ARGENT MINERALS LIMITED

A.B.N. 89 124 780 276

ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2017

COMPANY PROFILE ............................................................ 1 2017 HIGHLIGHTS ............................................................. 5 CHAIRMAN’S LETTER ........................................................... 8 OPERATIONS REVIEW .......................................................... 9 CORPORATE GOVERNANCE STATEMENT ......................................... 23 DIRECTORS’ REPORT ......................................................... 24 LEAD AUDITOR’S INDEPENDENCE DECLARATION ................................... 34 CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME . 35 CONSOLIDATED STATEMENT OF FINANCIAL POSITION ............................... 36 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY ............................... 37 CONSOLIDATED STATEMENT OF CASH FLOWS ..................................... 38 NOTES TO THE FINANCIAL STATEMENTS .......................................... 39 DIRECTORS' DECLARATION .................................................... 63 INDEPENDENT AUDITOR’S REPORT .............................................. 64 ADDITIONAL STOCK EXCHANGE INFORMATION ..................................... 69 SCHEDULE OF MINERAL TENEMENTS ............................................ 72 MINERAL RESOURCES AND ORE RESERVES STATEMENT ............................ 73 CORPORATE DIRECTORY ...................................................... 81

ARGENT MINERALS LIMITED

COMPANY PROFILE

Argent Minerals Limited (Argent or the Company) is an ASX-listed public company (ASX: ARD) focused on creating shareholder wealth through the expansion and development of its significant existing base and precious metal projects and the leveraging of its expertise to pursue value accretive acquisitions of other significant projects identified by the Company. A key goal of the Company is to become a leading Australian polymetallic producer, producing 1.5 million tonnes per annum with a mine life of 20 years.

The Company’s Kempfield, West Wyalong and Sunny Corner project assets are situated in the Lachlan Orogen in New South Wales, Australia, a richly mineralised geological terrane which extends from northern NSW and through Victoria into Tasmania. The first gold discovery in Australia was in 1851, at a location within the Lachlan Orogen. This important find led to the subsequent gold rushes, the discovery of the Holterman Nugget in 1872, and the formation of nearby townships of Bathurst and Orange.

Today the Lachlan Orogen hosts world class deposits including one of the largest underground coppergold mines in the southern hemisphere, Newcrest’s Cadia Valley Operations.

The recently acquired Loch Lilly project is located in the Loch Lilly – Kars Belt approximately 80 kilometres south of Broken Hill, a new province where significant potential has been identified that is analogous in age and composition to the Mount Read Volcanics of Western Tasmania, which hosts several world-class deposits.

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KEMPFIELD (100% ARGENT)

Located just 41 kilometres from Cadia is Kempfield, the Company’s flagship project, a registered New South Wales State Significant Development that belongs to a compelling peer group of volcanic-hosted massive sulphide (VHMS) deposits. This peer group is known as the Eastern Australian Palaeozoic VHMS, and includes well-known rich deposits such as Rosebery, Que River, Hellyer, Mt. Lyell, Sunny Corner, McPhyllamys, Woodlawn, Captains Flat and Thalanga.

The Kempfield Polymetallic Project is 100% owned by Argent Minerals and has a substantial JORC 2012 Mineral Resource of 21.8 million tonnes and 52 million ounces of silver equivalent contained silver, gold, lead and zinc.

ARGENT MINERALS LIMITED

COMPANY PROFILE

This resource is to receive an update following diamond drilling that resulted in significant advances, taking the understanding of the Kempfield geology to a new level, as the Company focuses on progressing the project towards the goal of production. Significant extensions to the mineralisation have been identified through the diamond drilling programmes, amounting to approximately twice the dimensions of the known deposit, whilst also remaining open in several directions and at depth.

As the Company focuses on proceeding to production as soon as possible, the diamond drilling results also point to the potential for a much larger mineralisation system and associated world-class discovery.

These include the identified potential for multiple additional VHMS zones, a feeder zone associated with a VHMS footwall position, and an emerging overprint gold system within the Kempfield, Trunkey Creek and Pine Ridge gold fields. Argent drilling has intersected several high grade areas, with silver grades to 259 g/t, and combined lead/zinc grades of up to 17.9%. Numerous high grade gold intervals including a spectacular gold intersection of 1 m @ 1,065 g/t from 97 m by hole AKDD181.

Metallurgical testing, in parallel with the resource upgrade efforts, is focusing on the optimisation of silver, lead and zinc recoveries from primary material as separate concentrates by a standalone flotation process. The combined data will allow a reassessment of Kempfield economics following the resource update.

WEST WYALONG (76.7% ARGENT)

The West Wyalong Project is a farm-in joint venture between Argent (as Operator) and Golden Cross Operations Pty Ltd (GCO), in which Argent has earned a 76.72% interest. The West Wyalong Project is situated in the Macquarie Arc of the Lachlan Orogen, in a geological setting of Ordovician volcanics which hosts world class porphyry copper-gold mines such as Newcrest’s Cadia, China Molybdenum’s Northparkes, and 45 kilometres to the north of West Wyalong - the Lake Cowal gold mine acquired by Evolution Mining Limited in July 2015.

Argent’s maiden diamond drilling programme has confirmed the presence of a substantial porphyry copper-gold-molybdenum system with a north-south strike length of 2.5 kilometres and an east-west extent of 1.5 kilometres.

The drilling results have provided evidence of the West Wyalong porphyry system as being analogous to Ok Tedi in Papua New Guinea and Big Cadia where the intersected materials are located peripheral to the main deposit.

LOCH LILLY (RIGHT TO EARN UP TO 90%)

On 20 February 2017 Argent announced that it has entered into a joint venture agreement with Dr Anthony Crawford to earn up to a 90% interest in the Loch Lilly project, with exploration licences and applications covering a significant area of the Loch Lilly - Kars Belt of over 1,400 km[2] .

The Loch Lilly - Kars Belt, located in western NSW approximately 80 kilometres south of Broken Hill, hosts a polymetallic volcanic-hosted massive sulphide VHMS and copper-gold porphyry potential analogous in age and composition to the Mount Read Volcanics of Western Tasmania. Further prospectivity of Sedex silver-lead-zinc, nickel sulphide and sedimentary copper mineralisation has been identified.

Argent will earn its first 51% interest in the Loch Lilly Joint Venture by completing a drill program to test two compelling geophysical targets – Eaglehawk and Netley, each by a single diamond drillhole.

ARGENT MINERALS LIMITED

COMPANY PROFILE

SUNNY CORNER (70% ARGENT)

The Sunny Corner Project is a farm-in joint venture between Argent (as Operator) and GCO in which Argent has earned a 70% interest. Located approximately 175 kilometres from Sydney, the Sunny Corner Project covers an area of approximately 104 km[2] .

The historic Sunny Corner mine was at one time the largest silver producer in NSW. After beginning as a gold mine in 1865, silver was discovered in 1877 with grades high enough for direct shipping to London. The Sunny Corner Silver Mining Co was formed in 1884 and became the first successful silver mining and smelting operation in Australia, producing more than 90 tonnes of silver.

Argent announced an Inferred Mineral Resource for the Sunny Corner Project on 12 August 2008, and subsequently restated this in the Argent 2013, 2014, 2015 and 2016 Annual Reports under the JORC Code 2004. The Mineral Resource comprises 1.5 Mt @ 3.7% Zn, 2.1% Pb, 0.39% Cu, 24 g/t Ag and 0.17 g/t Au at a 2.5% combined base metals cut-off grade.

CORPORATE STRATEGY

Argent’s announced goal/aspiration is to become a leading polymetallic producer, mining 1.5 million tonnes per year with a mine life of 20 years, with self-sustaining cash flow facilitating long-term growth. The Company’s strategy to achieve this goal comprises three key elements, with exploration featuring as the key immediate driver of growth.

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ARGENT MINERALS LIMITED

COMPANY PROFILE

Exploration . Argent is aggressively pursuing the significant exploration upside potential that it has identified within the Kempfield polymetallic project area featuring silver, gold, lead and zinc. Recent diamond drilling results have confirmed lateral potential extensions of 1,000 metres to the northeast, 800 metres to the south, significant northwest and southeast extensions, and depth extensions of up to twice that of the known deposit. Grades of up to 17.9% combined lead/zinc were previously intersected immediately to the west of the existing Mineral Resource, and exploration vectors point to the potential for multiple additional VHMS mineralisation zones including the potential for feeder zones and associated high grade base and precious metals. Diamond drilling has also confirmed the presence of a substantial porphyry copper-gold-molybdenum deposit at the West Wyalong project, where a prospect area of approximately 4 km[2] has been delineated, which the Company plans to aggressively pursue.
Income generation from mining production . A key component of the Company’s strategy is to accelerate identified potential production opportunities in order to fund long term growth through positive cash flow, commencing as soon as possible. Toward this goal, the Kempfield JORC 2012 mineral resource will receive a substantial update, following the identification of potential mineralisation extensions of up to twice the existing Kempfield deposit dimensions. The update will follow a planned infill drilling programme to confirm mineralisation continuity. Metallurgical testing has commenced in parallel, with the primary focus of assessing silver, lead and zinc recoveries in a standard flotation processing environment. The results of the resource update and the metallurgical testing programme will provide additional data for progressing to the next step – a reassessment of the Kempfield project economics.
Capital Efficiency . In addition to having relatively low costs, Argent continues its track record in capital-efficient funding. Approximately $2.9 million in funding has been raised since July 2013 through the Company’s R&D claims, with a considerable portion of these funds being reinvested directly into project value. Argent has also to date been awarded a total of $550,000 in highly competitive NSW Government Cooperative Drilling co-funding for all of its top three projects. The net result is a significant reduction in the dilution of Argent ordinary share capital. The Company intends to continue to pursue capital-efficient funding methods.

ARGENT MINERALS LIMITED

2017 HIGHLIGHTS

EXPLORATION

KEMPFIELD POLYMETALLIC PROJECT

Major breakthroughs:
Kempfield litho-stratigraphy and four key mineralisation host horizons identified; and
Substantial potential mineralised extensions confirmed by further diamond drilling.

 Two types of gold potential identified:

VHMS related gold; and
High grade gold trend – as orogenic gold overprint related to the Trunkey-Kings Plain gold system.
Significant intersections yielded by diamond drilling:
10.2 m @ 1.5 g/t Au from 28.0 m (by hole AKDD197 – new potential southwest extension)

including: 5.0 m @ 2.6 g/t Au from 32.2 m ;

which includes the following individual samples:

1.0 m @ 4.4 g/t Au from 32.2 m; and
1.0 m @ 5.1 g/t Au from 34.2 m.
20.3 m @ 32 g/t Ag and 1.1 g/t Au from 96.0 m (by hole AKDD195 – potential southeast extension)

including: 7.0 m @ 47 g/t Ag, and 2.4 g/t Au, from 97.0 m; and

including: 3.1 m @ 2.4% Pb, 2.3% Zn, 85 g/t Ag, and 2.3 g/t Au from 100.9 m.

16.0 m @ 0.6% Pb, 1.8% Zn, 83 g/t Ag and 0.1 g/t Au from 205.0 m (by hole AKDD200 – potential 1,000 metre northeast extension to the Henry Zone)
including: 7.6 m @ 1.2% Pb, 3.4% Zn, 126 g/t Ag and 0.2 g/t Au from 212.4 m; and

including: 1.0 m @ 2.2% Pb, 8.3% Zn, 250 g/t Ag and 0.2 g/t Au from 213.4 m.

 Kempfield resource update:

Mineralisation extensions identified - up to twice the existing deposit dimensions, including potential lateral extensions of 1,000 metres to the northeast, 800 metres to the south, significant northwest and southeast extensions, and depth extensions of up to twice that of the known deposit; and
Metallurgical test programme commenced – focusing on the optimisation of silver, lead and zinc recoveries from primary material as separate concentrates by a standalone flotation process.

ARGENT MINERALS LIMITED

2017 HIGHLIGHTS

PINE RIDGE GOLD MINE

Maiden JORC 2012 compliant announcement of significant historical gold intersections:
21.0 m @ 5.6 g/t Au from 50.0 m (by hole PR010) including: 1.0 m @ 62.9 g/t Au from 59.0 m;
10.0 m @ 3.7 g/t Au from 71.0 m (by hole PR012) including: 1.0 m @ 11.2 g/t Au from 76.0 m; and
18.0 m @ 2.4 g/t Au from 68.0 m (by hole PR023)
- including: 1.0 m @ 5.3 g/t Au from 77.0 m.
Kempfield feedstock potential identified.

WEST WYALONG PORPHYRY COPPER-GOLD-MOLYBDENUM PROJECT

50% co-funding of direct drilling costs up to $200,000 awarded by the NSW Government.
Substantial porphyry copper-gold-molybdenum deposit confirmed by maiden diamond drilling:
Multiple intrusives intersected over 2.5 kilometre north-south strike and 1.5 kilometre east-west extent;
4 km[2] prospective area delineated; and
Big Cadia and Ok Tedi analogy indicated by the drilling results.
Argent interest increased to 76.7%:
Joint venture phase commenced, with cash calls and/or customary dilution terms in operation.

LOCH LILLY PROJECT

Strategic stake secured in western Tasmania Mount Read Volcanics equivalent belt:
1,400 km[2] area secured by Loch Lilly project tenements.
Right to earn up to 90% interest:
Initial 51% interest to be earned by completing initial drilling programme.
Maiden drill test of the Netley and Eaglehawk targets:
Argent continues on from where Anglo American Exploration (Australia) Pty Ltd (AngloAmerican) ceased work on the project after being instructed by its head office to abort Australian operations; and
The Netley and Eaglehawk holes (each 500 metre diamond) were designed by Argent with the benefit of geophysics survey work and analysis performed by Dr. Anthony Crawford and AngloAmerican during 2014/15.
75% co-funding of the direct drilling costs up to $150,000 awarded by the NSW Government.

ARGENT MINERALS LIMITED

2017 HIGHLIGHTS

CORPORATE

FUNDING

A total of $4.03 million before costs was raised during the year through private placements.
Additional funds totalling $904,490 were received as income, comprising:
$709,248 under the R&D Tax Incentive Scheme;
Receipts of $175,878 from the NSW Government under the Cooperative Drilling Round 2 grant awarded to the Company; and
Interest income of $19,364.
Argent commenced the 2017/18 financial year with a strong outlook and a cash position of approximately $2.08 million.

ARGENT MINERALS LIMITED

CHAIRMAN’S LETTER

ARGENT MINERALS LIMITED

Dear Fellow Shareholder,

Argent has now established a durable project pipeline, spearheaded by the Kempfield silver-lead-zinc deposit and followed by the West Wyalong copper-gold targets and the Loch Lilly VHMS/porphyry targets. This project chain provides a spread of activities and risks from a mature project with a significant mineral resource through to some exciting grass-roots potential.

Kempfield possesses a declared zinc-silver-lead mineral resource estimate containing about 33 million ounces of silver, 97,000 tonnes of lead and 200,000 tonnes of zinc,. Our efforts are focused on increasing this estimate in the near future. This will be undertaken initially by delineating and quantifying our mineral targets, and then by upgrading the resource estimates by infill drilling. These mineral targets have been identified by the drilling campaigns undertaken not only in the 2016/17 year but also in previous years.

Our recent 6 hole drill program at West Wyalong confirmed the presence of copper and gold mineralisation over an area of multiple intrusives extending over a 2.5 kilometre strike length and a1.5 kilometre width. A follow-up program will be based on our interpretation of these results.

As I write, the inaugural Loch Lilly drilling program is underway. Historically, drilling conditions in the region have proved challenging to previous explorers, and we expect not to be exempted from these considerations during the drilling of our Netley and Eaglehawk targets. We have initially planned 1,000 metres of drilling, with a single, 500 metre hole into each of these targets.

This year, we have again been encouraged by the tangible fiscal support provided by the NSW Cooperative Drilling Program to our West Wyalong and Loch Lilly drilling campaigns. We consider that the support provided by the Program is not only indicative of the technical merits of the campaigns, but also reflects the commercial attractiveness of our targets.

In April, the Company successfully raised just under $2.3 million (before costs) in a heavily oversubscribed placement to sophisticated investors. We have further escalated our exploration activity in light of our new funding level. The scale of this raising relative to previous raisings is indicative of a change in market sentiment and will facilitate more effective exploration programs.

I take this opportunity to thank my fellow directors for their support during the year and to thank employees and consultants for their diligence and perseverance in progressing our projects and the interests of the Company. I look forward to a productive and rewarding year for shareholders.

Yours sincerely

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Steve Gemell Chairman

ARGENT MINERALS LIMITED

OPERATIONS REVIEW

EXPLORATION – KEMPFIELD

MAJOR BREAKTHROUGHS

The financial year commenced with a detailed analysis of 3,167 metres of diamond drill core that resulted in significant advances, taking the understanding of the Kempfield deposit to a new, improved level, and opening the prospect of significant extensions to the known deposit. Lateral potential extensions were confirmed by a further 1,833 metre diamond drilling programme conducted during the year, including 1,000 metres to the northeast, 800 metres to the south, as well as significant northwest and southeast extensions. Depth extensions of up to twice that of the known deposit were also confirmed by the programme, with mineralisation remaining open at depth.

An update of the Kempfield mineral resource will follow a planned reverse circulation ( RC ) infill drilling programme.

Kempfield lithology and host horizons identified

Vital to the exploration of volcanic hosted massive sulphide ( VHMS ) systems is the identification of the specific host rock horizons or geological features that control mineralisation, and their arrangement.

A key result of the drilling programmes is that the litho-stratigraphy has been defined at the Kempfield deposit, with four key host horizons identified. Four mineralisation horizons A, B, C and D have been identified within stratigraphy that dips approximately 70° to 80° to the west, with the younger material located to the east.

The identification of the lithology and host horizons represents a major breakthrough for the project, enabling highly efficient drill targeting of high grade precious and base metals at Kempfield.

Potential mineralised extensions – confirmed by further diamond drilling

An immediate result of this new level of detail was the identification of significant areas of potential additional mineralisation. An eight-hole follow up diamond drilling program was designed to test the potential mineralisation extensions, targeting silver, gold, lead and zinc. The drilling programme commenced in November 2016 and was completed at a total of 1,833 metres, yielding significant results for the project.

ARGENT MINERALS LIMITED

OPERATIONS REVIEW

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Figure 1 – Simplified plan view of the Kempfield lithology, the identified VHMS host horizons, and potential extensions to mineralisation confirmed by the subsequent 1,833 metre diamond drilling programme.

The red arrows in Figure 1 illustrate the significant potential lateral extensions confirmed by the drilling programme:

1,000 metres to the northeast, to the Henry Zone;
Up to 800 metres to the south, from where mineralisation had historically been assumed to have been terminated at a fault;
A and B Horizons to the northwest;
C and D Horizons to the southeast; and
A new zone to the southwest featuring significant gold intersections by hole AKDD197.

The 1,833 metre extensional drilling programme also continued to confirm the Kempfield genesis model, including depth extensions to at least twice that assumed from the relatively shallow historical drilling to only 120 metres. Mineralisation remains open at depth.

ARGENT MINERALS LIMITED

OPERATIONS REVIEW

Original volcanic hosted massive sulphide (VHMS) deposit formation

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‘Black smoker’ sulphide
vent on ocean floor1
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‘SIZE OF THE PRIZE’
EXPLORATION POTENTIAL
including high grade
lead/zinc +/- copper/gold
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Current day VHMS analogue. Photo reproduced with permission from Science Photo Library Ltd. London, UK.
See Mineral Resources and Ore Reserves Statement in 30 June 2016 Annual Report.

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Basin sediments DEPOSIT METAL ZONATION
margin volcanoclastics Younger
Silver/barite
1
2 Increasing lead/zinc grades
Upper Kempfield 3
Hydrothermal
Lower Kempfield 4 Older fluid convection +/-High grade lead/zinc copper/gold
Deposition
VMS
Temperature
feeder rhyolite
Ordovician zone
basement
Increasing lead/zinc grades KNOWN KEMPFIELD MINERALISATION
JORC 2012 Resource [2]
1
2
120
4 3 metres SHALLOW DRILLING HISTORY
Older
Younger 1 Silver/barite
Significant
lens
extension 2 3 Increasing lead/zinc grades
Ordovician potential
basement confirmed
by drilling
Tilted and overturned
WEST EAST structure
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Figure 2 – Conceptual section views of the Kempfield genesis model, illustrating the deposit before and after the tilting/overturning (clockwise rotation when looking toward the north) of the deposit caused by tectonic movement.

High grade gold trend identified

The diamond drill core assessment also confirmed two main types of gold occurrences at Kempfield:

VHMS related gold – generally in the range of 0.5 to 1.5 g/t Au, widespread, and associated with the original VHMS silver and base metal mineralisation event; and
Orogenic gold overprint related to the Trunkey-Kings Plain gold system – that occurred as a later stage event. Gold occurrences of highly variable grades to as high as 1.0 m @ 1,065 g/t Au from 97 m (AKDD181) have been identified as being related to the Trunkey-Kings Plain orogenic gold system.

The diamond drill core analyses and modelling identified that these occur within a variable trend that generally dips 25° to the west. The interference of the existing VHMS system and the overprinted gold system holds potential for further occurrences of structural upgrading to achieve high gold grades.

ARGENT MINERALS LIMITED

OPERATIONS REVIEW

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Figure 3 – An example illustration of the orogenic overprint gold trend and the significant new level of detail for VHMS lenses and the lithology identified by the diamond drill core analysis.

SIGNIFICANT INTERSECTIONS

In addition to verifying the potential extensions to mineralisation, the diamond drilling programme returned several significant intersections, including:

10 metre gold intersection – southwest potential extension

The following significant gold intersections were returned by diamond hole AKDD197 to the southwest of the known deposit (see Figure 1 - ‘Significant gold intersections’ label):

10.2 m @ 1.5 g/t Au from 28.0 m.

including: 5.0 m @ 2.6 g/t Au from 32.2 m

which includes the following individual samples:

1.0 m @ 4.4 g/t Au from 32.2 m; and

1.0 m @ 5.1 g/t Au from 34.2 m.

 1.0 m @ 0.97 g/t Au from 48.4 m.

Mineralisation remains open at depth, to the north, and to the south from the location of these intersections. The Company’s main tenement EL5748 extends approximately 2 kilometres to the south of hole AKDD197.

20 metre intersection - southeast potential extension

Drilled to the southeast of the known deposit (see Figure 1), hole AKDD195 intersected the following:

ARGENT MINERALS LIMITED

OPERATIONS REVIEW

20.3 m @ 32 g/t Ag and 1.1 g/t Au from 96.0 m.

including: 7.0 m @ 47 g/t Ag, and 2.4 g/t Au, from 97.0 m;

including: 3.1 m @ 2.4% Pb, 2.3% Zn, 85 g/t Ag, and 2.3 g/t Au from 100.9 m.

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Figure 4 – Example photo of AKDD195 drill core including a high grade silver section from 102.1 metres.

Henry Zone intersections – potential 1,000 metre extension along strike to the northeast

Hole AKDD200 at the Henry Zone intersected several relatively wide intervals of silver, lead and zinc mineralisation including high grades from 2.0 metres to 221.0 metres, significantly extending known mineralisation at depth, and implying significant strike extension implications for the Kempfield deposit.

The returned results identified five separate mineralised intervals with a total combined downhole length of 45.9 metres (true width 36.8 metres) , including:

16.0 m @ 0.6% Pb, 1.8% Zn, 83 g/t Ag and 0.1 g/t Au from 205.0 m
including: 7.6 m @ 1.2% Pb, 3.4% Zn, 126 g/t Ag and 0.2 g/t Au from 212.4 m; including: 1.0 m @ 2.2% Pb, 8.3% Zn, 250 g/t Ag and 0.2 g/t Au from 213.4 m.

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Figure 5 - Photo of AKDD200 drill core including a highlighted section of the mineralised interval: 1.0 m @ 2.2% Pb, 8.3% Zn (10.5% Pb+Zn), 250 g/t Ag and 0.2 g/t Au from 213.4 m

KEMPFIELD RESOURCE UPDATE

On 8 June 2017 Argent announced that an updated mineral resource estimate will be prepared to incorporate the advances in the Kempfield deposit model and the identified potential lateral and depth extensions to the mineralisation. Key inputs to the updated resource estimate will include data from a planned resource infill drilling programme, and a metallurgical test programme that was also commenced during the year.

ARGENT MINERALS LIMITED

OPERATIONS REVIEW

Mr. Roland Nice has been appointed to oversee the metallurgical test programme – a highly experienced consulting metallurgical engineer, having worked on more than 100 projects in 26 different countries.

The main focus of the metallurgical test programme is the optimisation of silver, lead and zinc recoveries from primary material as separate concentrates by a standalone flotation process.

The results of the testing will provide additional data for the assessment of the equivalence formulae and cut-off grades for the Kempfield resource re-estimate. The results will also provide additional data for a concept-level reassessment of Kempfield economics that will follow the updated resource re-estimate.

Preparations for the Kempfield resource infill drilling programme were also commenced during the year. H&S Consultants Pty Ltd (H&SC) updated the Kempfield drilling database that it employs for the resource estimation.

A substantial update of the Kempfield deposit Micromine model was also commenced, incorporating the refined lithostratigraphic and host horizon model developed through the 2016/17 extensional drilling programmes, as well as the detailed 36 element geochemical database provided by the assays.

The completed Micromine model update will allow the planned resource infill RC drilling to be designed. This will focus on establishing the maximum possible continuity of mineralisation within a hypothetical open cut mining area covering the potential lateral and depth extensions indicated by the 2016/17 diamond drilling programmes.

Together with the results of a metallurgical testing programme, the resource update will provide additional data for a concept-level reassessment of Kempfield economics.

EXPLORATION - PINE RIDGE GOLD MINE

SIGNIFICANT GOLD INTERSECTIONS

On 24 October 2016 Argent announced exploration results for the historic Pine Ridge gold mine, which the Company had acquired through a low cost tenement application process. Argent is the first company to secure an exploration licence (EL8213) over the Pine Ridge gold mine area since its release from a 15 year lockup under a 3rd party Assessment Lease Application.

Situated within the Trunkey-Kings Plain gold belt, the Pine Ridge gold mine is located approximately 17 kilometres south-southeast of Kempfield, and the Trunkey goldfields are located approximately 7 kilometres east of Kempfield within the Company’s main exploration licence EL5748.

The Pine Ridge gold mine and the Trunkey goldfields are of interest as potential feedstock for the Kempfield polymetallic project.

ARGENT MINERALS LIMITED

OPERATIONS REVIEW

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Figure 6 – Map illustrating location of Pine Ridge gold mine and Trunkey goldfields in relation to Argent’s Kempfield tenements and the geological setting, and highlights of the gold intersections announced on 24 October 2016.

The Pine Ridge gold mine is located in a gold district that has significant unrealised potential.

The Trunkey gold occurrences are a high frequency cluster of gold lodes distributed along a 25 kilometre long trend peripheral to the Copperhannia Thrust. The gold field was discovered in 1851 and intensive mining continued in the Abercrombie River basin until 1914. The inability to overcome the shallow water table significantly impacted gold mining due to rudimentary dewatering technology.

Although various explorers studied the major gold occurrences intermittently until the 1990s, the majority of known gold prospects or dormant mines have seen very little to no exploration or systematic assessment since 1914. There has been no exploration activity in the Pine Ridge gold mine area since 1998.

About the Pine Ridge gold intersections

Until the 24 October 2016 announcement, the most recent information on the Pine Ridge gold mine was that published in April 1998, when Goldrim Mining Australia Limited (Goldrim) submitted the 7th Annual Report and the Final Report for EL3756 to the NSW Government Department Mineral Resources (DMR). Whilst that information has been available to the public via the NSW Government DIGS website, it would have been a breach of the regulations for any party other than the NSW Government (including Argent) to publish the results under its title without firstly securing the legal right to do so, and subject to a comprehensive review to ensure compliance under the applicable JORC Code and ASX Rules.

Following the grant of tenement EL8213, the Company gathered the known available data for the Pine Ridge gold mine from the NSW Government DIGS database. The data comprised annual reports and final reports for exploration licences that covered the deposit area, laboratory reports, drill logs, as well as geological and metallogenic maps for the area, and aerial photos.

ARGENT MINERALS LIMITED

OPERATIONS REVIEW

The main focus of the assessment was 27 RC holes drilled under the management of Goldrim to an average depth of 75 metres for a total length of 2,206 metres. One of the RC holes was concluded with a 40 metre diamond tail for metallurgical testwork purposes.

The data was then analysed and cross-checked to assess for integrity and quality, and published on 24 October 2016 in compliance with JORC 2012 edition guidelines.

Gold intersection highlights are indicated in Figure 6.

Metallurgical testwork and preliminary environmental assessment

Metallurgical testwork performed by Enviromet Operations Pty Ltd in March 1997 on Pine Ridge material determined that most of the gold is in the ‘free state’, with very little bound in pyrite.

Standard sodium cyanide (NaCN) gold extraction tests provided good results with 87% to 93% gold dissolution and a low NaCN consumption, which reflects a large proportion of free gold with low antimony levels. Whilst Knelson Concentrator trials recovered only 16.7% of the gold in a gravity concentrate, carbon-in-pulp (CIP) testwork provided excellent results, confirming that the contained gold may be classified as ‘free’ and that recoveries in excess of 90% could be expected.

R.W Corkery & Co Pty Ltd (Corkery) prepared the preliminary environmental assessment in 1997, providing potential synergies given that the same consultant prepared the Environmental Impact Study (EIS) submitted by Argent to the NSW Government on 10 April 2013 as part of mining lease application MLA418 for Kempfield.

According to the Goldrim 1998 report for Pine Ridge, ‘The Corkery Report identified no serious environmental problems or barriers to mine development’, with all potential identified issues assessed by Corkery as being readily manageable.

Potential feedstock for Kempfield

The assessment was conducted as part of the Company’s strategy to identify potential satellite feedstock mining operations within trucking distance, as a potential option to support a central mining and processing operation at Kempfield.

Following the identification of the Pine Ridge gold mine as a potentially good fit for this strategy, the Company commenced the Right to Negotiate process in accordance with the Native Title Act 1993.

EXPLORATION – WEST WYALONG

MAIDEN DRILLING CONFIRMS COPPER-GOLD PORPHYRY DEPOSIT

The Company’s maiden West Wyalong drilling programme commenced in March 2017 and was completed during April 2017, with more than 80% of the drill core submitted for assay based on visual observations.

The diamond drill core visual observations and assay results indicated that multiple porphyritic intrusives have been intersected over a north-south strike length of 2.5 kilometres and an east-west extent of 1.5 kilometres, which are associated with elevated chalcopyrite, molybdenite and gold mineralisation, and extensive zones of sulphide mineralisation – together being signature features of porphyry copper-gold-molybdenum mineralised systems.

The completed set of assays for the six holes, together with the drill core visual observations, reveal evidence of a near position to a porphyry copper-gold-molybdenum deposit in a fertile system, with a prospective area of 4 km[2] delineated.

ARGENT MINERALS LIMITED

OPERATIONS REVIEW

==> picture [495 x 401] intentionally omitted <==

----- Start of picture text -----

526000E 527000E 528000E 529000E
45 km to Cowal mine ( >5 Moz gold resource)
purchased by Evolution (US$550M) N
4.0 m @ 0.00% Cu, 1.46 g/t Au, 4 ppm Mo from 455.0 m
including 1.0 m @ 4.70 g/t Au from 457.0 m
Purchased by Evolution
AWT001 –351.6 m
INCREASING COPPER-GOLD-MOLYBDENUM
AWT002 –374.2 m
AWT003 –449.8 m
West Wyalong Theia
goldfields
445,700 oz mined COPPER + INCREASING GOLDTheia
1894-1921
GOLD +
AWT004 –497.9 m INCREASED
COPPER
AWT005 –350.8 m AWN001 –401.8 m
Narragudgil
Sandfire acquisition from
Straits Resources
0.7 m at 3.27 % Cu, 0.06 g/t Au
and 7 ppm Mo from 311.7 m
Total magnetic intensity IP Chargeability (0.5 mV contours)
Argent Minerals Goldfields (background image) (foreground image)
MineralsEvolution Mining Lithium Exploration 0 600 nT 0 1.0 3.5 mV/V
SandfireResources St. Barbara Clancy
526000E 527000E 528000E 529000E
Coordinates: MGA Zone 55 GDA 94
Scale (metres)
2017 maiden drill-test holes
0 1000
1 2
2
2 .
.
5
5
. 5
.
3.5
5
2
1
2
2
1
5
2.
1
6242000N 6242000N
6241000N 6241000N
6240000N 6240000N
6239000N 6239000N
3
.
2
2
5
2
.2
5
5
.1
5
2
5
2
2
1.
5
.
3
1
1
5
.
2
2
.
.
3
5
2.
3
2
1
5
----- End of picture text -----

Figure 7 – Illustrating the strategic location of the project together with a plan view of the drilling programme holes and the geophysical targets they were designed to test.

Results highlights

The following selected drill core section photographs, intersections and visual observations illustrate highlights of the drilling programme results.

ARGENT MINERALS LIMITED

OPERATIONS REVIEW

==> picture [205 x 80] intentionally omitted <==

----- Start of picture text -----

Hole AWT001
321.0 m
----- End of picture text -----

§[4.0 m @ 0.04% Cu, 0.01 g/t Au, and 174 ppm Mo from 143.5 m;]
§[4.0 m @ 0.23% Cu, 0.03 g/t Au and 31 ppm Mo from 223.6 m;]
§[7.8 m @ 0.40% Cu, 0.01 g/t Au, and 9 ppm Mo from 313.5 m] - incl. 0.6 m @ 1.59% Cu from 319.7 m.

Hole AWN001

==> picture [204 x 71] intentionally omitted <==

----- Start of picture text -----

313.0 m
----- End of picture text -----

§[11.0 m @ 0.17% Cu, 0.15 g/t Au and 12 ppm Mo from 43.2 m]
incl. 7.0 m @ 0.17% Cu, 0.23 g/t Au and 14 ppm Mo from 47.2 m
incl. 1.0 m @ 0.39% Cu, 0.45 g/t Au and 16 ppm Mo from 49.2m;
§[1.0 m @ 0.01% Cu, 0.62 g/t Au and 8 Mo from 211.6 m;]
§[0.7 m @ 3.27% Cu, 0.06 g/t Au and 7 ppm from 311.7 m.]

==> picture [207 x 79] intentionally omitted <==

----- Start of picture text -----

Hole AWT002
211.5 m
221.5 m
----- End of picture text -----

§[24.1 m @ 0.25% Cu, 0.11 g/t Au and 214 ppm Mo from 161.4 m]
incl. 10.6 m @ 0.37% Cu, 0.14 g/t Au and 376 ppm Mo from 161.4 m;
§[17.1 m @ 0.08% Cu, 0.02 g/t Au and 559 Mo from 197.3 m] - incl. 0.8 m @ 3,520 ppm (0.35%) Mo from 211.6 m.

Hole AWN001 – Magnetite skarn

==> picture [204 x 36] intentionally omitted <==

----- Start of picture text -----

273.0 m
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==> picture [204 x 35] intentionally omitted <==

----- Start of picture text -----

274.0 m
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Visual observations:

§[Massive brecciated magnetite skarn with strong chlorite alteration, ] quartz-calcite veins and fracture fill (at 273.0 and 274.0 m, each 30 cm);
§[Up to 37 m (hole AWT004) over 1.5 km north-south strike length and 1.5 ] km east-west width.

Figure 8 – Highlights of the West Wyalong drilling programme results.

Big Cadia and Ok Tedi analogy indicated

A strike length of 1.5 kilometres and east-west extent of 1.5 kilometres of magnetite skarn was visually observed within the deposit total 2.5 kilometre strike length, with assays confirming the presence of chromium (>0.1%) and nickel (>0.1%) - providing evidence of the West Wyalong porphyry system as being analogous to Ok Tedi in Papua New Guinea (PNG) and Big Cadia where magnetite skarns are located peripheral to the main deposit.

==> picture [288 x 233] intentionally omitted <==

==> picture [107 x 37] intentionally omitted <==

----- Start of picture text -----

Skarn geochemistry and
lithology at Big Cadia
ultimately led to the Cadia
Ridgeway deposit discovery.
----- End of picture text -----

==> picture [143 x 27] intentionally omitted <==

----- Start of picture text -----

Source: Sillitoe, R., H., 2010. Porphyry
Copper Systems. Economic Geology v.
105, pp. 3-41, image on page 17).
----- End of picture text -----

Figure 9 – illustrating the interpreted location of West Wyalong intersections in relation to observed alteration and mineralogy in relation to a potential large scale deposit.

ARGENT MINERALS LIMITED

OPERATIONS REVIEW

50% co-funding awarded by the NSW Government

On 26 October 2016 Argent announced the award of $200,000 of NSW Government funding for the Company’s West Wyalong project. In a highly competitive environment, the heavily contested funding award was granted to the Company following the evaluation by an independent expert panel of the West Wyalong project’s prospectivity and technical basis, as well as the soundness of the Company’s financial management.

Under the Funding Deed executed by the NSW Government and Argent, NSW Cooperative Drilling will refund 50% of the direct per-metre drilling costs on the drilling contractor’s invoices up to a maximum of $200,000 within 30 business days of the Company producing the reports required by the Funding Deed.

Argent stake in West Wyalong project increased to 76.7%

Argent’s interest in the West Wyalong project has been increased to 76.72% following exploration expenditure subsequent to Argent attaining 70% (announced 27 April 2017), when the cash call/dilution phase of the joint venture commenced.

The expenditure included assays and analysis of the results of the recent drilling programme.

Selected West Wyalong drill core samples were submitted for petrographic analysis by Dr. Anthony Crawford, and for Laser Ablation Inductively Coupled Plasma Mass Spectrometry (LA-ICP-MS) analysis by the Centre of Excellence in Ore Deposits (CODES) at the University of Tasmania.

The purpose of these analyses is to both quantify and qualify detailed specifics on the intersected rock types and mineralisation vectors for the generation of a 3D model of the drilling results. The 3D model will aid drill planning and targeting for the next phase of the West Wyalong project.

EXPLORATION – LOCH LILLY PROJECT

STRATEGIC STAKE SECURED IN WESTERN TAS MOUNT READ VOLCANICS EQUIVALENT BELT

Right to earn up to 90% interest

On 20 February 2017 Argent announced that it has entered into a joint venture agreement with Dr. Anthony Crawford to earn up to a 90% interest in the Loch Lilly project, with exploration licences and applications covering a significant area of the Loch Lilly - Kars Belt of over 1,400 km[2] .

Maiden test of the Netley and Eaglehawk targets

The Netley and Eaglehawk holes (each 500 metre diamond) designed by Argent with the benefit of geophysics survey work and analysis performed by Dr. Anthony Crawford and Anglo American Exploration (Australia) Pty Ltd (AngloAmerican) during 2014/15.

The 2014/15 analysis yielded three key outcomes for the Loch Lilly project:

ARGENT MINERALS LIMITED

OPERATIONS REVIEW

Western Tasmania Mount Read Volcanics analogy confirmed – with the added unexpected bonus of rock dating information that further enhances prospectivity;
Prospectivity – new geochemical data obtained from historic drill core during the 2014/15 work indicates that the Loch Lilly – Kars Belt geology is prospective for porphyry copper-gold and volcanic-hosted massive sulphides (VHMS), with further prospectivity of Sedex silver-lead-zinc, nickel sulphide and sedimentary copper; and
Targeting information – new, higher resolution data for enhanced drill-targeting.

The specific analysis of the Netley target revealed near-coincident magnetic high and gravity low anomalies reminiscent of the scale and detail of the Northparkes copper-gold finger porphyries rising from a basal monzodiorite pluton. The historic drilling was too shallow and consequently failed to intersect the magnetic source body.

==> picture [215 x 156] intentionally omitted <==

----- Start of picture text -----

Discrete magnetic
high feature (green)
NBH00
7
Drillhole ALN001
EHK2
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==> picture [216 x 156] intentionally omitted <==

Figure 10a – Argent drillhole ALN001 design targeting the Netley discrete magnetic high within the 3D magnetic response surface, overlaid on a two dimensional residual gravity plot, and intersected by a vertical residual gravity ‘slice’.

Figure 10b – Illustrating the underlying 2D residual gravity plot in Fig. 10a, and the vertical residual gravity ‘slice’ produced by the inversion modeling.

At Eaglehawk, AngloAmerican’s new proprietary magnetic induced polarisation (MIP) survey technology yielded immediate results that re-rated the project to high priority. The MIP chargeability anomaly coincided with magnetic and gravity anomalies and alteration vectors to generate a compelling porphyry copper target for drilling.

Argent continues on from where AngloAmerican ceased work on the project after being instructed by its head office to abort Australian operations. In the new Loch Lilly joint venture with Dr. Crawford, Argent utilised the fresh data produced by the 2014/15 analysis to design diamond holes ALN001 and ALE001 - to test the Netley and Eaglehawk targets as set out in Figures 10 and 11.

The following images illustrate the design of the Eaglehawk hole (ALE001) in relation to the three coincident geophysical anomalies identified within the target area.

ARGENT MINERALS LIMITED

OPERATIONS REVIEW

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----- Start of picture text -----

Skarn with
sulphides
Calc-potassic
alteration
MIP chargeability high Magnetic high ridge Residual gravity high
Drillhole ALE001 Drillhole ALE001 Drillhole ALE001
Potassic
alteration
MIP (PFE) Propylitic TMI (nT X 1,000) Scale (m) Residual gravity (mGal)
alteration
0.6 2 4 6 8 57.6 57.8 58.3 0 2,000 -0.002 0 0.003 0.007
----- End of picture text -----

Figure 11a – Argent drillhole ALE001 design in relation to the Eaglehawk MIP chargeability high (plan view).

Figure 11b – Drillhole ALE001 design in relation to alteration and magnetic high ridge, over magnetics reduced to pole (RTP) background (plan view).

Figure 11c – Drillhole ALE001 design in relation to residual gravity high, over 0.5 km spacing residual gravity background (plan view).

75% co-funding awarded by the NSW Government

The Loch Lilly project was assessed by an independent expert panel for its prospectivity and technical basis, as well as the soundness of the Company’s financial management, conducted in a highly competitive environment similar to the NSW Government Cooperative Drilling assessment process for West Wyalong.

The project was awarded 75% co-funding of the direct per-metre drilling costs to a maximum of $150,000.

The NSW Government investment decision was underpinned by the significant potential of the Loch Lilly project, the success of which could open up the possibility of a new major mineralisation province of worldclass scale.

CORPORATE

BOARD APPOINTMENTS AND RESIGNATIONS

On 27 March 2017 the Company announced that David Busch resigned as Managing Director to take up the position of Chief Executive Officer.

FUNDING

A total of approximately $4.03 million before costs was raised during the year through private placements.

Additional funds totalling $904,490 were received as income, comprising $709,248 under the R&D Tax Incentive Scheme, receipts of $175,878 from the NSW Government under the Cooperative Drilling Round 2 grant awarded to the Company, and interest income of $19,364.

Argent commenced the 2017/18 financial year with a strong cash position of approximately $2.08 million, and the award of a further NSW Government Cooperative Drilling Round 2 drilling grant for the Loch Lilly project for up to $150,000.

ARGENT MINERALS LIMITED

OPERATIONS REVIEW

COMPETENT PERSON STATEMENTS

Previously Released Information

This Annual Report contains information extracted from the following reports which are available for viewing on the Company's website http://www.argentminerals.com.au :

10 March 2014 Assays confirm 3rd VMS lens group at Kempfield – revised[1] ;
22 December 2015 Significant intersections at Kempfield including Cu and Au[2] ;
29 December 2015 Significant Kempfield intersections – summary table[2] ;
10 October 2016 Diamond Drilling Results in Major Breakthrough at Kempfield[2]
24 October 2016 High Grade Au Identified in Trunkey-Kings Plain Gold Belt[2]
2 February 2017 10 Metre Gold Intersection Returned by 1st Kempfield Assays[2]
20 February 2017 20 Metre Intersection Confirms New Kempfield Southeast Zone[2]
20 February 2017 Argent Secures Strategic Stake in Mt. Read Equivalent Belt
15 March 2017 Significant Ag Pb Zn intersections at Kempfield Henry Zone[2]
3 July 2017 West Wyalong Drilling Confirms Mineralised Porphyry System[2]
12 July 2017 Argent Commences Loch Lilly Drilling Programme[2]
17 July 2nd Set of Assays – Increased Gold in West Wyalong Porphyry[2]
27 July Copper and Gold in West Wyalong Porphyry – Final Assays[2]

Competent Person:

Dr. Vladimir David
Clifton Todd McGilvray

The Company confirms it is not aware of any new information or data that materially affects the information included in the original market announcements and, in the case of estimates of Mineral Resources or Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcements continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.

ARGENT MINERALS LIMITED

CORPORATE GOVERNANCE STATEMENT

The Board is committed to maintaining the highest standards of Corporate Governance. Corporate Governance is about having a set of core values and behaviours that underpin the Company's activities and ensure transparency, fair dealing and protection of the interests of stakeholders. The Company has reviewed its corporate governance practices against the Corporate Governance Principles and Recommendations (3rd edition) published by the ASX Corporate Governance Council.

The 2017 corporate governance statement is dated as at 8 August 2017 and reflects the corporate governance practices throughout the 2017 financial year. The 2017 corporate governance was approved by the Board on 8 August 2017. A description of the Company’s current corporate governance practices is set out in the Company’s corporate governance statement which can be viewed at www.argentminerals.com.au/about/corporategovernance.

ARGENT MINERALS LIMITED

DIRECTORS’ REPORT

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

STEPHEN GEMELL B.Eng (Mining) (Hons), FAusIMM (CP) MAIME, MMICA Non-Executive Chairman Appointed 7 July 2010.

Stephen Gemell has more than 38 years’ experience in the Australasian and global mining industry. His experience includes operational management of underground and open pit mines with CIP/CIL, flotation and alluvial plants. He has been Principal of Gemell Mining Engineers, an independent multi-discipline consultancy, since its formation in Kalgoorlie in 1984. Since 1987, he has served as a chairman, managing director, technical director or non-executive director of more than 20 ASX-listed mining/exploration companies or private mining companies. He is currently a member of the VALMIN Committee, which overlooks the revision and implementation of the Australasian Code for Public Reporting of Technical Assessments and Valuations of Mineral Assets.

During the past three years he has also served on the board of the following listed companies:

Company	Date of Appointment	Date of Resignation
Stonewall Resources Limited	July2016	January2017
Eastern Iron Limited	January2010	July2017
Golden Cross Resources Limited	June 2012	October 2014
Dateline Resources Limited	October 2013	August 2014

DAVID BUSCH, B.Eng (Elec), BSc, MAusIMM, MSEG Chief Executive Officer from 29 March 2017

Managing Director from 10 April 2012 to 29 March 2017.

David is a qualified engineer with more than 27 years’ experience in strategic leadership roles, including business and project management on behalf of Australian majors BHP Billiton and Macquarie Bank, and international process control and automation leader Honeywell.

David has broad senior management experience from operational to board levels, including founder and managing director of Australian minerals exploration companies and as chairman of a publicly listed equipment finance company in Indonesia. David is a member of the Australasian Institute of Mining and Metallurgy and the Society of Economic Geologists.

During the past three years he served on the board of the following listed company:

Company	Date of Appointment	Date of Resignation
Argent Minerals Limited	April 2012	March 2017

PETER MICHAEL Non-Executive Director

Appointed 16 September 2015.

Peter has over 20 years’ experience in the property sector encompassing the arrangement and execution of commercial and residential property transactions, land development, construction and joint venture operations utilising an extensive network of contacts throughout Australia.

Peter is currently the Executive Director of a private health care business, a private property development business and privately owned Real Estate Agency business.

ARGENT MINERALS LIMITED

DIRECTORS’ REPORT

PETER J NIGHTINGALE B.Econ, CA Non-Executive Director

Appointed 16 September 2015.

Mr Nightingale graduated with a Bachelor of Economics degree from the University of Sydney and is a member of the Institute of Chartered Accountants in Australia. He has worked as a chartered accountant in both Australia and the USA.

As a director or company secretary Mr Nightingale has, for more than 25 years, been responsible for the financial control, administration, secretarial and in-house legal functions of a number of private and public listed companies in Australia, the USA and Europe including Bolnisi Gold N.L., Callabonna Uranium Limited, Cockatoo Coal Limited, Mogul Mining N.L., Pangea Resources Limited, Perseverance Corporation Limited, Sumatra Copper & Gold plc, Timberline Minerals, Inc. and Valdora Minerals N.L. Mr Nightingale is currently a director of unlisted public companies Nickel Mines Limited and Prospech Limited.

During the past three years he has also served as a director of the following listed companies:

Company	Date of Appointment	Date of Resignation
Collerina Cobalt Limited	November 2009	Not Applicable
Planet Gas Limited	December 2011	Not Applicable

VINOD MANIKANDAN Company Secretary

Appointed 4 November 2015.

Vinod Manikandan graduated with a Bachelor of Commerce degree from Mahatma Gandhi University and also attained a Graduate Certificate of Professional Accounting from Deakin University. He is currently pursuing his post graduate studies in Applied Corporate Governance and is a member of CPA Australia. For the past two years, Vinod has provided financial reporting, accounting and company secretarial services to a range of public listed companies in Australia.

DIRECTORS INTERESTS

At the date of this report, the Directors held the following interests in Argent Minerals.

Name	Fully Paid Ordinary Shares	Options	Option Terms (Exercise Price and Term)
Stephen Gemell	1,581,818	800,000	$0.10 at anytime upto 27 June 2019.
David Busch*	4,781,818	4,200,000	$0.10 at anytime upto 27 June 2019.
	-	2,000,000	$0.03 at any time up to 30 September 2021.
	-	2,000,000	$0.06 at anytime upto 30 September 2021.
	-	3,000,000	$0.10 at anytime upto 30 September 2021.
Peter Michael	753,334	666,668	$0.10 at anytime upto 27 June 2019.
Peter Nightingale	833,333	1,666,666	$0.10 at anytime upto 27 June 2019.

At the date of resignation as the Managing Director.

In November 2016, 2,000,000 unlisted options with an exercise price of $0.03, 2,000,000 unlisted options with an exercise price of $0.06 and 3,000,000 unlisted options with an exercise price of $0.10 were granted to David Busch.

There were no options over unissued ordinary shares granted as compensation to directors or executives of the Company during or since the end of the financial year.

ARGENT MINERALS LIMITED

DIRECTORS’ REPORT

UNISSUED SHARES UNDER OPTION

At the date of this report, unissued ordinary shares of the Company under option are:

Number of Shares	Exercise Price	Expiry Date
4,000,000	$0.03	30 September 2021.
4,000,000	$0.06	30 September 2021.
4,500,000	$0.10	30 September 2021.
147,000,000	$0.10	27 June 2019.

All options expire on the earlier of their expiry date or termination of the employee's employment provided the exercise period has been reached. In the event that the employment of the option holder is terminated, any options which have not reached their exercise period will lapse and any options which have reached their exercise period may be exercised within three months of the date of termination of employment. Any options not exercised within this three month period will lapse. The persons entitled to exercise the options do not have, by virtue of the options, the right to participate in a share issue of the Company or any other body corporate.

PRINCIPAL ACTIVITIES

The principal activity of the Group is mineral exploration in Australia.

RESULTS AND REVIEW OF OPERATIONS

The results of the consolidated entity for the financial year ended 30 June 2017 is a comprehensive loss after income tax of $2,120,074 (2016: loss of $2,115,199).

A review of operations of the consolidated entity during the year ended 30 June 2017 is provided in the ‘Operations Review’.

LIKELY DEVELOPMENTS

The Group’s focus over the next financial year will be on its key projects, Kempfield, West Wyalong and Loch Lilly. Further commentary on planned activities in these projects over the forthcoming year is provided in the ‘Operations Review’. The Company will also assess new opportunities, especially where these have synergies with existing projects.

ENVIRONMENTAL ISSUES

The Group is aware of its environmental obligations with regards to its exploration activities and ensures that it complies with all regulations when carrying out exploration work.

DIVIDENDS PAID OR RECOMMENDED

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

BOARD MEETINGS

During the financial year, 10 meetings of directors were held. Attendances by each director during the year were as follows:

ARGENT MINERALS LIMITED

DIRECTORS’ REPORT

Director	Directors’ Meetings	Directors’ Meetings
	No. of Eligible Meetings to Attend	No. of Meetings Attended
Stephen Gemell	10	10
David Busch*	8	8
Peter Michael	10	10
Peter Nightingale	10	9

David Busch retired as the Managing Director on 29 March 2017.

AUDIT AND RISK MANAGEMENT COMMITTEE MEETINGS

During the financial year, 2 audit and risk management committee meetings were held. Attendances by each director during the year were as follows:

Director	Audit and Risk Management Committee Meetings	Audit and Risk Management Committee Meetings
	No. of Eligible Meetings to Attend	No. of Meetings Attended
Peter Nightingale	2	2
Stephen Gemell	2	2
Peter Michael	2	2

NOMINATION AND REMUNERATION COMMITTEE MEETINGS

During the financial year, 2 nomination and remuneration committee meetings were held. Attendances by each director during the year were as follows:

Director	Nomination and Remuneration Committee Meetings	Nomination and Remuneration Committee Meetings
	No. of Eligible Meetings to Attend	No. of Meetings Attended
Peter Nightingale	2	2
Stephen Gemell	2	2
Peter Michael	2	2

REMUNERATION REPORT - AUDITED

Remuneration Policy

The remuneration policy of Argent Minerals Limited has been designed to align directors’ objectives with shareholder and business objectives by providing a fixed remuneration component, which is assessed on an annual basis in line with market rates and equity related payments. The Board believes the remuneration policy to be appropriate and effective in its ability to attract and retain the best directors to run and manage the Group.

The Board’s policy for determining the nature and amount of remuneration for Board members is as follows:

The remuneration policy and setting the terms and conditions for the executive directors and other senior staff members is developed and approved by the Board based on local and international trends among comparative companies and industry generally. It examines terms and conditions for employee incentive schemes, benefit plans and share plans. Independent advice is obtained when considered necessary to confirm that executive remuneration is in line with market practice and is reasonable within Australian executive reward practices.

ARGENT MINERALS LIMITED

DIRECTORS’ REPORT

Remuneration Report - Audited (continued)

Executives receive a base salary (which is based on factors such as length of service and experience) and superannuation.
The entity is an exploration entity, and therefore speculative in terms of performance. Consistent with attracting and retaining talented executives, directors and senior executives are paid market rates associated with individuals in similar positions within the same industry. Options and performance incentives may be issued particularly as the entity moves from an exploration to a producing entity, and key performance indicators such as profit and production and reserves growth can be used as measurements for assessing executive performance.

The Board policy is to remunerate non-executive directors at market rates for comparable companies for time, commitment and responsibilities. The Executive Directors, in consultation with independent advisors, determine payments to the non-executives and review their remuneration annually, based on market practice, duties and accountability. 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 and is currently $250,000 per annum. 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.

DETAILS OF DIRECTORS AND EXECUTIVES

The following table provides employment details of persons who were, during the financial year, members of key management personnel of the entity.

Directors/Executives	Position Held as at 30 June 2017 and any changes during theyear
Stephen Gemell	Non-Executive Chairman
David Busch	CEO – Retired as ManagingDirector on 29 March 2017
Peter Michael	Non-Executive Director
Peter Nightingale	Non-Executive Director

Executive Officer’s remuneration and other terms of employment are reviewed annually by the NonExecutive Directors having regard to performance against goals set at the start of the year, relative to comparable information and independent expert advice.

Except as detailed in the Remuneration Report, no director has received or become entitled to receive, during the financial year or since the financial year end, a benefit because of a contract made by the Company or a related body corporate with a director, a firm of which a director is a member or an entity in which a director has a substantial financial interest. This statement excludes a benefit included in the aggregate amount of emoluments received or due and receivable by directors and shown in the Remuneration Report, prepared in accordance with the Corporations Regulations, or the fixed salary of a full time employee of the Company.

ARGENT MINERALS LIMITED

DIRECTORS’ REPORT

Remuneration Report - Audited (continued)

Details of remuneration for the year ended 30 June 2017 – Audited

Remuneration for the financial year ended 30 June 2017:

	Salary, Fees and Leave	Superannuation $	Performance Rights $	Share Based Payments – Options $	Total $	% of Remuneration as Share Payments
Directors
Non-executive
Stephen Gemell
2017	65,700	-	-	-	65,700	-
2016	60,000	5,700	-	-	65,700	-
Peter Michael
2017	40,000	3,800	-	-	43,800	-
2016	31,111	2,956	-	-	34,067	-
Peter Nightingale
2017	43,800	-	-	-	43,800	-
2016	34,530	-	-	-	34,530	-
Sarah Shipway*
2017	-	-	-	-	-	-
2016	10,000	-	-	-	10,000	-
CEO
David Busch^
2017	273,295	25,963	-	78,491	377,749	20.78
2016	250,000	23,750	(79,037)1	-	194,713	(40.59)

Sarah Shipway resigned as a director on 16 September 2015.
^ David Busch resigned as the Managing Director on 29 March 2017 and was appointed as the CEO and is considered as key management personnel throughout the year.

1 Refer Remuneration Performance Rights on page 30.

Options Granted as Compensation – Audited

as Compensation	– Audited
Grant Date	Number of Options Granted	Fair Value at Grant Date	Option Terms (Exercise Price and Term)
2 November 2016	2,000,000	$41,982	$0.03 at anytime to 30 September 2021.
2 November 2016	2,000,000	$37,417	$0.06 at any time from 31 December 2017 upto 30 September 2021.
2 November 2016	3,000,000	$50,397	$0.10 at any time from 31 December 2018 upto 30 September 2021.

^ At the date of resignation as the Managing Director and at 30 June 2017.

The fair value of the options at grant date was determined based on Black- Scholes formula. The model inputs of the options issued, were the Company’s share price of $0.027 at the grant date, a volatility factor of 110% based on historic share price performance, a risk free rate of 1.87% based on the 5 year government bond rate and no dividends paid.

ARGENT MINERALS LIMITED

DIRECTORS’ REPORT

Remuneration Report - Audited (continued)

The number of options that vested as at 30 June 2017 is 2,000,000 (2016 – nil). No options were granted subsequent to year end.

Other transactions and balances with Key Management Personnel

During the year ended 30 June 2017, Peter Nightingale had a controlling interest in an entity, MIS Corporate Pty Limited, which provided full administrative services, including rental accommodation, administrative staff, services and supplies, to the entity. Fees paid to MIS Corporate Pty Limited during the year amounted to $124,000 (2016 - $66,664). There were no outstanding amounts at 30 June 2017 (2016 - $nil).
During the prior year, engineering consulting fees of $6,776 were paid on ordinary commercial terms to Gemell Mining Engineers, a company in which Mr Gemell has a beneficial interest.
During the prior year, accounting, bookkeeping, corporate secretarial and administration service fees of $53,430 were paid or payable, to Marshall Michael Pty Ltd Chartered Accountants, a company in which Ms Shipway is an employee.

REMUNERATION PERFORMANCE RIGHTS

For details on the valuation of the Performance Rights, including models and assumptions, please refer to Note 19. Share based payments granted as compensation to directors/executives during the prior financial year.

Grant Date	Number(i)	Value per Right at Grant Date(ii)	Value	Amount Paid/Payable by Recipient
	$	$	$	$
24 July 2013	1,500,000	$0.05	75,000	-
24 July2013	1,000,000	$0.05	50,000	-

(i) On the 29 August 2013 the Company issued 1,500,000 Tranche 1 Performance Rights and 1,000,000 Tranche 2 Performance Rights to its Managing Director Mr David Busch. The performance rights expire at 5:00pm (WST) on 29 August 2016.
(ii) The fair value of the Performance Rights granted as remuneration and as shown in the above table were determined in accordance with Australian Accounting Standards and were recognised as an expense over the relevant vesting period to the extent that conditions necessary for vesting were satisfied. During the prior year, the Company recorded a share based payment expense of $41,743 in relation to these performance rights. At 30 June 2016, the Group assessed the likelihood of meeting the vesting conditions and recorded a reversal of $120,780 being the fair value of the performance rights previously expensed.

EMPLOYMENT CONTRACTS OF DIRECTORS AND EXECUTIVES

The Company has entered into an employment agreement with Mr David Busch whereby Mr Busch receives remuneration of $270,000 per annum plus statutory superannuation. The agreement may be terminated subject to a 6 month notice period.

ARGENT MINERALS LIMITED

DIRECTORS’ REPORT

Remuneration Report - Audited (continued)

Ordinary shareholdings of key management personnel

Directors and other key managementpersonnel	Balance at 1 July 2016	Net other change	Balance at 30 June 2017
	(i)	(ii)	(iii)
Stephen Gemell	1,181,818	400,000	1,581,818
David Busch*	2,681,818	2,600,000	5,281,818
Peter Michael	420,000	333,334	753,334
Peter Nightingale	-	833,333	833,333

David Busch resigned as the Managing Director on 29 March 2017 and was appointed as the CEO and is considered as key management personnel throughout the year.

Directors and other key managementpersonnel	Balance at 1 July 2015	Net other change	Balance at 30 June 2016
	(i)	(ii)	(iii)
Stephen Gemell	500,000	681,818	1,181,818
David Busch	2,000,000	681,818	2,681,818
Peter Michael	-	420,000	420,000
Peter Nightingale	-	-	-
Sarah Shipway	-	-	-

(i) Balance at the beginning of the financial year or at the date of appointment.

(ii) On market transactions for cash consideration.

(iii) Balance at the end of the financial year or at the date of retirement.

(iv) No remuneration shares were issued or options exercised during the financial years ended 30 June 2017 and 30 June 2016.

Listed Options, exercisable at $0.10, holdings of key management personnel

Directors and other key management personnel	Balance at 1 July 2016	Issued during the period	Balance at 30 June 2017
	(i)		(ii)
Stephen Gemell	-	800,000	800,000
David Busch	-	4,200,000	4,200,000
Peter Michael	-	666,668	666,668
Peter Nightingale	-	1,666,666	1,666,666

Listed Options, exercisable at $0.175, holdings of key management personnel

Directors and other key management personnel	Balance at 1 July 2015	Exercised/Expired during theperiod	Balance at 30 June 2016
	(i)		(ii)
Stephen Gemell	250,000	(250,000)	-
David Busch	-	-	-
Peter Michael	-	-	-
Peter Nightingale	-	-	-
Sarah Shipway	-	-	-

(i) Balance at the beginning of the financial year or at date of appointment.

(ii) Balance at the end of the financial year or at date of retirement.

DIRECTORS’ REPORT

ARGENT MINERALS LIMITED

Remuneration Report - Audited (continued)

Consequences of performance on shareholder wealth

In considering the Group’s performance and benefits for shareholders’ wealth, the Board has regard to the following indices in respect of the current financial year and the previous four financial years.

	2017	2016	2015	2014	2013
Net loss attributable to equity holders of the Company	$2,120,074	$2,115,199	$1,528,384	$96,852	$3,460,776
Dividends paid	-	-	-	-	-
Change in shareprice	0.2 cents	0.6 cents	(0.5)cents	0.2 cents	(2.8)cents

The overall level of key management personnel’s compensation is assessed on the basis of market conditions, status of the Company’s projects, and financial performance of the Company.

End of Remuneration Report.

INDEMNIFICATION OF DIRECTORS AND OFFICERS

In accordance with the constitution, except as may be prohibited by the Corporations Act 2001, every officer or agent of the Company shall be indemnified out of the property of the entity against any liability incurred by him or her in their capacity as officer or agent of the Company or any related corporation in respect of any act or omission whatsoever and howsoever occurring or in defending any proceedings, whether civil or criminal.

EVENTS SUBSEQUENT TO BALANCE DATE

No matters or circumstances have arisen since the end of the financial year which significantly affected or could significantly affect the operations of the consolidated entity, the results of those operations, or the state of the affairs of the consolidated entity in future financial years.

PROCEEDINGS ON BEHALF OF THE COMPANY

No person has applied for leave of court to bring proceedings on behalf of the Company or intervene in any proceedings to which the Company is a party for the purpose of taking responsibility on behalf of the Company for all or any part of those proceedings.

The Company was not a party to any such proceedings during the year.

Non-audit Services

During the year ended 2016, Argent changed its Auditors from Stantons International to KPMG. The Company’s auditor, performed no other services in addition to their statutory duties.

A copy of the auditors’ independence declaration as required under Section 307C of the Corporations Act 2001 is included in the Directors’ Report.

Details of the amounts paid and accrued to the auditor of the Company, KPMG, and its related practices for audit and non-audit services provided during the year are set out below.

Statutory audit Audit and review of financial reports - KPMG	2017 2016 $ $ 39,500 32,700

ARGENT MINERALS LIMITED

DIRECTORS’ REPORT

Lead Auditor’s Independence Declaration

The Lead Auditor’s Independence Declaration is set out on page 34 and forms part of the Directors’ Report for the year ended 30 June 2017.

This report has been signed in accordance with a resolution of the directors and is dated 1 September 2017.

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STEPHEN GEMELL Chairman

PETER NIGHTINGALE Director

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To the Directors of Argent Minerals Limited

I declare that, to the best of my knowledge and belief, in relation to the audit of Argent Minerals Limited for the financial year ended 30 June 2017 there have been:

i. no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and

ii. no contraventions of any applicable code of professional conduct in relation to the audit.

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KPMG

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Adam Twemlow Partner Bundall 1 September 2017

34 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.

Liability limited by a scheme approved under Professional Standards Legislation.

ARGENT MINERALS LIMITED

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2017

Notes Continuing operations Other income 5 Administration and consultants' expenses Depreciation 12 Employee and director expenses Exploration and evaluation expenses 6 Performance rights not expected to vest Operating loss before financing income Interest income Net financing income Loss before tax Income tax expense 9 Loss for the year Other comprehensive income Total comprehensive loss for the year Basic and diluted loss per share (cents) 7	2017 $ 885,126 (639,881) (39,261) (282,663) (2,062,759) - (2,139,438) 19,364 19,364 (2,120,074) - (2,120,074) - (2,120,074) (0.58) cents	2016 $ 317,314 (218,025) (33,055) (202,237) (1,870,027) (120,780)
		(2,126,810)
		11,611
		11,611
		(2,115,199) -
		(2,115,199) -
		(2,115,199)
		(0.83) cents

The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes.

ARGENT MINERALS LIMITED

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2017

Notes Current assets Cash and cash equivalents 8 Trade and other receivables 10 Other assets 11 Total current assets Non-current assets Other financial asset – security deposits Plant and equipment 12 Total non-current assets Total assets Current liabilities Trade and other payables 13 Employee entitlements 14 Advance monies received from share placement Total current liabilities Total liabilities Net assets Equity Issued capital 15 Reserves 15 Accumulated losses Total equity	2017 $ 2,029,005 17,610 19,538 2,066,153 95,000 420,826 515,826 2,581,979 120,685 57,225 - 177,910 177,910 2,404,069 28,090,527 143,636 (25,830,094) 2,404,069	2016 $ 648,759 - 17,902
		666,661
		67,000 408,438
		475,438
		1,142,099
		96,106 52,057 360,520
		508,683
		508,683
		633,416
		24,343,436 61,796 (23,771,816)
		633,416

The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.

ARGENT MINERALS LIMITED

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2017

Attributable to equity holders of the Company Notes Balance at 1 July 2016 Total comprehensive income for the year Loss for the year Other comprehensive income Total comprehensive loss for the year Transactions with owners, recorded directly in equity Contribution by and distribution to owners Ordinary shares/options issued Cost of shares issued Share based payments – options Expiry of options Balance at 30 June 2017 15 Balance at 1 July 2015 Total comprehensive income for the year Loss for the year Other comprehensive income Total comprehensive loss for the year Transactions with owners, recorded directly in equity Contribution by and distribution to owners Ordinary shares/options issued Cost of shares issued Share based payments – performance rights Share based payments – Performance rights not expected to vest Expiry of options Balance at 30 June 2016 15	Issued Capital $ Option Reserves $ Accumulated Losses $ Total $ 24,343,436 61,796 (23,771,816) 633,416 - - (2,120,074) (2,120,074) - - - -
	- - (2,120,074) (2,120,074)
	4,107,500 - - 4,107,500 (360,409) - - (360,409) - 143,636 - 143,636 - (61,796) 61,796 -
	28,090,527 143,636 (25,830,094) 2,404,069
	22,405,146 550,048 (22,065,832) 889,362 - - (2,115,199) (2,115,199) - - - -
	- - (2,115,199) (2,115,199)
	2,095,422 - - 2,095,422 (157,132) - - (157,132) - 41,743 - 41,743 - (120,780) - (120,780) - (409,215) 409,215 -
	24,343,436 61,796 (23,771,816) 633,416

The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.

ARGENT MINERALS LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2017

Notes Cash flows used in operating activities Cash receipts in the course of operations Government Subsidy Exploration and evaluation expenditure Cash payments in the course of operations Interest received Net cash used in operating activities 16 Cash flows used in investing activities Payments for plant and equipment 12 Proceeds from the sale of plant and equipment Payments for deposits Net cash used in investing activities Cash flows from financing activities Proceeds from issue of shares and options Cost of issue of shares and options Advance monies received from share placement Net cash from financing activities Net increase in cash held Cash and cash equivalents at 1 July Cash and cash equivalents at 30 June 8	2017 $ 709,248 175,878 (1,955,082) (805,508) 19,364 (1,856,100) (51,649) - (28,000) (79,649) 3,674,479 (358,484) - 3,315,995 1,380,246 648,759 2,029,005	2016 $ 269,326 47,988 (1,866,470) (647,508) 11,611
		(2,185,053)
		(7,076) - (21,000)
		(28,076)
		2,039,922 (150,232) 360,520
		2,250,210
		37,081 611,678
		648,759

The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.

ARGENT MINERALS LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

NOTES TO THE FINANCIAL STATEMENTS

1 REPORTING ENTITY

Argent Minerals Limited (the 'Company') is a company domiciled in Australia. The address of the Company's registered office is at Level 2, 66 Hunter Street, Sydney, NSW 2000. The consolidated financial statements of the Company as at and for the year ended 30 June 2017 comprise the Company and its subsidiary (together referred to as the 'Group'). The Group is a for-profit entity and is primarily engaged in the acquisition, exploration and development of mineral deposits in Australia.

2 BASIS OF PREPARATION

(a) Statement of compliance

The consolidated financial statements are general purpose financial statements which have been prepared in accordance with Australian Accounting Standards ('AASBs') adopted by the Australian Accounting Standards Board ('AASB') and the Corporations Act 2001. The consolidated financial statements comply with the International Financial Reporting Standards ('IFRSs') adopted by the International Accounting Standards Board ('IASB').

The consolidated financial statements were authorised for issue by the directors on 1 September 2017.

(b) Basis of measurement

The consolidated financial statements have been prepared on the historical cost basis.

(c) Functional and presentation currency

These consolidated financial statements are presented in Australian dollars, which is the Group’s functional currency.

(d) Use of estimates and judgements

The preparation of the consolidated financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

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 and in any future periods affected.

In particular, information about significant areas of estimation uncertainty and critical judgements in applying accounting policies that have the most significant effect on the amounts recognised in the financial statements are described in the following notes:

 Note 2(e) - Going concern  Note 9 - Unrecognised deferred tax asset  Note 15 - Capital and reserves  Note 19 Share based payments

(e) Going concern

The financial statements have been prepared on a going concern basis which contemplates the realisation of assets and settlement of liabilities in the ordinary course of business.

The Group recorded a loss attributable to equity holders of the Company of $2,120,074 for the year ended 30 June 2017 and has accumulated losses of $25,830,094 at 30 June 2017. The Group has cash and cash equivalents of $2,029,005 at 30 June 2017 and used $1,856,100 of cash in operations, including payments for exploration and evaluation, for the year ended 30 June 2017. Additional funding will be required to meet the Groups projected cash outflows for a period of 12 months from the date of the directors’ declaration.

ARGENT MINERALS LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

2 BASIS OF PREPARATION (Cont.)

(e) Going concern (Cont.)

These conditions give rise to a material uncertainty that may cast significant doubt upon the Group’s ability to continue as a going concern. The ongoing operation of the Group is dependent upon the Group raising additional funding from shareholders or other parties and the Group reducing expenditure in-line with available funding.

The directors have prepared cash flow projections that support the ability of the Group to continue as a going concern. These cash flow projections assume the Group obtains sufficient additional funding from shareholders or other parties. If such funding is not achieved, the Group plans to reduce expenditure to the level of funding available.

In the event that the Group does not obtain additional funding and reduce expenditure in line with available funding, it may not be able to continue its operations as a going concern and therefore may not be able to realise its assets and extinguish its liabilities in the ordinary course of operations and at the amounts stated in the financial statements.

3 SIGNIFICANT ACCOUNTING POLICIES

The accounting policies set out below have been applied consistently to all periods presented in these consolidated financial statements, and have been applied consistently by all entities in the Group.

(a) Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the entities and the revenue can be reliably measured.

(b) Finance income and finance costs

Finance income comprises interest income on funds invested (including available-for-sale financial assets), dividend income and gains on the disposal of available-for-sale financial assets. Interest income is recognised as it accrues in profit or loss, using the effective interest method. Dividend income is recognised in profit or loss on the date that the Group’s right to receive payment is established, which in the case of quoted securities is the ex-dividend date.

Finance costs comprise interest expense on borrowings, losses on disposal of available-for-sale financial assets and impairment losses recognised on financial assets. Borrowing costs that are not directly attributable to the acquisition, construction or production of a qualifying asset are recognised in profit or loss using the effective interest method.

(c) Exploration, evaluation and development expenditure

Expenditure on exploration and evaluation is accounted for in accordance with the ‘area of interest’ method and with AASB 6 Exploration for and Evaluation of Mineral Resources.

For each area of interest, exploration and evaluation expenditure is expensed in the period in which the expenditure is incurred. Expenditure incurred in the acquisition of tenements and rights to explore may be capitalised and recognised as an exploration and evaluation asset. Exploration and evaluation assets are initially measured at cost at recognition. Exploration and evaluation expenditure incurred by the Group subsequent to acquisition of the rights to explore is expensed as incurred.

Capitalised acquisition costs are assessed for impairment when facts and circumstances suggest that the carrying amount of an exploration and evaluation asset may exceed its recoverable amount. The recoverable amount of the exploration and evaluation asset to which it has been allocated, being no larger than the relevant area of interest is estimated to determine the extent of the impairment loss (if any). Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but only to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in previous years.

ARGENT MINERALS LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

3 SIGNIFICANT ACCOUNTING POLICIES (Cont.)

(c) Exploration, evaluation and development expenditure (Cont.)

Where a decision is made to proceed with development in respect of a particular area of interest, the relevant exploration and evaluation asset is tested for impairment and the balance is then reclassified to development costs.

(d) Property, plant and equipment

Items of property, plant and equipment are measured on the cost basis less depreciation and impairment losses.

Depreciation

The depreciable amount of all fixed assets is depreciated over the assets' estimated useful lives to the Group commencing from the time the asset is ready for use.

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

Class of fixed asset	Depreciation rates	Depreciation basis
Land and Buildings	7.50%	Prime cost
Plant and equipment	5% to 37.5%	Prime cost

(e) Government grants

Where a rebate is received relating to research and development costs or other costs that have been expensed, the rebate is recognised as other income when the rebate becomes receivable and the Group complies with all attached conditions. If the research and development costs have been capitalised, the rebate is deducted from the carrying value of the underlying asset when the grant becomes receivable and the Group complies with all attached conditions.

(f) Financial instruments

Non-derivative financial assets

The Group initially recognises loans and receivables on the date that they are originated. All other financial assets (including assets designated at fair value through profit or loss) are recognised initially on the trade date at which the Group becomes a party to the contractual provisions of the instrument.

The Group derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred. Any interest in such transferred financial assets that is created or retained by the Group is recognised as a separate asset or liability.

Financial assets and liabilities are offset and the net amount presented in the Consolidated Statement of Financial Position when, and only when, the Group has a legal right to offset the amounts and intends either to settle them on a net basis or to realise the asset and settle the liability simultaneously.

The Group classifies non-derivative financial assets into the following categories:

Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss are financial assets held for trading. A financial asset is classified in this category if acquired principally for the purpose of selling in the short term. Derivatives are classified as held for trading unless they are designated as hedges. Assets in this category are classified as current assets if they are expected to be settled within 12 months; otherwise they are classified as non-current. Financial assets at fair value through profit or loss are measured at fair value and changes therein, which take into account any dividend income, are recognised in profit or loss.

ARGENT MINERALS LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

3 SIGNIFICANT ACCOUNTING POLICIES (Cont.)

(f) Financial instruments (Cont.)

Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Such assets are recognised at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, loans and receivables are measured at amortised cost using the effective interest method, less any impairment losses. They are included in current assets, except for those with maturities greater than 12 months after the reporting period, which are classified as non-current assets. Loans and receivables comprise cash and cash equivalents and trade and other receivables.

Available-for-sale financial assets

The Group’s investments in equity securities are classified as available-for-sale financial assets. Available-for-sale financial assets are non-derivative financial assets that are designated as available-forsale or are not classified in any of the above categories of financial assets. Available-for-sale financial assets are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, they are measured at fair value and changes therein, other than impairment losses, are recognised in other comprehensive income and presented in the fair value reserve in equity. When an investment is derecognised, the cumulative gain or loss is reclassified to profit or loss.

Non-derivative financial liabilities

The Group initially recognises debt securities issued and subordinated liabilities on the date that they are originated. All other financial liabilities are recognised initially on the trade date, which is the date that the Group becomes a party to the contractual provisions of the instrument.

The Group derecognises a financial liability when its contractual obligations are discharged, cancelled or expire.

Other financial liabilities comprise trade and other payables.

Share capital

Ordinary shares

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

(g) Basis of consolidation

Subsidiaries

Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The financial statements of subsidiaries are included in the consolidated financial statements from the date on which control commences until the date on which control ceases. The accounting policies of the subsidiaries have been changed when necessary to align them with the policies adopted by the Group.

Non-controlling interests represent the portion of profit or loss and net assets in subsidiaries not held by the Group and are presented separately in the Statement of Profit or Loss and Other Comprehensive Income and within equity in the Consolidated Statement of Financial Position. Losses are attributed to the non-controlling interests even if that results in a deficit balance.

The Group treats transactions with non-controlling interests that do not result in a loss of control as transactions with equity owners of the Group. A change in ownership interest results in an adjustment between the carrying amounts of the controlling and non-controlling interests to reflect their relative interests in the subsidiary.

ARGENT MINERALS LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

3 SIGNIFICANT ACCOUNTING POLICIES (Cont.)

(g) Basis of consolidation (Cont.)

Loss of control

On the loss of control, the Group derecognises the assets and liabilities of the subsidiary, any noncontrolling interests and other components of equity related to the subsidiary. Any surplus or deficit arising on the loss of control is recognised in profit or loss. If the Group retains any interest in the previous subsidiary, then such interest is measured at fair value at the date that control is lost. Subsequently that retained interest is accounted for as an equity accounted investee or as an available-for-sale financial asset depending on the level of influence retained.

Investments in associates and jointly controlled entities are accounted for under the equity method and are initially recognised at cost. The cost of the investment includes transaction costs.

Transactions eliminated on consolidation

Intragroup balances, and any unrealised gains and losses or income and expenses arising from intragroup transactions, are eliminated in preparing the consolidated financial statements.

(h) Tax

Current tax and deferred tax is recognised in profit or loss except to the extent that it relates to a business combination, or items recognised directly in equity or in other comprehensive income.

Current tax

Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantially enacted at the reporting date, and any adjustment to tax payable in respect of previous years.

Deferred tax

Deferred tax is recognised in respect of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for:

temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit or loss;
temporary differences related to investments in subsidiaries to the extent that the Group is able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future; or
taxable temporary differences arising on the initial recognition of goodwill.

The measurement of deferred tax reflects the tax consequences that would follow the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted or substantively enacted at the reporting date. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realised simultaneously.

A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary differences, to the extent that it is probable that future taxable profits will be available against which they can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised.

ARGENT MINERALS LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

3 SIGNIFICANT ACCOUNTING POLICIES (Cont.)

(i) Cash and cash equivalents

Cash and cash equivalents comprise cash balances and call deposits with an original maturity of three months or less.

(j) Impairment

Non-derivative financial assets

A financial asset not classified as at fair value through profit or loss is assessed at each reporting date to determine whether there is any objective evidence that it is impaired. A financial asset is considered to be impaired if objective evidence indicates that one or more events have had a negative effect on the estimated future cash flows of that asset.

For an investment in an equity security classified as available-for-sale, a significant or prolonged decline in its fair value below its cost is objective evidence of impairment. The Group consider a decline of 20 per cent to be significant and a period of 9 months to be prolonged.

Financial assets measured at amortised cost

Individually significant financial assets are tested for impairment on an individual basis. The remaining financial assets are assessed collectively in groups that share similar credit risk characteristics.

An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount, and the present value of the estimated future cash flows discounted at the original effective interest rate. Losses are recognised within profit or loss. When an event occurring after the impairment was recognised causes the amount of impairment loss to decrease, the decrease in impairment loss is reversed through profit or loss.

Available-for-sale financial assets

Impairment losses on available-for-sale financial assets are recognised by reclassifying the losses accumulated in the fair value reserve in equity to profit or loss. The cumulative loss that is reclassified from equity to profit or loss is the difference between the acquisition cost and the current fair value, less any impairment loss recognised previously in profit or loss. Any subsequent recovery in the fair value of an impaired available-for-sale equity security is recognised in other comprehensive income.

Non-financial assets

The carrying amounts of the Group's non-financial assets, other than deferred tax assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, the asset's recoverable amount is estimated. For goodwill and intangible assets that have indefinite lives or that are not yet available for use, the recoverable amount is estimated each year at the same time.

An impairment loss is recognised whenever the carrying amount of an asset or its cash-generating unit (CGU) exceeds its recoverable amount. The recoverable amount of an asset or CGU is the greater of their fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU. For impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or CGUs. Impairment losses are recognised in profit or loss.

ARGENT MINERALS LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

3 SIGNIFICANT ACCOUNTING POLICIES (Cont.)

(j) Impairment (Cont).

An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.

(k) Segment reporting

Determination and presentation of operating segments

The Group determines and presents operating segments based on the information that is provided internally to the CEO, who is the Group’s chief operating decision maker.

An operating segment is a component of the Group 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 Group’s other components. All operating segments’ operating results are regularly reviewed by the Group’s CEO to make decisions about resources to be allocated to the segment and assess its performance.

Segment results that are reported to the CEO 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.

(l) Employee benefits

Short-term employee benefits

Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided.

Share-based payment transactions

The grant date fair value of share-based payment awards granted to employees is recognised as an employee expense, with a corresponding increase in equity, over the period that the employees become unconditionally entitled to the awards. The amount recognised as an expense is adjusted to reflect the number of awards for which the related service and non-market vesting conditions are expected to be met, such that the amount ultimately recognised as an expense is based on the number of awards that meet the related service and non-market performance conditions at the vesting date. For share-based payment awards with non-vesting conditions, the grant date fair value of the share-based payment is measured to reflect such conditions and there is no true-up for differences between expected and actual outcomes.

(m) Provisions

A provision is recognised if, as a result of a past event, the Group has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects the current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognised as a finance cost.

Site restoration

In accordance with the Group’s environmental policy and applicable legal requirements, a provision for site restoration in respect of contaminated land, and the related expense, is recognised when the land is contaminated.

ARGENT MINERALS LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

3 SIGNIFICANT ACCOUNTING POLICIES (Cont.)

(n) New standards and interpretations not yet adopted

A number of new standards, amendments to standards and interpretations are effective for annual periods beginning after 1 July 2016, and have not been applied in preparing these consolidated financial statements. Those which may be relevant to the Group are set out below. The Group does not plan to adopt these standards early.

AASB 9 Financial Instruments

AASB 9 published in July 2014, replaces the existing guidance in AASB 139 Financial Instruments: Recognition and Measurement. AASB 9 includes revised guidance on the classification and measurement of financial instruments, including a new expected credit loss model for calculating impairment on financial assets, and the new general hedge accounting requirements. It also carries forward the guidance on recognition and derecognition of financial instruments from IAS 39.

AASB 9 is effective for annual reporting periods beginning on or after 1 January 2018, with early adoption permitted. The Group does not plan to adopt this standard early and the standard is not expected to have a significant effect on the financial statements.

4 DETERMINATION OF FAIR VALUES

A number of the Group’s accounting policies and disclosures require the determination of fair value, for both financial and non-financial assets and liabilities. Fair values have been determined for measurement and/or disclosure purposes based on the following methods. When applicable, further information about the assumptions made in determining fair values is disclosed in the notes specific to that asset or liability.

Equity securities

The fair values of investments in equity securities are determined with reference to their quoted closing bid price at the measurement date.

Share-based payment transactions

The fair value of the employee share options is measured using the Black-Scholes formula. Measurement inputs include share price on the measurement date, exercise price of the instrument, expected volatility (based on an evaluation of the historic volatility of the Company’s share price, particularly over the historical period commensurate with the expected term), expected term of the instruments (based on historical experience and general option holder behaviour), expected dividends, and the risk-free interest rate (based on government bonds). Service and non-market performance conditions are not taken into account in determining fair value.

5 OTHER INCOME Research and development rebate Government subsidy	2017 $ 709,248 175,878 885,126	2016 $ 269,326 47,988
		317,314

ARGENT MINERALS LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

	2017	2016
	$	$
6 LOSS FROM OPERATING ACTIVITIES - EXPENSES
Loss from ordinary activities have been arrived after charging
the following items:
Auditors' remuneration paid during the year
- Audit and review of financial reports – KPMG	39,500	32,700
Depreciation
- Land and Building	24,059	24,059
- Plant and equipment	15,202	8,996
Exploration and evaluation expenditure
expensed as incurred	2,062,759	1,870,027

7 LOSS PER SHARE

The calculation of basic and diluted loss per share at 30 June 2017 was based on the loss attributable to ordinary shareholders of $2,120,074 (2016 - $2,115,199 loss) and a weighted average number of ordinary shares outstanding during the financial year ended 30 June 2017 of 364,874,457 (2016 – 256,272,698), calculated as follows:

Net loss for the year Weighted average number of ordinary shares (basic and diluted) Issued ordinary shares at 1 July Weighted average number of ordinary shares at 30 June	2,120,074 2,115,199 2017 Number 2016 Number 300,302,689 201,450,066 364,874,457 256,272,698

As the Company is loss making, none of the potentially dilutive securities are currently dilutive.

8 CASH AND CASH EQUIVALENTS Cash at bank Cash and cash equivalents in the statement of cash flows	2017 $ 2,029,005 2,029,005	2016 $ 648,759
		648,759

ARGENT MINERALS LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

9 INCOME TAX EXPENSE Current tax expense Current year Tax losses not recognised Deferred tax expense Current year De-recognition of temporary differences Numerical reconciliation between tax expense and pre-tax net profit Loss before tax - continuing operations Prima facie income tax benefit at the Australian tax rate of 27.5% (2016 - 30%) Increase in income tax expense due to: - Adjustments not resulting in temporary differences - Effect of tax losses not recognised - Unrecognised temporary differences Income tax expense current and deferred Deferred tax assets have not been recognised in respect of the following items Deductible temporary differences (net) Tax losses Net	2017 $ (795,895) 795,895 - 43,720 (43,720) - (2,120,074) (583,020) 279,859 346,881 (43,720) - 134,698 6,522,988 6,657,686	2016 $ (757,426) 757,426
		-
		54,591 (54,591)
		-
		(2,115,199)
		(634,560) 111,275 577,876 (54,591)
		-
		89,147 6,696,752
		6,785,899

The deductible temporary differences and tax losses do not expire under the current tax legislation. Deferred tax assets have not been recognised in respect of these items because it is not probable that future taxable profit will be available against which the Company can utilise the benefits of the deferred tax asset.

ARGENT MINERALS LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

2017 $ 10 TRADE AND OTHER RECEIVABLES Current Other debtors 17,610 11 OTHER ASSETS Current prepayments 19,538 19,538 12 PROPERTY PLANT AND EQUIPMENT Land and Buildings Land and Building - at cost 500,278 Accumulated depreciation (144,370) Total Land and Buildings – net book value 355,908 Plant and Equipment Plant and equipment - at cost 130,388 Accumulated depreciation (65,470) 64,918 Total plant and equipment - net book value 420,826 Reconciliations Reconciliations of the carrying amounts for each class of assets are set out below: Land and Buildings Balance at 1 July 379,967 Depreciation (24,059) Carrying amount at the end of the financial year 355,908 Plant and equipment Balance at 1 July 28,471 Additions 51,649 Depreciation (15,202) Carrying amount at the end of the financial year 64,918 Total carrying amount at the end of the financial year 420,826	2016 $ -
	17,902
	17,902
	500,278 (120,311)
	379,967
	78,739 (50,268)
	28,471
	408,438
	404,026 (24,059)
	379,967
	30,391 7,076 (8,996)
	28,471
	408,438

ARGENT MINERALS LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

13 TRADE AND OTHER PAYABLES Current Creditors Accruals 14 EMPLOYEE ENTITLEMENTS Current Employee annual leave provision Number of employees at the end of the financial year 15 CAPITAL AND RESERVES Issued and paid up capital 421,414,516 (2016 - 300,302,689) fully paid ordinary shares Fully paid ordinary shares Balance at the beginning of the financial year Issue of shares Exercise of options Costs of issue Balance at the end of financial year	2017 $ 100,685 20,000 120,685 57,225 57,225 8 28,090,527 24,343,436 4,107,500 - (360,409) 28,090,527	2016 $ 76,106 20,000
		96,106
		52,057
		52,057
		5
		24,343,436
		22,405,146 2,095,421 1 (157,132)
		24,343,436

The Company does not have authorised capital or par value in respect of its issued shares. All issued shares are fully paid.

During the year ended 30 June 2017 the following shares were issued:

On 9 June 2017, the Company issued 666,666 ordinary shares for nil consideration under the Option to Purchase Box Hill farm. This transaction was recorded at a fair value of $20,000 at an issue price based on the five day volume weighted average price immediately prior to issue date being $0.03 per share. The total issue cost of $1,925 was recognised as a reduction in equity.
On 27 April 2017, the Company issued 60,000,000 ordinary shares and 30,000,000 listed options for cash totalling $2,280,000. Total issue cost of $214,706 was recognised as a reduction in proceeds of issue of these shares. The listed options were each exercisable at 10 cents to acquire one fully paid ordinary share which expired on 27 June 2019.
On 16 February 2017, the Company issued 645,161 ordinary shares as part consideration for consultancy services provided. This transaction was recorded at a fair value of $20,000 at an issue price based on the five day volume weighted average price immediately prior to issue date being $0.031 per share.
On 24 October 2016, The Company issued 1,300,000 ordinary shares for nil consideration to Mr Clifton McGilvray as part of his employment contract. This transaction was recorded at a fair value of $32,500 at an issue price of $0.025 per share.

ARGENT MINERALS LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

15. CAPITAL AND RESERVES (Cont.)

On 17 August 2016, the Company issued 40,403,717 ordinary shares under Tranche 2 of the share placement offer for cash totalling $1,212,112. Total issue cost of $21,467 was recognised as a reduction in proceeds of issue of these shares.
On 6 July 2016, the Company issued 18,096,283 ordinary shares under Tranche 1 of the share placement offer for cash totalling $542,888. Total issue cost of $122,310 was recognised as a reduction in proceeds of issue of these shares.

During the year ended 30 June 2016 the following shares were issued:

On 30 June 2016, the Company incurred costs totalling to $7,746 in relation to advanced share placement monies of $360,520 collected in relation to July 2016 share placement offer. Nil value has been recorded for the options.
On 15 June 2016, the Company issued 697,263 ordinary shares for nil consideration under the Option to Purchase Box Hill farm. This transaction was recorded at a fair value of $20,000 at an issue price based on the five day volume weighted average price immediately prior to issue date being $0.029 per share. The total issue cost of $1,654 was recognised as a reduction in equity.
On 15 March 2016, the Company issued 43,400,000 ordinary shares through a share placement offer for cash totalling $868,000. Total issue cost of $70,836 was recognised as a reduction in proceeds of issue of these shares.
On 18 January 2016, the Company issued 448,430 ordinary shares as part consideration for consultancy services provided. This transaction was recorded at a fair value of $10,000 at an issue price based on the five day volume weighted average price immediately prior to issue date being $0.022 per share. The total issue cost of $1,654 was recognised as a reduction in equity.
On 18 November 2015, the Company issued 260,000 ordinary shares as part consideration for consultancy services. This transaction was recorded at a fair value of $5,500 at an issue price based on the five day volume weighted average price immediately prior to issue date being $0.021per share. The total issue cost of $1,654 was recognised as a reduction in equity.
On 6 November 2015, the Company issued 777,817 ordinary shares for nil consideration under the Option to Purchase Box Hill farm. This transaction was recorded at a fair value of $20,000 at an issue price based on the five day volume weighted average price immediately prior to issue date being $0.025 per share. The total issue cost of $1,654 was recognised as a reduction in equity.
On 19 October 2015, the Company issued 35,087,324 ordinary shares and 35,087,324 listed options for cash totalling $771,921. Total issue cost of $40,538 was recognised as a reduction in proceeds of issue of these shares. The listed options were each exercisable at 17.5 cents to acquire one fully paid ordinary share which expired on 31 March 2016.
On 11 August 2015, the Company issued 18,181,786 new shares and 17,499,968 listed options for cash totalling $400,000. Total issue costs of $31,396 were recognised as a reduction in proceeds of issue of these shares. The listed options was each exercisable at 17.5 cents to acquire one fully paid ordinary share which expired on 31 March 2016.

In addition to the above share issues 3 ordinary shares were issued through the exercise of 17.5 cents listed options for the year ended 30 June 2016.

ARGENT MINERALS LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

15. CAPITAL AND RESERVES (Cont.)

Terms and conditions - Shares

Holders of ordinary shares are entitled to receive dividends as declared and, are entitled to one vote per share at shareholders' meetings. In the event of winding up of the Company, ordinary shareholders rank after creditors and are fully entitled to any proceeds of liquidation.

	2017 $ 61,796 (61,796) 143,636 - - 143,636	2016
		$
Option Reserves At the beginning of the year Options lapsed during the reporting period Share Based Payments - Options Share based payments- Performance Rights Performance rights not expected to vest Balance at the end of the period		550,048 (409,215) - 41,743 (120,780)
		61,796

Listed options to take up ordinary shares in the capital of the Company have been granted as follows:

		Opening		Options Issued	Options Issued	Options	Closing
Exercise	Exercise	Balance				Expired/Exercised	Balance
Period	Price	1 July 2016		Number			30 June 2017
		Number		(vii), (xii)		Number	Number
On or
before 27
June 2019	$0.10		-	147,000,000		-	147,000,000
		Opening		Options Issued		Options	Closing
Exercise	Exercise	Balance				Expired/Exercised	Balance
Period	Price	1 July 2015		Number		Number	30 June 2016
		Number		(ii), (iii), (iv)		(v), (vi)	Number
On or
before 31
March 2016	$0.175	108,013,237		76,473,656		184,486,893	-
nlisted options to take up ordinary shares in the capital of the Company have been granted as follows:
				Opening		Options	Closing
	Exercise		Balance 1 July		Issued/Expired/Exercised		Balance
Exercise Period		Price		2016		Number	30 June 2017
				Number	(viii) (ix) (x) (xi) (xii) (xiii)		Number
				(vii)		(xiv) (xv) (xvi)
On or before	29
August 2016		$0.25		6,574,000		6,574,000	-
On or before	30
September 2021		$0.03		-		4,000,000	4,000,000
On or before	30
September 2021		$0.06		-		4,000,000	4,000,000
On or before	30
September 2021		$0.10		-		4,500,000	4,500,000

Unlisted options to take up ordinary shares in the capital of the Company have been granted as follows:

ARGENT MINERALS LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

15. CAPITAL AND RESERVES (Cont.)

		Opening Balance	Options	Closing Balance
Exercise Period	Exercise Price	1 July 2015	Expired/Exercised	30 June 2016
		Number
		(i)	Number	Number
On or before 29
August 2016	$0.25	6,574,000	-	6,574,000

(i) On 29 August 2013, the Company issued 6,574,000 unlisted options as part of consideration for management services in respect to the May 2013 capital raising.
(ii) On 10 August 2015, the Company issued 23,886,364 listed options to sophisticated investors in relation to June 2014 placement.
(iii) On 11 August 2015, the Company issued 17,499,968 listed options in relation to Share Purchase Plan.
(iv) On 19 October 2015, the Company issued 35,087,324 listed options issued to sophisticated investors in relation to Share Placement Plan shortfall offer.
(v) On 7 March 2016 3 listed options were exercised.
(vi) On 31 March 2016, 184,486,890 listed options expired.
(vii) On 22 August 2016, the Company issued 117,000,000 10 cents listed options to sophisticated investors in respect to July and August 2016 capital raising.
(viii) On 29 August 2016, 6,574,000 unlisted options expired.
(ix) On 24 October 2016, the Company issued 1,500,000 3 cents unlisted options to its employees under the Employee Share Scheme.
(x) On 24 October 2016, the Company issued 1,500,000 6 cents unlisted options to its employees under the Employee Share Scheme.
(xi) On 24 October 2016, the Company issued 1,500,000 10 cents unlisted options to its employees under the Employee Share Scheme.
(xii) On 2 November 2016, the Company issued 2,000,000 3 cents unlisted options to Mr David Busch under the Employee Share Scheme.
(xiii) On 2 November 2016, the Company issued 2,000,000 6 cents unlisted options to Mr David Busch under the Employee Share Scheme.
(xiv) On 2 November 2016, the Company issued 3,000,000 10 cents unlisted options to Mr David Busch under the Employee Share Scheme.
(xv) On 30 November 2016, the Company issued 500,000 3 cents unlisted options to its employee under the Employee Share Scheme.
(xvi) On 30 November 2016, the Company issued 500,000 6 cents unlisted options to its employee under the Employee Share Scheme.
(xvii) On 27 April 2017, the Company issued 30,000,000 10 cents listed options to sophisticated investors in relation to April 2017 placement.

ARGENT MINERALS LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

	2017 $ (2,120,074) 39,261 143,636 - (17,610) (1,636) - 29,748 70,575 (1,856,100)	2016
		$
16 STATEMENT OF CASH FLOWS Reconciliation of cash flows from operating activities Loss for the period Adjustments for: Depreciation of plant and equipment Share based payments Performance rights not expected to vest Changes in assets and liabilities Decrease/(Increase) in receivables Decrease/ (Increase) in prepayments Surplus on disposal of plant and equipment (Decrease)/Increase in payables and provisions Shares issued for non-cash Net cash used in operating activities		(2,115,199)
		33,055 41,742 (120,780) 14,612 2,253 - (89,335) 48,599
		(2,185,053)

17 RELATED PARTIES

Key management personnel and director transactions

The following key management personnel holds a position in another entity that results in them having control or joint control over the financial or operating policies of that entity, and this entity transacted with the Company during the year as follows:

During the year ended 30 June 2017, Peter Nightingale had a controlling interest in an entity, MIS Corporate Pty Limited, which provided full administrative services, including rental accommodation, administrative staff, services and supplies, to the entity. Fees paid to MIS Corporate Pty Limited during the year amounted to $124,000 (2016 - $66,664). There were no outstanding amounts at 30 June 2017 (2016 - $nil).
During the prior year, engineering consulting fees of $6,776 were paid on ordinary commercial terms to Gemell Mining Engineers, a company in which Mr Gemell has a beneficial interest.
During the prior year, accounting, bookkeeping, corporate secretarial and administration service fees of $53,430 were paid or payable, to Marshall Michael Pty Ltd Chartered Accountants, a company in which Ms Shipway is an employee.

Key management personnel compensation

During the year ended 30 June 2017 compensation of key management personnel totalled $531,049 (2016 - $339,010), which comprised primary salary and fees of $422,795 (2016 - $385,641), superannuation of $29,763 (2016 - $32,406), and share based payments of $78,491 (2016 - $79,037). During the 2017 and 2016 financial years, no long term benefits or termination payments were paid.

ARGENT MINERALS LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

18 COMMITMENTS AND CONTINGENCIES

a) . Contingent Liabilities

The Group has no contingent liabilities.

19 SHARE BASED PAYMENTS

The Company has an Incentive Option Plan to provide eligible persons, being employees or directors, or individuals whom the Plan Committee determine to be employees for the purposes of the Plan, with the opportunity to acquire options over unissued ordinary shares in the Company. The number of options granted or offered under the Plan will not exceed 10% of the Company's issued share capital and the exercise price of options will be the greater of the market value of the Company's shares as at the date of grant of the option or such amount as the Plan Committee determines. Options have no voting or dividend rights. The vesting conditions of options issued under the plan are based on minimum service periods being achieved. There are no other vesting conditions attached to options issued under the plan.

In the event that the employment or office of the option holder is terminated, any options which have not reached their exercise period will lapse and any options which have reached their exercise period may be exercised within three months of the date of termination of employment. Any options not exercised within this three month period will lapse.

The following options were issued during the year ended 30 June 2017 and were on issue at 30 June 2017:

Grant Date Expiry Date Vesting Date Exercise Price 24 October 2016 30 September 2021 24 October 2016 $0.03 24 October 2016 30 September 2021 31 December 2017 $0.06 24 October 2016 30 September 2021 31 December 2018 $0.10 2 November 2016 30 September 2021 2 November 2016 $0.03 2 November 2016 30 September 2021 31 December 2017 $0.06 2 November 2016 30 September 2021 31 December 2018 $0.10 30 November 2016 30 September 2021 30 November 2016 $0.03 30 November 2016 30 September 2021 31 December 2017 $0.06	Fair Value of Options Granted Granted During the Period Balance at the end of the period Number Number $30,154 1,500,000 1,500,000 $26,826 1,500,000 1,500,000 $24,052 1,500,000 1,500,000 $41,982 2,000,000 2,000,000 $37,417 2,000,000 2,000,000 $50,397 3,000,000 3,000,000 $7,884 500,000 500,000 $6,948 500,000 500,000
	$225,66012,500,000 12,500,000

Grant Date
Expiry Date
Vesting Date
Exercise
Price
24 October 2016 30 September 2021 24 October 2016
$0.03
24 October 2016 30 September 2021 31 December 2017
$0.06
24 October 2016 30 September 2021 31 December 2018
$0.10
2 November 2016 30 September 2021 2 November 2016
$0.03
2 November 2016 30 September 2021 31 December 2017
$0.06
2 November 2016 30 September 2021 31 December 2018
$0.10
30 November 2016 30 September 2021 30 November 2016
$0.03
30 November 2016 30 September 2021 31 December 2017
$0.06

Fair
Value of
Options
Granted
Granted
During the
Period
Balance at
the end of
the period
Number
Number
$30,154
1,500,000
1,500,000
$26,826
1,500,000
1,500,000
$24,052
1,500,000
1,500,000
$41,982
2,000,000
2,000,000
$37,417
2,000,000
2,000,000
$50,397
3,000,000
3,000,000
$7,884
500,000
500,000
$6,948
500,000
500,000

$225,66012,500,000
12,500,000

There were no options issued during the year 30 June 2016.

Fair value of options

The fair value of options granted is measured at grant date and recognised as an expense over the period during which the key management and the employees become unconditionally entitled to the options.

The fair value of the options granted is measured using an option valuation methodology, taking into account the terms and conditions upon which the options were granted. The amount recognised as an expense is adjusted to reflect the actual number of options that vest.

The fair value of options granted on 24 October 2016 was $81,032. The Black-Scholes formula model inputs were the Company's share price of $0.026 at the grant date, the volatility factor of 110% based on historic share price performance, a risk free interest rate of 1.84% based on government bonds, and a dividend yield of 0%.

ARGENT MINERALS LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

19. SHARE BASED PAYMENTS (Cont.)

The fair value of options granted on 2 November 2016 was $129,796. The Black-Scholes formula model inputs were the Company's share price of $0.027 at the grant date, the volatility factor of 110% based on historic share price performance, a risk free interest rate of 1.87% based on government bonds, and a dividend yield of 0%.

The fair value of options granted on 30 November 2016 was $14,832. The Black-Scholes formula model inputs were the Company's share price of $0.021 at the grant date, the volatility factor of 111.53% based on historic share price performance, a risk free interest rate of 2.16% based on government bonds, and a dividend yield of 0%.

During the year ended 30 June 2017, share based payment expense of $143,636 was recorded in the profit and loss (2016 - $nil).

No ordinary shares have been issued as a result of the exercise of any option granted pursuant to the Incentive Option Plan during the current and prior financial year.

There were no options granted as consideration during the year 30 June 2016.

A summary of the movements of all the Company’s options issued as share based payments is as follows:

	2017	2017	2016
	Number	Weighted	Number	Weighted
	of options	average	of options	average
		exercise		exercise
		price		price
Outstanding at the beginning	6,574,000	$0.25	13,575,158	$0.211
Granted	12,500,000	$0.065	-	-
Expired	6,574,000	$0.25	7,001,158	$0.175
Options outstanding at year end	12,500,000	$0.065	6,574,000	$0.25
Exercisable at year end	4,000,000	$0.030	6,574,000	-

The weighted average remaining contractual life of share options outstanding at the end of 30 June 2017 was 2.17 years (2016 - 0.16 years), and the weighted average exercise price was $0.065 (2016 - $0.25).

(i) The Company agreed and approved at the 24 July 2013 Shareholder meeting to issue a total of 2,500,000 Performance Rights to Mr David Busch. The terms and conditions of the Performance Rights are detailed in the Notice of General Meeting dated 20 June 2013. The Performance Rights were issued for nil consideration.

The converted Performance Rights will rank pari passu in all respects with other shares of the Company.

The underlying value of a Company share trading on ASX on 24 July 2013 was $0.05, this has been used as the underlying value of a Performance Right. The 2,500,000 undiscounted Performance Rights issued to Mr David Busch has an underlying value of $125,000 based on the closing share price on 24 July 2013 of $0.05.

During the prior year the Company recorded a share based payment expense of $41,743 in relation to these performance rights. At 30 June 2016, the Group assessed the likelihood of meeting the vesting conditions and recorded a reversal of $120,780 being the fair value of the performance rights previously expensed.

ARGENT MINERALS LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

19. SHARE BASED PAYMENTS (Cont.)

(ii) On 27 February 2015 the Company issued 7,001,158 listed options as part consideration for management services in respect to the December 2014 capital raising. These options are exercisable at $0.175 on or before 31 March 2016. The 7,001,158 options have an underlying value of $105,017 based on the closing share option price on 5 February 2015 (Grant Date) of $0.015.
(iii) On 6 November 2015, the Company issued 777,817 fully paid ordinary shares as part consideration under the binding option term sheet, to the owners of a key property within the proposed Kempfield Polymetallic Project site. The transaction was recorded at a fair value of $20,000 at an issue price based on the five day volume weighted average price immediately prior to issue date being $0.025 per share.
(iv) On 18 November 2015, the Company issued 260,000 fully paid ordinary shares as consideration for consultancy services provided for October 2015 shortfall share purchase plan offer. This transaction was recorded at a fair value of $5,500 at an issue price based on five day volume weighted average price immediately prior to issue date being $0.021 per share.
(v) On 18 January 2016, the Company issued 448,430 fully paid ordinary shares as consideration for consultancy services provided to the Company. This transaction was recorded at a fair value of $10,000 at an issue price based on five day volume weighted average price immediately prior to issue date being $0.022 per share.
(vi) On 15 June 2016, the Company issued 697,263 ordinary shares for nil consideration under the Option to Purchase Box Hill farm. This transaction was recorded at a fair value of $20,000 at an issue price based on the five day volume weighted average price immediately prior to issue date being $0.029 per share. The total issue cost of $1,654 was recognised as a reduction in equity.
(vii) On 24 October 2016, The Company issued 1,300,000 ordinary shares for nil consideration to Mr Clifton McGilvray as part of his employment contract. This transaction was recorded at a fair value of $32,500 at an issue price of $0.025 per share.
(viii) On 16 February 2017, the Company issued 645,161 fully paid ordinary shares as consideration for consultancy services provided to the Company. This transaction was recorded at a fair value of $20,000 at an issue price at an issue price of $0.031 per share.
(ix) On 9 June 2017, the Company issued 666,666 fully paid ordinary shares as part consideration under the binding option term sheet, to the owners of a key property within the proposed Kempfield Polymetallic Project site. The transaction was recorded at a fair value of $20,000 at an issue price based on the five day volume weighted average price immediately prior to issue date being $0.03 per share.

20 FINANCIAL INSTRUMENTS

Financial risk management objectives and policies

The Group’s financial instruments comprise deposits with banks, receivables, other deposits, trade and other payables and from time to time short term loans from related parties. The Group does not trade in derivatives or in foreign currency.

The Group manages its risk exposure of its financial instruments in accordance with the guidance of the audit and the risk management committee and the Board of Directors. The main risks arising from the Group’s financial instruments are market risk, credit risk and liquidity risks. This note presents information about the Group’s exposure to each of these risks, its objectives, policies and processes for measuring and managing risk, and the Group’s management of capital.

ARGENT MINERALS LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

20 FINANCIAL INSTRUMENTS (Cont)

Risk management framework

The Board has overall responsibility for the establishment and oversight of the risk management framework. Informal risk management policies are established to identify and analyse the risks faced by the Group. The primary responsibility to monitor the financial risks lies with the CEO and the Company Secretary under the authority of the Board.

Credit risk

Credit risk arises mainly from the risk of counterparties defaulting on the terms of their agreements.

The carrying amounts of the following assets represent the Group’s maximum exposure to credit risk in relation to financial assets:

Note Cash and cash equivalents 8 Trade and other receivables 10 Security deposits	Carrying amount 2017 $ 2016 $ 2,029,005 648,759 17,610 - 95,000 67,000 2,141,615 715,759	Carrying amount 2017 $ 2016 $ 2,029,005 648,759 17,610 - 95,000 67,000 2,141,615 715,759
		715,759

Cash and cash equivalents

The Group mitigates credit risk on cash and cash equivalents by dealing with regulated banks in Australia.

Trade and other receivables

Credit risk of trade and other receivables is very low as it usually consists predominantly of amounts recoverable from taxation and other government authorities in Australia.

Security deposits of $95,000 held as deposits with government departments and regulated banks within Australia are the only non-current financial assets held by the Group. All other financial assets are current and are not past due or impaired and the Group does not have any material credit risk exposure to any single debtor or group of debtors under financial instruments entered into by the Group.

Liquidity risk

Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group’s reputation.

Ultimate responsibility for liquidity management rests with the Board. The Group monitors rolling forecasts of liquidity on the basis of expected fund raisings, trade payables and other obligations for the ongoing operation of the Group. At balance date, the Group has available funds of $2,029,005 for its immediate use.

ARGENT MINERALS LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

20. FINANCIAL INSTRUMENTS (Cont.)

The following are the contractual maturities of financial liabilities, including estimated interest payments:

30 June 2017 Trade and other payables 30 June 2016 Trade and other payables Advance monies received from share placement	Carrying amount $ Contractual cash flows $ Less than one year $ Between one and five years $ Interest $ 120,685 (120,685) (120,685) - -
	96,106 (96,106) (96,106) - -
	360,520 (360,520) (360,520) - -

It is not expected that the cash flows included in the maturity analysis could occur significantly earlier, or at significantly different amounts.

Market Risks

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Group’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

Interest rate risk

The Group’s income statement is affected by changes in interest rates due to the impact of such changes on interest income from cash and cash equivalents and interest bearing security deposits. The average interest rate on funds held during the year was 1.34% (2016 - 1.60%).

At balance date, the Group had the following mix of financial assets exposed to variable interest rate risk that are not designated as cash flow hedges:

Note Financial assets Cash and cash equivalents 8 Security deposits Net exposure	2017 $ 2,029,005 57,000 2,086,005	2016 $ 648,759 57,000
		705,759

The Group did not have any interest bearing financial liabilities in the current or prior year.

The Group does not have interest rate swap contracts. The Group always analyses its interest rate exposure when considering renewals of existing positions including alternative financing.

Currency risk

The Consolidated entity is not exposed to any foreign currency risk as at 30 June 2017 (2016 - $nil).

Capital management

The Board’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business.

ARGENT MINERALS LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

20. FINANCIAL INSTRUMENTS (Cont.)

The Board ensures costs are not incurred in excess of available funds and will seek to raise additional funding through issues of shares for the continuation of the Group’s operations. There were no changes in the Group’s approach to capital management during the year.

The Group is not subject to externally imposed capital requirements.

Estimation of fair values

The carrying amounts of financial assets and liabilities approximate their net fair values, given the short time frames to maturity and or variable interest rates.

21. SEGMENT REPORTING

For management purposes, the consolidated entity is organised into one main operating segment, which involves the exploration of minerals in Australia. All of the consolidated entity’s activities are interrelated, and discrete financial information is reported to the Board as a single segment. Accordingly, all significant operating decisions are based upon analysis of the consolidated entity as one segment.

The financial results from this segment are equivalent to the financial statements of the consolidated entity as a whole.

The accounting policies applied for internal reporting purposes are consistent with those applied in the preparation of these financial statements.

22. SUBSIDIARIES

The parent entity, Argent Minerals Limited, has a 100% interest in Argent (Kempfield) Pty Ltd, Loch Lilly Pty Ltd, West Wyalong Pty Ltd and Sunny Silver Pty Ltd. Argent Minerals Limited is required to make all the financial and operating policy decisions for these subsidiaries.

Subsidiaries of Argent Minerals	Country of
Limited	incorporation	Ownership	percentage
		2017	2016
Argent (Kempfield) Pty Ltd	Australia	100%	100%
Loch Lilly Pty Ltd	Australia	100%	-
West Wyalong Pty Ltd	Australia	100%	-
Sunny Silver Pty Ltd	Australia	100%	-

ARGENT MINERALS LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

23. PARENT COMPANY DISCLOSURE

(a) Financial Position as at 30 June 2017

Assets Current assets Non-current assets Total assets Liabilities Current liabilities Non- current liabilities Total liabilities Net assets Equity Issued capital Reserves Accumulated losses Total equity	2017 $ 2,046,509 54,366 2,100,875 135,099 - 135,099 1,965,776 28,090,527 143,636 (26,268,387) 1,965,776	2016 $ 684,134 21,841
		705,975
		452,671 -
		452,671
		253,304
		24,343,436 61,796 (24,151,928)
		253,304

There are no contingencies, commitments and guarantees by the Parent other than disclosed in Note 18.

(b) Financial Performance for the year ended 30 June 2017

Loss for the year Other comprehensive income Total comprehensive loss	2,178,256 - 2,178,256	2,066,675 -
		2,066,675

24. JOINT VENTURES

West Wyalong

The Group has entered into the Farm in and Joint Venture Agreements with Golden Cross Operations Pty Ltd, a wholly owned subsidiary of Golden Cross Resources Limited (ASX:GCR).

On 8 February 2016, Group entered into a revised Joint Venture Agreement with Golden Cross Operations Pty Ltd which provides an extension to earn 70% in the West Wyalong Project up until 30 June 2017 (previously 9 January 2016) with a reduced balance expenditure commitment of $372,570 (previously $1,350,000). The reduced $372,570 expenditure commitment will include $200,000 of direct in-ground expenditures.

During the year, under the terms of the Farm in and Joint Venture Agreement, Argent has earned a 70% interest in the West Wyalong Project by spending a total of $1,350,000 by 31 March 2017.

ARGENT MINERALS LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

24. JOINT VENTURES (Cont.)

Following the Company increasing its ownership of the West Wyalong project to 70%, under the West Wyalong Farm in and Joint Venture Agreement, the Group’s 30% partner will either contribute their share of exploration expenditure or be diluted.

As at 30 June 2017, the 30% joint venture partner decided to not contribute their share of exploration expenditure amounting to $163,458. Following this election the Company now owns 76.72% of the West Wyalong Project.

Loch Lilly

On 12 February 2017, the Group entered into joint venture agreement to earn a 51% interest, then 70% and 90% in the Loch Lilly Project, with exploration licences and applications covering a significant area of the Loch Lilly – Kars Belt of over 1,400km[2] . The joint venture continues until the Company earns 90% or withdraws from the joint venture.

A 51% interest In the joint venture will be earned by the Company completing a drill program to test two geophysical targets by 22 December 2017. A 70% interest will be earned by the Company investing a further $200,000 in exploration expenditure of the project area, plus a payment of $50,000. There is no time limit by which the expenditure is to be completed other than that implied by the regulatory expenditure requirements. A 90% interest will be earned by the Company investing a further $250,000 in exploration expenditure of the project area, plus a payment of $50,000. There is no time limit by which the expenditure is to be completed other than that implied by the regulatory expenditure requirements.

The Company continues as sole contributor to project expenditure until a decision to mine.

Either party may withdraw from the joint venture on provision of a 30 day notice of withdrawal. In the event that the Company withdraws after it has earned a 51% interest but no further interest, its interest will revert to 49%. In any case if the Company withdraws more than three months into the relevant tenement regulatory annual licence period, it must fund the other party's minimum regulatory expenditure for the reminder of that annual period.

Sunny Corner

The Group earned a 70% interest of the Sunny Corner Project tenements on 16 May 2013.

25. SUBSEQUENT EVENTS

ARGENT MINERALS LIMITED

DIRECTORS' DECLARATION

In the opinion of the directors of Argent Minerals Limited (the Company):
(a) the consolidated financial statements and notes thereto, set out on pages 35 to 62, and the Remuneration Report in the Directors Report, as set out on pages 27 to 32, are in accordance with the Corporations Act 2001 , including:
(i) giving a true and fair view of the Group’s financial position as at 30 June 2017 and of its performance for the financial year ended on that date; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001 ;
(b) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.
The directors have been given the declarations required by Section 295A of the Corporations Act 2001 from the chief executive officer and chief financial officer for the financial year ended 30 June 2017.
The directors draw attention to note 2(a) of the consolidated financial statements, which includes a statement of compliance with International Financial Reporting Standards.

Signed at Sydney this 1st day of September 2017 in accordance with a resolution of the Board of Directors.

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STEPHEN GEMELL Chairman

PETER NIGHTINGALE Director

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To the shareholders of Argent Minerals Limited

Report on the audit of the Financial Report

Opinion

We have audited the Financial Report of Argent Minerals Limited (the Company).

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

• giving a true and fair view of the Group 's financial position as at 30 June 2017 and of its financial performance for the year ended on that date; and

• complying with Australian Accounting Standards and the Corporations Regulations 2001 .

The Financial Report comprises:

Consolidated statement of financial position as at 30 June 2017;

• Consolidated statement of profit or loss and other comprehensive income, Consolidated statement of changes in equity, and Consolidated statement of cash flows for the year then ended;

Notes including a summary of significant accounting policies; and
Directors' Declaration.

The Group consists of the Company and the entities it controlled at the year-end or from time to time during the financial year.

Basis for opinion

We conducted our audit in accordance with Australian Auditing Standards . We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the Financial Report section of our report.

We are independent of the Group in accordance with the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the Financial Report in Australia. We have fulfilled our other ethical responsibilities in accordance with the Code.

Liability limited by a scheme approved under Professional Standards Legislation.

KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.

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Material uncertainty related to going concern

We draw attention to Note 2(e), “Going Concern” in the financial report. The conditions disclosed in Note 2(e), indicate a material uncertainty exists that may cast significant doubt on the Group’s ability to continue as a going concern and, therefore, whether it will realise its assets and discharge its liabilities in the normal course of business, and at the amounts stated in the financial report. Our opinion is not modified in respect of this matter.

In concluding there is a material uncertainty related to going concern we evaluated the extent of uncertainty regarding events or conditions casting significant doubt in the Group’s assessment of going concern. This included:

 Analysing the cash flow projections by:

 Evaluating the underlying data used to generate the projections for consistency with other information tested by us, our understanding of the Group’s intentions, and past results and practices;

 Assessing the planned levels of operating and capital expenditures for consistency of relationships and trends to the Group’s historical results, results since year end, and our understanding of the business, industry and economic conditions of the Group;

 Assessing significant non-routine forecast cash inflows and outflows for feasibility, quantum and timing. We used our knowledge of the client, its industry and financial position to assess the level of associated uncertainty; and

 Evaluating the Group’s going concern disclosures in the financial report by comparing them to our understanding of the matter, the events or conditions incorporated into the cash flow projection assessment, the Group’s plans to address those events or conditions, and accounting standard requirements. We specifically focused on the principal matters giving rise to the material uncertainty.

Key Audit Matters

n addition to the matter described in the Material uncertainty related to going concern section, the Key Audit Matter we identified is:

Exploration and evaluation expenditure.

Key Audit Matters are those matters that, in our professional judgment, 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.

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Exploration and evaluation expenditure - $2,062,759

Refer Note 6
The key audit matter	How the matter was addressed in our audit
Exploration and evaluation expenditure is a key audit matter due to the significance of the amount (being 68% of total expenses) and the audit effort associated with assessing the completeness and accuracy of the amounts recorded by the Group.	Our procedures included:  Assessing the Group’s policy for exploration and evaluation expenditure against the requirements of the accounting standards;  Selecting a statistical sample of items recorded as exploration and evaluation expenditure and checking the expenditure amount recorded for consistency to invoices from third parties or other underlying documentation;  For the sample identified above, checking the nature of the expenditure for consistency with its classification as exploration and evaluation expenditure in accordance with the Group’s accounting policy and the criteria in the accounting standards;  Testing the completeness of exploration and evaluation expenditure recorded in the year by checking payments recorded since year end for evidence of the timing of the transactions. For this procedure, we selected our sample from the Group’s payments since balance date, July/August trade payables schedule and unprocessed invoices post balance date, and the underlying documentation of the transaction; and  For each area of interest, we assessed the Group’s current rights to tenure by corroborating the ownership of the relevant tenement to exploration licences and evaluating agreements in place with other parties.

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Other Information

Other Information is financial and non-financial information in Argent Minerals Limited’s annual reporting which is provided in addition to the Financial Report and the Auditor’s Report. The Directors are responsible for the Other Information.

Our opinion on the Financial Report does not cover the Other Information and, accordingly, we do not express an audit opinion or any form of assurance conclusion thereon, with the exception of the Remuneration Report and our related assurance opinion.

In connection with our audit of the Financial Report, our responsibility is to read the Other Information. In doing so, we 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.

We are required to report if we conclude that there is a material misstatement of this Other Information, and based on the work we have performed on the Other Information that we obtained prior to the date of this Auditor’s Report we have nothing to report.

Responsibilities of the Directors for the Financial Report

The Directors are responsible for:

• preparing the Financial Report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001;

• implementing necessary internal control to enable the preparation of a Financial Report that gives a true and fair view and is free from material misstatement, whether due to fraud or error; and

• assessing the Group and Company's ability to continue as a going concern. This includes disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless they either intend to liquidate the Group and 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 objective is:

• 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. They are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this Financial Report.

A further description of our responsibilities for the audit of the Financial Report is located at the Auditing and Assurance Standards Board website at: http://www.auasb.gov.au/auditors_files/ar2.pdf. This description forms part of our Auditor’s Report.

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Report on the Remuneration Report

Opinion

In our opinion, the Remuneration Report of Argent Minerals Limited for the year ended 30 June 2017, complies with Section 300A of the Corporations Act 2001 .

Directors’ 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 responsibilities

We have audited the Remuneration Report included in pages 27 to 32 of the Directors’ report for the year ended 30 June 2017.

Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards .

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KPMG

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Adam Twemlow Partner Bundall 1 September 2017

ARGENT MINERALS LIMITED

SHAREHOLDER INFORMATION

ADDITIONAL STOCK EXCHANGE INFORMATION

Home Exchange

The Company is listed on the ASX Limited. The home exchange is Perth.

Use of Cash and Assets

Since the Company's listing on the ASX, the Company has used its cash and assets in a way consistent with its stated business objectives.

Class of Shares and Voting Rights

There is only one class of shares in the Company, fully paid ordinary shares.

The rights attaching to shares in the Company are set out in the Company's Constitution. The following is a summary of the principal rights of the holders of shares in the Company.

Every holder of shares present in person or by proxy, attorney or representative at a meeting of shareholders has one vote on a vote taken by a show of hands, and, on a poll every holder of shares who is present in person or by proxy, attorney or representative has one vote for every fully paid share registered in the shareholder's name on the Company's share register.

A poll may be demanded by the chairperson of the meeting, by at least 5 shareholders entitled to vote on the resolution or shareholders with at least 5% of the votes that may be cast on the resolution on a poll.

Distribution of Equity Security holders

As at 31 July 2017, the distribution of each class of equity was as follows:

Quoted Securities

Range	Fully Paid Ordinary Shares	Total Number of Shares	27 June 2019 $0.10 Listed Options	Total Number of Listed Options
1 - 1,000	122	11,911	2	3
1,001 - 5,000	215	754,233	-	-
5,001 - 10,000	194	1,699,454	-	-
10,001 - 100,000	1,021	44,025,520	16	1,137,629
100,001 and over	487	374,923,398	111	145,862,368
	2,039	421,414,516	129	147,000,000

At 31 July 2017, 605 shareholders held less than a marketable parcel of shares and 9 listed option holders held less than a marketable parcel of options.

Unquoted Securities

	30 September 2021	30 September 2021	30 September 2021
Range	$0.03 Unlisted Options	$0.06 Unlisted Options	$0.10 Unlisted Options
1 - 1,000	-	-	-
1,001 - 5,000	-	-	-
5,001 - 10,000	-	-	-
10,001 - 100,000	-	-	-
100,001 and over	4	4	4
	4	4	4

ARGENT MINERALS LIMITED

SHAREHOLDER INFORMATION

Twenty Largest Quoted Shareholders

At 31 July 2017 the twenty largest fully paid ordinary shareholders held 36.01% of fully paid ordinary as follows:

		Fully Paid
		Ordinary
	Name	Shares	%
1	Oceanic Capital Pty Ltd	30,865,902	7.32
2	HSBC Custody Nominees (Australia) Limited	21,887,797	5.19
3	Mr Marc David Harding	16,240,000	3.85
4	Redland Plains Pty Ltd	10,807,902	2.56
5	Mr Danny Murphy+Mrs Susan Murphy 6,779,107		1.61
6	St Barnabas Investments Pty Ltd	6,438,031	1.53
7	Busch Custodians Pty Limited	5,281,818	1.25
8	Rigi Investments Pty Limited	5,263,158	1.25
9	AWD Consultants Pty Ltd	5,000,000	1.19
10	AWD Consultants Pty Ltd	5,000,000	1.19
11	Mr David Ian Raymond Hall + Mrs Denise Allison Hall	4,848,485	1.15
	Mr Shane Peter Matterson + Mrs Sharyn Alison Matterson <Shane
12	Matterson S/F A/C>	4,305,000	1.02
13	Wymond Investments Pty Ltd	4,291,228	1.02
14	Yarandi Investments Pty Limited	4,153,253	0.99
15	Dixtru Pty Limited	4,120,442	0.98
16	Australian Executor Trustees Limited	3,606,790	0.86
17	Arbor Super Pty Ltd	3,356,212	0.80
18	Caves Road Investments Pty Ltd	3,300,000	0.78
19	Arinya Investments Pty Ltd	3,125,000	0.74
20	Mr Michael Thomas Hajnik	3,100,000	0.74

There are no current on-market buy-backs.

ARGENT MINERALS LIMITED

SHAREHOLDER INFORMATION

Twenty Largest Quoted Option Holders

At 31 July 2017 the twenty largest option holders held 57.48% of listed options as follows:

		Quoted
	Name	Options	%
1	Oceanic Capital Pty Ltd	16,898,271	11.50
2	Mr Marc David Harding	9,663,334	6.57
3	Wymond Investments Pty Ltd	6,995,613	4.76
4	Busch Custodians Pty Limited	4,200,000	2.86
5	Redland Plains Pty Ltd	3,991,229	2.72
6	Compusure Superannuation Pty Ltd	3,662,282	2.49
7	Mr Rohan John Hardcastle	3,662,282	2.49
	Mr Danny Murphy + Mrs Susan Murphy <Danny Murphy Super Fund
8	A/C>	3,662,282	2.49
9	Dixtru Pty Limited	3,583,334	2.44
10	Mr David Ian Raymond Hall + Mrs Denise Allison Hall	3,583,334	2.44
11	Mr Jason Dawkins	3,333,334	2.27
12	St Barnabas Investments Pty Ltd	3,333,334	2.27
13	Mr Paul Poli	2,791,666	1.90
14	Mr Ian Hembrow + Mrs Clare Hembrow	2,763,463	1.88
15	JB Toro Pty Ltd	2,575,000	1.75
16	Yarandi Investments Pty Limited	2,250,002	1.53
17	Cord Investments Pty Ltd	2,000,000	1.36
18	Mr Geofffrey Wayne Furlong	1,900,000	1.29
	Mr Owen Barry Merrett + Mrs Joanne Ross Merrett <Merrett Super Fund
19	A/C>	1,854,166	1.26
20	Mr Oliver Nikolovski	1,791,666	1.22

There are no current on-market buy-backs.

Substantial Shareholders

The names of the substantial shareholders who have notified the Company in Accordance with Section 671B of the Corporations Act 2011 are:

Shareholder Oceanic Capital Pty Ltd

Ordinary shares held Percentage interest % 25,782,660 7.19%

Unquoted Options

Number of Holders

Number of Options Exercise Price Expiry Date 4 4,000,000 $0.03 30 September 2021 4 4,000,000 $0.06 30 September 2021 4 4,500,000 $0.10 30 September 2021

ARGENT MINERALS LIMITED

SCHEDULE OF MINERAL TENEMENTS

New South Wales - Australia

		Current
		Equity
Tenement Identifier	Location	Interest
Kempfield EL5645 (1992) EL5748 (1992) EL7134 (1992) EL7785 (1992) EL7968 (1992) EL8213 (1992) PLL517 (1924) PLL519 (1924) PLL727 (1924) PLL728 (1924)	NSW NSW NSW NSW NSW NSW NSW NSW NSW NSW	100%2 100%2 100%2 100%2 100%2 100%2 100%2 100%2 100%2 100%2
West Wyalong EL8430 (1992)	NSW	76.72%3
Queensbury
EL9/2016	TAS	100%
Sunny Corner EL5964 (1992)	NSW	100%4

Notes

The definition of “Mining Tenement” in ASX Listing Rule 19.12 is “Any right to explore or extract minerals in a given place”.
For all Kempfield tenements the tenement holder is Argent (Kempfield) Pty Ltd, a wholly owned subsidiary of Argent Minerals Limited.
Under the West Wyalong Joint Venture and Farmin Agreement dated 8 June 2007 between Golden Cross Operations Pty Ltd and Argent Minerals Limited (JVA), Argent Minerals has earned a 70% interest. The ongoing interest of the parties includes WWJVA expenditure contribution and dilution provisions commencing on a 70/30 basis. Following the lodgement of June 2017 quarterly reports, the JV partner decided to dilute their share for their contribution until 30 June 2017 and thereby increasing Argent ownership to 76.72%.
The tenement holder is Golden Cross Operations Pty Ltd.

ARGENT MINERALS LIMITED

MINERAL RESOURCES AND ORE RESERVES STATEMENT

KEMPFIELD (NSW, AUSTRALIA - 100% ARGENT)

On 6 May 2014 Argent Minerals announced an upgrade of the Kempfield Mineral Resource statement to JORC 2012 standard, with no material change to the Mineral Resource Estimate that had been previously reported on 26 April 2012 under JORC Code 2004.

Table 1 is a summary of the Kempfield Mineral Resource estimate as at 30 June 2017 and Table 2 provides details of metal grade zonation as announced initially on 16 October 2014. Table 3 shows the Resource tonnes and grades by Measured, Indicated and Inferred categories, whilst Table 4 provides details of tonnes and contained metal in the Measured and Indicated categories as at 30 June 2017.

At cut-off grades of 25 g/t Ag for Oxide/Transitional and 50 g/t Ag equivalent1 for Primary:

Table 1 - Kempfield Mineral Resource summary - 30 June 2017

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RESOURCE DETAILS

Table 2 - Kempfield Mineral Resource - Primary material tonnes and grades by mineralisation zone

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ARGENT MINERALS LIMITED

MINERAL RESOURCES AND ORE RESERVES STATEMENT

Table 3 - Kempfield Mineral Resource by category

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Table 4 - Kempfield Mineral Resource tonnes and contained metal in Measured and Indicated categories

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ARGENT MINERALS LIMITED

MINERAL RESOURCES AND ORE RESERVES STATEMENT

Note 1 - 50 g/t Silver Equivalent Cut-off Grade

This Resource is only reported in Resource tonnes and contained metal (ounces of silver and gold, and tonnes for lead and zinc). The Resource estimation for the Primary material was based on a silver equivalent cut-off grade of 50 g/t.

A silver equivalent was not employed for the oxide/transitional material estimation and was based on a 25 g/t silver only cut-off grade.

The contained metal equivalence formula is based on the following assumptions made by Argent Minerals:

Silver price: $US 30/oz ($US 0.9645/g) Gold price: $US 1,500/oz Lead & zinc price: $US 2,200/tonne Silver and gold recoverable and payable: 80% of head grade Lead & zinc recoverable & payable: 55% of head grade

Based on metallurgical testing to date, Argent Minerals is of the opinion that recoverable and payable silver and gold of 80% is achievable, and recoverable and payable lead and zinc at 55% of the head grade. Argent Minerals is also of the opinion that this is consistent with current industry practice. These metallurgical recoveries were included in the calculation of silver equivalent cut-off grades used for reporting of mineral resources. Please note that Ag Eq is reported as in-situ contained ounces and grade i.e. not recoverable & payable ounces and grade, and in accordance with the JORC Code 2012 for the Reporting of Exploration Results, Mineral Resources and Ore Reserves.

Note 2 - Contained Silver Equivalent (‘Ag Eq’) Calculation Details

(i) A revenue figure was calculated for each metal by category and material class (r) as follows:
r = tonnes * head grade * recoverable and payable %.
Eg. For Measured Oxide/Transitional silver: r = 2.7Mt * 68 g/t * 80% / 31.1 g/oz * $US 30/oz = $US 142M.

Eg. For Measured Primary Zinc: r = 4.1Mt * 1.2% * 55% * $US 2,200/t = $US 59.5M.

(ii) Total revenue R was calculated for each resource category and material class as the sum of all the individual (r) revenues for that category and class.
(iii) Contained silver metal equivalent ounces was then calculated as follows: Ag Eq (oz) = R / Ag recoverable and payable % / Ag price = R / 80% /$US 30.
(iv) Contained silver metal grade was calculated as follows: Grade (Contained Ag Eq g/t) = Ag Eq (oz) * 31.1 / tonnes.

Note 3 - Rounding and Significant Figures

Figures in the tables in this Mineral Resources and Ore Reserves Statement may not sum precisely due to rounding; the number of significant figures does not imply an added level of precision.

Note 4 - Comparison with Previous Mineral Resource Estimate

There has been no change in this Mineral Resource estimate in relation to the Mineral Resource estimate that was previously stated as at 30 June 2016. Table 2 provides new detail within the unchanged Mineral Resource estimate. Accordingly, no comparison is provided.

ARGENT MINERALS LIMITED

MINERAL RESOURCES AND ORE RESERVES STATEMENT

Note 5 - Annual Review

The Company has engaged H&S Consultants Pty Ltd (H&SC) to complete the annual review of Mineral Resources and Ore Reserves for the Kempfield Polymetallic Project for reporting as at 30 June 2017. H&SC is an independent Mineral Resources estimation consulting practice located in Sydney, New South Wales. H&SC maintains best in class industry standard governance arrangements and internal controls with respect to the estimation of Mineral Resources.

JORC 2012 MINERAL RESOURCES AND ORE RESERVES STATEMENT - COMPETENT PERSON STATEMENT

The information in the Mineral Resources and Ore Reserves Statement for the Kempfield deposit is based on information compiled by Mr. Arnold van der Heyden, geologist and a Director of H&S Consultants Pty Ltd (H&SC).

The information in the Mineral Resources and Ore Reserves Statement is based on, and fairly represents, information and supporting documentation prepared by Mr. Arnold van der Heyden. Mr. Arnold van der Heyden is a Member and Chartered Professional (Geology) of the Australasian Institute of Mining and Metallurgy. Mr. Arnold van der Heyden has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves prepared by the Joint Ore Resources Committee, the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and the Mineral Council of Australia’. The Mineral Resources and Ore Reserves Statement for the Kempfield deposit as a whole is approved by Mr. Arnold van der Heyden in the form and context in which it appears.

ARGENT MINERALS LIMITED

MINERAL RESOURCES AND ORE RESERVES STATEMENT

MT. DUDLEY (NSW, AUSTRALIA - 100% ARGENT)

On 1 March 2013 Argent Minerals announced a small maiden Resource for Mt. Dudley, a potential feedstock source located approximately 4 kilometres to the east of the Kempfield deposit. This Mineral Resource was restated in the Company’s Annual Report to the shareholders for the year ended 30 June 2016.

The following table sets out the Mt. Dudley Mineral Resource statement as at 30 June 2017. This information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.

At a cut-off grade of 0.5 g/t Au:

Table 5 - Mt Dudley Mineral Resource Estimate - 30 June 2017

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Note 1 - Comparison with Previous Mineral Resource Estimate

There has been no change in this Mineral Resource estimate in relation to the Mineral Resource estimate that was previously stated as at 30 June 2016. Accordingly, no comparison is provided.

Note 2 - Annual Review

The Company has engaged H&S Consultants Pty Ltd (H&SC) to complete the annual review of Mineral Resources and Ore Reserves for the Mt Dudley deposit for reporting as at 30 June 2017. H&SC is an independent Mineral Resources estimation consulting practice located in Sydney, New South Wales. H&SC maintains best in class industry standard governance arrangements and internal controls with respect to the estimation of Mineral Resources.

JORC 2004 MINERAL RESOURCES AND ORE RESERVES STATEMENT - COMPETENT PERSON STATEMENT

The information in the Mineral Resources and Ore Reserves Statement for the Mt Dudley deposit is based on information compiled by Mr. Arnold van der Heyden, geologist and a Director of H&S Consultants Pty Ltd (H&SC).

The information in the Mineral Resources and Ore Reserves Statement is based on, and fairly represents, information and supporting documentation prepared by Mr. Arnold van der Heyden. Mr. Arnold van der Heyden is a Member and Chartered Professional (Geology) of the Australasian Institute of Mining and Metallurgy. Mr. Arnold van der Heyden has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves prepared by the Joint Ore Resources Committee, the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and the Mineral Council of Australia’. The Mineral Resources and Ore Reserves Statement for the Mt Dudley Deposit as a whole is approved by Mr. Arnold van der Heyden in the form and context in which it appears.

ARGENT MINERALS LIMITED

MINERAL RESOURCES AND ORE RESERVES STATEMENT

SUNNY CORNER (NSW, AUSTRALIA - 70% ARGENT)

Background

In the 12 August 2008 announcement, the Company reported that “The GCO campaign comprised a total of 49 RC holes for a total of 4,090 metres drilled beneath and adjacent to the historical Sunny Corner mine which is reported to have produced 210,000 tons @ 13.8 ounces of silver per ton for 2.9 million ounces of silver between 1881 and 1893”.

On 12 August 2008 Argent Minerals announced a Mineral maiden Resource at Sunny Corner. The resource estimates were completed by H&S Consultants Pty Ltd (H&SC) and were reported using a cutoff grade of 2.5% combined base metals (copper, lead & zinc) based on data derived from Golden Cross Operations Pty Ltd’s (GCO) 2004 drilling campaign and the Company’s three hole RC drilling campaign in June 2007 for a total of 340 metres The Exploration Results were compiled by Dr Vladimir David.

In April 2009 Argent Minerals announced its completion of a 5 hole HQ diamond hole drilling campaign at Sunny Corner. The vertical holes were drilled for metallurgical testwork purposes, over a 100 metre northsouth strike length for a total of 279.75 metres (Metallurgical Holes).

In September 2013, H&SC was engaged by Argent Minerals to review the potential impact of the Metallurgical Holes on the Sunny Corner resource statement announced in August 2008, for reporting as at 30 June 2013. The review concluded that the data from the Metallurgical Holes were unlikely to have a material impact on the existing Resource estimate.

Sunny Corner Mineral Resource Statement - 30 June 2017

The following table sets out the Sunny Corner Mineral Resource statement as at 30 June 2017. This information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.

At a combined base metals (cbm) cut-off grade of 2.5%:

Table 6 - Sunny Corner Mineral Resource Estimate - 30 June 2017

	Resource Tonnes (Mt)	Density	cbm (%)	Au (g/t)	Pb (%)	Zn (%)	Cu (%)	Ag (g/t)
Inferred	1.5	2.8	6.2	0.17	2.13	3.70	0.39	24

for contained metal as:

55,000 tonnes of zinc;
32,000 tonnes of lead;
5,800 tonnes of copper; and
1.2 million ounces of silver.

ARGENT MINERALS LIMITED

MINERAL RESOURCES AND ORE RESERVES STATEMENT

Note 1 - Qualification

No account has been made for any historical production or mine development; and
The data from the Three RC holes from within the resource and the Metallurgical Holes, have not been included in any resource estimate. However, H&SC believes that they would have a minor impact on the resource estimate figures and spatial location of grades.

Note 2 - Comparison with Previous Mineral Resource Estimate

There has been no change in this Mineral Resource estimate in relation to the Mineral Resource estimate that was previously stated as at 30 June 2016. Accordingly, no comparison is provided.

Note 3 - Annual Review

The Company has engaged H&SC to complete the annual review of Mineral Resources and Ore Reserves for the Sunny Corner deposit for reporting as at 30 June 2017. H&SC is an independent Mineral Resources estimation consulting practice located in Sydney, New South Wales. H&SC maintains best in class industry standard governance arrangements and internal controls with respect to the estimation of Mineral Resources.

JORC 2004 MINERAL RESOURCES AND ORE RESERVES STATEMENT - COMPETENT PERSON STATEMENT

The information in this report that relates to Exploration Results for the Sunny Corner Deposit is based on information compiled by Dr. Vladimir David, who is a member of the Australian Institute of Geoscientists, a consultant to Argent Minerals, and who has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Dr. David consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The data in this report that relates to Mineral Resources for the Sunny Corner Deposit is based on information evaluated by Mr Simon Tear who is a Member of The Australasian Institute of Mining and Metallurgy (MAusIMM) and who has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the “JORC Code”). Mr Tear is a Director of H&S Consultants Pty Ltd and he consents to the inclusion of the estimates in the report of the Mineral Resource in the form and context in which they appear.

GOVERNANCE ARRANGEMENTS

Argent’s management and Board of Directors include individuals with many years’ work experience in the mineral exploration and mining industry who monitor all exploration programs and oversee the preparation of reports on behalf of the Company by independent consultants. The exploration data is produced by or under the direct supervision of qualified geoscientists. In the case of drill hole data half core samples are preserved for future studies and quality assurance and quality control. The Company uses only accredited laboratories for analysis of samples and records the information in electronic databases that are automatically backed up for storage and retrieval process.

ARGENT MINERALS LIMITED

MINERAL RESOURCES AND ORE RESERVES STATEMENT

DISCLAIMER

Certain statements contained in this report, including information as to the future financial or operating performance of Argent Minerals and its projects, are forward-looking statements that:

May include, among other things, statements regarding targets, estimates and assumptions in respect of mineral reserves and mineral resources and anticipated grades and recovery rates, production and prices, recovery costs and results, capital expenditures, and are or may be based on assumptions and estimates related to future technical, economic, market, political, social and other conditions;
Are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Argent Minerals, are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies; and,

Involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward-looking statements.

Argent Minerals disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise. The words ‘believe’, ‘expect’, ‘anticipate’, ‘indicate’, ‘contemplate’, ‘target’, ‘plan’, ‘intends’, ‘continue’, ‘budget’, ‘estimate’, ‘may’, ‘will’, ‘schedule’ and similar expressions identify forward-looking statements.

All forward-looking statements made in this report are qualified by the foregoing cautionary statements. Investors are cautioned that forward-looking statements are not guarantees of future performance and accordingly investors are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty therein.

ARGENT MINERALS LIMITED

CORPORATE DIRECTORY

Directors:

Stephen Gemell – Non-Executive Chairman Peter Michael – Non-Executive Director Peter Nightingale – Non-Executive Director

CEO:

David Busch

Company Secretary:

Vinod Manikandan

Principal Place of Business and Registered Office:

Level 2, 66 Hunter Street SYDNEY NSW 2000 Phone: 61-2 9300 3390 Fax: 61-2 9221 6333 E-mail: [email protected] Website:www.argentminerals.com.au

Share Registrar:

Computershare Investor Services Pty Limited Level 4, 60 Carrington Street SYDNEY NSW 2000 Phone: 1300 850 505 Fax: +61 3 9473 2500

Auditors:

KPMG Level 16, Riparian Plaza 71 Eagle Street BRISBANE QLD 4000

Home Exchange:

ASX Limited Level 40, Central Park 152-158 St George’s Terrace PERTH WA 6000

Solicitors:

Sydney –Resources Legal Pty Ltd Perth – Jeremy Shervington

Argent Minerals Limited, incorporated and domiciled in Australia, is a publicly listed company limited by shares.

AI assistant

ARGENT MINERALS LIMITED — Annual Report 2017

64417_rns_2017-08-31_58d474e6-e256-4a13-9871-d6dd40db6229.pdf

ARGENT MINERALS LIMITED

TABLE OF CONTENTS

ARGENT MINERALS LIMITED

COMPANY PROFILE

COMPANY PROFILE

KEMPFIELD (100% ARGENT)

ARGENT MINERALS LIMITED

COMPANY PROFILE

WEST WYALONG (76.7% ARGENT)

LOCH LILLY (RIGHT TO EARN UP TO 90%)

ARGENT MINERALS LIMITED

COMPANY PROFILE

SUNNY CORNER (70% ARGENT)

CORPORATE STRATEGY

ARGENT MINERALS LIMITED

COMPANY PROFILE

ARGENT MINERALS LIMITED

2017 HIGHLIGHTS

2017 HIGHLIGHTS

EXPLORATION

KEMPFIELD POLYMETALLIC PROJECT

 Two types of gold potential identified:

 Kempfield resource update:

ARGENT MINERALS LIMITED

2017 HIGHLIGHTS

PINE RIDGE GOLD MINE

WEST WYALONG PORPHYRY COPPER-GOLD-MOLYBDENUM PROJECT

LOCH LILLY PROJECT

ARGENT MINERALS LIMITED

2017 HIGHLIGHTS

CORPORATE

FUNDING

ARGENT MINERALS LIMITED

CHAIRMAN’S LETTER

ARGENT MINERALS LIMITED

Dear Fellow Shareholder,

ARGENT MINERALS LIMITED

OPERATIONS REVIEW

OPERATIONS REVIEW

EXPLORATION – KEMPFIELD

MAJOR BREAKTHROUGHS

Kempfield lithology and host horizons identified

Potential mineralised extensions – confirmed by further diamond drilling

ARGENT MINERALS LIMITED

OPERATIONS REVIEW

ARGENT MINERALS LIMITED

OPERATIONS REVIEW

High grade gold trend identified

ARGENT MINERALS LIMITED

OPERATIONS REVIEW

SIGNIFICANT INTERSECTIONS

10 metre gold intersection – southwest potential extension

1.0 m @ 4.4 g/t Au from 32.2 m; and

1.0 m @ 5.1 g/t Au from 34.2 m.

 1.0 m @ 0.97 g/t Au from 48.4 m.

20 metre intersection - southeast potential extension

ARGENT MINERALS LIMITED

OPERATIONS REVIEW

Henry Zone intersections – potential 1,000 metre extension along strike to the northeast

KEMPFIELD RESOURCE UPDATE

ARGENT MINERALS LIMITED

OPERATIONS REVIEW

EXPLORATION - PINE RIDGE GOLD MINE

SIGNIFICANT GOLD INTERSECTIONS

ARGENT MINERALS LIMITED

OPERATIONS REVIEW

About the Pine Ridge gold intersections

ARGENT MINERALS LIMITED

OPERATIONS REVIEW

Metallurgical testwork and preliminary environmental assessment

Potential feedstock for Kempfield

EXPLORATION – WEST WYALONG

MAIDEN DRILLING CONFIRMS COPPER-GOLD PORPHYRY DEPOSIT

ARGENT MINERALS LIMITED

OPERATIONS REVIEW

Results highlights

ARGENT MINERALS LIMITED

ARGENT MINERALS LIMITED Annual Report 2017