668 300,000 66,799 20,040 86,839 Amount expensed in current year $ 66,799 20,040 86,839 Amounts to be expensed in future years $ - - - Balance of options at year end 1,000,000 300,000 Tranche 2: The fair value of the incentive options issued to the Directors is $75,641 as determined using the Black-Scholes valuation methodology. The options were granted on 19 May 2022 with an expiry date of 4 April 2026 and an exercise price of $1.00 per option. These options have a vesting condition of continuous service until 4 April 2023 for the directors. The option values are as follows: Directors Grant Date No of Options Granted Fair value per option at Grant Date Vested at 30 June 2022 Total value of Options $ Amount expensed in current year $ Amounts to be expensed in future years $ Balance of options at year end T Kennedy 19 May 2022 1,000,000 $0.0582 G Evans 19 May 2022 300,000 $0.0582 - - 58,185 17,456 75,641 7,637 2,291 9,928 50,548 1,000,000 15,165 65,713 300,000 An amount of $9,928 was expensed for the Tranche 2 options, being the value of the options apportioned over the vesting period. 2018 Options (ii) During the year ended 30 June 2019, the Board were issued options by the Company as incentive to perform their role from the date of ASX listing. The options are linked to future performance of the Company. The fair value of the incentive options issued to key management personnel is $325,850 as determined using the Black-Scholes valuation methodology. The options were granted on 5 October 2018 with an expiry date of 31 December 2021 and an exercise price of $0.25 per option. 2018 Options continued The options were exercised in full as at 31 December 2021. The Director’s 2018 option values are as follows: Directors Grant Date No of Options Granted Fair value per option at Grant Date Vested at 30 June 2021 Total value of Options $ No of options exercised Options exercised $ Balance of options at year end T Kennedy - - - - - - K Law 5 Oct 2018 1,000,000 $0.0931 1,000,000 93,100 1,000,000 D Hughes* 5 Oct 2018 1,950,000 $0.0931 1,950,000 181,545 1,950,000 - 250,000 487,500 - - - *resigned 17 May 2022 Fair values at grant date are independently determined using a Black & Scholes option pricing model that takes into account the exercise price, the term of the option, the impact of dilution, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk-free interest rate for the term of the option. Performance Rights In the year ended 30 June 2022 the Company issued Class B, C and D Performance Rights to Directors. Full details are contained in Note 20 to the financial statements. The following table summarises the equity-settled performance rights issued to Directors. Class B Number issued Fair value per right Total fair value if all hurdles are met Amount expensed current year Amount to be expensed in future years if all hurdles are met Class C Number issued Fair value per right Total fair value if all hurdles are met Amount expensed current year Amount to be expensed in future years if all hurdles are met Class D Number issued Fair value per right Total fair value if all hurdles are met Amount expensed current year Amount to be expensed in future years if all hurdles are met Total Amount expensed current year Amount to be expensed in future years if all hurdles are met Total * Mr Hughes’ performance rights were cancelled following his resignation. Mr Hughes* $ Ms Law $ Mr Kennedy $ 400,000 0.0969 38,760 - - 400,000 0.1043 41,720 - - 400,000 0.1291 51,640 - - - - - 150,000 150,000 0.0969 14,535 14,470 65 0.0969 14,535 14,470 65 150,000 150,000 0.1043 15,645 5,924 9,721 0.1043 15,645 5,924 9,721 150,000 150,000 0.1291 19,365 4,522 14,843 24,916 24,629 49,545 0.1291 19,365 4,522 14,843 24,916 24,629 49,545 D Service Contracts Mr Kennedy has entered into an executive service agreement with the Company under which he is engaged as Managing Director. The engagement of Mr Kennedy under the agreement commenced on 4 April 2022 and continues until terminated by either party. The Company may terminate the employment without notice upon limited events akin to misconduct or incapacity. Additionally, the Company may terminate the agreement without cause upon one month's written notice. Mr Kennedy may terminate the agreement without cause on 3 months’ written notice. The employment agreement of Mr David (Lorry) Hughes was terminated following his resignation on 17 May 2022. Non-Executive Directors are not employed under written contracts. Non-Executive Directors may be paid consulting fees at commercial rates calculated according to the amount of time spent on the Company’s business. All Directors may receive consulting fees on an hourly basis which are paid from time to time for specialist services beyond normal duties. No Directors have received loans from the Company during the annual period. E Key Management Personnel Disclosures Key Management Personnel Interests in the Shares and Options of the Company Director Shares Interests of the Directors in the shares and options of the Company at 30 June 2022 and 30 June 2021 were: 2022 T Kennedy G Evans (appointed 4 April 2022) K Law D Hughes (resigned 17 May 2022) 2021 T Kennedy K Law D Hughes K Ross (resigned 17 February 2021) # Balance held at resignation Balance at start of the year Shares acquired during the year Options exercised during the year Shares disposed of during the year - - 597,500 4,141,381 4,738,881 - 565,000 2,988,654 156,251 116,667 60,000 30,000 129,059 335,726 - - 200,000 - - - 1,000,000 1,088,182 - - - (625,000) 2,088,182 (625,000) 6,537,789 Balance at the end of the year 116,667 60,000 1,627,500 4,733,622# - - - - - - 597,500 4,141,381 671,877# 5,410,758 - 32,500 952,727 515,626 3,709,905 200,000 1,500,853 Director Options The number of options over ordinary shares in the Company held during the financial year by each Key Management Personnel of Yandal Resources Limited including their personally related parties are set out below: Balance at start of the year - - 1,000,000 2022 T Kennedy G Evans* K Law Options acquired Options granted^ 3,334 2,000,000 - - 600,000 - - D Hughes** 1,088,182 49,167 2,088,182 52,501 2,600,000 *appointed 4 April 2022 **resigned 17 May 2022 ^refer to Note 20(b) 2021 T Kennedy K Law D Hughes K Ross*** - 1,032,500 2,040,909 515,626 3,589,035 - - - - - - - - - - ***resigned 17 February 2021 Director Performance Rights Options expired during the year Exercised during the year Value of options exercised ($) Balance at the end of the year Vested and exercisable at the end of the year - - - - - - - - - - - - - - 2,003,334 1,003,334 600,000 300,000 (1,000,000) 250,000 - - (1,088,182) (2,088,182) 272,046 49,167 49,167 522,046 2,652,501 1,352,501 - (32,500) (952,727) (515,626) - - - 8,775 1,000,000 1,000,000 240,000 1,088,182 1,088,182 129,219 - - (1,500,853) 377,994 2,088,182 2,088,182 The number of performance rights over ordinary shares in the Company held during the financial year by each Key Management Personnel of Yandal Resources Limited including their personally related parties are set out below: 2022 T Kennedy G Evans* K Law D Hughes** Balance at start of the year Rights Acquired Rights granted Rights cancelled during the year Rights converted during the year Balance at the end of the year - - - - - - - - - - - 450,000 450,000 - - - 1,200,000 (1,200,000) 2,100,000 (1,200,000) - - - - - - 450,000 450,000 - 900,000 Full details are contained in Note 20 to the financial statements. *appointed 4 April 2022 **resigned 17 May 2022 There were no performance rights on issue to Directors during year ended 30 June 2021. [End of remuneration report] NON-AUDIT SERVICES The auditors have not provided any non-audit services to the Company in the current financial year. INDEMNIFICATION AND INSURANCE OF OFFICERS OR AUDITOR During the financial year, the Company maintained an insurance policy which indemnifies the Directors and Officers of Yandal Resources Limited in respect of any liability incurred in connection with the performance of their duties as Directors or Officers of the Company. The Company's insurers have prohibited disclosure of the amount of the premium payable and the level of indemnification under the insurance contract. AUDITOR’S INDEPENDENCE DECLARATION In accordance with section 307C of the Corporations Act 2001, the Directors have obtained a Declaration of Independence from HLB Mann Judd, the Company’s auditors, as presented on page 27 of this year’s financial report. ENVIRONMENTAL REGULATION The Company’s Projects are subject to State and Federal laws and regulations regarding environmental matters. The Governments and other authorities that administer and enforce environmental laws and regulations determine these requirements. As with all exploration projects and mining operations, the Company's activities are expected to have an impact on the environment, particularly, if the Company's activities result in mine development. The Company intends to conduct its activities in an environmentally responsible manner and in accordance with applicable laws. PROCEEDINGS ON BEHALF OF COMPANY No person has applied for leave of Court to bring proceedings on behalf of the Company or intervene in any proceedings to which the Company is a party for the purpose of taking responsibility on behalf of the Company for all or any part of those proceedings. The Company was not a party to any such proceedings during the year. This report is made in accordance with a resolution of the Directors and signed for on behalf of the Directors by: MR TIM KENNEDY Director 16 September 2022 Perth, WA 27 AUDITOR’S INDEPENDENCE DECLARATION As auditor for the audit of the financial report of Yandal Resources Limited for the year ended 30 June 2022, I declare that to the best of my knowledge and belief, there have been no contraventions of: a) the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and b) any applicable code of professional conduct in relation to the audit. Perth, Western Australia 16 September 2022 B G McVeigh Partner  28 INDEPENDENT AUDITOR’S REPORT To the Members of Yandal Resources Report on the Audit of the Financial Report Opinion We have audited the financial report of Yandal Resources (“the Company”) which comprises the statement of financial position as at 30 June 2022, 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: (a) giving a true and fair view of the Company’s financial position as at 30 June 2022 and of its financial performance for the year then ended; and (b) 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. Material uncertainty related to going concern We draw attention to Note 1 in the financial report, which indicates that a material uncertainty exists that may cast significant doubt on the Company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter. Key audit matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. In addition to the matter described in the Material Uncertainty Related to Going Concern we have determined the matters described below to be the key audit matters to be communicated in our report. 29 Key Audit Matter How our audit addressed the key audit matter Carrying amount of exploration and evaluation expenditure Refer to Note 7 The Company has capitalised exploration and evaluation expenditure of $19,382,704 as at 30 June 2022. Our audit focussed on the Company’s assessment of the carrying amount of the capitalised exploration and evaluation asset, because this is one of the significant assets of the Company. There is a risk that the capitalised expenditure no longer meets the recognition criteria of the standard and whether facts and circumstances existed to suggest that the carrying amount of an exploration and evaluation asset may exceed its recoverable amount. Our procedures included but were not limited to: processes  We obtained an understanding of the associated with the evaluation key management’s exploration expenditure carrying values; review and of  We tested a sample of amounts capitalised;  We considered the Director’s assessment of potential indicators of impairment;  We obtained evidence the Company has current rights to tenure of its areas of interest; that  We have discussed with management the nature of planned ongoing activities;  We enquired with management, reviewed ASX announcements and minutes of Directors’ meeting to ensure that the Company had not decided to discontinue exploration and evaluation at its area of interest; and  We examined the disclosures made in the financial report. Information Other than the Financial Report and Auditor’s Report Thereon 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 2022, 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. 30 Responsibilities of the Directors for the Financial Report The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In preparing the financial report, the directors are responsible for assessing the ability of the Company 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 have 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 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 the Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:  Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. 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.  Obtain an understanding of internal control relevant to the audit 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 Company’s internal control.  Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.  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.  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. 31 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. We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with the directors, we determine those matters that were of most significance in the audit of the financial report of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. REPORT ON THE REMUNERATION REPORT Opinion on the Remuneration Report We have audited the Remuneration Report included within the directors’ report for the year ended 30 June 2022. In our opinion, the Remuneration Report of Yandal Resources Limited for the year ended 30 June 2022 complies with section 300A of the Corporations Act 2001. Responsibilities The directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards. HLB Mann Judd Chartered Accountants Perth, Western Australia 16 September 2022 B G McVeigh Partner The Directors of the Company declare that: (a) The attached financial statements and notes thereto are in accordance with the Corporations Act 2001, including: (i) giving a true and fair view of the financial position and performance of the Company; and (ii) complying with Australian Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements. (b) The financial statements and notes thereto also comply with International Financial Reporting Standards, as disclosed in Note 1 and other mandatory professional reporting requirements. (c) The Directors have been given the declarations required by s.295A of the Corporations Act 2001. (d) There are reasonable grounds to believe that Company will be able to pay its debts as and when they become due and payable. This Declaration is made in accordance with a resolution of the Board of Directors and is signed for on behalf of the Directors by: MR TIM KENNEDY Director 16 September 2022 Perth, WA Revenue from continuing operations Total Exploration expenditure written off Professional fees Administration fees Occupancy expenses Employee benefits expenses Share based payments Depreciation expenses Travel expenses Profit/(loss) before income tax Income tax (expense)/benefit Profit/(loss) after income tax for the year Other comprehensive income/(loss) for the year Total comprehensive income/(loss) attributable to Members of Yandal Resources Limited Basic profit/(loss) cents per share Diluted profit/(loss) cents per share Note 2 2 2022 $ 6,298 6,298 2021 $ 25,993 25,993 - (5,594) (154,221) (148,291) (178,745) (183,824) (24,376) (23,698) (296,230) (219,035) 20 (257,936) (63,524) (9,494) (9,111) (21,960) (14,022) (978,228) (599,542) 3 - - (978,228) (599,542) - - (978,228) (599,542) 12 12 (0.89) (0.89) (0.67) (0.63) The above Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes. CURRENT ASSETS Cash and cash equivalents Trade and other receivables Other Total Current Assets NON-CURRENT ASSETS Capitalised exploration expenditure Property, plant and equipment Total Non-Current Assets Total Assets CURRENT LIABILITIES Trade and other payables Total Current Liabilities Total Liabilities Net Assets EQUITY Contributed equity Reserves Accumulated (losses)/profits Total Equity Note 2022 $ 2021 $ 4 5 6 7 8 9 3,730,000 8,047,415 116,161 318,133 6,899 3,917 3,853,060 8,369,465 19,382,704 10,422,822 195,030 208,324 19,577,734 10,631,146 23,430,794 19,000,611 213,663 213,663 511,186 511,186 213,663 511,186 23,217,131 18,489,425 10 25,154,568 19,706,570 11(b) 866,797 608,861 11(a) (2,804,234) (1,826,006) 23,217,131 18,489,425 The above Statement of Financial Position should be read in conjunction with the accompanying notes. Contributed Equity $ Share Based Payments Reserve $ Accumulated Losses $ Total Equity $ Balance at 1 July 2020 8,567,958 599,750 (1,226,464) 7,941,244 Total comprehensive income/ (loss) for the year - Transactions with owners in their capacity as owners: Shares issued during the year Share issue costs 11,531,206 (392,594) Share based payments - employee performance rights - Balance at 30 June 2021 19,706,570 - - - 9,111 608,861 (599,542) (599,542) - - - 11,531,206 (392,594) 9,111 (1,826,006) 18,489,425 Balance at 1 July 2021 19,706,570 608,861 (1,826,006) 18,489,425 Total comprehensive income/ (loss) for the year - Transactions with owners in their capacity as owners: Shares issued during the year Share issue costs Share based payments - performance rights Share based payments - director options Balance at 30 June 2022 5,530,751 (82,753) - - 25,154,568 - - - 161,169 96,767 866,797 (978,228) (978,228) - - - - 5,530,751 (82,753) 161,169 96,767 (2,804,234) 23,217,131 The above Statement of Changes in Equity should be read in conjunction with the accompanying notes CASH FLOWS FROM OPERATING ACTIVITIES ATO cash flow boost Payments to suppliers and employees Interest received Note 2022 $ 2021 $ - 50,000 (604,971) (623,841) 7,039 26,409 Net cash provided by/(used in) operating activities 18(b) (597,932) (547,432) CASH FLOWS FROM INVESTING ACTIVITIES Payments for property, plant and equipment Payments for acquisition of tenements Capitalised exploration expenses Net cash provided by/(used in) investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from share issues and exercise of options Share issue costs Funding of secured loan Proceeds from repayment of secured loan Net cash provided by financing activities (50,230) (212,030) (116,000) (66,246) (9,045,433) (5,556,305) (9,211,663) (5,834,581) 5,504,933 11,530,032 (82,753) (392,594) - (93,000) 70,000 - 5,492,180 11,044,438 Net increase/(decrease) in cash held Cash and cash equivalents at the beginning of the financial year (4,317,415) 4,662,425 8,047,415 3,384,990 Cash and Cash Equivalents at the End of the Financial Year 18(a) 3,730,000 8,047,415 The above Statement of Cash Flows should be read in conjunction with the accompanying notes. 1 GENERAL INFORMATION These financial statements and notes represent those of Yandal Resources Limited (the “Company” or “Entity”). Yandal Resources Limited is a Company limited by shares incorporated and domiciled in Australia. (a) Significant accounting policies Statement of compliance Australian Accounting Standards set out accounting policies that the AASB has concluded would result in a financial report containing relevant and reliable information about transactions, events and conditions. The financial statements and notes also comply with International Financial Reporting Standards. Basis of preparation 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 (AASB) and the Corporations Act 2001. The financial report has been prepared on an accrual 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. Material accounting policies adopted in preparation of this financial report are presented below and have been consistently applied unless otherwise stated. The presentation currency is Australian dollars. Going concern The Directors believe that it is reasonably foreseeable that the Company will continue as a going concern and that it is appropriate to adopt the going concern basis in the preparation of the financial report after consideration of the following factors: • The Company has cash at bank of $3,730,000 and had net cash outflows from operating activities of $597,932 for the year ended 30 June 2022. As of that date, the Company had net assets of $23,217,131; • The Company raised $4,280,825 in capital under a non-renounceable pro-rata rights issue during the year and Directors are of the view that should the Company require additional capital it has the ability to raise further capital to enable the Company to meet scheduled exploration expenditure requirements and future plans on the development assets; • The Company has the ability to scale back certain parts of their activities that are non-essential so as to conserve cash; and • The Company retains the ability, if required, to wholly or in part dispose of interests in mineral exploration and development assets, and liquid investments. Accordingly, the directors believe that the consolidated entity will be able to continue as a going concern and that it is appropriate to adopt the going concern basis in the preparation of the financial report. Should the Company not achieve appropriate level of funding from some or all of the factors set out above, there is a material uncertainty which may cast significant doubt about whether the Company will continue as a going concern and therefore whether they will realise their assets and extinguish their liabilities in the normal course of business and at the amounts stated in the financial report. The financial report does not include any adjustments relating to the amounts or classification of recorded assets or liabilities that might be necessary if the Company does not continue as a going concern. New accounting standards and interpretations The Company has adopted all of the new or amended Accounting Standards and Interpretations issued by the AASB that are mandatory for the current reporting period. These Standards and Interpretations did not have any material impact on these financial statements. (a) Significant accounting policies continued New Accounting Standards and Interpretations not yet mandatory or early adopted Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory, have not been early adopted by the Company for the annual reporting period ended 30 June 2022. The Company has reviewed the new Standards and Interpretations that have been issued but are not yet effective for the year ended 30 June 2022. As a result of this review the Directors have determined that there is no impact, material or otherwise, of the new and revised Standards and Interpretations on its business and, therefore, no change is necessary to Company accounting policies. Critical accounting judgements and key sources of estimation uncertainty In the application of IFRS, management is required to make judgements, estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstance, the results of which form the basis of making the judgements. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods. i) Significant accounting judgements In the process of applying the Company’s accounting policies, management has made the following judgements, apart from those involving estimations, which have the most significant effect on the amounts recognised in the financial statements: Capitalisation of exploration and evaluation expenditure The Company has capitalised significant exploration and evaluation expenditure on the basis either that this is expected to be recouped through future successful developments (or alternatively sale) of the Areas of Interest concerned or on the basis that it is not yet possible to assess whether it will be recouped. As at 30 June 2022, the carrying value of capitalised exploration expenditure is $19,382,704. Share based payments - performance rights The Company issued performance rights to their employees and directors during the year ended 30 June 2022 and an amount of $161,169 was expensed as share based payment. Refer to Note 1(n) for the Share-Based Payments accounting policy and Note 20 for details of the performance rights issued. Share based payments - options The Company issued unlisted options to their directors during the year ended 30 June 2022 and an amount of $96,767 was expensed as share based payment. Refer to Note 1(n) for the Share-Based Payments accounting policy and Note 20 for details of the options issued. ii) Significant accounting estimates and assumptions The carrying amounts of certain assets and liabilities are often based on estimates and assumptions of future events. The key estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of certain assets and liabilities within the next annual reporting period are: Impairment of capitalised exploration and evaluation expenditure The future recoverability of capitalised exploration and evaluation expenditure is dependent on a number of factors, including whether the Company decides to exploit the related lease itself or, if not, whether it successfully recovers the related exploration and evaluation asset through sale. Factors that could impact the future recoverability include the level of reserves and resources, future technological changes, costs of drilling and production, production rates, future legal changes (including changes to environmental restoration obligations) and changes to commodity prices. (b) Income Tax The income tax expense or revenue for the period is the tax payable on the current period’s taxable income based on the notional income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences between the tax bases of assets and liabilities and their carrying amounts in the financial statements, and to unused tax losses. (b) Income Tax continued Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to apply when the assets are recovered or liabilities are settled, based on those tax rates which are enacted or substantively enacted for each jurisdiction. The relevant tax rates are applied to the cumulative amounts of deductible and taxable temporary differences to measure the deferred tax asset or liability. An exception is made for certain temporary differences arising from the initial recognition of an asset or a liability. No deferred tax asset or liability is recognised in relation to these temporary differences if they arose in a transaction, other than a business combination, that at the time of the transaction did not affect either accounting profit or taxable profit or loss. Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses. Current and deferred tax balances attributable to amounts recognised directly in equity are also recognised directly in equity. The charge for current income tax expense is based on the profit for the year adjusted for any non-assessable or disallowed items. It is calculated using the tax rates that have been enacted or are substantively enacted by the reporting date. The amount of benefits brought to account or which may be realised in the future is based on the assumption that no adverse change will occur in income taxation legislation and the anticipation that the Company will derive sufficient future assessable income to enable the benefit to be realised and comply with the conditions of deductibility imposed by the law. (c) Trade and Other Receivables Trade and other receivables are recognised initially at fair value and subsequently measured at amortised cost, less expected credit loss provision. Trade receivables are due for settlement no more than 30 days from the date of recognition. Collectability of trade receivables is reviewed on an ongoing basis. Debts that are known to be uncollectible are written off. A provision for expected credit loss is established when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of receivables. The amount of the provision is recognised in the Statement of Profit or Loss and Other Comprehensive Income. (d) Trade and Other Payables These amounts represent liabilities for goods and services provided to the Company prior to the end of the financial year and which are unpaid, together with assets ordered before the end of the financial year. The amounts are unsecured and are usually paid within 30 days of recognition. (e) Cash and Cash Equivalents For statement of cash flows presentation purposes, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions and other short-term, highly liquid instruments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. (f) Comparative Figures Where necessary, comparative figures have been adjusted to conform to the presentation in the current year. (g) Borrowings Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in the statement of comprehensive income over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities, which are not incremental costs relating to the actual draw-down of the facility, are recognised as prepayments and amortised on a straight-line basis over the term of the facility. Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. (h) Goods and Services Tax Revenues, expenses and assets are recognised net of the amount of associated goods and services tax (GST), unless the GST incurred is not recoverable from the taxation authority. In this case it is recognised as part of the cost of acquisition of the asset or as part of the expense. Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the taxation authority is included with other receivables or payables in the statement of financial position. Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to, the taxation authority, are presented as operating cash flows. (i) Contributed Equity Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction from the proceeds. Incremental costs directly attributable to the issue of new shares or options for the acquisition of a business are not included in the cost of acquisition as part of the purchase consideration. If the entity reacquires its own equity instruments, eg as the result of a share buy-back, those instruments are deducted from equity and the associated shares are cancelled. No gain or loss is recognised in the Statement of Profit or Loss and Other Comprehensive Income and the consideration paid including any directly attributable incremental costs (net of income taxes) is recognised directly in equity. (j) Impairment of Assets Assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. Assets are reviewed for impairment whenever events or changes in circumstances indicate that they might be impaired. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash flows from other assets or groups of assets (cash-generating units). Non-financial assets that suffered impairment are reviewed for possible reversal of the impairment at each reporting date. (k) Earnings per Share i) Basic earnings per share Basic earnings per share is calculated by dividing the profit or loss attributable to equity holders of the Company by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the year. ii) Diluted earnings per share Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares. (l) Exploration and 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 which permits reasonable assessment of the economically recoverable reserves. Accumulated costs in relation to an abandoned area are written off in full against operating results 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 classified as development costs and amortised over the life of the project area according to the rate of depletion of the economically recoverable reserves. Where independent valuations of areas of interest have been obtained, these are brought to account. Subsequent expenditure on re- valued areas of interest is accounted for in accordance with the above principles. A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry forward costs in relation to that area of interest. At 30 June 2022 the Directors considered that the carrying value of the mineral tenement interests of the Company was as shown in the Statement of Financial Position and no further impairment arises other than that already recognised. (m) Revenue Recognition Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are net of returns, trade allowances and amounts collected on behalf of third parties. Revenue is recognised for major business activities as follows: i) Interest Income Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets. ii) Other Services Other debtors are recognised at the amount receivable and are due for settlement within 30 days from the end of the month in which services were provided. (n) Share-Based Payments Share-based compensation benefits are provided to employees via the Company’s Employee Incentive Plans. The incentive plans consist of the short term and long term incentive plans for Executive Directors and other Executives and the employee share scheme for all other employees. The fair value of rights granted under the short term and long term incentive plans is recognised as an employee benefits expense with a corresponding increase in equity. The total amount to be expensed is determined by reference to the fair value of the rights granted, which includes any market performance conditions and the impact of any non-vesting conditions but excludes the impact of any service and non-market performance vesting conditions. Non-market vesting conditions and the impact of service conditions are included in assumptions about the number of rights that are expected to vest. The total expense is recognised over the vesting period, which is the period over which all of the specified vesting conditions are to be satisfied. At the end of each period, the entity revises its estimates of the number of rights that are expected to vest based on the non-market vesting and service conditions. It recognises the impact of the revision to original estimates, if any, in the statement of comprehensive income, with a corresponding adjustment to equity. The initial estimate of fair value for market based and non-vesting conditions is not subsequently adjusted for differences between the number of rights granted and number of rights that vest. When the rights are exercised, the appropriate amount of shares are transferred to the employee. The proceeds received net of any directly attributable transaction costs are credited directly to equity. The fair value of deferred shares granted to employees for nil consideration under the employee share scheme is recognised as an expense over the relevant service period, being the year to which the incentive relates and the vesting period of the shares. The fair value is measured at the grant date of the shares and is recognised in equity in the share-based payment reserve. The number of shares expected to vest is estimated based on the non-market vesting conditions. The estimates are revised at the end of each reporting period and adjustments are recognised in profit or loss and the share-based payment reserve. (o) Segment Reporting Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker has been identified as the steering committee that makes strategic decisions. The standard requires a ‘management approach’, under which segment information is presented on the same basis as that used for internal reporting purposes. The segments are reported in a manner that is consistent with the internal reporting provided to the chief operating decision maker. An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Company’s other components. All operating segments’ operating results are regularly reviewed by the Company’s Managing Director to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available. Segment results that are reported to the Managing Director include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items comprise mainly corporate assets (primarily the Company’s headquarters), head office expenses, and income tax assets and liabilities. (o) Segment Reporting continued Segment capital expenditure is the total cost incurred during the period to acquire property, plant and equipment, and intangible assets other than goodwill. (p) Leases The Company assesses at the start of a contract whether or not it contains a lease, by deciding if the contract provides the right to control the use of an identified asset for a period of time in exchange for consideration. The Company currently uses a single recognition and measurement approach for all leases, except for short-term leases and leases of low value assets. The Company recognises lease liabilities to make lease payments and right-of-use assets representing the right to use underlying assets. i) Right-of-use assets The Company recognises right-of-use assets at the start of the lease and are measured at costs, less accumulated depreciation and impairment losses and adjusted for any re-measurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred and lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets. ii) Lease liabilities At the commencement date of the lease, the Company recognises lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments less any lease incentives received, variable lease payments that depend on an index or a rate and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Company and payments of penalties for terminating the lease, if the lease term reflects the Company exercising the option to terminate. Variable lease payments that do not depend on an index or a rate are recognised as expenses (unless they are incurred to produce inventories) in the period in which the event or condition that triggers the payment occurs. In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g. changes to future payments resulting from a change in an index or rate used to determine such payments) or a change in the assessment of an option to purchase the underlying asset. iii) Short-term leases and leases of low-value assets The Company applies the short-term lease recognition exemption to its short-term leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option. It also applies the lease of low-value assets recognition exemption to leases that are considered to be low value. Lease payments on short-term leases and leases of low-value assets are recognised as an expense on a straight-line basis over the lease term. 2 INCOME AND EXPENSES Revenue from continuing operations: Interest received Loss before income tax is arrived at after charging the following items: Superannuation expenses Capitalised exploration expenditure written off 3 INCOME TAX Income tax expense Current tax Deferred tax Numerical reconciliation of income tax expense to prima facie tax payable Profit/(loss) before income tax Tax at 25% (2021: 26%) Tax effect of amounts which are not deductible (taxable) in calculating taxable income: Tax effect of exploration expenditure claimed Permanent differences Other timing differences Tax losses not recognised as an asset Income Tax Expense / (Benefit) Tax losses and unrecognised temporary differences The Directors estimate that the potential future income tax benefit as at 30 June 2022 in respect of tax losses not brought to account is as follows: Potential future tax benefit – income tax losses Potential future tax benefit – capital losses Potential deferred tax liability – exploration expenditure 2022 $ 2021 $ 6,298 6,298 25,993 25,993 120,841 - - - - 76,567 5,594 - - - (978,228) (599,542) (244,557) (155,881) (2,204,221) (1,521,065) 75,328 (68,846) 6,092 (83,964) 2,442,296 1,754,818 - - 5,412,616 3,089,529 31,350 32,604 (4,632,447) (2,525,356) 811,519 596,777 This benefit for tax losses will only be obtained if:  the Company derives income of a nature and amount sufficient to enable the benefit from the deductions for the loss to be realised; the Company continues to comply with the conditions for deductibility imposed by the law; and no changes in tax legislation adversely affect the Company in realising the benefit from the deductions for the losses.   4 CURRENT ASSETS – CASH AND CASH EQUIVALENTS Cash at bank Cash at bank carries a floating interest rate of 0.2% at 30 June 2022 (2021: 1%). The above figures are reconciled to the cash at the end of the financial year as shown in the statement of cash flows in Note 18. 5 CURRENT ASSETS – TRADE AND OTHER RECEIVABLES Trade receivables ATO/GST assets Other receivables (i) (i) Included in other receivables is $23,000 (2021: $93,000), being funds loaned to a supplier to acquire an exploration asset in exchange for drilling services. The exploration asset will belong to the Company in the event of any alterations to the original agreement. 6 CURRENT ASSETS - OTHER Prepaid insurance 7 NON-CURRENT ASSETS – CAPITALISED EXPLORATION EXPENDITURE Capitalised exploration and tenement acquisition costs: Carrying amount at the beginning of the year Acquisition of tenements Exploration expenditure capitalised The ultimate recoupment of above expenditure relating to exploration is dependent on successful development and commercial exploitation, or alternatively, sale of the respective areas of interest. 8 NON-CURRENT ASSETS – PROPERTY, PLANT AND EQUIPMENT Plant and equipment at cost Less accumulated depreciation Reconciliations: Plant and Equipment Carrying amount at the beginning of the year Additions Depreciation Carrying amount at the end of the year 2022 $ 2021 $ 3,730,000 8,047,415 3,730,000 8,047,415 - 93,113 23,048 116,161 6,235 216,927 94,971 318,133 6,899 6,899 3,917 3,917 10,422,822 4,506,326 143,000 66,246 8,816,882 5,850,250 19,382,704 10,422,822 289,532 (94,502) 195,030 239,302 (30,978) 208,324 208,324 50,230 (63,524) 195,030 18,255 212,029 (21,960) 208,324 9 CURRENT LIABILITIES – TRADE AND OTHER PAYABLES Trade payables Accrued expenses Other expenses All amounts are expected to be settled in less than 12 months. 10 CONTRIBUTED EQUITY (a) Ordinary Shares Issued capital 116,091,553 (2021: 100,439,953) ordinary shares fully paid (net of share issue costs) 2022 $ 2021 $ 131,175 41,782 40,706 346,509 113,551 51,126 213,663 511,186 25,154,568 19,706,570 25,154,568 19,706,570 Number 2022 Number 2021 $ 2022 $ 2021 Movement in issued capital Balance at the beginning of the financial year 100,439,953 66,847,975 19,706,570 8,567,958 Shares issued under a Placement - 12,000,000 - 6,000,000 Shares issued under a non-renounceable pro-rata rights issue 10,702,063 13,369,635 4,280,825 3,342,410 Shares issued from options exercised (refer Note 10b) 4,889,537 8,222,343 1,222,926 2,188,796 Shares issued from tenement acquisition Share issue costs 60,000 - - - 27,000 - (82,753) (392,594) Balance at the End of the Financial Year 116,091,553 100,439,953 25,154,568 19,706,570 Terms and condition of contributed equity Ordinary Shares Ordinary shares have no par value. Ordinary shares have the right to receive dividends as declared and, in the event of winding up the Company, to participate in the proceeds from the sale of all surplus assets in proportion to the number of and amounts paid up on shares held. Ordinary shares entitle their holder to one vote, either in person or by proxy, at a meeting of the Company. (b) Options During the year ended 30 June 2022, the following options were exercised: 4,888,182 options were exercised at $0.25 cents to raise $1,222,045 1,355 options were exercised at $0.65 cents to raise $881 As at 30 June 2022, the following unlisted options were on issue: 5,349,695 unlisted options – exercisable at 65 cents and expire on 31 December 2022 1,300,000 unlisted options – exercisable at 50 cents and expire on 4 April 2025 1,300,000 unlisted options – exercisable at $1 and expire on 4 April 2026 (c) Performance Rights Balance as at 1 July 2020 Additions during the year Balance as at 30 June 2021 Balance as at 1 July 2021 Additions during the year Cancelled during the year Balance at 30 June 2022 Refer to note 20 for further details. 11 RESERVES AND ACCUMULATED LOSSES (a) Accumulated Losses Opening balance Profit/(Loss) for the year Closing Balance (b) Reserves Share based payment reserve (i) (i) Share-Based Payments Reserve The share-based payments reserve is used to recognise the fair value of shares, options and performance rights issued. Balance at beginning of the year Fair value of performance rights granted (refer Note 20) Fair value of options granted (refer Note 20) Balance at the end of the year 12 EARNINGS/(LOSS) PER SHARE Profit/(loss) after tax attributable to members of Yandal Resources Limited Basic profit/( loss) per share Diluted profit/(loss) per share Number - 600,000 600,000 600,000 3,400,000 (1,875,000) 2,125,000 2022 $ 2021 $ (1,826,006) (1,226,464) (978,228) (599,542) (2,804,234) (1,826,006) 866,797 866,797 608,861 608,861 608,861 161,169 96,767 866,797 599,750 9,111 - 608,861 (978,228) (599,542) (0.89) cents (0.67) cents (0.89) cents (0.63) cents Number Number Weighted average number of ordinary shares outstanding during the year used in the calculation of basic and diluted loss per share. 108,862,866 88,864,154 Basic Earnings/(Loss) Per Share Basic earnings/(loss) per share is determined by dividing the loss after income tax attributable to members of Yandal Resources Limited by the weighted average number of ordinary shares outstanding during the financial year, adjusted for any bonus elements in ordinary shares issued during the year. Diluted Earnings/(Loss) Per Share Diluted earnings/(loss) per share adjusts the figures used in the determination of basic earnings per share by taking into account amounts unpaid on ordinary shares and any change in earnings per share that will probably arise from the exercise of options outstanding during the financial year. Where options exercise prices are above market values (out of the money), no dilutive impact arises as it increases the loss per share. 13 REMUNERATION OF AUDITORS Remuneration for audit and review of financial reports by Rothsay Auditing Remuneration for audit and review of financial reports by HLB Mann Judd The Company changed its Auditors effective for year ended 30 June 2022. $2,000 attributed to Rothsay Auditing related to under-accruals in prior years. 14 KEY MANAGEMENT PERSONNEL AND RELATED PARTY DISCLOSURES The persons holding positions as Directors of the Company during the financial year were: Mr Timothy Kennedy Managing Director Appointed Chair 1 July 2021 Resigned Chair 4 April 2022 Appointed MD 4 April 2022 Mr Gregory Evans Non-Executive Chairman Appointed Chair 4 April 2022 Ms Katina Law Non-Executive Director Resigned Chair 1 July 2021 Mr David (Lorry) Hughes Managing Director Resigned 17 May 2022 Other key management personnel There were no other persons who had authority and responsibility for planning, directing and controlling the major activities of the Company, directly or indirectly, during the financial year. (a) Details of remuneration Refer to the Remuneration Report contained in the Directors’ Report for details of the remuneration paid or payable to each member of the Company’s Key Management Personnel for the year ended 30 June 2022. The total remuneration paid to Key Management Personnel of the Company and the Company during the year are as follows: Short-term benefits Post-employment benefits Share based payments 2022 $ 2021 $ 2,000 27,820 29,820 27,500 - 27,500 518,052 43,209 146,597 707,858 363,465 34,529 - 397,994 (b) Other transactions with Director related entities Transactions with related parties are on normal commercial terms and conditions no more favourable than those available to other parties unless otherwise stated. (c) Exercise of options by Key Management Personnel 2,088,182 options issued in 2018 were exercised in the year ended 30 June 2022 at $0.25 cents to raise $522,046. There were no other transactions with Key Management Personnel during the year. 15 SEGMENT REPORTING The entity has identified its operating segments based on the internal reports that are reviewed and used by the Board of Directors (chief operating decision makers) in assessing performance and determining the allocation of resources. The entity operates predominantly in one business segment which is gold exploration and predominantly in one geographical area which is Western Australia. The Company is domiciled in Australia. All revenue from external parties in generated from Australia only. All the assets are located in Australia. 16 FINANCE FACILITIES No credit standby facility arrangement or loan facilities existed at 30 June 2022 or 30 June 2021. 17 COMMITMENTS FOR EXPENDITURE Commitments for minimum expenditure requirements on the mineral exploration assets it has an interest in are payable as follows: Within one year Later than one year but not later than five years Later than five years 18 NOTES TO THE STATEMENT OF CASH FLOWS (a) Reconciliation of Cash For the purposes of the statement of cash flows, cash includes cash on hand and in banks and investments in money market instruments, net of outstanding bank overdrafts. Cash at the end of the financial year as shown in the statement of cash flows is reconciled to the related items in the statement of financial position as follows: 2022 $ 2021 $ 870,940 3,218,160 470,700 4,559,800 1,015,540 3,747,440 310,600 5,073,580 Cash at bank 3,730,000 8,047,415 (b) Reconciliation of Net Cash Used In Operating Activities To Loss After Income Tax Profit/(loss) after income tax Depreciation Share based payment Movements in: Receivables Tax assets Prepayments Payables Net Cash provided by/(used in) Operating Activities (978,228) 63,525 257,936 (599,542) 21,960 9,111 6,976 123,814 (2,982) (68,973) 44,181 (122,241) 1,338 97,761 (597,932) (547,432) (c) Non cash financing and investing activities During the year ended 30 June 2022, 60,000 shares, valued at $27,000 were issued for the acquisition of tenements. There were no non-cash financing and investing activities during the year ended 30 June 2021. 19 FINANCIAL RISK MANAGEMENT AND POLICIES The Company’s exploration activities are being funded by equity and are not exposed to significant financial risks. There are no speculative or financial derivative instruments. Funds are invested for various short term periods to match forecast cash flow requirements. The Company holds the following financial instruments: Financial assets Cash and cash equivalents Receivables Financial liabilities Payables 2022 $ 2021 $ 3,730,000 8,047,415 116,161 318,133 3,846,161 8,365,548 213,663 213,663 511,186 511,186 The Company’s principal financial instruments comprise cash and short-term deposits. The Company does not have any borrowings. The main purpose of these financial instruments is to fund the Company’s operations. The main risks arising from the Company are credit risk, capital risk and liquidity risk. The Board of Directors reviews and agrees policies for managing each of these risks and they are summarised below: (a) Credit risk Management does not actively manage credit risk. The Company has no significant exposure to credit risk from external parties at year end. The maximum exposure to credit risk at the reporting date is equal to the carrying value of financial assets at 30 June 2022. Cash at bank is held with internationally regulated banks. Other receivables are of a low value and all amounts are current. (b) Capital risk The Company’s objectives when managing capital are to safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt. 19 FINANCIAL RISK MANAGEMENT AND POLICIES continued (c) Liquidity risk Maturity profile of financial instruments Prudent liquidity risk management implies maintaining sufficient cash balances and access to equity funding. The Company’s exposure to the risk of changes in market interest rates relate primarily to cash assets and floating interest rates. The Company does not have significant interest-bearing assets and is not materially exposed to changes in market interest rates. The Directors monitor the cash-burn rate of the Company on an on-going basis against budget and the maturity profiles of financial assets and liabilities to manage its liquidity risk. The following table sets out the carrying amount, by maturity, of the financial instruments including exposure to interest rate risk: < 1 month 1 – 3 months 3 months – 1 year 1 – 5 years Over 5 years Total 3,730,000 116,161 3,846,161 213,663 213,663 8,047,415 318,133 8,365,548 511,186 511,186 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 3,730,000 116,161 3,846,161 213,663 213,663 8,047,415 318,133 8,365,548 511,186 511,186 Weighted average effective interest rate % 0.02% - - - - 0.25% - - - - As at 30 June 2022 Financial Assets: Cash Receivables Financial Liabilities: Payables As at 30 June 2021 Financial Assets: Cash Receivables Financial Liabilities: Payables Sensitivity analysis – interest rates The sensitivity effect of possible interest rate movements have not been disclosed as they are immaterial. (d) Net fair value of financial assets and liabilities Unless otherwise stated, the carrying amount of financial instruments reflect their fair value. 20 SHARE BASED PAYMENTS (a) Performance Rights (i) 30 June 2022 During the year ended 30 June 2022, $161,169 was expensed as a share based payment respect of the Company’s Class A, B, C and D performance rights, with the fair value being recognised over the vesting period. As at 30 June 2022, a total of 2,125,000 performance rights remain unvested. In November 2021, directors were granted a total of 2,100,000 Class B, C and D performance rights. In December 2021, employees were granted a total of 1,300,000 Class C and D performance rights as announced to the ASX on 18 January 2022. The performance rights were granted at nil consideration, do not have an exercise price and will lapse if the vesting conditions are not met. The Performance Rights are issued under the Company’s Employee Incentive Scheme (EIS), dated 19 October 2018 and were approved by shareholders at the General Meeting held on 19 November 2021. The issue to Directors was on 22 November 2021 and the issue to employees was granted on 6 December 2021. Each Performance Right will, at the election of the holder, vest, and convert to one fully paid ordinary share, subject to the satisfaction of certain Performance Conditions. The terms of the Performance Rights on issue are as follows: Class of Performance Rights Service Condition Performance Condition Class B Performance Rights The holder or the holder’s representative remains engaged as an employee or Director until 1 June 2022. Class C Performance Rights The holder or the holder’s representative remains engaged as an employee or Director until 1 June 2023. Class D Performance Rights The holder or the holder’s representative remains engaged as an employee or Director until 1 June 2024. (a) On or before 1 July 2022 the volume weighted average price of the Company's Shares over 20 consecutive Trading Days on which the Shares trade is $1.00 or more; or (b) On or before 1 July 2022 a Takeover Event occurs where the bidder pays a price of $1.00 or more per Share. (a) On or before 1 July 2023 the volume weighted average price of the Company's Shares over 20 consecutive Trading Days on which the Shares trade is $2.00 or more; or (b) On or before 1 July 2023 a Takeover Event occurs where the bidder pays a price of $2.00 or more per Share. (a) On or before 1 July 2024 the volume weighted average price of the Company's Shares over 20 consecutive Trading Days on which the Shares trade is $3.00 or more; or (b) On or before 1 July 2024 a Takeover Event occurs where the bidder pays a price of $3.00 or more per Share. 20 SHARE BASED PAYMENTS continued (a) Performance Rights continued (ii) 30 June 2021 600,000 Class A performance rights were issued to employees of the Company. The performance rights were granted to nil consideration, do not have any exercise price and will lapse if the vesting conditions are not met. The Performance Rights are issued under the Company’s Employee Incentive Scheme (EIS), dated 19 October 2018. Each performance right will convert to an ordinary share upon satisfaction of the below vesting criteria: 1. Prior to 1 July 2022, the volume weighted average price of the Company’s shares over 20 consecutive trading days on which the shares trade is $1.00 or more; and 2. Completing 12 months of continuous employment with the Company to 1 June 2022. During the year ended 30 June 2021, $9,111 was expensed as a share based payment. Set out below is a summary of the performance rights on issue: Number granted Grant date Employees Directors Class A Class C Class D Class B Class C Class D Total 600,000 650,000 650,000 700,000 700,000 700,000 4,000,000 11 Jun 2021 6 Dec 2021 6 Dec 2021 22 Nov 2021 22 Nov 2021 22 Nov 2021 Expiry date of milestone achievements 1 Jul 2022 1 July 2023 1 July 2024 1 Jul 2022 1 Jul 2023 1 Jul 2024 Share price hurdle Fair value per right $1.00 $2.00 $3.00 $1.00 $2.00 $3.00 $0.3077 $0.0699 $0.0949 $0.0969 $0.1043 $0.1291 Number cancelled at 30 June 2021 - N/A N/A N/A N/A N/A - Number cancelled at 30 June 2022 (275,000) (200,000) (200,000) (400,000) (400,000) (400,000) (1,875,000) Number vested at 30 June 2021 Number vested at 30 June 2022 - - Number remaining at 30 June 2021 600,000 N/A N/A N/A N/A N/A - - - - - - - - - - - - 600,000 Number remaining at 30 June 2022 325,000 450,000 450,000 300,000 300,000 300,000 2,125,000 Total fair value at grant date $184,620 $67,830 $73,010 $90,370 $45,435 $61,685 $522,950 Value of rights cancelled – year ended 30 June 2022 Total fair value that would be recognised over the vesting period if rights are vested ($84,618) ($38,760) ($41,720) ($51,640) ($13,980) ($18,980) ($249,628) $100,003 $31,455 $42,705 $29,070 $31,290 $38,730 $273,253 Amount expensed at 30 June 2021 $9,111 - - - - - $9,111 Amount expensed at 30 June 2022 $90,631 $11,328 $9,379 $28,940 $11,847 $9,044 $161,169 Total fair value still to be recognised at 30 June 2022 if all remaining rights are vested $260 $130 $19,443 $29,686 $20,127 $33,326 $102,972 20 SHARE BASED PAYMENTS continued (a) Performance Rights continued The fair value of the rights was determined using Hoadley’s Barrier 1 model that takes into account the vesting condition of the rights, and was based on the following inputs: Assumptions Spot price Vesting hurdle Exercise price Class A $0.555 $1.00 Nil Employees Class C $0.395 $2.00 Nil Rights Class D $0.395 $3.00 Nil Class B $0.4519 $1.00 Nil Directors Class C $0.4519 $2.00 Nil Class D $0.4519 $3.00 Nil Expiry date 1 July 2022 1 July 2023 1 July 2024 1 July 2022 1 July 2023 1 July 2024 Expected future volatility Risk free rate Dividend yield 85% -0.01% Nil 80% 0.54% Nil 80% 0.89% Nil 80% 0.55% Nil 80% 0.55% Nil 80% 0.95% Nil 20 SHARE BASED PAYMENTS continued (b) Options During the year ended 30 June 2022, the Company issued options to its directors, Mr Evans and Mr Kennedy. An amount of $96,767 was expensed as a share based payment. Details of the options issued are as follows: Tranche 1 Options Tranche 2 Options Total Unlisted options to be issued for nil consideration. Each option is exercisable into one ordinary share at any time on or before the expiry date None Black Scholes 19 May 2022 - 4 April 2025 0.200 0.500 2.901 85 - 0.0668 Unlisted options to be issued for nil consideration. Each option is exercisable into one ordinary share at any time between meeting the vesting conditions and the expiry date Continuous service until 4 April 2023 Black Scholes 19 May 2022 4 April 2023 4 April 2026 0.200 1.000 2.901 85 - 0.0582 Tim Kennedy Gregory Evans Tim Kennedy Gregory Evans 1,000,000 66,799 300,000 20,040 1,000,000 58,185 300,000 17,456 2,600,000 162,480 Tim Kennedy Gregory Evans Tim Kennedy Gregory Evans 1,000,000 300,000 - - 1,300,000 1,000,000 300,000 1,000,000 300,000 2,600,000 66,799 20,040 7,637 2,291 96,767 - - 50,548 15,165 65,713 Details Vesting conditions Methodology Grant date Vesting date Expiry date Share price at grant date ($) Exercise price ($) Risk-free rate (%) Volatility (%) Dividend yield (%) Fair value per Option ($) Recipient Number Total fair value ($) Recipient Number vested at 30 June 2022 Number remaining at 30 June 2022 Amount expensed to 30 June 2022 Amounts to be expensed in future periods if voting condition is met 21 LEASES This note provides information for leases where the Company is a lessee. The Company adopted AASB 16 from 1 July 2019. The Company applied AASB 16 on its leases as follows: Lease Office space Office equipment/photocopiers Impact on the Company’s Financial Position or Performance June 2022 Lease agreement is on a month by month basis, therefore eligible for short term exemption, no impact. Lease agreement is on a month by month basis, therefore eligible for short term exemption, no impact. 22 CONTINGENCIES There are no contingent assets or liabilities at reporting date. 23 EVENTS AFTER REPORTING DATE In September 2022, the Company issued 1,000,000 unlisted options to employees under its Employee Incentive Scheme, the unlisted options vest immediately and are exercisable on or before 1 September 2025 at an exercise price of 30 cents. At the date of the Directors’ Declaration no other matter or circumstance has arisen since 30 June 2022 that has significantly affected or may significantly affect the operations, results of those operations, or state of affairs of the Company, subsequent to 30 June 2022. Additional information required by the Australian Stock Exchange Limited Listing Rules, and not disclosed elsewhere in this report. SHAREHOLDINGS The names of ordinary shares held by the substantial shareholders as at 12 September 2022 were:  Gold Road Resources Limited  Au Xingao Investment Pty Ltd  Merrill Lynch (Australia) Nominees Pty Limited  Abadi Investments Pty Ltd  Mr Kenneth Joseph Hall 23,362,809 17,791,981 8,718,569 7,960,289 7,110,000 UNQUOTED SECURITIES OPTIONHOLDINGS Nature Expiry Date Exercise Price of Options Number under Option Number of Holders Unlisted options 31 December 2022 Unlisted options Unlisted options 4 April 2025 4 April 2026 Unlisted options 1 September 2025 65 cents 50 cents $1 30 cents 5,349,695 1,300,000 1,300,000 1,000,000 119 2 2 4 The numbers of unlisted options with an exercise price $0.65, expiring 31 December 2022 held by the substantial option holders as at 12 September 2022 were: Gold Road Resources Limited Au Xingao Investment Pty Ltd    Mr Kenneth Joseph Hall  Avenira Gold Pty Ltd 1,665,630 1,217,372 500,000 383,334 CLASS OF SHARES AND VOTING RIGHTS As at 12 September 2022, there were 655 holders of the ordinary shares, 127 holders of unlisted options of the Company. The voting rights attached to the shares are: • 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 • 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 OF SHAREHOLDERS (as at 12 September 2022) Category 1 1,001 5,001 10,001 100,001 – – – – – 1,000 5,000 10,000 100,000 over TOTAL HOLDERS Number of Shareholders 45 146 102 275 87 655 The number of shareholders holding less than a marketable parcel as at 12 September 2022 was 31. Twenty largest shareholders as at 12 September 2022 Name 1 GOLD ROAD RESOURCES LIMITED 2 AU XINGAO INVESTMENT PTY LTD Balance % 23,362,809 20.124% 17,791,981 15.326% 3 MERRILL LYNCH (AUSTRALIA) NOMINEES PTY LIMITED 8,718,569 7.510% 4 ABADI INVESTMENTS PTY LTD 7,960,289 6.857% 5 MR KENNETH JOSEPH HALL 7,110,000 6.124% 6 AVENIRA GOLD PTY LTD 7 MS RENAE WAINWRIGHT & MR DAVID LAWRENCE HUGHES 4,390,932 3.782% 3,845,500 3.312% 8 BILL BROOKS PTY LTD 1,899,680 1.636% 9 HERA INVESTMENTS PTY LTD 10 EST MR PETER PIOTR MACKOW 11 MRS MARISA MACKOW 1,761,720 1.518% 1,701,265 1.465% 1,544,638 1.331% 12 MRS KATINA MARIA ETHEL LAW & MR PETER S LAW 1,390,000 1.197% 13 UBS NOMINEES PTY LTD 1,251,470 1.078% 14 CAROLINE HOUSE SUPER FUND PTY LTD 1,112,608 0.958% 15 GARRETT SMYTHE LTD 16 ZINFANDEL EXPLORATION PTY LTD 1,096,623 0.945% 1,000,000 0.861% 17 B & M LAWS SUPER FUND PTY LTD 1,000,000 0.861% 18 KESLI CHEMICALS PTY LTD 19 POUNAMU CAPITAL PTY LIMITED 20 MR RODERICK JAMES TRIGWELL 971,126 0.837% 947,917 0.817% 822,234 0.708% Total Securities of Top 20 Holdings 89,679,361 77.249% Total of Securities 116,091,553 Locality Tenement ID Holder Beneficial Ownership of Yandal Resources Ltd Notes Ironstone Well Gold Project Oblique/Quarter Moon Flushing Meadows Flushing Meadows Ironstone Well Flushing Meadows Flushing Meadows Barwidgee Gold Project New England New England New England Mazzucco Greenstone Hill Tuscana Mt McClure Gold Project Success Parmelia Challenger Mt McClure Mt McClure Mt McClure Mt McClure Mt McClure Success E53/1882 E53/1963 E53/1964 Yandal Resources Limited Yandal Resources Limited Yandal Resources Limited M53/1093 Yandal Resources Limited MLA53/1108 Yandal Resources Limited LA53/222 Yandal Resources Limited E53/1843 P53/1638 P53/1639 P53/1704 P53/1714 P53/1715 M36/691 M36/692 M36/693 P36/1892 P36/1893 P36/1894 P36/1895 P36/1896 P36/1922 Yandal Resources Limited Yandal Resources Limited Yandal Resources Limited Yandal Resources Limited Yandal Resources Limited Yandal Resources Limited Yandal Resources Limited Yandal Resources Limited Yandal Resources Limited Yandal Resources Limited Yandal Resources Limited Yandal Resources Limited Yandal Resources Limited Yandal Resources Limited Yandal Resources Limited 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Locality Tenement ID Holder Gordans Gold Project Beneficial Ownership of Yandal Resources Ltd Notes Mt Jewell Mt Jewell Mulgarrie Gordons Wild Dog Mt Vetters Gordons Mulgarrie Gordons Gordons Mt Jewell E24/198 E27/536 E27/570 E27/601 E27/602 E27/605 Yandal Resources Limited Yandal Resources Limited Yandal Resources Limited/PVW Yandal Resources Limited Yandal Resources Limited Yandal Resources Limited M27/11 Yandal Resources Limited M27/237 Yandal Resources Limited M27/502 Yandal Resources Limited P26/4577 Yandal Resources Limited P27/2206 Yandal Resources Limited Boomerang Dam P27/2214 Yandal Resources Limited Gordon North Gordon North Gordon North Gordon North Mulgarrie Kanowna Mt Eba P27/2216 Yandal Resources Limited/Moho P27/2217 Yandal Resources Limited/Moho P27/2218 Yandal Resources Limited/Moho P27/2226 Yandal Resources Limited/Moho P27/2234 Yandal Resources Limited P27/2325 Yandal Resources Limited P27/2331 Yandal Resources Limited Called Back Leases P27/2332 Yandal Resources Limited Gordons Gordons Gordons Gordons Gordons Gordons Gordons Gordons Gordons Gordons Gordons Gordons Gordons P27/2338 P27/2339 P27/2340 P27/2341 Yandal Resources Limited Yandal Resources Limited Yandal Resources Limited Yandal Resources Limited P27/2342 Yandal Resources Limited P27/2343 Yandal Resources Limited P27/2344 Yandal Resources Limited P27/2345 Yandal Resources Limited P27/2346 Yandal Resources Limited P27/2354 Yandal Resources Limited P27/2355 Yandal Resources Limited P27/2356 Yandal Resources Limited P27/2357 Yandal Resources Limited 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 1 1 1 1 Locality Tenement ID Holder Gordans Gold Project continued Beneficial Ownership of Yandal Resources Ltd Notes Gordons Gordons Gordons Gordons Gordons Gordons Gordons Gordon Gordons Gordons Gordons White Dam White Dam P27/2358 Yandal Resources Limited P27/2359 Yandal Resources Limited P27/2360 Yandal Resources Limited P27/2361 Yandal Resources Limited P27/2362 Yandal Resources Limited P27/2363 Yandal Resources Limited P27/2364 Yandal Resources Limited P27/2456 Yandal Resources Limited/Moho P27/2461 Yandal Resources Limited LA27/100 Yandal Resources Limited LA27/101 Yandal Resources Limited 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% E26/229 Yandal Resources Limited 100% 1 Notes: 1. These tenements are the subject of the Moho Resources Limited Heads of Agreement dated 10 November 2021. . This page has been left blank intentionally This page has been left blank intentionally