ASPIRE MINING LIMITED — Interim / Quarterly Report 2021

Mar 10, 2021

==> picture [171 x 149] intentionally omitted <==

==> picture [97 x 8] intentionally omitted <==

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

ABN 46 122 417 243
----- End of picture text -----

INTERIM FINANCIAL REPORT 31 DECEMBER 2020

Aspire Mining Limited

CORPORATE INFORMATION

Directors

David Paull (Non-executive Chairman) Achit-Erdene Darambazar (Managing Director) Boldbaatar Bat-Amgalan (Non-Executive Director) Neil Lithgow (Non-Executive Director) Hannah Badenach (Non-Executive Director)

Company Secretary

Philip Rundell

Registered office and Australian principal place of business

Mezzanine Level, 190 St Georges Terrace, Perth, WA 6000

Telephone: (08) 9287 4555 Email: info@aspiremininglimited.com

Principal place of business Mongolia

Chingeltei District, 1[st] Khoroo Baga Toiruu-17, JJ Tower, 9[th ] Floor, Room 302 Ulaanbaatar-15170 MONGOLIA

Share Registry

Automic Group Level 2, 267 St Georges Terrace, Perth WA 6000 Telephone: (08) 8072 1400

Solicitors

Corrs Chambers Westgarth Lawyers Level 15, Woodside Plaza 240 St Georges Terrace PERTH WA 6000

Bankers

National Australia Bank 197 St Georges Terrace PERTH WA 6000

Auditors

Australia

HLB Mann Judd (WA Partnership) Level 4, 130 Stirling Street PERTH WA 6000

Mongolia KPMG #602, Blue Sky Tower, Peace Avenue 17, 1 Khoroo, Sukhbaatar District, ULAANBAATAR, 14240, MONGOLIA

Securities Exchange Listing

AKM

Aspire Mining Limited

TABLE OF CONTENTS

DIRECTORS’ REPORT ..................................................................................................................................... 1 AUDITOR’S INDEPENDENCE DECLARATION ............................................................................................... 3 CONDENSED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME ................. 4 CONDENSED STATEMENT OF FINANCIAL POSITION ................................................................................. 5 CONDENSED STATEMENT OF CHANGES IN EQUITY ................................................................................. 6 CONDENSED STATEMENT OF CASH FLOWS .............................................................................................. 7 NOTES TO THE CONDENSED FINANCIAL STATEMENTS ........................................................................... 8 DIRECTORS’ DECLARATION ........................................................................................................................ 12 INDEPENDENT AUDITOR’S REVIEW REPORT ........................................................................................... 13

Aspire Mining Limited

DIRECTORS’ REPORT

Your directors submit the financial report of the consolidated entity consisting of Aspire Mining Limited (“Aspire” or “Company”) and its controlled entities (“Group”) for the half-year ended 31 December 2020. In compliance with the provisions of the Corporations Act 2001, the directors report as follows:

Directors

The names of directors who held office during or since the end of the interim period and until the date of this report are noted below. Directors were in office for this entire period unless otherwise stated.

David Paull	Non-executive Chairman
Achit-Erdene Darambazar	Managing Director
Boldbaatar Bat-Amgalan	Non-Executive Director
Neil Lithgow	Non-ExecutiveDirector
Hannah Badenach	Non-Executive Director

Operating Results

The loss of the Group for the half-year after income tax was $4,771,148 (2019: $3,145,706).

The loss includes an unrealised foreign exchange loss of $3,689,921 (2019: $431,811) due to the strengthening of the AUD against the USD in the period. The Group holds the majority of cash and cash equivalents in USD.

Review of Operations

Aspire Mining Limited (“Aspire” or the “Company”) is focused on the exploration and eventual development of metallurgical coal assets in Mongolia.

Aspire owns:

1. a 100% interest in the large scale, world class Ovoot Coking Coal Project (Ovoot Project); and

2. a 90% interest in the Nuurstei Coking Coal Project.

During the period, activity in advancing development of the Ovoot Project was limited due to the Mongolian Government imposed travel and meeting restrictions in response to COVID-19.

The Company is awaiting local community engagement meetings to be held to finalise the Definitive Environmental Impact Assessment (DEIA). The DEIA is required to be completed and approved before ground activities, including infill drilling, can commence.

The Company continued to engage with the local community with provision of directed community benefit sponsorships in health, sport and education. The process of execution of compensation agreements with families potentially impacted by the mine site footprint also commenced after consultation of families preference to remain in-situ rather than relocate.

The OEDP Pre-Feasibility Study (“OEDP PFS”) prepared by FMS LLC and released on 28 February 2019 with an update on 11 November 2019[1] , focused on evaluating a production plan producing up to approximately 4 Mtpa based on trucking a washed coking coal product to an existing rail head in the city of Erdenet.

A detailed time and task schedule has been completed mapping out the regulatory, financial and commercial path to delivering washed coking coal to end customers. This schedule confirmed that subject to the provision of additional funding and permitting as required, there is a path to deliver washed coking coal within an 18 month timeframe from access to the project area.

Cash and Cash Equivalents

Cash and cash equivalents held by the Group at the end of the half-year was $35,138,656 (30 June 2020: $40,712,949).

Expenditure was limited in the period with the reduction in cash and cash equivalents due principally to an unrealised unfavourable foreign exchange variance. The Group holds the majority of its cash in US dollars. The strengthening of the Australian dollar against the US dollar produced a material foreign exchange loss.

1 The Company confirms that it is not aware of any new information or data that materially affects the information included in the announcements, and that all material assumptions underpinning the estimates continue to apply and have not materially changed.

1

Aspire Mining Limited

DIRECTORS’ REPORT (continued)

Significant Subsequent Events

There have been no other significant events subsequent to the reporting date requiring disclosure in this report.

Auditor’s Independence Declaration

Section 307C of the Corporations Act 2001 requires our auditors, HLB Mann Judd, to provide the directors of the company with an Independence Declaration in relation to the review of the interim financial report. This Independence Declaration is set out on page 3 and forms part of this directors’ report for the half-year ended 31 December 2020.

This report is signed in accordance with a resolution of the Board of Directors made pursuant to section 306(3) of the Corporations Act 2001 .

==> picture [140 x 51] intentionally omitted <==

Achit-Erdene Darambazar Managing Director 11 March 2021

2

==> picture [165 x 49] intentionally omitted <==

AUDITOR’S INDEPENDENCE DECLARATION

As lead auditor for the review of the consolidated financial report of Aspire Mining Limited for the half-year ended 31 December 2020, I declare that to the best of my knowledge and belief, there have been no contraventions of:

• a) the auditor independence requirements of the Corporations Act 2001 in relation to the review; and

• b) any applicable code of professional conduct in relation to the review.

==> picture [91 x 65] intentionally omitted <==

Perth, Western Australia 11 March 2021

B G McVeigh Partner

==> picture [440 x 84] intentionally omitted <==

3

Aspire Mining Limited

CONDENSED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 31 DECEMBER 2020

Note Interest income Other income Foreign exchange losses Exploration and evaluation expenditure impaired 4 Employee benefits expense Share based payments Interest expense Other expenses 2 Loss before income tax expense Income tax expense 3 Net loss for the period Other comprehensive income Items that may be reclassified to profit or loss Exchange differences on translation of foreign operations Other comprehensive loss for the period, net of tax Total comprehensive loss for the period Loss attributable to: Owners of the parent Non-controlling interests 5 Total comprehensive income/(loss) attributable to: Owners of the parent Non-controlling interests 5 Basic loss per share (cents per share)	Consolidated 2020 $ Consolidated 2019 $ 100,779 91,382 17,147 - (3,689,921) (431,811) (913) (269) (314,105) (833,424) (40,325) (129,593) (5,049) (7,656) (831,483) (1,832,313)
	(4,763,870) (3,143,684) (7,278) (2,022)
	(4,771,148) (3,145,706)
	(3,958,227) (945,511)
	(3,958,227) (945,511)
	(8,729,375) (4,091,217)
	(4,767,543) (3,115,839) (3,605) (29,867)
	(4,771,148) (3,145,706)
	(8,940,532) (4,066,508) 211,157 (24,709)
	(8,729,375) (4,091,217)
	(0.93) (0.86)

The accompanying notes form part of these financial statements

4

Aspire Mining Limited

CONDENSED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2020

AS AT 31 DECEMBER 2020
		Consolidated	Consolidated
	Note	31 Dec 2020 $	30 Jun 2020 $
Assets
Current Assets
Cash and cash equivalents		35,138,656	40,712,949
Trade and other receivables		393,564	802,360
Total Current Assets		35,532,220	41,515,309
Non-Current Assets
Deferred exploration and evaluation expenditure	4	33,790,138	36,470,102
Property, plant and equipment		334,566	304,309
Intangible assets		109,393	171,113
Total Non-Current Assets		34,234,097	36,945,524
Total Assets		69,766,317	78,460,833
Liabilities
Current Liabilities
Trade and other payables		169,949	162,116
Other financial liabilities		10,243	11,588
Total Current Liabilities		180,192	173,704
Non- Current Liabilities
Other financial liabilities		46,950	58,904
Total Non-Current Liabilities		46,950	58,904
Total Liabilities		227,142	232,608
Net Assets		69,539,175	78,228,225
Equity
Issued capital	6	150,026,408	150,026,408
Reserves		(11,150,233)	(7,017,569)
Accumulated losses		(69,035,238)	(64,267,695)
Equity attributable to owners of the parent		69,840,937	78,741,144
Non-controlling interest	5	(301,762)	(512,919)
Total Equity		69,539,175	78,228,225

The accompanying notes form part of these financial statements.

5

Aspire Mining Limited

CONDENSED STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 DECEMBER 2020

Consolidated Balance at 1 July 2019 Loss for the period Other comprehensive loss Total comprehensive loss Shares issued net of costs Options expired Performance rights value brought to account Performance rights cancelled Balance at 31 December 2019 Balance at 1 July 2020 Loss for the period Other comprehensive loss Total comprehensive loss Performance rights value brought to account Balance at 31 December 2020	Issued capital Accumulated losses Contribution reserve Share based payments reserve Foreign currency translation reserve Attributable to owners of the parent Non- controlling interests Total equity $ $ $ $ $ $ $ $ 114,897,715 (59,963,072) 1,805,302 1,167,852 (8,164,866) 49,742,931 (446,059) 49,296,872 - (3,115,839) - - - (3,115,839) (29,867) (3,145,706) - - - - (950,669) (950,669) 5,158 (945,511)
	- (3,115,839) - - (950,669) (4,066,508) (24,709) (4,091,217) 35,128,693 - - - - 35,128,693 - 35,128,693 - 760,877 - (760,877) - - - - - - - 129,593 - 129,593 - 129,593 - 20,956 - (20,956) - - - -
	150,026,408 (62,297,078) 1,805,302 515,612 (9,115,535) 80,934,709 (470,768) 80,463,941
	150,026,408 (64,267,695) 1,805,302 201,240 (9,024,111) 78,741,144 (512,919) 78,228,225 - (4,767,543) - - - (4,767,543) (3,605) (4,771,148) - - - - (4,172,989) (4,172,989) 214,762 (3,958,227)
	- (4,767,543) - - (4,172,989) (8,940,532) 211,157 (8,729,375) - - - 40,325 - 40,325 - 40,325
	150,026,408 (69,035,238) 1,805,302 241,565 (13,197,100) 69,840,937 (301,762) 69,539,175

The accompanying notes form part of these financial statements

6

Aspire Mining Limited

CONDENSED STATEMENT OF CASH FLOWS FOR THE HALF-YEAR ENDED 31 DECEMBER 2020

Cash flows from operating activities Payments to suppliers and employees Interest received Interest and borrowing costs paid Income tax refund/(paid) Net cash used in operating activities Cash flows from investing activities Investment in short term deposits Purchase of property, plant and equipment Proceeds from sale of property, plant and equipment Purchase of intangibles Exploration and evaluation expenditure Net cash used in investing activities Cash flows from financing activities Proceeds from issue of shares Payments for share issue costs Repayment of borrowings Net cash (used in)/provided by financing activities Net decrease in cash held Cash and cash equivalents at the beginning of the period Effects of exchange rate fluctuations on cash held Cash and cash equivalents at the end of the period	Consolidated 2020 $ Consolidated 2019 $ Inflows/(Outflows) (909,056) (2,623,276) 131,226 102,446 - (7,656) 235 (2,022)
	(777,595) (2,530,508)
	- (39,220,564) (135,138) (35,033) - 19,042 - (167,589) (409,799) (777,752)
	(544,937) (40,181,896)
	- 36,284,542 - (1,155,848) (20,200) (8,232)
	(20,200) 35,120,462
	(1,342,732) (7,591,942) 40,712,949 11,136,142 (4,231,558) (563,495)
	35,138,656 2,980,705

The accompanying notes form part of these financial statements

7

Aspire Mining Limited

NOTES TO THE CONDENSED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2020

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

Statement of compliance

The interim financial statements were authorised for issue on 11 March 2021.

The interim financial statements are general purpose financial statements prepared in accordance with the requirements of the Corporations Act 2001, applicable accounting standards including AASB 134 ‘Interim Financial Reporting’, Accounting Interpretations and other authoritative pronouncements of the Australian Accounting Standards Board (‘AASB’). Compliance with AASB 134 ensures compliance with IAS 34 ‘Interim Financial Reporting’.

The interim financial statements comply with Australian Accounting Standards, which include Australian equivalents to International Financial Reporting Standards (AIFRS). Compliance with AIFRS ensures that the financial report, comprising the interim financial statements and notes thereto, complies with International Financial Reporting Standards (IFRS).

This condensed half-year report does not include full disclosures of the type normally included in an annual financial report. Therefore, it cannot be expected to provide as full an understanding of the financial performance, financial position and cash flows of the consolidated entity as in the full financial report.

It is recommended that this financial report be read in conjunction with the annual financial report for the year ended 30 June 2020 and any public announcements made by Aspire Mining Limited during the half-year in accordance with continuous disclosure requirements arising under the Corporations Act 2001 and the ASX Listing Rules.

Basis of preparation

The interim report has been prepared on a historical cost basis, except for the valuation of share based payments. Cost is based on the fair value of the consideration given in exchange for assets. The Group is domiciled in Australia and all amounts are presented in Australian dollars, unless otherwise noted.

For the purpose of preparing the interim report, the half-year has been treated as a discrete reporting period.

Adoption of new and revised standards

Standards and Interpretations applicable to 31 December 2020

In the period ended 31 December 2020, the Directors have reviewed all new and revised Standards and Interpretations issued by the AASB that are relevant to the Company and effective for the current annual reporting period. As a result of this review, the Directors have determined that there is no material impact of the new and revised Standards and Interpretations on the Company and, therefore, no material change is necessary to Group accounting policies.

Standards and Interpretations in issue not yet adopted

The Directors have also reviewed all Standards and Interpretations in issue not yet adopted for the period ended 31 December 2020. As a result of this review the Directors have determined that there is no material impact of the Standards and Interpretations in issue not yet adopted on the Company.

Significant accounting judgments and key estimates

The preparation of interim financial reports requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expense. Actual results may differ from these estimates.

The significant judgments made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial report for the year ended 30 June 2020.

Accounting policies and methods of computation

The accounting policies and methods of computation adopted are consistent with those of the previous financial year and corresponding interim reporting period. These accounting policies are consistent with Australian Accounting Standards and with International Financial Reporting Standards.

8

Aspire Mining Limited

NOTES TO THE CONDENSED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2020

NOTE 2: LOSS BEFORE INCOME TAX EXPENSE

NOTE 2: LOSS BEFORE INCOME TAX EXPENSE
	Consolidated
	31 December	31 December
	2020	2019
	$	$
The following other expense items are relevant in explaining the financial
performance for the half-year:
Accountancy and audit fees	71,307	110,654
Advertising, investor and community relations	33,096	127,054
Company secretarial	70,234	92,728
Consultants’ fees	140,812	370,304
Depreciation and amortisation	117,005	169,788
Directors’ fees	125,366	212,927
Insurance	85,541	85,083
Legal fees	8,544	59,122
Provision for expected credit losses	-	51,478
Short term rentals and outgoings	37,188	90,552
Travel and accommodation	50,700	171,982

NOTE 3: INCOME TAX EXPENSE

Income tax expense on Mongolian operations Income tax expense	Consolidated 31 December 2019 $ 31 December 2019 $ (7,278) (2,022)
	(7,278) (2,022)

NOTE 4: EXPLORATION AND EVALUATION EXPENDITURE

Costs carried forward in respect of areas of interest in the following phases: Exploration and evaluation phase – at cost Balance at beginning of the period • Expenditure incurred, net of cost recoveries • Foreign exchange differences • Expenditure impaired in the period Total exploration and evaluation expenditure	Consolidated Six months to 31 December 2020 $ Year ended 30 June 2020 $ 36,470,102 37,461,876 386,263 1,374,197 (3,066,227) (1,132,753) - (1,233,218)
	33,790,138 36,470,102

Exploration expenditure incurred on projects other than the Ovoot Coking Coal Project and the Nuurstei Coking Coal Project has been impaired, written-off or expensed as that expenditure is not expected to be recouped through successful development and exploration of the areas of interest, or alternatively, by sale. The recoupment of the expenditure that has been carried forward is dependent upon the successful development and commercial exploitation or sale of the respective areas.

9

Aspire Mining Limited

NOTES TO THE CONDENSED FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2020

NOTE 5: NON-CONTROLLING INTERESTS AND CONTRIBUTION RESERVE

There is a 10% non-controlling interest in the corporate entity that holds the Nuurstei Coking Coal Project mining and exploration licenses; and a 20% non-controlling interest in subsidiary, Northern Rail Holdings Limited (NRIPL).

Non-controlling interest summary Balance at 30 June 2019 Loss allocated to non-controlling interest Other comprehensive loss allocated to non- controlling interest Balance at 30 June 2020 Loss allocated to non-controlling interest Other comprehensive income/(loss) allocated to non-controlling interest Balance at 31 December 2020 Current Assets Non-Current Assets Total Assets Current Liabilities Non-Current Liabilities Total Liabilities Net Assets Revenue Loss for the year Other comprehensive profit/(loss) Total comprehensive income/(loss) for the period	Coalridge Limited Northern Rail Holdings Limited Total $ $ $ (88,379) (357,680) (446,059) (18,034) (29,451) (47,485) (10,611) (8,764) (19,375) (117,024) (395,895) (512,919) (1,165) (2,440) (3,605) (54,415) 269,177 214,762 (172,604) (129,158) (301,762) Coalridge Limited Northern Railway Holdings Limited 31 December 2020 30 June 2020 31 December 2020 30 June 2020 $ $ $ $ 21,445 30,811 7,026 10,210 496,367 1,038,718 - -
	517,812 1,069,529 7,026 10,210
	(18,691) (17,403) (7,894) (13,737) - - - -
	(18,691) (17,403) (7,894) (13,737)
	499,121 1,052,126 (868) (3,527)
	- - - - (11,643) (180,333) (12,202) (147,256)
	(544,154) (106,109) 1,345,886 (43,821)
	(555,797) (286,442) 1,333,684 (191,077)

NOTE 6: ISSUED CAPITAL

Ordinary shares Issued and fully paid Shares on issue NOTE 7: PERFORMANCE RIGHTS Performance Rights on issue	31 December 2020 $ 30 June 2020 $ 150,026,408 150,026,408
	No No 507,636,985 507,636,985
	31 December 2020 No 30 June 2020 No 2,294,998 2,294,998

During the period, no Performance Rights vested, were exercisable or lapsed.

The Performance Rights will vest and be exercisable if and when the 30-day VWAP of the Company’s Shares as traded on the ASX is equal to or greater than A$0.40 by 30 June 2021. The Performance Rights are valued at the share price on grant date, being 1.2 cents for each of the performance rights issued to the Directors and 1.4 cents for each of the performance rights issued to the employees and contractors. The value of the Performance Rights is taken to the Share Based Payments Reserve progressively over the period the Performance Rights are expected to vest. The cumulative expense that will be recorded will equate to the Performance Rights that ultimately vest.

10

Aspire Mining Limited

NOTES TO THE CONDENSED FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2020

NOTE 10: FINANCIAL INSTRUMENTS

The Directors consider that the carrying value of the financial assets and liabilities as recognised in the Condensed Statement of Financial Position approximate their fair values.

NOTE 11: CONTINGENT LIABILITIES

There has been no change in contingent liabilities since the last annual reporting date.

NOTE 12: SEGMENT REPORTING

Segment information is presented in the interim financial statements in respect of the Group’s geographical segments, which are the primary basis for segment reporting. The Group operates in a single business segment, namely natural resources exploration.

Segment results include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items comprise mainly income earning assets, interest income, corporate assets and corporate expenses.

The Group operates in distinct geographical segments, Australia, Mongolia and Singapore. These segments were determined based on the location of the consolidated entity’s assets and liabilities.

Geographical segments

31 December 2020 Segment income Segment net operating loss after tax Segment interest income Segment interest expense Segment depreciation and amortisation Segment exploration impairment Segment assets Segment liabilities Capital expenditure 31 December 2019 Segment income Segment net operating loss after tax Segment interest income Segment interest expense Segment depreciation and amortisation Segment exploration impairment Segment assets Segment liabilities Capital expenditure	Australia Mongolia Singapore Total $ $ $ $ 45,159 72,767 - 117,926
	(4,163,839) (594,537) (12,772) (4,771,148)
	28,012 72,767 - 100,770 - (5,049) - (5,049) - (117,005) - (117,005) - - - -
	31,029,299 38,727,407 9,611 69,766,317
	(85,669) (141,473) - (227,142)
	- 537,376 - 537,376
	71,165 20,217 - 91,382
	(1,646,079) (1,490,585) (9,042) (3,145,706)
	71,165 20,217 - 91,382 (1,037) (6,619) - (7,656) - (169,788) - (169,788) - (269) - (269)
	37,895,510 42,962,189 2,023 80,859,722
	(141,225) (248,309) (6,247) (395,781)
	- 1,019,659 - 1,019,659

NOTE 12: EVENTS SUBSEQUENT TO REPORTING DATE

There have been no significant events subsequent to the reporting date requiring disclosure in this report.

11

Aspire Mining Limited

DIRECTORS’ DECLARATION

In the opinion of the Directors of Aspire Mining Limited (‘the company’):

1. The financial statements and notes thereto, are in accordance with the Corporations Act 2001 including:

2. a. complying with Accounting Standard AASB 134: Interim Financial Reporting and the Corporations Regulations 2001 and other mandatory professional reporting requirements; and

3. b. giving a true and fair view of the Group’s financial position as at 31 December 2020 and of its performance for the half-year then ended.

4. there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.

This declaration is signed in accordance with a resolution of the Board of Directors made pursuant to s.303 (5) of the Corporations Act 2001.

==> picture [140 x 51] intentionally omitted <==

Achit-Erdene Darambazar Managing Director 11 March 2021

12

==> picture [165 x 49] intentionally omitted <==

INDEPENDENT AUDITOR’S REVIEW REPORT

To the members of Aspire Mining Limited

Report on the Condensed Half-Year Financial Report

Conclusion

We have reviewed the accompanying half-year financial report of Aspire Mining Limited (“the company”) which comprises the condensed statement of financial position as at 31 December 2020, the condensed statement of profit or loss and other comprehensive income, the condensed statement of changes in equity and the condensed statement of cash flows for the half-year ended on that date, notes comprising a summary of significant accounting policies and other explanatory information, and the directors’ declaration, for the Group comprising the company and the entities it controlled at the half-year end or from time to time during the half-year.

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of Aspire Mining Limited does not comply with the Corporations Act 2001 including:

• (a) giving a true and fair view of the Group’s financial position as at 31 December 2020 and of its performance for the half-year ended on that date; and

• (b) complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 .

Basis for conclusion

We conducted our review in accordance with ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity . Our responsibilities are further described in the Auditor’s responsibilities for the review of the financial report section of our report. We are independent of the company in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the annual financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

Responsibility of the directors for the financial report

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

==> picture [433 x 81] intentionally omitted <==

13

==> picture [165 x 49] intentionally omitted <==

Auditor’s responsibility for the review of the financial report

Our responsibility is to express a conclusion on the half-year financial report based on our review. ASRE 2410 requires us to conclude whether we have become aware of any matter that makes us believe that the half-year financial report is not in accordance with the Corporations Act 2001 including giving a true and fair view of the Group’s financial position as at 31 December 2020 and its performance for the half-year ended on that date, and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 .

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Independence

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001 .

==> picture [90 x 61] intentionally omitted <==

==> picture [115 x 35] intentionally omitted <==

B G McVeigh Partner

HLB Mann Judd Chartered Accountants

Perth, Western Australia 11 March 2021

14