AUREKA LIMITED — Annual Report 2021

Sep 16, 2021

A N N U A L R E P O R T 2 0 2 1

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ANNUAL REPORT 2021

U N E A R T H I N G P R O S P E R I T Y

CORPORATE DIRECTORY

COMPANY

Navarre Minerals Limited ABN 66 125 140 105

DIRECTORS

Kevin Wilson (Chairman) Ian Holland (Managing Director) Geoff McDermott (Technical Director)

COMPANY SECRETARY

Mathew Watkins

REGISTERED OFFICE & PRINCIPAL

OPERATIONS OFFICE

U N E A R T H I N G P R O S P E R I T Y

40-44 Wimmera Street PO Box 385 Stawell Victoria 3380 Australia

SHARE REGISTRAR

The ground-breaking accomplishments of today mean little without delivering a sustainable, prosperous future for all stakeholders. We are committed to discovering and developing significant, generational assets - to go beyond our predecessors and reach our greatest potential. Be part of our legacy.

Boardroom Pty Limited Level 7, 411 Collins Street Melbourne Victoria 3000 Australia Telephone +61 (2) 9290 9600 Facsimile +61 (2) 9279 0664

AUDITOR

RSM Australia Partners Level 21, 55 Collins Street Melbourne Victoria 3000 Australia

STOCK EXCHANGE LISTING

ASX Limited

Level 4, North Tower, Rialto, 525 Collins Street Melbourne Victoria 3000 Australia ASX Code: NML

INCORPORATED

30 April 2007 Victoria, Australia

+61 (3) 5358 8625 @Navarre Minerals Ltd info@navarre.com.au @NavarreMinerals navarre.com.au @NavarreMinerals

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ANNUAL REPORT 2021

U N E A R T H I N G P R O S P E R I T Y

CONTENTS

Chairman's Letter	08
Managing Director’s Review of Operations	10
Directors’ Report	32
Auditor’s Independence Declaration	66
Consolidated Statement of Proft or Loss	69
and Other Comprehensive Income
Consolidated Statement of Financial Position	70
Consolidated Statement of Changes in Equity	71
Consolidated Statement of Cash Flows	72
Notes to the Consolidated Financial Statements	73
Directors’ Declaration	97
Independent Auditor’s Review Report	98
Additional Shareholder Information	101

FORWARD LOOKING STATEMENTS

This Financial Report includes certain forwardlooking statements that have been based on current expectations about future acts, events and circumstances. These forward-looking statements are, however, subject to risks, uncertainties and assumptions that could cause those acts, events and circumstances to differ materially from the expectations described in such forward-looking statements.

These factors include, among other things, commercial and other risks associated with the meeting of objectives and other investment considerations, as well as other matters not yet known to the Company or not currently considered material by the Company.

LEADING EXPLORATION LEADING EXPLORATION IN VICTORIA'S IN VICTORIA'S ‘SECOND GOLD RUSH' ‘SECOND GOLD RUSH'

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U N E A R T H I N G P R O S P E R I T Y

CHAIRMAN’S LETTER

KEVIN WILSON

CHAIRMAN

DEAR FELLOW SHAREHOLDER,

It is my pleasure to present the Navarre Minerals’ annual report for the year ended 30 June 2021.

I’m pleased to report that Navarre has progressed further towards its ultimate objective of becoming a gold producer. This included exploration advances across our portfolio of Victorian gold projects, culminating in the announcement of a maiden Mineral Resource at our flagship Stawell Corridor Gold Project.

Our busy drilling program has forged ahead amid a backdrop of conditions largely conducive for the Company and the gold sector in general.

While the global gold price has retreated somewhat on expectations that central banks will ease liquidity and increase interest rates, the bullion price remains at historically high levels in Australian dollar terms. In an increasingly uncertain world, gold’s reputation as a safe haven and a store of value is likely to remain untarnished.

Despite industry-wide cost pressures, per-ounce gold margins remain robust and the outlook for a late-stage explorer, cumdeveloper like us is positive.

Investor support for Navarre remains high, as evidenced by our strongly oversubscribed $14.9 million placement and share purchase plan completed in June this year.

Of course, the COVID-19 pandemic remains an unwelcome backdrop for the Company and for Australians in general. Despite renewed lockdowns during the period, the disruption was minimal, with our drilling activity accommodating the new operating measures introduced to keep our people, contractors and the communities in which we operate safe and healthy.

At our Stawell Corridor Gold Project, we announced a maiden Mineral Resource for the Resolution and Adventure prospects of 304,300 ounces of gold at an average grade of 2.43 grams per tonne (see our ASX announcement on 30 March 2021). The Mineral Resource is the first instalment of what we believe will be a growing resource base and the first step in establishing the Stawell Corridor Gold Project as an emerging gold-producing camp in western Victoria.

At St Arnaud, we substantially expanded our tenement position within the goldfield that historically produced 400,000 ounces of gold. The Company completed a maiden 7,643 metre air-core drilling program on the Nelson and New Bendigo lines of lode, revealing multiple options for the pursuit of additional gold discoveries.

On the Glenlyle tenement, our first diamond drilling on the exciting Morning Bill prospect has revealed the potential for a large polymetallic mineral system hidden beneath shallow cover.

Then there’s the Tandarra Gold Project, our joint venture managed by 51 per cent partner Catalyst Metals Limited. Post balance date, Catalyst reported results from a 60 hole, 6,764 metre drilling program that included intercepts of up to nine metres at 14.8 grams of gold per tonne (see ASX announcement on 26 July 2021).

In other corporate development, Navarre received a 17 per cent shareholding in Resource Base Limited, as consideration for divestment of the non-core Black Range Project. In July 2021 Resource Base subsequently listed on the ASX under the code RBX, valuing Navarre’s holding at approximately $1.3 million at the date of this report.

On the management front, we saw the smooth transition of Ian Holland to the managing director role, with incumbent

Geoff McDermott transitioning to a new role of technical director.

Geoff has led the Company from its foundation as a private company in 2007 and as a public company from 2011 after its ASX listing. Geoff’s continuing support is testament to his belief in the quality of the Company’s portfolio of mineral assets.

We were also pleased to welcome Paul Hissey as the Company’s new chief financial officer. Paul has broad experience both as a geologist at the ‘coal face’ of mining operations and in capital markets roles.

The Board also acknowledges the outstanding leadership of Ian, who played a key role in reviving the nearby Fosterville gold project to what is now acknowledged as one of the world’s biggest and richest gold mines.

On behalf of the Board, I would also like to thank the management team and staff of Navarre for a first-class job, as well as our shareholders for their unwavering support.

Mining projects ultimately only succeed with the support of the local people, so we also thank the communities in which we operate.

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KEVIN WILSON

CHAIRMAN

17 September 2021

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MANAGING DIRECTOR’S REVIEW OF OPERATIONS

I am pleased to present my first review of operations as Navarre’s managing director, covering a busy year as the Company aggressively pursued its exploration programs across some of Australia’s most prospective, and proven, gold precincts.

Over the year, the Company carried out 38,323 metres of aircore, reverse circulation and diamond core drilling across its key projects.

In March this year the Company announced a maiden Mineral Resource of 304,300 ounces at an average grade of 2.43 grams per tonne for the flagship Stawell Corridor Gold Project, covering the Resolution and Adventure prospects (see our ASX announcement on 30 March 2021).

The Mineral Resource is located on the eastern flank of the Irvine basalt dome, which has been subject to broader exploration work across other targets. Ultimately, we aim to deliver several potential advanced projects within commercial distance of the nearby Stawell processing facility.

IAN HOLLAND MANAGING DIRECTOR

Work this year will focus on substantially increasing the size of our resource base with further drilling planned for the Irvine basalt dome and at St Arnaud.

During the year Navarre also carried out extensive exploration programs at its wholly owned St Arnaud Gold Project and at Glenlyle near Ararat, part of the greater Stawell Corridor Gold Project.

Glenlyle contains Morning Bill, a greenfields prospect discovered by the Company in 2018 under shallow cover.

Navarre’s first diamond core drilling program at Morning Bill has revealed the prospect’s best gold, copper, lead and zinc assays to date, including 16.5 grams per tonne gold, 1.2 per cent copper, 9.1 per cent zinc and 4.8 per cent lead (see ASX announcement on 2 & 10 June 2021).

I’m also pleased to report Navarre navigated the shoals of the ongoing COVID-19 pandemic, with disruption kept to a minimum, despite some exploration initially slowing as a result. We took the requisite precautions to protect not just our workers, but also the communities in which we operate.

In October 2020, following a competitive tender process, Navarre was granted tenure over the historic St Arnaud Goldfield, which adjoins the Company’s existing St Arnaud Gold Project. The St Arnaud Goldfield historically produced 400,000 ounces of gold and the Company wasted no time following up legacy drill hits with its maiden drilling campaign over the main producing areas.

Navarre raised $8 million of equity capital in July 2020. In June this year, we bolstered our balance sheet via an oversubscribed placement and share purchase plan that raised $14.9 million. This puts Navarre in a sound position for the current year’s busy exploration program, which has already started strongly.

The St Arnaud expansion followed the June 2020 acquisition of the Jubilee Gold Project, 25km southwest of Ballarat. The old Jubilee Mine historically produced 130,000 ounces of gold at a recovered grade of about 12 grams per tonne from a single east-west trending quartz reef but had not been drilled since the mine closed in 1913.

Highlights since year end include further diamond drilling on the Stawell project’s Adventure prospect, high grade zones at Tandarra, a major geophysics survey at Morning Bill and the discovery of a new gold-bearing quartz reef with visible gold at the St Arnaud Gold Project.

Meanwhile, work continued on the 49 per cent owned Tandarra Gold Project, in joint venture with Catalyst Metals Limited.

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S T A R N A U D
TA N D A R R A
A U S T R A L I A
F O S T E R V I L L E
S TA W E L L B E N D I G O
V I C T O R I A
B A L L A R AT
M E L B O U R N E
S TAV E LY J V J U B I L E E
Figure 1: Location of Navarre’s Victorian projects.
S TA W E L L C O R R I D O R
Stavely Arc
Stawell Corridor
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U N E A R T H I N G P R O S P E R I T Y

STAWELL CORRIDOR GOLD PROJECT

(ELs 5476, 5480, 5497 6525, 6526, 6527, 6528, 6702, 6745 & 7125)

OWNERSHIP COMMODITY LOCATION GEOLOGICAL PROVINCE PROJECT STAGE 100% Navarre Minerals Gold 237km North-West Cambro-Ordovician Stawell Advanced Exploration of Melbourne, Victoria Zone of the Lachlan Fold Belt

Navarre has a dominant land position along 70 kilometres of the prospective Stawell Gold Corridor, south on-strike of the six million-ounce Stawell Goldfield (Figures 1 & 2).

Navarre’s wholly owned Stawell Corridor Gold Project contains seven potential zones with geology similar to the operating five million ounce Magdala Gold Mine, 20 kilometres north. We are systematically exploring these targets from north to south.

IRVINE BASALT DOME

The Company’s most advanced prospects are Resolution and Adventure, on the prospective eastern margin of a ninekilometre Cambrian-age basalt dome (Irvine dome) within the historic Ararat Goldfield (Figure 2). The two prospects are located approximately 3 kilometres apart (see Figure 3).

TABLE 1: Mineral Resources for Resolution and Adventure Prospects

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INFERRED
PROSPECT CUT-OFF GOLD (g/t)
TONNES GOLD GRADE GOLD OUNCES
Resolution OP >0.6 1,754,000 2.09 118,000
Adventure OP >0.6 680,000 1.85 40,300
Total OP >0.6 2,434,000 2.02 158,300
Resolution UG MSO 1,455,000 3.12 146,000
Total Variable 3,889,000 2.43 304,300
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• The preceding statements of Mineral Resources conforms to the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code) 2012 Edition. All tonnages reported are dry metric tonnes. Minor discrepancies may occur due to rounding to appropriate significant figures.

Full details relating to the MRE are contained in the ASX announcement dated 30 March 2021.

The Company also declared additional Exploration Targets[1] of between 280,000 to 420,000 ounces of gold across these two prospects, at an average grade of 2-3 grams per tonne of gold (Table 2 and Figure 3).

TABLE 2: Exploration Target for Resolution and Adventure Prospects

Following an extensive drilling program, in March 2021 the Company announced a maiden JORC 2012 Inferred Mineral Resource[1] estimate (MRE) for the Resolution and Adventure prospects, of 304,300 ounces at an average grade of 2.43 grams per tonne (Table 1 and Figure 3).

This is the first significant MRE to be delineated on the Stawell Corridor outside of Stawell’s operating Magdala Gold Mine and represents the first step in what is expected to be an ongoing process of resource growth and upgrade over the short to medium term.

PROSPECT	INFERRED
	TONNES (Mt) GOLD GRADE (g/t) GOLD OUNCES (k Oz)
Resolution	2.4 - 3.6 2.0 - 3.0 200 - 300
Adventure	1.0 - 1.6 2.0 – 3.2 80 - 120
Total	3.4 – 5.2 2.0 – 3.0 280 – 420

• The potential quantity and grade of the Exploration Target is conceptual in nature and there has been insufficient exploration to estimate a Mineral Resource in relation to this Exploration Target. It is uncertain if further exploration will result in the estimation of a Mineral Resource in relation to these Exploration Targets

1. Refer ASX release on 30 March 2021 “Maiden Gold Mineral Resource & Exploration Target for Resolution & Adventure Prospects.” The Company confirms that it is not aware of any new information that affects the information contained in the announcement.

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U N E A R T H I N G P R O S P E R I T Y

IN SUPPORT OF THE MRE,

A 14,000 METRE DIAMOND DRILLING CAMPAIGN WAS COMPLETED ON TIME AND WITHIN BUDGET DURING THE YEAR.

Navarre believes there is significant potential to increase the size of the resource base at Resolution and Adventure, with further expansion diamond drilling to test the down-plunge directions which remain open at depth and along strike (Figures 3-5).

HIGHLIGHT RESULTS

5.0m @ 10.0 g/t Au

from 273.9m (RD027)

9.4m @ 5.3 g/t Au

from 355.6m, including 3.4m @ 9.2 g/t Au (RD028)

10.8m @ 4.5 g/t Au

from 483.6m, including 4.2m @ 7.5 g/t Au (RD028)

2.0m @ 9.9 g/t Au

from 235.8m (RD024)

1.0m @ 20.8 g/t Au

from 358.6m within a broader zone of 10.3m @ 2.2 g/t Au (RD024)

0.6m @ 55.0 g/t Au

from 494.1m (RD032)

7.9m @ 4.3 g/t Au

from 441.4m, including 1.0m @ 11.7 g/t Au (RD032)

3.7m @ 3.8 g/t Au

from 381.3m (RD030)

3.2m @ 9.6 g/t Au

from 263.6m, including 0.9m @ 12.5 g/t Au (AD007)

8.4m @ 3.4 g/t Au

from 405.6m, including 0.9m @ 13.7 g/t Au (AD008)

0.5m @ 55.7 g/t Au

from 508.9m (RD033)

4.0m @ 3.1 g/t Au

from 558.8m (RD040)

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Figure 2: Stawell Corridor Gold Project location map.

See ASX announcements on 8 July 2020, 25 September 2020, 23 December 2020 & 11 March 2021; Figures 4 & 5

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U N E A R T H I N G P R O S P E R I T Y

Post balance date the Company received results for three diamond core holes for a total of 1,242 metres drilled at the Resolution prospect which missed the timing deadline to be included in the MRE. The best result was 1.1 metres at 14.0 grams per tonne gold in hole RD044 (see ASX announcements on 15 September 2021).

Figure 3: Longitudinal projection of Resolution and Adventure prospects showing gold mineral inventory.

Figure 4: Longitudinal Projection of the Resolution prospect’s South Shoot showing significant drill results (refer to ASX announcement of 15 September 2021).

LANGI LOGAN BASALT DOME

South of the Irvine basalt dome, the 14.5 kilometre long Langi Logan basalt dome is the next major prospect for Magdala-style mineralisation within the Stawell Corridor Gold Project (Figures 2 & 6).

Prior to World War One, deep-lead mining within the prospect area produced approximately 133,000 ounces of gold from old river gravels now covered by younger lava flows that range from two to 30 metres in thickness.

During the year, a 3,400 metre air core drilling campaign has enhanced the potential scale of the gold system through the identification of a previously unknown 2.5 kilometre extension of the basalt dome (Langi Logan North Extension on Figure 6), offset to the west by a major east-west trending transverse fault.

The reconnaissance air-core drilling highlighted several areas of anomalous gold, quartz veining and sulphides (pyrite + arsenopyrite) requiring follow-up infill drilling.

Langi Logan is at an early exploration stage but has the potential to be a new gold system similar to that found on the flanks of the Irvine and Magdala basalt domes.

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Figure 6: Gravity image showing drill results, including historical, and geological interpretation (refer to ASX announcement of 14 January 2021).

Figure 5: Longitudinal Projection of the Adventure prospect showing key drill intercepts (refer to ASX announcement of 21 July 2021).

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U N E A R T H I N G P R O S P E R I T Y

GLENLYLE PROJECT

Situated 25 kilometres south-west of Ararat, the Glenlyle tenement captures a large circular intrusive complex within the Dryden-Stavely Volcanic Belt (Figure 2). This belt of rocks also hosts the Cayley Lode copper discovery of Stavely Minerals (ASX: SVY), 25 kilometres south-on-strike at Stavely’s nearby Thursdays Gossan deposit.

The Glenlyle tenement contains the exciting Morning Bill discovery, a greenfields prospect discovered by Navarre in 2018.

During H1 2021, Navarre completed the first ever diamond core testing program of Morning Bill, with a total of 2,994 metres of drilling completed across eight holes as follow-up to strongly anomalous gold, silver, copper, lead and zinc mineralisation reported in earlier air-core drilling (refer ASX announcements on 4 February 2021, 4 & 18 March 2021 and 2 & 10 June 2021).

The target area covered a 1,100-metre strike extent and a width of up to approximately 400 metres (Figure 8). This near-surface mineralisation remains open along strike and at depth.

All eight diamond holes intersected variably broad to strong gold, silver and associated polymetallic mineralisation, including peak assays of 16.5 grams per tonne gold, 1.2% copper, 9.1% zinc and 4.8% lead (Figure 7).

The results provide further evidence that Morning Bill is an emerging large, concealed gold-silver system with polymetallic potential.

A major geophysics program is now underway as a prelude to a drilling program to start later this year.

The knowledge gained about Morning Bill’s mineralisation will be applied to follow up drilling programs scheduled for later in the year, following completion of the annual crop harvest.

HIGHLIGHT INTERCEPTS

1.9m @ 10.1 g/t gold

from 142.6m, including 1.0m @ 16.5 g/t gold, 216.0 g/t silver & 2.0% zinc from within a broader interval of 46.8m @ 0.5 g/t gold from 120.5m (GDD001)

2.5m @ 3.7 g/t gold

from 364.9m, including 0.9m @ 9.1 g/t gold (GDD001)

305.4m @ 3.0 g/t silver

from 72.6m, including 1.9m @ 130.2 g/t silver (GDD001)

6.7m @ 1.8 g/t gold, 2.4 g/t silver, 1.5% zinc, 0.4% lead & 0.1% copper

from 208.6m (GDD003), including:

0.4m @ 10.1 g/t gold, 11.4 g/t silver, 9.1% zinc, 4.8% lead & 0.2% copper; 0.4m @ 8.0 g/t gold, 2.7 g/t silver, 4.9% zinc and 0.2% copper;

0.3m @ 2.3 g/t gold, 2.0 g/t silver, 1.8% zinc and 1.2% copper;

0.6m @ 3.6 g/t gold, 9.0 g/t silver, 0.5% zinc and 0.2% lead

from 363.7m (GDD002A)

9.7m @ 1.1 g/t gold

from 306.8m from within a broader zone of 30.5m

@ 0.6 g/t gold, (GDD006)

278.9m @ 2.8 g/t silver

from 70.2m, including 1.4m @ 117.1 g/t silver (GDD006)

194.8m @ 1.1 g/t silver

from 222.7m to end of hole (GDD007)

5.1m @ 13.7 g/t silver

from 298.5m to end of hole, including 1.0m

@ 58.6 g/t silver (GDD005)

See Figure 8 and ASX announcements on 4 February 2021, 4 & 18 March 2021, 2 & 10 June 2021 and 23 August 2021

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Figure 7: Straw-yellow sphalerite (zinc) and grey galena (lead) mineralisation at 213m in GDD003 (LHS) and chalcopyrite (copper) mineralisation at approximately 215m down hole in GDD003 (RHS).

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Figure 8: Plan of Morning Bill showing diamond and air core results on magnetic image.

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U N E A R T H I N G P R O S P E R I T Y

TANDARRA GOLD PROJECT

(RL 6660) (joint venture with operator Catalyst Metals Limited)

OWNERSHIP

COMMODITY

LOCATION GEOLOGICAL PROVINCE PROJECT STAGE Gold North-West of Melbourne, Bendigo-Ballarat Zone of Early Exploration Victoria Lachlan Fold Belt overlain by Recent Murray Basin cover

Navarre Minerals 49% Catalyst Metals 51%

THE HIGH-GRADE TANDARRA GOLD PROJECT IS LOCATED 50 KILOMETRES NORTHWEST OF KIRKLAND LAKE GOLD’S WORLD-CLASS FOSTERVILLE GOLD MINE, AND 40 KILOMETRES NORTH OF THE 22 MILLION-OUNCE BENDIGO GOLDFIELD (FIGURE 1).

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Led by Catalyst, exploration at Tandarra is targeting the next generation of gold deposits under shallow cover in the region.

The Tandarra Gold Project comprises three main prospects, Macnaughtan, Tomorrow and Lawry that are concealed beneath a blanket of younger, post-mineralisation sediments of the Murray Basin (Figure 9). These three prospects are adjacent to one another and are located in the hangingwall of the Whitelaw Fault, a major structural control of gold mineralisation at Bendigo.

During the year the Tandarra Joint Venture completed a total of 10,509 metres of air-core, RC and diamond drilling across the Macnaughtan, Tomorrow and Lawry prospects.

Figure 9: Plan of the Macnaughtan, Tomorrow and Lawry prospects showing significant 2021 drilling results. (Diagrams reproduced courtesy of Catalyst Metals Limited).

TOMORROW PROSPECT

At the Tomorrow prospect, diamond holes TND003-TND006 and reverse circulation holes TNR001-TNR005 were completed in April 2021.

The drilling targeted repetitions of gold-bearing fault structures at depth, below the main zone.

Hole TND003 returned the best results of 2.9 metres at 1.6 grams per tonne gold from 158 metres and 2.6 metres at 3.5 grams per tonne gold from 177 metres, confirming the position of the upper west-dipping mineralised fault.

Drilling also intersected a deeper fault structure about 450 metres downhole, demonstrating repetition at depth albeit with less alteration and lower gold values.

Further drill testing is required at all three prospects to infill and expand the known extends of gold mineralisation which remains open along strike and at depth.

MACNAUGHTAN PROSPECT

Air-core drilling completed on the Macnaughtan prospect has confirmed extensive zones of near surface, gold-bearing quartz reef development. Two diamond holes testing beneath one of the better air-core results (ACT464), intersected a broad 10 metre wide mineralised fault zone containing extensive quartz veining with visible gold.

LAWRY PROSPECT

Infill air-core drilling around the previously reported Lawry discovery hole (ACT378) encountered significant gold mineralisation in three holes located 50 metres west, 100m north and 100m south of the Lawry hole hole (refer ASX announcement of 13 October 2020).

This gold mineralisation remains open to the north, south and at depth.

HIGHLIGHT INTERCEPTS (MACNAUGHTAN)

13m @ 7.8 g/t gold

from 78m, including 2m @ 44.8 g/t gold (ACT464)

9m @ 14.8 g/t gold

from 106m, including 1m @ 112 g/t gold and 10m @ 1.7 g/t gold from 119m from within a broader interval of 30m @ 5.1 g/t gold from 105m (TNA050)

1m @ 18.7 g/t gold

from 70m (TNA039)

1m @ 9.4 g/t gold

from 75m (TNA032)

4m @ 1.6 g/t gold

from 89m, including 1m @ 5.7 g/t gold (TNA038)

2.45m @ 54.8 g/t gold

from 230.7m, including 0.3m @ 412 g/t gold (TND002)

See ASX announcements on 13 October 2020, 15 April 2021 and 26 July 2021

HIGHLIGHT INTERCEPTS (LAWRY)

6m @ 3.2 g/t gold

from 57m and 2m @ 16.3 g/t gold from 102m (TNA017)

6m @ 1.3 g/t gold

from 58m (TNA014)

4m @ 1.0 g/t gold

from 98m and 1m @ 1.2 g/t gold from 128m (TNA015)

See ASX announcement on 15 April 2021

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U N E A R T H I N G P R O S P E R I T Y

ST ARNAUD GOLD PROJECT

(ELs 6556, 6819, 7431 & 7567)

HIGHLIGHT INTERCEPTS

OWNERSHIP COMMODITY LOCATION 100% Navarre Minerals Gold 244km North-West Silver of Melbourne, Victoria

GEOLOGICAL PROVINCE

PROJECT STAGE

Bendigo-Stawell Zone, Early Exploration Lachlan Fold Belt

THE ST ARNAUD GOLD PROJECT SURROUNDS THE HISTORICAL ST ARNAUD GOLDFIELD, WHICH PRODUCED APPROXIMATELY 400,000 OUNCES OF GOLD BETWEEN 1855 AND 1916 AT AN AVERAGE GRADE OF 15 GRAMS PER TONNE.

The drilling returned strong gold and silver results, highlighting significant areas for follow-up diamond drill testing as a first step towards targeting a maiden mineral resource.

In addition to the air-core program, the Company is part way through a 9,000 metre diamond core drilling program testing beneath the best AC results on the New Bendigo and Nelson lines of reef.

Post balance date the Company received results for thirteen diamond core drill holes carried out on the New Bendigo line (refer Figures 10 & 11).

High-grade gold was mined from quartz lodes in a structural setting consistent with most gold deposits in central Victoria, including Bendigo and Fosterville (Figure 1).

Highlights include a gold intercept of 0.4 metres at 38.3 grams per tonne gold, within a broader interval of one metre at 15.6 grams per tonne gold from 153.7 metres (NBD005) and 1.4 metres at 13.1 grams per tonne, within a broader interval of 6.2 metres at 3.7 grams per tonne gold (NBD013).

In a competitive tender process, in October 2020 the Victorian Government’s Earth Resource Regulation granted Navarre tenure over the St Arnaud Goldfield, which adjoins the Company’s existing St Arnaud Gold Project.

Further details of the drilling programs are provided in the Company’s ASX announcements of 11 February 2021, 1 & 26 March 2021, 16 June 2021 and 15 September 2021.

In the June quarter, Navarre completed its inaugural 7,643 metre reconnaissance drilling program across 113 air-core holes testing beneath the shallow gold workings of the recently granted exploration licence, EL 6819.

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20m @ 1.8 g/t gold

from 33m, including 1m @ 9.2 g/t gold and 1m @ 6.9 g/t gold, and 1m @ 5.5 g/t gold from 62m (SAC145)

4m @ 3.0 g/t gold

from 6m (SAC143)

3m @ 2.2 g/t gold

from 49m (SAC159)

1m @ 36.4 g/t gold

from 41 metres (SAC223)

6m @ 1.2 g/t gold and 67.0 g/t silver from 20m (SAC208), including: 2m @ 172.0 g/t silver and 2.5 g/t gold

4m @ 3.3 g/t gold and 5.6 g/t silver from 24m (SAC213)

1m @ 8.2 g/t gold

from 20m (SAC226)

9m @ 1.5 g/t gold

from 15m (SAC172)

1m @ 6.3 g/t gold

from 65m (SAC189)

1m @ 5.7 g/t gold and 34.8 g/t silver

from surface (SAC199)

7m @ 1.0 g/t gold

from 32m (SAC227)

See ASX announcement on 16 June 2021

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Figure 10: Location of Navarre’s significant drill intercepts within the St Arnaud Goldfield.

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Figure 11: Longitudinal projection of the north end of the New Bendigo Line showing significant drill intercepts.

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ANNUAL REPORT 2021

U N E A R T H I N G P R O S P E R I T Y

BLACK RANGE PROJECT

(EL 4590)

Having deemed the copper-gold asset as non-core, in July 2021 Navarre sold its 100% interest in EL 4590 to Resource Base Ltd in return for a 17 per cent interest in Resource Base.

Resource Base successfully listed on the ASX under the code RBX in July 2021.

The Black Range Project captures three fault-bound segments of the Stavely Arc Volcanics.

JUBILEE GOLD PROJECT

(EL 6689)

OWNERSHIP COMMODITY LOCATION GEOLOGICAL PROVINCE PROJECT STAGE 100% Navarre Minerals Gold 143km west of Tasman Orogenic Belt, Early Exploration Silver Melbourne, Victoria Middle Devonian

STAVELY PROJECT

Stavely Minerals Limited (ASX: SVY) (Stavely) may earn up to an 80% equity interest in EL 5425 from Navarre by spending $450,000 over a five year period. EL 5425 is adjacent to Stavely’s wholly owned EL 4556 tenement that contains the Cayley Lode copper discovery at their nearby Thursdays Gossan deposit.

During the year, Stavely received results from a 7,500 line kilometre regional airborne gravity survey recently flown over its combined Stavely project area, inclusive of EL 5425 (refer SVY ASX announcement of 15 March 2021).

The survey results are being reviewed to aid identification of regional exploration targets obscured by shallow transported cover.

Auger geochemical assays of 39 samples were also carried out but did not locate any significant porphyry pathfinder elements.

(EL 5425) (NAVARRE 49%)

The Jubilee Gold Project includes the historical 619 metre deep Jubilee Gold Mine which produced approximately 130,000 ounces of gold, at an average grade of 12 grams per tonne. After operating for 26 years the mine closed in 1913 and no drilling had taken place since then.

During the year, Navarre’s 3,444 metre reconnaissance air-core drilling campaign returned strongly anomalous gold grades of up to 1.5 grams per tonne across three targets. These are associated with abundant quartz veining and have significantly expanded the footprint and robustness of the Jubilee project.

A deeper target below the old mine workings remains to be tested with diamond drilling.

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U N E A R T H I N G P R O S P E R I T Y

CORPORATE

CAPITAL RAISING

Navarre raised $8 million of equity capital in July 2020. In June 2021, the Company further strengthened its balance sheet via an oversubscribed placement and share purchase plan that raised a combined $14.9 million.

With $14.1 million cash as of 30 June 2021, Navarre is well funded to continue its ongoing exploration programs.

BOARD MOVEMENTS

Ian Holland was appointed as an independent non-executive director in May 2020 and was subsequently appointed joint managing director on 1 September 2020 and managing director on 1 April 2021, as part of a phased succession program.

Navarre’s foundation managing director Geoff McDermott was appointed technical director on 1 April 2021.

OUTLOOK

With a strong balance sheet, Navarre is in an excellent position to pursue its multi-faceted exploration program at a time of sustained investor interest in the Victorian gold story.

The board and management look forward to updating shareholders on the exploration program.

COMPETENT PERSON DECLARATION

The information in this Annual Report that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Shane Mele, who is a Member of The Australasian Institute of Mining and Metallurgy and who is Exploration Manager of Navarre Minerals Limited. Mr Mele has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration, and to the activity which he is undertaking, to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Mele consents to the inclusion in the release of the matters based on his information in the form and context in which it appears.

The information in this announcement that relates to Navarre’s Exploration Results have been extracted from various Navarre ASX announcements and are available to view on the Company's website at www.navarre.com.au or through the ASX website at www.asx.com.au (using ticker code "NML").

The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement. 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 announcements.

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IAN HOLLAND

MANAGING DIRECTOR

17 September 2021

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U N E A R T H I N G P R O S P E R I T Y

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TENEMENT INFORMATION (AS AT 15 SEPTEMBER 2021)

	TENEMENT	GROUP		TENEMENT	GROUP
PROJECT	DETAILS (1, 2)	INTEREST	PROJECT	DETAILS (1, 2)	INTEREST
BENDIGO NORTH
Tandarra3	RL 6660	49%
WESTERN VICTORIA COPPER
Black Range4	EL 4590	0%	Stavely5	EL 5425	49%
STAWELL CORRIDOR
Ararat	EL 5476	100%	Snake Hill	ELA 6530	0%
Tatyoon	EL 5480	100%	Langi Logan	EL 6702	100%
Glenlyle	EL 5497	100%	Langi Logan West	EL 6745	100%
Long Gully	EL 6525	100%	Margaret Gully	ELA 6843	0%
Westgate	EL 6526	100%	Mininera	EL 7125	100%
Hospital Hill	EL 6527	100%	Tatyoon North	ELA 7743	0%
Napoleon	EL 6528	100%
ST ARNAUD
St Arnaud	EL 6556	100%	St Arnaud West	ELA 7436	0%
Lord Nelson	EL 6819	100%	Donald	ELA 7496	0%
St Arnaud East	EL 7431	100%	Jeffcott	EL 7567	100%
JUBILEE GOLD PROJECT
Jubilee	EL 6689	100%	Ballarat	ELA 7539	0%
Ballarat	ELA 7538	0%	East Jubilee	ELA 7748	0%

◊ Notes:

1. In July 2021, Resource Base Limited acquired EL 4590 from Navarre. For further details, see Note 26.

2. EL = Exploration Licence; ELA = Exploration Licence Application; RL = Retention Licence.

3. Stavely Minerals Limited completed its obligations to earn a 51% interest and may earn a further 29% interest under an earn-in and joint venture agreement with Navarre.

4. All tenements are located in Victoria.

5. Catalyst Metals Ltd completed all obligations to earn a 51% interest under a farm-out agreement with Navarre. In addition to its ownership of the Tandarra licence in the Bendigo North area, Navarre is entitled to a 1% royalty on Catalyst’s share of proceeds from future production from part of the area covered by exploration licences EL 5266 (Raydarra) and EL 5533 (Sebastian).

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NAVARRE MINER ALS LIMITED

ANNUAL REPORT 2021

U N E A R T H I N G P R O S P E R I T Y

The information in this section is drawn from the following release:

STATEMENT OF MINERAL RESOURCES

AND ORE RESERVES

Navarre Minerals Limited intends to release its Annual Statement of Mineral Resources and Ore Reserves estimates as of 30 June each year. This is the inaugural Annual Statement of Mineral Resources and Ore Reserves for Navarre.

DEPOSIT

Adventure & Resolution Mineral Resources as of 26 March 2021

In March 2021, Navarre declared a maiden Inferred Mineral Resource of 3.9Mt @ 2.43 g/t gold for 304,300 ounces of gold for the Resolution and Adventure deposits within its wholly owned Stawell Corridor Gold Project.

(Maiden Gold Mineral Resource & Exploration Target for Resolution & Adventure Prospects)

RELEASE DATE

As of 30 June 2021, Navarre has not declared any Ore Reserve estimates for its projects.

30-Mar-21

MINERAL RESOURCES AS OF 30 JUNE 2021

DEPOSIT	MEASURED	INDICATED	INFERRED	TOTAL
	Tonnes Au Tonnes Au Tonnes Au Tonnes Au Au
	Mt g/t Mt g/t Mt g/t Mt g/t oz
Resolution OP	- - - - 1.75 2.09 1.75 2.09 118,000
Resolution UG	- - - - 1.46 3.12 1.46 3.12 146,000
Adventure OP	- - - - 0.68 1.85 0.68 1.85 40,300
Total Stawell Corridor	- - - - 3.89 2.43 3.89 2.43 304,300

◊ Notes:

1. The long-term gold price assumption for Mineral Resources and Ore Reserves was AUD$2,500 per ounce.

2. The OP cut-off gold grade used was >0.6 g/t.

SUMMARY OF SIGNIFICANT CHANGES SINCE 2020

Navarre is not aware of any new information or data that materially affects the information contained in the Mineral Resource estimates of the Adventure and Resolution deposits since announcement of the maiden Mineral Resources on 30 March 2021.

GOVERNANCE AND INTERNAL CONTROLS

The Minerals Resources estimate in this statement have been prepared in accordance with the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code 2012 Edition) by suitably qualified and experienced Competent Persons. The estimates are reviewed by internal and external qualified professionals and the Board of Navarre reviews and approves the estimates prior to public release.

COMPETENT PERSON STATEMENT

1. The Annual Mineral Resources and Ore Reserves Statement has been compiled by Mr Geoff McDermott, who is a Member of the Australasian Institute of Geoscientists. Mr McDermott is the Technical Director and a full-time employee of Navarre Minerals Limited. Mr McDermott has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration, and to the activities 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 (The JORC Code). Mr McDermott consents to the inclusion of the material in this report in the form and context in which it appears.

2. The information in this Annual Report that relates to Mineral Resources or Ore Reserves as of 30 June 2021 has been extracted from the release titled “Maiden Gold Mineral Resource & Exploration Target for Resolution & Adventure Prospects” dated 30 March 2021 (the original release). Navarre confirms that it is not aware of any new information or data that materially affects the information included in the original release and, in the case of Mineral Resources or Ore Reserves, that all material assumptions and technical parameters

underpinning the estimates in the original release continue to apply and have not materially changed. Navarre confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original release.

3. The information in this report that relates to Exploration Results, Exploration Targets and Mineral Resources is based on, and fairly reflects, information compiled by Mr Shane Mele, who is a Member of The Australasian Institute of Mining and Metallurgy and who is Exploration Manager of Navarre Minerals Limited. Mr Mele has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration, and to the activity which he is undertaking, to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.” Mr Mele consents to the inclusion of the material in this report in the form and context in which it appears.

4. The information in this report that relates to the Estimation and Reporting of Mineral Resources has been compiled by Mr David Coventry BSc (Geology) and Mr Richard Buerger BSc (Geology).

Both Mr Coventry and Mr Buerger are full-time employees of Mining Plus Pty Ltd and have acted as independent consultants on the Resolution and Adventure prospects Mineral Resource estimations. Mr Coventry is a Member of the Australasian Institute of Geoscientists (#5288) and Mr Buerger is a Member of the Australian Institute of Geoscientists (#6031). Both have sufficient experience with the style of mineralisation and the deposit type under consideration, and to the activities undertaken to qualify as a Competent Persons as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.” Mr Coventry and Mr Buerger consent to the inclusion in this report of the contained technical information relating to the Mineral Resource estimations in the form and context in which it appears.

1. Mineral Resources for the Resolution UG are spatially constrained within notional mining volumes to eliminate mineralisation that does not have reasonable prospects of eventual economic extraction.

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U N E A R T H I N G P R O S P E R I T Y

DIRECTORS’ REPORT

The directors present their report together with the consolidated financial statements of the group comprising Navarre Minerals Limited (variously the “Company”, “Navarre” and “Navarre Minerals”) and its subsidiaries (together, the “Group”) for the financial year ended 30 June 2021. Navarre Minerals is a company limited by shares, incorporated and domiciled in Australia. In order to comply with the provisions of the Corporations Act 2001, the directors report as follows:

1. DIRECTORS

The names and details of the Company’s directors in office during the financial year and until the date of this report are as follows. The directors were in office during the entire period unless otherwise stated.

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DESIGNATION &
INDEPENDENCE
DIRECTOR STATUS
Kevin Wilson Chairman
Appointed
30 April 2007. Non-executive
Independent
Ian Holland Managing
Appointed 25 May 2020. Director
Appointed Managing
Director on Executive
1 September 2020.
Geoff McDermott Technical
Appointed Managing Director
Director on 19 May 2008.
Appointed Technical Executive
Director on 1 April 2021.
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DESIGNATION & DIRECTORSHIPS SPECIAL
INDEPENDENCE OF OTHER LISTED RESPONSIBILITIES
STATUS QUALIFICATIONS, EXPERIENCE & EXPERTISE COMPANIES DURING THE YEAR [1]
Chairman BSc (Hons), ARSM, MBA Los Cerros Limited Chairman of the Board.
Mr Wilson has over 30 years’ experience in the minerals and finance (ongoing).
Non-executive industries. He was the Managing Director of Rey Resources Limited, Chairman of the Nomination &
an Australian energy exploration company, from 2008 to 2016 and the Investigator Remuneration Committee.
Independent Managing Director of Leviathan Resources Limited, a Victorian gold mining Resources Limited
company, from its initial public offering in 2005 through to its sale in 2006. (ongoing). Chairman of the Audit
He has prior experience as a geologist with the Anglo American Group in Committee from 2 April to
Africa and North America and as a stockbroking analyst and investment 25 June 2020 and from 1
banker with CS First Boston and Merrill Lynch in Australia and USA. September 2020.
Managing BSc, MMinGeoSc, FAusIMM, F Fin, MAICD None. Chairman of the Audit
Director Mr Ian Holland has over 20 years’ experience in the minerals industry Committee from 25 June to 31
across a number of gold and base metal operations throughout Australia. August 2020.
Executive He is a geologist by background and has a strong track record of value
creation with his most recent previous role as Vice President, Australian Member of the Nomination
Operations for Kirkland Lake Gold where he led the growth of the world- & Remuneration Committee
class Fosterville Gold mine in Victoria. He was also previously the General from 25 June 2020.
Manager of Fosterville for a number of years as well as roles at Mount Isa
Mines, Mount Gordon and Renison.
Technical BSc (Hons), MAIG None. Member of the Nomination &
Director Mr McDermott is a geologist with over 30 years’ industry experience Remuneration Committee.
working in surface and underground metalliferous mining operations,
Executive in mineral exploration and as a consultant to the minerals industry. Mr
McDermott has a broad range of international experience having worked
as a geologist in Canada, Fiji and Australia for companies such as Western
Mining Corporation and Rio Tinto and with the Government of the
Northwest Territories, Canada. From 2002 until 2007, Mr McDermott was
Chief Geologist and Group Geologist with MPI Mines Limited and Leviathan
Resources Limited.
Director & B.Bus (Acc), FCPA None. Member of the Audit
Company Mr Naylor was previously Chief Financial Officer and Company Secretary Committee and the
Secretary of oil and gas explorer, Melbana Energy Limited, a position held for over 11 Nomination & Remuneration
years until July 2018. Before joining Melbana, Mr Naylor held a number of Committee until 27 November
Non- senior roles in major resource companies, including Woodside Petroleum, 2020.
Independent BHP Petroleum and Newcrest Mining. Mr Naylor also worked at MPI Mines
Limited and Leviathan Resources Limited.
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Colin Naylor Director & Appointed 5 November Company 2010 and resigned 27 Secretary November 2020. Appointed Company NonSecretary on 31 July 2018 Independent and resigned 31 December

1 From 28 January 2021, the Board fulfilled the role of Nomination & Remuneration Committee and Audit & Risk Committee

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U N E A R T H I N G P R O S P E R I T Y

1. DIRECTORS (CONT.)

INTERESTS IN THE SHARES AND OPTIONS OF THE COMPANY As at the date of this report, the relevant benefcial and non-benefcial interests of each of the directors in the shares and share options in the Company were:	ORDINARY SHARES OPTIONS PERFORMANCE RIGHTS
	K Wilson 13,906,085 1,700,000 -
	I Holland 2,300,000 - 1,000,000
	G McDermott 14,555,792 5,000,000 -

The terms of these options are set out in Note 23 to the consolidated financial statements.

2. COMPANY SECRETARY

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Mr Colin Naylor held the position of Company Secretary from 31 July 2018 until 31 December 2020. Ms Jodi Ford was appointed interim Company Secretary for the period 1 January 2021 to 28 January 2021, at which time Mr Mathew Watkins was appointed Company Secretary. As a result of Mr Watkins’s appointment, Ms Ford reverted to her previous role as Assistant Company Secretary.

Mr Watkins is a Chartered Accountant who has extensive ASX experience within several industry sectors including Biotechnology, Bioscience, Resources and Information Technology. He specialises in ASX statutory reporting, ASX compliance, Corporate Governance and board and secretarial support. Mr Watkins is appointed Company Secretary on a number of ASX listed Companies as well as a number of public unlisted companies.

Mr Watkins is employed at Leydin Freyer, a professional Company Secretarial and Accounting firm. Leydin Freyer have vast experience working with listed entities and brings a strong background of working with growing companies within the Resources sector.

3. DIVIDENDS

No dividend has been paid, provided or recommended during the financial year and to the date of this report (2020: nil).

4. OPERATING AND FINANCIAL REVIEW

4.1 PRINCIPAL ACTIVITIES

The principal activities during the year were mineral exploration in Victoria, Australia.

The Company had 10 permanent employees at 30 June 2021 including directors (2020: 6).

4.2 ENVIRONMENT, HEALTH AND SAFETY

The Group conducts exploration activities in Victoria. No mining activity has been conducted by the Group on its exploration licences, and its exploration activities to date have had a low level of environmental impact.

The Group’s exploration operations are subject to environmental and health and safety regulations under the various laws of Victoria and the Commonwealth. There were no reported Lost Time Injuries or environmental incidents during the year.

4.3 REVIEW OF OPERATIONS

Refer to the Managing Director’s Review of Operations 2021 on pages 10 to 26.

4.4 REVIEW OF FINANCIAL POSITION

a) Results for the year

The net loss for the financial year, after provision for income tax, was $2,723,684 (2020: loss after tax of $984,124).

b) Review of financial condition at the balance date

At balance date the Group held cash and cash equivalents of $14,095,825. During the year the Group increased the cash balance by $11,499,177 following net proceeds from share issues of $22,048,991 and interest received of $70,721, which was partially used to meet investment, exploration and capital net cash outflows of $7,707,187, corporate costs of $2,897,836 and lease liability repayments of $15,512.

c) Share issues

In July 2020, Navarre raised $8,000,000 (before transaction costs) from a share placement to institutional and sophisticated investors, resulting in the issue of 64,000,000 ordinary shares at an issue price of $0.125 per share.

In August 2020, Navarre raised $14,400 (before transaction costs) from issuing 200,000 fully paid ordinary shares following the exercise of unlisted employee share options (exercise price $0.072, expiry date 31 December 2021).

In November 2020, Navarre issued 500,000 fully paid ordinary shares following the exercise of unlisted performance rights (expiry date 31 December 2024).

In December 2020, Navarre raised $288,860 (before transaction costs) from issuing 2,200,000 fully paid ordinary shares following the exercise of unlisted share options (exercise price $0.1313, expiry date 17 May 2022).

In March 2021, Navarre raised $132,000 (before transaction costs) from issuing 1,100,000 fully paid ordinary shares following the exercise of unlisted employee share options (exercise price $0.12, expiry date 17 May 2024).

In June 2021, Navarre raised $10,000,000 (before transaction costs) from a share placement to institutional and sophisticated investors, resulting in the issue of 100,000,000 ordinary shares at an issue price of $0.10 per share. Also during June 2021, Navarre raised $4,893,000 (before transaction costs) from a Share Purchase Plan, resulting in the issue of 48,930,000 ordinary shares at an issue price of $0.10 per share.

d) Significant changes in the state of affairs of the Group during the financial year

During the year, the Group raised $23,328,260 (before transaction costs) through capital raising initiatives, as detailed above (under the heading “Share issues”). The purpose of the capital raisings was mainly to enable the Company to pursue exploration programs at its portfolio of assets in Victoria.

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NAVARRE MINER ALS LIMITED
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4. OPERATING AND FINANCIAL REVIEW (CONT.)

e)

e) Significant events after the balance date

$1,520,000

On 16 February 2021, Navarre announced the execution of a binding agreement with Resource Base Limited (Resource Base) for the sale of the Company’s Black Range base metal exploration tenement (EL 4590) in western Victoria, which includes the Eclipse prospect.

in Resource Base shares on settlement (at Resource Base Initial Public Offering price of $0.20 per share);

As consideration for acquiring 100% ownership in the tenement, Resource Base agreed to provide Navarre the adjacent considerations, subject to the satisfaction or waiver of certain conditions precedent.

2,500,000

Resource Base shares on the announcement of a JORC compliant Inferred Mineral Resource of:

On 12 July 2021, following successful completion of its Initial Public Offering, Resource Base was admitted to the Official List of ASX Limited. As a result, the Company was issued 7,600,000 fully paid ordinary shares in Resource Base.

a minimum of 100,000 ounces of gold at a minimum grade of no less than 1 g/t; or a minimum of a combined 100,000 tonnes of copper and zinc, each at a minimum grade of 1%, within 5 years of the settlement date; and

On 1 July 2021, Navarre issued 3,300,000 share performance rights to senior staff of the Company under the terms of the Navarre Minerals Limited Performance Rights Plan.

6,000,000

In September 2021, Navarre’s application to participate in the Federal Government’s Junior Minerals Exploration Incentive (JMEI) scheme for the 2021/2022 income tax year was accepted by the Australian Taxation Office. The Company has received an allocation of up to $1,250,000 exploration credits which can be distributed to eligible shareholders, being those that are Australian resident shareholders who apply for and are issued new shares in Navarre’s capital raising activities between 1 September 2021 and 30 June 2022.

Resource Base shares on delivery of a definitive feasibility study within 5 years of settlement which indicates a project net present value of greater than $250,000,000.

In addition, Navarre was entitled to nominate one non-executive director to sit on the Board of Resource Base.

Other than the above, there has not arisen in the interval between the end of the financial year and the date of this report any item, transaction or event of a material and unusual nature likely, in the opinion of the directors of the Company, to significantly affect the operations of the Group, the results of those operations, or state of affairs of the Group, in future financial years.

f) Likely developments and expected results

During the year under review, the Group continued to focus on the Irvine Gold Project and Tandarra Gold Project, while also broadening its mineral exploration activities to include programs at St Arnaud, Glenlyle and Langi Logan.

During the course of the financial year ending 30 June 2022, the Group expects to continue its mineral exploration activities and will investigate additional opportunities in which the Group may wish to participate.

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4. OPERATING AND FINANCIAL REVIEW (CONT.)

4.5 BUSINESS STRATEGY AND PROSPECTS FOR FUTURE FINANCIAL YEARS

a) Business Strategy

THE GROUP’S MISSION IS TO REWARD SHAREHOLDERS BY CREATING VALUE THROUGH THE DISCOVERY, EVALUATION AND EXTRACTION OF MINERALS.

To achieve this, we must maximise the potential of our existing assets through targeted exploration programs while also identifying new opportunities upon which to apply our expertise and invest our capital.

b) Future Prospects of the Group

The key driver of the Group’s future prospects will be the success of its exploration programs. The discovery of an economic mineral deposit has the potential to significantly increase shareholder wealth.

The Group’s goal is to define a mineral resource and to become a low-cost mineral producer through exploration success. The Group undertakes an active exploration program within emerging and proven mineral corridors, with the objective of identifying economic gold and copper mineral deposits. The Group’s strategy for the next twelve months is to focus its financial and managerial resources on expanding its maiden resource at the Irvine Gold Project (Resolution and Adventure) and following up encouraging initial results at Glenlyle and St Arnaud, while continuing to participate in the Tandarra JV. Evaluating opportunities to grow and advance Navarre towards production through acquisition will also form a key plank of our corporate strategy.

The risks presented on the opposite page are not intended to be an exhaustive list of the risk factors to which the Company is exposed.

Navarre Minerals is also exposed to a range of market, financial and governance risks. The Company has risk management and internal control systems to manage material business risks which include insurance coverage over major operational activities and regular review of material business risks by the Board.

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b)

I

!

THE KEY MATERIAL RISKS FACED BY THE GROUP THAT ARE LIKELY TO HAVE AN EFFECT ON ITS

EXPLORATION RISK

The Group’s mineral tenements are in the early stages of exploration, and there can be no assurance that exploration of the tenements currently held by the Group, or any other tenements that may be acquired in the future, will result in the discovery of an economic mineral deposit. Until the Group is able to realise value from its mineral tenements, it is likely to incur ongoing operating losses. If exploration is successful, there will be additional costs and processes involved in moving to the development phase. By its nature, exploration risk can never be fully mitigated, but the Group has the benefit of significant exploration expertise through its management team and of operational and business expertise at both board and management level;

FUTURE FINANCIAL PROSPECTS INCLUDE:

II

LAND ACCESS

There is a substantial level of regulation and restriction on the ability of exploration and mining companies to have access to land in Australia. Negotiations with both native title claimants/holders and the owners/occupiers of private land are generally required before the Group can access land for exploration or mining activities. Inability to access, or delays experienced in accessing, the land may impact on the Group’s activities;

IV

III

REQUIREMENTS FOR CAPITAL

TENEMENT TITLE

As exploration costs reduce the Group’s cash reserves, the Group will require additional capital to support the long term exploration and evaluation of its projects. If the Group is unable to obtain additional financing as needed, through equity, debt or joint venture financing, it may be required to scale back its exploration programs. The Group will continue to consider capital raising initiatives, as required, including possible corporate opportunities;management level;

The Group could lose title to its mineral tenements if insufficient funds are available to meet the relevant annual expenditure commitments, as and when they arise. The Group closely monitors its compliance with licence conditions, including expenditure commitments and rents, and maintains a dialogue with the relevant State government representatives who are responsible for enforcing licence conditions; and.

V

RELIANCE ON KEY PERSONNEL

The responsibility of overseeing the day-to-day operations and the strategic management of the Company depends substantially on the executive and non-executive Directors. There can be no assurance given that there will be no detrimental impact on the Company if one or more of the Directors, particularly the Managing Director, no longer acts as a Director.

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5. SHARE OPTIONS

COMPENSATION OPTIONS ISSUED

DURING THE FINANCIAL YEAR

No share options were issued by the Company to directors or employees of . the Company during the financial year

OPTIONS EXPIRED DURING THE FINANCIAL YEAR

NUMBER OF OPTIONS	DATE LAPSED/EXPIRED
550,000	31 December 2020
750,000	27 February 2021
1,000,000	31 March 2021
1,000,000	6 June 2021

6. SHARE PERFORMANCE RIGHTS

COMPENSATION PERFORMANCE RIGHTS ISSUED DURING THE

FINANCIAL YEAR

During the financial year, the Company issued 1,500,000 share performance rights (expiry 31 December 2024) to the Managing Director of the Company (further details on the performance rights are contained later in this Directors report).

PERFORMANCE RIGHTS EXPIRED DURING THE FINANCIAL

YEAR

No performance rights expired during the financial year.

UNISSUED SHARES UNDER OPTION

UNISSUED SHARES UNDER PERFORMANCE RIGHTS

At the date of this report, there were 12,400,000 unissued ordinary shares of the Company under option. The details of these options are as follows:

EXPIRY DATE	EXERCISE PRICE	NUMBER
31 December 2021	$0.090	200,000
17 May 2022	$0.1313	1,800,000
29 January 2023	$0.150	2,000,000
10 April 2023	$0.150	3,900,000
21 February 2024	$0.120	1,700,000
17 May 2024	$0.120	2,800,000

No person entitled to exercise the options had or has any right by virtue of the option to participate in any share issue of the Company.

SHARES ISSUED ON THE EXERCISE OF OPTIONS

During or since the end of the financial year, the Company issued fully paid ordinary shares as a result of the exercise of options as follows:

		AMOUNT PAID ON
DATE EXERCISED	NUMBER OF SHARES	EACH SHARE
18 August 2020	200,000	$0.072
11 December 2020	2,200,000	$0.1313
4 March 2021	433,333	$0.120
19 March 2021	666,667	$0.120

At the date of this report, there were 4,300,000 unissued ordinary shares of the Company under performance rights.

The terms of these performance rights are as follows:

EXPIRY DATE	NUMBER
30 June 2024	900,000
31 December 2024	1,000,000
30 June 2025	2,400,000

No person entitled to exercise the performance rights had or has any right by virtue of the performance right to participate in any share issue of the Company.

SHARES ISSUED ON THE EXERCISE OF PERFORMANCE RIGHTS

During or since the end of the financial year, the Company issued fully paid ordinary shares as a result of the exercise of performance rights as follows:

EXPIRY DATE	NUMBER OF SHARES
30 November 2020	500,000
6 August 2021	1,800,000
26 August 2021	1,000,000

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NAVARRE MINER ALS LIMITED

ANNUAL REPORT 2021

U N E A R T H I N G P R O S P E R I T Y

7. INDEMNIFICATION AND INSURANCE OF DIRECTORS

The Company paid an insurance premium in respect of a contract insuring all directors of the Company against legal costs incurred in defending proceedings as permitted by Section 199B of the Corporations Act 2001.

8. BOARD AND COMMITTEE MEETINGS

The following table sets out the members of the Board of Directors and the members of the Committees of the Board, the number of meetings of the Board and of the Committees held during the year and the number of meetings attended during each director’s period of office.

	BOARD OF DIRECTORS AUDIT & RISK COMMITTEE3 NOMINATION REMUNERATION & COMMITTEE3
	A B A B A B
K Wilson	14 14 2 2 2 2
I Holland1	14 14 1 1 2 2
G McDermott	14 14 - - 2 2
C Naylor2	6 6 2 2 1 1

A – Number of meetings attended

B – Number of meetings held during the time the director held office during the year

1Mr Holland was a member of the Audit & Risk Committee between 25 June 2021 until his appointment as Joint Managing Director on 1 September 2020.

2Mr Naylor resigned on 27 November 2020.

3 From 28 January 2021, the Board fulfilled the role of Nomination & Remuneration Committee and Audit & Risk Committee. Therefore, no separate committee meetings are reported above for the period 28 January 2021 until 30 June 2021

9. AUDITOR INDEPENDENCE AND NON-AUDIT SERVICES

The directors have received the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 from the auditor, RSM Australia Partners, set out on page 66.

NON-AUDIT SERVICES

Details of amounts paid to the auditor, RSM Australia Partners, for non-audit services provided during the year by the auditor are outlined in note 24 to the financial statements. The Directors are satisfied that the provision of non-audit services is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001. The nature and scope of the non-audit services provided means that auditor independence was not compromised.

10. REMUNERATION REPORT (AUDITED)

The Remuneration Report for the year ended 30 June 2021 outlines the remuneration arrangements of the Company, in accordance with Section 300A of the Corporations Act 2001 and its regulations.

The information provided in this Remuneration Report has been audited as required by Section 308(3C) of the Corporations Act 2001. This Remuneration Report forms part of the Directors’ Report.

The Remuneration Report details the remuneration arrangements for Key Management Personnel (“KMP”), who are defined as those persons having authority and responsibility for planning, directing and controlling the activities of the Company, directly or indirectly, including any director (whether executive or otherwise) of the Company.

10.1 KEY MANAGEMENT PERSONNEL FOR THE YEAR

ENDED 30 JUNE 2021

DIRECTORS

K Wilson	Chairman (independent Non-executive)
I Holland	Managing Director (Executive) (appointed Managing Director on 1 September 2020)
G McDermott	Technical Director (Executive) (Managing Director for period up to 31 March 2021,
	appointed Technical Director on 1 April 2021)
C Naylor	Director and Company Secretary (Executive) (resigned as Director on 27 November 2020 and
	Company Secretary on 31 December 2020)
EXECUTIVES
P Hissey	Chief Financial Offcer (appointed 1 April 2021)
S Mele	Exploration Manager
J Ford	Accountant and Assistant Company Secretary (acted as interim Company Secretary for period 1
	January 2021 to 28 January 2021)
M Watkins	Company Secretary (appointed 28 January 2021)

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NAVARRE MINER ALS LIMITED

ANNUAL REPORT 2021

U N E A R T H I N G P R O S P E R I T Y

10.2 BOARD OVERSIGHT OF REMUNERATION

The policy for determining the nature and amount of remuneration for directors and executives is set by the Board of Directors as a whole. The Board established a Nomination & Remuneration (“N&R”) Committee to provide the Board with a regular, structured opportunity to focus on nomination and remuneration issues. The Board fulfils the role of N&R Committee due to the size of the Group and its operations. Any potential for, or perception of, conflict of interest resulting from any of the members of the N&R Committee is addressed by ensuring that those members recuse themself

of any discussion of their remuneration arrangements or performance and takes no part in the discussion or decisionmaking process in relation to such matters.

The Board may obtain professional advice when appropriate to ensure that the Company attracts and retains talented and motivated directors and employees who can enhance Company performance through their contributions and leadership.

10.4 EXECUTIVE REMUNERATION ARRANGEMENTS

The Company aims to reward executives with a level and mix of remuneration commensurate with their position and responsibilities within the Company and so as to:

◊ align the interests of executives with those of shareholders;

• link reward with the strategic goals and performance of the Company; and

• ensure total remuneration is competitive by market standards.

Executive remuneration consists of fixed remuneration and, where appropriate, variable (at risk) remuneration.

Variable/at risk remuneration

Fixed remuneration

10.3 NON-EXECUTIVE DIRECTOR

REMUNERATION ARRANGEMENTS

The Board seeks to set non-executive director remuneration at a level that provides the Company with the ability to attract and retain directors of high calibre, at a cost acceptable to shareholders.

The amount of aggregate remuneration approved by shareholders and the fee structure for non-executive directors is reviewed annually by the Board against fees paid to nonexecutive directors of comparable companies.

The Company’s Constitution and the ASX Listing Rules specify that the aggregate remuneration of non-executive directors must be determined from time to time by members in a general meeting. An amount not exceeding the amount determined is then divided between the directors as agreed. The maximum aggregate annual remuneration for nonexecutive directors is currently set at $300,000 per annum. Any increase in this amount will require shareholder approval at a general meeting.

Non-executive directors are remunerated at marketplace levels by way of fixed fees, usually in the form of cash and statutory superannuation contributions, and (from time to time, as appropriate) options issued through the Navarre Minerals Limited Option Plan (“NMLOP”) or share performance rights issued through the Navarre Minerals Limited Performance Rights Plan (“NMLPRP”). For the reporting period, the Chairman was entitled to receive $50,000 per annum (excluding statutory superannuation). Effective from 1

July 2021, the Chairman’s directors’ fees increased to $60,000 per annum (excluding statutory superannuation).

In addition to directors’ fees, the directors are entitled to be paid all travelling and other expenses they incur in attending to the Company’s affairs, including attending and returning from general meetings of the Company or meetings of the Board or of committees of the Board. No additional remuneration is paid to directors for service on board committees or on the boards of wholly owned subsidiaries, but additional remuneration may be paid to directors if they are called upon to perform extra services or make any special exertion for the purposes of the Company.

The non-executive directors have no leave entitlements and do not receive any retirement benefits, other than statutory superannuation and salary sacrifice superannuation (if directors wish to exercise their discretion to make additional superannuation contributions by way of salary sacrifice).

The remuneration of the Company’s non-executive directors for the year ended 30 June 2021 and 30 June 2020 is detailed in Table 1 and Table 2 of this Remuneration Report.

The base salaries of the Managing Director and other executives are fixed. Fixed remuneration is set at a market competitive level, considering an individual’s responsibilities, performance, qualifications and experience, and current market conditions in the mining industry. Base salaries are reviewed annually, but executive contracts do not guarantee any increases in fixed remuneration.

Executives receive statutory superannuation from the Company and may, in their discretion, make additional superannuation contributions by way of salary sacrifice.

The Managing Director approves the terms and conditions of consultants’ contracts, including fees, taking into account market conditions for the services that are provided. Consulting contracts do not include any guaranteed fee increases.

The fixed component of executives’ remuneration is detailed in Table 1 and Table 2 of this Report.

The performance of executives is measured against criteria agreed annually and is based predominantly on the overall success of the Company in achieving its broader corporate goals. Variable remuneration is linked to predetermined performance criteria. Variable remuneration is also used to promote retention of high calibre staff, which the Company considers to be essential to the growth and success of the Company.

Variable remuneration may take the form of short-term incentives, such as payment of a cash bonus, or long-term incentives through participation in the NMLOP or NMLPRP, which are used to provide long term performance and retention incentives, as appropriate. See page 64 for details of options and performance rights granted to key management personnel during the year.

The Company prohibits executives from entering into arrangements to protect the value of unvested options or performance rights. The prohibition includes entering into contracts to hedge their exposure to options or performance rights awarded as part of their remuneration package.

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NAVARRE MINER ALS LIMITED

ANNUAL REPORT 2021

U N E A R T H I N G P R O S P E R I T Y

10.5 EXECUTIVE CONTRACTUAL ARRANGEMENTS

Remuneration arrangements for Key Management Personnel are formalised in employment or consultancy agreements (as applicable). Details of these contracts are provided below.

MANAGING DIRECTOR

Mr Ian Holland was appointed Joint Managing Director on 1 September 2020 and transitioned to the role of Managing Director on 1 April 2021. Mr Holland is employed by the Company on a fulltime basis pursuant to an executive service agreement dated 31 August 2020, which contains the following major terms:

SHORT-TERM INCENTIVE

TERM

From 1 September 2020 until either the Company or Mr Holland terminates the agreement.

Mr Holland is eligible to receive an annual short-term incentive payment of up to 50% of the total fixed remuneration on terms decided by the Board. In October 2019, the N&R Committee resolved that the grant of Performance Rights, with appropriate performance hurdles, to be a more effective incentive arrangement than the short-term incentive payments used in previous years. Therefore, no short-term incentive payment was included in Mr Holland’s remuneration package for calendar year 2021. Instead, Mr Holland was granted 1,500,000 share performance rights (see below Long-term incentive section for further details).

BASE SALARY

Mr Holland’s total fixed remuneration is $245,940 per annum plus statutory superannuation. Effective from 1 July 2021, Mr Holland’s remuneration increased to $300,000 plus statutory superannuation. This is reviewed by the N&R Committee on an annual basis, but there is no guarantee of any increase in fixed remuneration.

NOTICE

TERMINATION PAYMENTS

If Mr Holland’s employment is terminated by the Company for any reason (other than in

The Company may terminate the agreement at any time by giving six months’ notice in writing. Mr Holland may terminate the agreement at any time by giving six months’ written notice to the Company or on one month’s written notice to the Company if a ‘fundamental change’ to his employment occurs or the Company has failed to remedy a notified breach of its obligations under the agreement. The Company may immediately terminate the agreement by giving written notice in certain circumstances, including if serious misconduct has occurred. The Company may elect to pay Mr Holland in lieu of part or all of any notice period.

circumstances warranting summary dismissal), Mr Holland is entitled to a retirement benefit calculated as one month’s total fixed remuneration, plus two weeks’ total fixed remuneration for each completed or part-completed year of continuous service with the Company. If Mr Holland resigns within six months of a ‘fundamental change’, Mr Holland is entitled to a lump sum payment equivalent to six months’ total fixed remuneration.

LONG-TERM INCENTIVE

Mr Holland is eligible to receive an annual long-term incentive payment of up to 75% of the total fixed remuneration on terms decided by the Board. Mr Holland is also eligible to participate in the Company’s long-term incentive arrangements (as amended or replaced) on terms decided by the Board, subject to necessary shareholder approvals. Effective from 1 July, Mr Holland’s long-term incentive increased to up to 80% of his total base salary.

The Managing Director’s remuneration package for the period to 31 December 2021 included a long-term incentive in the form of a grant of 1,500,000 share performance rights. The performance rights will vest based on the following conditions:

NUMBER OF PERFORMANCE RIGHTS

SERVICE CONDITION

These Performance Rights will vest and become exercisable when the Share price exceeds a closing price of 20 cents per Share for 10 consecutive Trading Days while holding the position of Managing Director in the period from 1 September 2020 to 31 December 2021.

• 500,000

• 500,000 These Performance Rights will vest and become exercisable when the Share price exceeds a closing price of 25 cents per Share for 10 consecutive Trading Days while holding the position of Managing Director in the period from 1 September 2020 to 31 December 2022.

• 500,000 These Performance Rights will vest and become exercisable when the Share price exceeds a closing price of 30 cents per Share for 10 consecutive Trading Days while holding the position of Managing Director in the period from 1 September 2020 to 31 December 2023.

The Company obtained shareholder approval for the grant of these performance rights at the Company’s annual general meeting in November 2020 and the performance rights were issued shortly after that meeting on 27 November 2020. The service condition has been achieved for 500,000 performance rights with the Company’s share price exceeding a closing share price of 20 cents per share for 10 consecutive trading days and as such these performance rights vested and were exercised on 30 November 2020.

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NAVARRE MINER ALS LIMITED

ANNUAL REPORT 2021

U N E A R T H I N G P R O S P E R I T Y

TECHNICAL DIRECTOR

Mr Geoff McDermott was appointed Technical Director with effect from 1 April 2021. Prior to this, Mr McDermott was employed as Managing Director from 31 March 2011 to 31 August 2020 before becoming Joint Managing Director from 1 September 2020.

Mr McDermott is employed by the Company on a full-time basis pursuant to an executive service agreement dated 10 December 2010 (and subsequent variations), which contains the following major terms:

SHORT-TERM INCENTIVE

TERM

From 31 March 2011 until either the Company or Mr McDermott terminates the agreement.

Mr McDermott is eligible to receive an annual shortterm incentive payment on terms decided by the Board.

In August 2020, the Board of Directors considered Mr McDermott’s short term incentive arrangements for the period up to 31 March 2021. The Board of Directors determined that Mr McDermott will receive a short-term incentive in the form of a cash payment of up to $100,000, subject to achievement of agreed KPIs. Those KPIs comprised performance measures in relation to the delivery of a maiden Mineral Resource. In March 2021, the Board of Directors assessed Mr McDermott’s performance against the defined short-term incentive KPIs and approved a cash payment of $85,000 to Mr McDermott by way of a short-term incentive for the period up to 31 March 2021. Of this, $50,000 was related to the delivery of the maiden Inferred Minerals Resource of 3.9Mt @ 2.43g/t gold for 304,300 ounces of gold at the Resolution and Adventure prospects, and the remaining $35,000 was related to the additional Exploration Target declared for the Resolution and Adventure prospects of between 3.4 and 5.2Mt at a grade ranging between 2.0 to 3.0 g/t gold for 280,000 to 420,000 ounces of gold (see ASX announcement of 30 March 2021).

BASE SALARY

Mr McDermott’s total fixed remuneration is $245,936 per annum plus statutory superannuation. Effective from 1 July 2021, Mr McDermott’s remuneration increased to $250,000 plus statutory superannuation. This is reviewed by the N&R Committee on an annual basis, but there is no guarantee of any increase in fixed remuneration.

NOTICE

The Company may terminate the agreement at any time by giving six months’ notice in writing. Mr McDermott may terminate the agreement at any time by giving six months’ written notice to the Company or on one month’s written notice to the Company if a ‘fundamental change’ to his employment occurs or the Company has failed to remedy a notified breach of its obligations under the agreement. The Company may immediately terminate the agreement by giving written notice in certain circumstances, including if serious misconduct has occurred. The Company may elect to pay Mr. McDermott in lieu of part or all of any notice period.

In line with the Company’s internal policy to utilise performance rights rather than short-term incentive payments, no short-term incentive payment was included in Mr McDermott’s remuneration package for financial year 2022.

LONG-TERM INCENTIVE

Mr McDermott is eligible to participate in the Company’s long-term incentive arrangements (as amended or replaced) on terms decided by the Board, subject to necessary shareholder approvals.

Mr McDermott remuneration package for calendar year 2020 included an incentive in the form of a grant of 1,500,000 share performance rights, subject to the following conditions:

NUMBER OF PERFORMANCE RIGHTS SERVICE CONDITION

==> picture [470 x 241] intentionally omitted <==

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

||||
|---|---|---|
|500,000|These Performance Rights will vest and become exercisable upon Mr McDermott holding the position of|
|Managing Director at 31 December 2020|(Retention Service Period)|.|
|500,000|At the discretion of the Board these Performance Rights will vest and become exercisable upon|
|satisfactory meeting the following hurdles in the period to 31 December 2020|(Service Performance)|.|
|- Securing statutory permitting and community support for drilling programs|
|- Execution of drilling programs - on budget with no safety or environmental incidents|
|166,666|These Performance Rights will vest and become exercisable when the Share price exceeds a closing|
|price of 12 cents per Share for 10 consecutive Trading Days in the period leading up to 31 December|
|2020.|
|166,667|These Performance Rights will vest and become exercisable when the Share price exceeds a closing|
|price of 16 cents per Share for 10 consecutive Trading Days in the period leading up to 31 December|
|2020.|
|166,667|These Performance Rights will vest and become exercisable when the Share price exceeds a closing|
|price of 20 cents per Share for 10 consecutive Trading Days in the period leading up to 31 December|
|2020.|

----- End of picture text -----

determined that the Service Conditions for each tranche of performance rights had been met and all performance rights had vested and are exercisable. These performance rights were exercised on 6 August 2021.

The Company obtained shareholder approval for the grant of these performance rights at the Company’s annual general meeting in November 2019 and the performance rights were issued shortly after that meeting on 18 November 2019. In January 2021, the N&R Committee

TERMINATION PAYMENTS

If Mr McDermott’s employment is terminated by the Company for any reason (other than in circumstances warranting summary dismissal), Mr McDermott is entitled to a retirement benefit calculated as one month’s total fixed remuneration, plus two weeks’ total fixed remuneration

for each completed or part-completed year of continuous service with the Company. If Mr McDermott resigns within six months of a ‘fundamental change’, Mr McDermott is entitled to a lump sum payment equivalent to six months’ total fixed remuneration.

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NAVARRE MINER ALS LIMITED

ANNUAL REPORT 2021

U N E A R T H I N G P R O S P E R I T Y

CHIEF FINANCIAL OFFICER

Mr Paul Hissey has been engaged by the Company since 17 August 2020 pursuant to a consultancy services agreement to provide corporate development services. Under the terms of his consultancy services agreement with the Company, Mr Hissey was remunerated for his services at a rate of $125 per hour (plus GST), with a minimum of $5,000 retainer fee per month (plus GST) applicable.

On 1 April 2021, Mr Paul Hissey was appointed Chief Financial Officer of the Company. Mr Hissey is employed by the Company on a full-time basis pursuant to an executive service agreement, which contains the following major terms:

LONG-TERM INCENTIVE

Mr Hissey is eligible to participate in the Company’s long-term incentive arrangements (as amended or replaced) on terms decided by the Board.

Subsequent to 30 June 2021, Mr Hissey was granted 1,200,000 share performance rights as part of his remuneration package for financial year 2022. The performance rights will vest based on the following conditions:

NUMBER OF PERFORMANCE SERVICE CONDITION RIGHTS

TERM

From 1 March 2021 until either the Company or Mr Hissey terminates the agreement.

BASE SALARY

Mr Hissey’s total fixed remuneration is $233,000 per annum inclusive of statutory superannuation. Effective from 1 July 2021, Mr Hissey’s remuneration increased to $220,000 plus statutory superannuation. Total fixed remuneration is reviewed by the N&R Committee on an annual basis, but there is no guarantee of any increase in fixed remuneration.

SHORT-TERM INCENTIVE

Mr Hissey is eligible to receive an annual short-term incentive payment on terms decided by the Board. In line with the Company’s internal policy to utilise performance rights rather than short-term incentive payments, no short-term incentive payment was included in Mr Hissey’s remuneration package for financial year 2022.

NOTICE

The Company may terminate the agreement at any time by giving three months’ notice in writing. Mr Hissey may terminate the agreement at any time by giving three months’ written notice to the Company or on one month’s written notice to the Company if a ‘fundamental change’ to his employment occurs or the Company has failed to remedy a notified breach of its obligations under the agreement. The Company may immediately terminate the agreement by giving written notice in certain circumstances, including if serious misconduct has occurred. The Company may elect to pay Mr Hissey in lieu of part or all of any notice period.

TERMINATION PAYMENTS

If Mr Hissey’s employment is terminated by the Company for any reason (other than in circumstances warranting summary dismissal), Mr Hissey is entitled to a retirement benefit calculated as one month’s total fixed remuneration, plus two weeks’ total fixed remuneration for each completed or part-completed year of continuous service with the Company.

These Performance Rights will vest and become exercisable upon Mr Hissey holding the position of Chief Financial Retention Service Officer at close of business, 30 June 2022 ( Period ).

• 400,000

400,000 These Performance Rights will vest and become exercisable when the share price exceeds a closing price of 15 cents per share for 10 consecutive trading days while holding the position of Chief Financial Officer in the period from 1 July 2021 to 30 June 2023.

400,000 These Performance Rights will vest and become exercisable when the share price exceeds a closing price of 20 cents per share for 10 consecutive trading days while holding the position of Chief Financial Officer in the period from 1 July 2021 to 30 June 2024.

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NAVARRE MINER ALS LIMITED

ANNUAL REPORT 2021

U N E A R T H I N G P R O S P E R I T Y

EXPLORATION MANAGER

Mr Mele was appointed Exploration Manager of the Company with effect from 22 February 2017. Mr Mele was engaged by the Company on a consultancy basis prior to entering into an employment arrangement and becoming a full-time employee with the Company.

On 8 January 2018, Mr Mele entered into an executive service agreement which contains the following major terms

TERM

From 8 January 2018 until either the Company or Mr Mele terminates the agreement.

BASE SALARY

Mr Mele’s total fixed remuneration is $233,000 per annum inclusive of statutory superannuation. Effective from 1 July 2021, Mr Mele’s remuneration increased to $220,000 plus statutory superannuation. Total fixed remuneration is reviewed by the N&R Committee on an annual basis, but there is no guarantee of any increase in fixed remuneration.

NOTICE

The Company may terminate the agreement at any time by giving three months’ notice in writing. Mr Mele may terminate the agreement at any time by giving three months’ written notice to the Company or on one month’s written notice to the Company if a ‘fundamental change’ to his employment occurs or the Company has failed to remedy a notified breach of its obligations under the agreement. The Company may immediately terminate the agreement by giving written notice in certain circumstances, including if serious misconduct has occurred. The Company may elect to pay Mr Mele in lieu of part or all of any notice period.

LONG-TERM INCENTIVE

Mr Mele’s remuneration package for financial year 2021 included an incentive in the form of a grant of 1,000,000 share performance rights, subject to the following conditions:

Mr Mele is eligible to participate in the Company’s long-term incentive arrangements (as amended or replaced) on terms decided by the Board.

NUMBER OF PERFORMANCE SERVICE CONDITION RIGHTS

These Performance Rights will vest and become exercisable upon Mr Mele holding the position of Exploration Manager at Close of Business, 30 June 2021 ( Retention Service Period ).

400,000

600,000 At the discretion of the Board these Performance Rights will vest and become exercisable (in part or in full) upon satisfactorily meeting the following hurdles in the period to 30 June 2021 ( Service Performance ). - Significantly advancing at least one of the Company’s 100%-owned projects by either:

• Delivery of a Mineral inventory [e.g., 500koz inferred resource + 500koz exploration target] of > 1,000,000 ozs of gold / gold equivalent by 30 June 2021; or

• Delivery of a minimum of five potential economic > 30 gram metre gold drill intercepts;

• and

• Securing statutory permitting and community support for drilling programs, and

• Execution of drilling programs - on budget with no safety or environmental incidents

Subsequent to 30 June 2021, Mr Mele was granted 1,200,000 share performance rights as part of his remuneration package for financial year 2022. The performance rights will vest based on the following conditions:

In July 2021, the Board of Directors determined that the service conditions for each tranche of performance rights had been met and all performance rights had vested and became exercisable. These performance rights were exercised on 26 August 2021.

NUMBER OF PERFORMANCE RIGHTS SERVICE CONDITION

TERMINATION PAYMENTS

SHORT-TERM INCENTIVE

Mr Mele is eligible to receive an annual short-term incentive payment on terms decided by the Board. In line with the Company’s internal policy to utilise Performance Rights rather than short-term incentive payments, no short-term incentive payment was included in Mr Mele’s remuneration package for financial year 2022.

If Mr Mele’s employment is terminated by the Company for any reason (other than in circumstances warranting summary dismissal), Mr Mele is entitled to a retirement benefit calculated as one month’s total fixed remuneration, plus two weeks’ total fixed remuneration for each completed or part-completed year of continuous service with the Company (to be calculated by reference to Mr Mele’s start date as a consultant geologist on 18 May 2016).

400,000

• 400,000

• 400,000

These Performance Rights will vest and become exercisable upon Mr Mele holding the position of Exploration Manager at close of business, 30 June 2022 (Retention Service Period).

These Performance Rights will vest and become exercisable when the share price exceeds a closing price of 15 cents per share for 10 consecutive trading days while holding the position of Exploration Manager in the period from 1 July 2021 to 30 June 2023.

These Performance Rights will vest and become exercisable when the share price exceeds a closing price of 20 cents per share for 10 consecutive trading days while holding the position of Exploration Manager in the period from 1 July 2021 to 30 June 2024.

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NAVARRE MINER ALS LIMITED

ANNUAL REPORT 2021

U N E A R T H I N G P R O S P E R I T Y

COMPANY SECRETARY

The Company Secretary, Mr Colin Naylor, was employed by the Company on a part-time basis pursuant to an employment agreement dated 31 July 2018, in addition to his role as a Director of the Company. Mr Naylor resigned as a Director with effect 27 November 2020 and Company Secretary with effect 31 December 2020.

The Company’s Accountant & Assistant Company Secretary, Ms Jodi Ford, acted as interim Company Secretary for the period 1 January to 28 January 2021.

ACCOUNTANT & ASSISTANT

In January 2021, the Company engaged Leydin Freyer Corp Pty Ltd to provide the services of Company Secretary, Mr Mathew Watkins, for which Leydin Freyer Corp Pty Ltd receives a retainer fee of $3,500 per month. The agreement can be terminated by giving one months’ notice or a lesser period as mutually agreed by both parties or, in the case of wilful misconduct or fraud, the engagement will cease immediately with no termination period.

OTHER EXECUTIVES

All executives have standard employment agreements. The Company may terminate the executive’s employment agreement by written notice (ranging from four weeks to three months’ notice) or providing payment in lieu of the notice period (based on the fixed component of the executive’s remuneration).

The Company may terminate the agreement at any time without notice if serious misconduct has occurred. The executive may terminate the agreement by written notice to the Company (ranging from four weeks to three months’ notice). On cessation of employment, any outstanding options and any unvested performance rights will be forfeited.

COMPANY SECRETARY

During the year, the Accountant & Assistant Company Secretary, Ms Ford, was employed by the Company on a part-time basis pursuant to an employment agreement dated 2 May 2011 (and subsequent variations). Effective from 1 July 2021, Ms Ford was made a full-time employee of the Company.

Ms Ford is eligible to participate in the Company’s long-term incentive arrangements (as amended or replaced) on terms decided by the Board. Ms Ford’s remuneration package for financial year 2021 included an incentive in the form of a grant of 300,000 share performance rights, subject to holding

the position of Accountant & Assistant Company Secretary as at close of business, 30 June 2021. In July 2021, the Board of Directors determined that the service condition for these performance rights had been met and all performance rights had vested and became exercisable. These performance rights were exercised on 6 August 2021.

Subsequent to 30 June 2021, Ms Ford was granted 300,000 share performance rights as part of her remunerationpackage for financial year 2022. The performance rights will vest based on the following conditions:

NUMBER OF PERFORMANCE SERVICE CONDITION RIGHTS

• 150,000 These Performance Rights will vest and become exercisable upon Mrs Ford holding the position of Accountant & Assistant Company Secretary at close of business, 30 June 2022 (Retention Service Period).

• 150,000 These Performance Rights will vest and become exercisable when the share price exceeds a closing price of 15 cents per share for 10 consecutive trading days while holding the position of Accountant & Assistant Company Secretary in the period from 1 July 2021 to 30 June 2023.

The Company may terminate the agreement at any time by giving one months’ notice in writing. Ms Ford may terminate the agreement at any time by giving one months’ written notice to the Company unless a shorter period is agreed by the Company.

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NAVARRE MINER ALS LIMITED

ANNUAL REPORT 2021

U N E A R T H I N G P R O S P E R I T Y

10.6 REMUNERATION OF KEY MANAGEMENT PERSONNEL OF THE COMPANY

TABLE 1: Remuneration for the year ended 30 June 2021.

	SHORT TERM POST EMPLOYMENT SHARE- BASED PAYMENT LONG TERM TOTAL PERFORMANCE RELATED
	DIRECTORS FEES $ SALARY/ CONSULTING FEES $ STI CASH BONUS $ SUPER ANNUATION BENEFITS $ EQUITY SETTLED1 $ LONG SERVICE LEAVE $ $ %
NON– EXECUTIVE DIRECTORS
K Wilson 50,000 - - 5,250 7,355 - 62,605 11.7
Sub-total non-executive directors 50,000 - - 5,250 7,355 - 62,605 11.7
EXECUTIVE DIRECTORS
I Holland2 6,806 204,950 - 18,725 182,777 - 413,258 44.2
G McDermott - 242,630 85,000 25,000 78,560 436,959 37.4
C Naylor3 10,605 43,007 - 18,665 1,421 - 73,698 1.9
OTHER KEY MANAGEMENT PERSONNEL
P Hissey - 178,7504 - 5,054 - - 183,804 -
S Mele - 212,951 - 20,230 138,744 2,312 374,237 37.1
J Ford - 75,694 - 7,221 41,889 8,538 133,342 31.4
M Watkins - 17,6255 - - - - 17,625 -
Sub-total executive KMP 17,411 975,607 85,000 94,895 443,391 16,619 1,632,923 32.4
TOTAL 67,411 975,607 85,000 100,145 450,746 16,619 1,695,528 31.6

• 1 Refer Note 23 to the consolidated financial statements for fair value calculation

• of options and performance rights.

4 Consists of consulting fees paid to Mr Hissey for the period 17 August 2020 to 31 March 2021 (pursuant to a consultancy services agreement) and fixed remuneration from 1 April 2021 (pursuant to an executive services agreement).

• 2 Mr Holland was a non-executive director between 1 July 2020 to 31 August 2021. Mr Holland was appointed Managing Director on 1 September 2020.

5 Represents fees paid/payable for services provided by the consultant.

TABLE 2: Remuneration for the year ended 30 June 2020.

	SHORT TERM POST EMPLOYMENT SHARE- BASED PAYMENT LONG TERM TOTAL PERFORMANCE RELATED
	DIRECTORS FEES $ SALARY/ CONSULTING FEES $ STI CASH BONUS $ SUPER ANNUATION BENEFITS $ EQUITY SETTLED1 $ LONG SERVICE LEAVE $ $ %
NON– EXECUTIVE DIRECTORS
K Wilson 50,000 - - 4,750 7,356 - 62,106 11.8
J Dorward2 30,273 - - 2,876 4,713 - 37,862 12.4
I Holland3 4,044 - - 384 - - 4,428 0.0
Sub-total non-executive directors 84,317 - - 8,010 12,069 - 104,396 11.6
EXECUTIVE DIRECTORS
G McDermott - 241,939 60,000 25,000 142,383 4,789 474,111 42.7
C Naylor 40,000 37,908 - 25,000 15,171 - 118,079 12.8
OTHER KEY MANAGEMENT PERSONNEL
J Ford - 60,132 - 5,712 17,543 1,170 84,557 20.7
S Mele - 212,951 - 20,230 52,510 2,359 288,050 18.2
Sub-total executive KMP 40,000 552,330 60,000 75,942 227,607 8,318 964,797 29.8
TOTAL 124,317 552,330 60,000 83,952 239,676 8,318 1,069,193 28.0

• 1 Refer Note 23 to the consolidated financial statements for fair value calculation

• of options and performance rights.

• 2 Mr Dorward resigned as non-executive director effective 2 April 2020.

3 Mr Holland was appointed non-executive director on 25 May 2020.

• 3 Mr Naylor resigned as director effective 27 November 2020 and Company Secretary effective 31 December 2021.

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10.7 REMUNERATION MIX

The Company’s executive remuneration is structured as a mix of fixed annual remuneration and variable ‘at risk’ remuneration. The mix of these components varies for different management levels and according to whether an executive is engaged as an employee or a contractor.

TABLE 3: Relative proportion and components of total remuneration packages for the year ended 30 June 2021.

% OF TOTAL REMUNERATION

FIXED REMUNERATION %	PERFORMANCE-BASED REMUNERATION
	SHORT TERM INCENTIVE % LONG TERM INCENTIVE %
EXECUTIVES
I Holland 55.8	- 44.2
G McDermott 62.6	19.4 18.0
C Naylor 98.1	- 1.9
P Hissey 100.0	- -
S Mele 62.9	- 37.1
J Ford 68.6	- 31.4

10.8 EQUITY INSTRUMENTS

a) Share Options

TABLE 4: Options granted, vested and lapsed during the year.

NUMBER OF OPTIONS GRANTED DURING FY21 GRANT DATE FAIR VALUE PER OPTION AT GRANT DATE ($) EXERCISE PRICE PER OPTION ($) EXPIRY DATE	VEST DATE NUMBER OF OPTIONS VESTED DURING FY21 NUMBER OF OPTIONS LAPSED DURING FY21
DIRECTORS
K Wilson - 10 Apr 18 0.048 0.150 10 Apr 23	10 Apr 181 900,000 -
G McDermott - 10 Apr 18 0.048 0.150 10 Apr 23	10 Apr 181 1,000,000 -
G McDermott - 10 Apr 18 0.050 0.150 10 Apr 23	10 Apr 191 1,000,000 -
G McDermott - 10 Apr 18 0.054 0.150 10 Apr 23	10 Apr 201 1,000,000 -
G McDermott - 17 May 19 0.036 0.120 17 May 24	- - 1,000,000
C Naylor - 10 Apr 18 0.048 0.150 10 Apr 23	- 750,000 750,000
C Naylor - 17 May 19 0.036 0.120 17 May 24	- - 550,000
EXECUTIVES
S Mele - 29 Jan 18 0.053 0.150 29 Jan 23	29 Jan 181 500,000 -
S Mele - 29 Jan 18 0.058 0.150 29 Jan 23	29 Jan 191 500,000 -
S Mele - 29 Jan 18 0.062 0.150 29 Jan 23	29 Jan 201 500,000 -
S Mele - 21 Feb 19 0.029 0.120 21 Feb 24	21 Feb 211 433,334 -
J Ford - 29 Jan 18 0.053 0.150 29 Jan 23	29 Jan 181 166,667 -
J Ford - 29 Jan 18 0.058 0.150 29 Jan 23	29 Jan 191 166,667 -
J Ford - 29 Jan 18 0.062 0.150 29 Jan 23	29 Jan 201 166,666 -
J Ford - 21 Feb 19 0.029 0.120 21 Feb 24	21 Feb 211 133,334 -

1 Closing share price must exceed exercise price for 10 consecutive trading days after the vesting date.

All unvested options expire on the earlier of their expiry date or termination of the employee’s employment. All vested options expire on their expiry date, upon termination of the employee’s employment, or, in the case of the retirement of a full-time employee, 90 days after the termination of the employee’s employment. These options do not entitle the holder to participate in any share issue of the Company.

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b) Share performance rights

TABLE 5: Shares issued on exercise of options.

		AMOUNT PAID PER
	NO. OF SHARES	SHARE ($)
C Naylor	1,100,000	0.120
J Ford	200,000	0.072

TABLE 6: Value of options granted, exercised and lapsed during the year.

	VALUE OF OPTIONS GRANTED	VALUE OF OPTIONS EXERCISED	VALUE OF OPTIONS LAPSED
	DURING THE YEAR $	DURING THE YEAR $	DURING THE YEAR $
DIRECTORS
G McDermott	-	-	36,000
C Naylor	-	36,850	55,434
EXECUTIVES
J Ford	-	6,664	-

For details on the valuation of options, including models and assumptions used, please refer to Note 23 to the consolidated financial statements.

TABLE 7: Performance Rights granted, vested and lapsed during the year.

	NUMBER OF					NUMBER OF
	RIGHTS		FAIR VALUE			RIGHTS	NUMBER OF
	GRANTED		PER RIGHT AT			VESTED	RIGHTS LAPSED
	DURING FY21	GRANT DATE	GRANT DATE ($)	EXPIRY DATE	VEST DATE	DURING FY21	DURING FY21
DIRECTORS
I Holland	500,000	27 Nov 20		31 Dec 24	31 Dec 211	500,000	-
I Holland	500,000	27 Nov 20		31 Dec 24	31 Dec 221	-
I Holland	500,000	27 Nov 20		31 Dec 24	31 Dec 231	-
G McDermott	1,000,000	18 Nov 19	$0.1050	31 Dec 22	31 Dec 201	1,000,000	-
G McDermott	166,667	18 Nov 19	$0.0692	31 Dec 22	31 Dec 201	166,667	-
G McDermott	166,667	18 Nov 19	$0.0549	31 Dec 22	31 Dec 201	166,667	-
EXECUTIVES
S Mele	1,000,000	18 May 20	$0.1400	30 Jun 23	30 Jun 211	1,000,000	-
J Ford	300,000	18 May 20	$0.1400	30 Jun 23	30 Jun 211	300,000	-

1 Vesting is conditional on certain performance conditions (see section 10.5 above for further details).

Unvested share performance rights expire on the earlier of their expiry date or termination of the employee’s employment and vested share performance rights expire on the earlier of their expiry date or three months from the date of termination of the employee’s employment. These performance rights do not entitle the holder to participate in any share issue of the Company.

TABLE 8: Shares issued on exercise of performance rights.

There was no exercise of performance rights during the reporting period.

TABLE 9: Value of share performance rights granted, exercised and lapsed during the year

	VALUE OF RIGHTS GRANTED	VALUE OF RIGHTS EXERCISED	VALUE OF RIGHTS LAPSED
	DURING THE YEAR $	DURING THE YEAR $	DURING THE YEAR $
DIRECTORS
I Holland	290,500	107,500	-

1 Vesting is conditional on certain performance conditions (see section 10.5 above for further details).

For details on the valuation of performance rights, please refer to Note 23 to the consolidated financial statements.

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10.9 ADDITIONAL DISCLOSURES RELATING TO SHARES,

OPTIONS AND PERFORMANCE RIGHTS

Movement in shares

The movement during the reporting period in the number of ordinary shares in Navarre Minerals Limited held directly, indirectly or beneficially, by key management personnel, including their related parties, is as follows:

HELD AT 1 JULY 2020 PURCHASES RECEIVED ON EXERCISE OF OPTIONS RECEIVED ON EXERCISE OF PERFORMANCE RIGHTS SALES	OTHER	HELD AT 30 JUNE 2021
DIRECTORS Shares held in Navarre Minerals Limited (number)
K Wilson 13,606,085 300,0001 - - -	-	13,906,085
I Holland - 1,800,0002 - 500,000 -	-	2,300,000
G McDermott 12,978,568 200,0001 - - -	-	13,178,568
C Naylor 5,814,562 - - - 230,000	5,584,5623	-
EXECUTIVES
P Hissey - 100,0004 - - -	29 Jan 181	100,000
S Mele 160,435 150,0001 - - -	29 Jan 191	310,435
J Ford 58,770 - 200,000 - 200,000	21 Feb 211	58,770

Options over equity instruments

The movement during the reporting period in the number of options over ordinary shares in Navarre Minerals Limited held, directly, indirectly and beneficially by key management personnel, including their related parties is as follows:

							VESTED AND
							EXERCISABLE	UNVESTED
	HELD AT 1	GRANTED AS	OPTIONS	OPTIONS	HELD AT 30	VESTED IN	AT 30 JUNE	AT	30 JUNE
	JULY 2020	REMUNERATION	EXERCISED	LAPSED	JUNE 2021	2021	2021		2021
Options held in Navarre	Minerals Limited	(number)
DIRECTORS
K Wilson	1,700,000	-	-	-	1,700,000	900,000	1,433,334	266,666
I Holland	-	-	-	-	-	-	-		-
G McDermott	6,000,000	-	-	1,000,000	5,000,000	3,000,000	5,000,000		-
C Naylor	2,400,000	-	1,100,000	1,300,000	-	750,000	-		-
EXECUTIVES
J Ford	1,300,000	-	200,000	-	1,100,000	633,334	1,100,000		-
S Mele	2,800,000	-	-	-	2,800,000	1,933,334	2,800,000		-

1Issued as a result of participation in the Company’s Share Purchase Plan in June 2021.

2Consists of 1,500,000 purchased on-market and 300,000 issued as a result of participation in the Company’s Share Purchase Plan in June 2021.

3Shareholding at resignation on 31 December 2020.

4Issued as a result of participation in the Company’s Share Placement in June 2021.

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Performance rights over equity instruments

The movement during the reporting period in the number of performance rights over ordinary shares in Navarre Minerals Limited held, directly, indirectly and beneficially by key management personnel, including their related parties is as follows:

HELD AT 1 JULY 2020 GRANTED AS REMUNERATION PERFORMANCE RIGHTS EXERCISED PERFORMANCE RIGHTS LAPSED HELD AT 30 JUNE 2021	VESTED IN 2021 VESTED AND EXERCISABLE AT 30 JUNE 2021 UNVESTED AT 30 JUNE 2021
DIRECTORS Performance Rights held in Navarre Minerals Limited (number)
I Holland - 1,500,000 500,000 - 1,000,000	500,000 - 1,000,000
G McDermott 1,500,000 - - 1,500,000	1,333,334 1,500,000 -
EXECUTIVES
J Ford 300,000 - - - 300,000	300,000 300,000 -
S Mele 1,000,000 - - - 1,000,000	1,000,000 1,000,000 -

10.10 COMPANY PERFORMANCE

With the exception of long-term incentives, the remuneration of executives and consultants is not linked to financial performance measures of the Company. Long-term incentives granted to executives are linked to improvements in the Company’s share price.

11. AUDITOR

RSM Australia Partners continues in office in accordance with section 327 of the Corporations Act 2001.

12. CORPORATE GOVERNANCE STATEMENT

The Company’s Corporate Governance Statement for the year ended 30 June 2021, ASX Appendix 4G (Key to Disclosure of Corporate Governance Principles and Recommendations) and other ancillary corporate governance related documents may be accessed from the Company’s website at www.navarre.com.au/corporate-governance/.

Signed in accordance with a resolution of the Directors made pursuant to s298(2) of the Corporations Act 2001.

ON BEHALF OF THE DIRECTORS

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KEVIN WILSON

CHAIRMAN

Melbourne, 17 September 2021

In accordance with Section 300A of the Corporations Act 2001, the following table summarises Navarre’s performance over a five-year period:

	2021	2020	2019	2018	2017
Net proft/(loss) - $000	(2,724)	(984)	(866)	(1,251)	(703)
Basic earnings/(loss) per share – cents per share	(0.50)	(0.21)	(0.22)	(0.47)	(0.34)
Share price at the beginning of year - $	0.110	0.084	0.059	0.032	0.034
Share price at end of year - $	$0.094	0.110	0.084	0.059	0.032
Dividends per share – cents	Nil	Nil	Nil	Nil	Nil

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RSM Australia Partners

Level 21, 55 Collins Street Melbourne VIC 3000 PO Box 248 Collins Street West VIC 8007 T +61 (0) 3 9286 8000 F +61 (0) 3 9286 8199 www.rsm.com.au

AUDITOR’S INDEPENDENCE DECLARATION

As lead auditor for the audit of the financial report of Navarre Minerals Limited for the year ended 30 June 2021, I declare that, to the best of my knowledge and belief, there have been no contraventions of:

• (i) the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and

• (ii) any applicable code of professional conduct in relation to the audit.

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RSM AUSTRALIA PARTNERS

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J S CROALL

Partner

Dated: 17 September 2021 Melbourne, Victoria

“This is an exciting time for the Company"

~~IAN HOLL~~ AND MANAGING DIRECTOR

THE POWER OF BEING UNDERSTOOD AUDIT | TAX | CONSULTING

RSM Australia Partners is a member of the RSM network and trades as RSM. RSM is the trading name used by the members of the RSM network. Each member of the RSM network is an independent accounting and consulting firm which practices in its own right. The RSM network is not itself a separate legal entity in any jurisdiction. RSM Australia Partners ABN 36 965 185 036

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Liability limited by a scheme approved under Professional Standards Legislation

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FINANCIAL
REPORT
2021
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CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2021

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2021
Note Interest income Income Net administration expenses 4 Exploration expenditure written-off Loss before income tax Income tax expense 5 Net loss for the period Other comprehensive income for the period Total comprehensive loss for the period Basic loss per share (cents per share) 6 Diluted loss per share (cents per share) 6	2021 2020 $ $ 58,929 96,341
	58,929 96,341
	(2,747,166) (900,355) (35,447) (180,110)
	(2,723,684) (984,124) - -
	(2,723,684) (984,124) - -
	(2,723,684) (984,124)
	(0.50) (0.21) (0.50) (0.21)

The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.

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U N E A R T H I N G P R O S P E R I T Y

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2021

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2021
Note CURRENT ASSETS Cash and cash equivalents 7 Trade and other receivables 8 Other financial assets 9 Non-current assets classified as held for sale 10 TOTAL CURRENT ASSETS NON-CURRENT ASSETS Other financial assets 9 Property, plant and equipment 11 Leasehold improvements 12 Right-of-use asset 13 Exploration and evaluation costs 14 TOTAL NON-CURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES Trade and other payables 15 Employee benefits provision 16 Lease liability 17 TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Employee benefits provision 16 Lease liability 17 TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Contributed equity 18 Share based payments reserve 18 Accumulated losses 18 TOTAL EQUITY	2021 2020 $ $ 14,095,825 2,596,648 733,302 180,822 80,000 3,010,000 423,442 -
	15,332,569 5,787,470
	110,000 110,000 128,207 39,525 6,354 - 101,312 - 26,213,914 15,297,618
	26,559,787 15,447,143
	41,892,356 21,234,613
	1,160,986 429,664 176,399 111,709 17,973 -
	1355,358 541,373
	4,671 2,359 86,096 -
	90,767 2,359
	1,446,125 543,732
	40,446,231 20,690,881
	51,813,994 29,634,657 907,604 672,749 (12,275,367) (9,616,525)
	40,446,231 20,690,881

The above consolidated statement of financial position should be read in conjunction with the accompanying notes.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 30 JUNE 2021

FOR THE YEAR ENDED 30 JUNE 2021
Balance at 1 July 2020 Net loss for the period Total comprehensive loss for the year Transactions with owners in their capacity as owners: Cost of share based payments Share issues Costs of issues Transfer of equity instruments exercised Transfer of equity instruments lapsed At 30 June 2021 Balance at 1 July 2019 Net loss for the period Total comprehensive loss for the year Transactions with owners in their capacity as owners: Cost of share based payments Share issues Costs of issues Transfer of equity instruments exercised Transfer of equity instruments lapsed At 30 June 2020	Issued Capital Share Based Payments Reserve Accumulated Losses Total Equity $ $ $ $ 29,634,657 672,749 (9,616,525) 20,690,881 - - (2,723,684) (2,723,684)
	(2,723,684) (2,723,684) - 521,111 - 521,111 23,328,260 - - 23,328,260 (1,370,337) - - (1,370,337) 221,414 (221,414) - - - (64,842) 64,842 -
	51,813,994 907,604 (12,275,367) 40,446,231
	25,155,010 521,068 (8,704,555) 16,971,523 - - (984,124) (984,124)
	(984,124) (984,124) - 224,272 - 224,272 4,752,009 - - 4,752,009 (272,799) - - (272,799) 437 (437) - - - (72,154) 72,154 -
	29,634,657 672,749 (9,616,525) 20,690,881

The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

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CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 30 JUNE 2021

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2021
CASH FLOWS FROM OPERATING ACTIVITIES Payments to suppliers and employees Interest received Net cash (used in) operating activities (Note 19) CASH FLOWS FROM INVESTING ACTIVITIES Receipts / (payments) for investments Expenditure on plant and equipment Expenditure on exploration tenements Net cash (used in) investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from share issues Transaction costs on issue of shares Repayment of lease liability Net cash from financing activities Net (decrease) / increase in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period (Note 7)	2021 2020 $ $ (2,897,836) (748,109) 70,721 107,037
	(2,827,115) (641,072)
	3,030,000 1,277,848 (124,179) (9,593) (10,613,008) (4,257,610)
	(7,707,187) (2,989,355)
	23,328,260 4,752,009 (1,279,269) (272,799) (15,512) -
	22,033,479 4,479,210
	11,499,177 848,783 2,596,648 1,747,865
	14,095,825 2,596,648

The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

NOTE 1: CORPORATE INFORMATION

The financial report of Navarre Minerals Limited (variously the “Company”, “Navarre” and “Navarre Minerals”) and its subsidiaries (together, the “Group”) for the year ended 30 June 2021 was authorised for issue in accordance with a resolution of the directors on 17 September 2021.

Navarre Minerals Limited is a company limited by shares incorporated in Australia. The Company’s shares are publicly traded on Australian Stock Exchange.

The nature of operations and principal activities of the Group are described in Note 3.

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of Preparation

The financial report is a general-purpose financial report, which has been prepared in accordance with the requirements of the Corporations Act 2001, Australian Accounting Standards and other authoritative pronouncements of the Australian Accounting Standards Board, as appropriate for for-profit orientated entities, and is presented in Australian dollars. The financial report has also been prepared on a historical cost basis.

(i) Compliance with IFRS

The financial report complies with Australian Accounting Standards issued by the Australian Accounting Standards Board and International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board.

(ii) Early adoption of new Accounting Standards

The Group has not elected to early adopt any of the standards set out under (c) New Accounting Standards for Application in Future Periods.

(iii) Historical cost convention

The financial statements have been prepared under a historical cost convention.

(b) New or amended Accounting Standards and Interpretations adopted

The consolidated entity has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period.

Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.

The following Accounting Standards and Interpretations are most relevant to the consolidated entity:

Conceptual Framework for Financial Reporting (Conceptual Framework)

The consolidated entity has adopted the revised Conceptual Framework from 1 July 2020. The Conceptual Framework contains new definition and recognition criteria as well as new guidance on measurement that affects several Accounting Standards, but it has not had a material impact on the consolidated entity's financial statements.

(c) New Accounting Standards and Interpretations not yet mandatory or early adopted

Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory, have not been early adopted by the consolidated entity for the annual reporting period ended 30 June 2021. The consolidated entity has not yet assessed the impact of these new or amended Accounting Standards and Interpretations.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)

(d) Basis of consolidation

The consolidated financial statements comprise the financial statements of Navarre Minerals Limited and its subsidiaries as at 30 June 2021 and the results of all the subsidiaries for the year then ended (“Group”).

Subsidiaries are all those entities over which the Group has the power to govern the financial and operating policies so as to obtain benefits from their activities.

The financial statements of subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies. In preparing the consolidated financial statements, all intercompany balances and transactions, income, expenses and profit and losses from intra group transactions, have been eliminated in full. Subsidiaries are fully consolidated from the date on which control is transferred to the Group and cease to be consolidated from the date on which control is transferred out of the Group.

(e) Significant accounting judgements, estimates and assumptions

The carrying amounts of certain assets and liabilities are often determined based on judgements, estimates and assumptions of future events. The key estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of certain assets and liabilities within the next annual reporting period are:

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2021

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)

(f) Current and non-current classification (cont.)

A liability is classified as current when: it is either expected to be settled in the consolidated entity's normal operating cycle; it is held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities are classified as non-current.

Deferred tax assets and liabilities are always classified as non-current.

(g) Cash and cash equivalents

Cash and cash equivalents in the consolidated statement of financial position comprise cash at bank and in hand and short-term deposits with an original maturity of three months or less.

For the purpose of the consolidated statement of cash flows, cash and cash equivalents consist of cash and cash equivalents as defined above, net of outstanding bank overdrafts.

(h) Plant and equipment

Plant and equipment is stated at cost less accumulated depreciation and any impairment losses. Depreciation is calculated on a straightline basis over the estimated useful lives of the assets which range from 3 to 5 years.

Share-based payment transactions

Impairment

The Group measures the cost of equity-settled transactions with employees by reference to the fair value of the equity instruments at the date at which they are granted. The fair value of share options is determined using either a Black Scholes or binomial option pricing model, and using the assumptions detailed in Note 23.

Exploration and evaluation costs

Exploration and evaluation costs are accumulated separately for each area of interest and carried forward provided that one of the following conditions is met:

• such costs are expected to be recouped through successful development or sale; or

• exploration activities have not yet reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves, and active and significant operations in relation to the area are continuing.

Significant judgement is required in determining whether it is likely that future economic benefits will be derived from the capitalised exploration and evaluation expenditure. In the judgement of the Directors, at 30 June 2021, exploration activities in each area of interest have not yet reached a stage which permits a reasonable assessment of the existence or otherwise of ore reserves. Active and significant operations in relation to each area of interest are continuing and nothing has come to the attention of the Directors to indicate future economic benefits will not be achieved. The Directors are continually monitoring the areas of interest and are exploring alternatives for funding the development of areas of interest when ore reserves are confirmed. If new information becomes available that suggests the recovery of expenditure is unlikely, the amounts capitalised will need to be reassessed at that time.

(f) Current and non-current classification

Assets and liabilities are presented in the statement of financial position based on current and non-current classification.

An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the consolidated entity's normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within 12 months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current.

The carrying values of plant and equipment are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable.

For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash-generating unit to which the asset belongs. Impairment exists when the carrying value of an asset exceeds its estimated recoverable amount. The asset is written down to its recoverable amount.

The recoverable amount of plant and equipment is the greater of 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.

An item of plant and equipment is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on de-recognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the item) is included in the consolidated statement of comprehensive income in the period the item is derecognised.

(i) Non-current assets or disposal groups classified as held for sale

Non-current assets and assets of disposal groups are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continued use. They are measured at the lower of their carrying amount and fair value less costs of disposal. For non-current assets or assets of disposal groups to be classified as held for sale, they must be available for immediate sale in their present condition and their sale must be highly probable.

An impairment loss is recognised for any initial or subsequent write down of the non-current assets and assets of disposal groups to fair value less costs of disposal. A gain is recognised for any subsequent increases in fair value less costs of disposal of a non-current assets and assets of disposal groups, but not in excess of any cumulative impairment loss previously recognised.

Non-current assets are not depreciated or amortised while they are classified as held for sale. Interest and other expenses attributable to the liabilities of assets held for sale continue to be recognised.

076

077

NAVARRE MINER ALS LIMITED

ANNUAL REPORT 2021

U N E A R T H I N G P R O S P E R I T Y

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)

• (i) Non-current assets or disposal groups classified as held for sale (cont.)

Non-current assets classified as held for sale and the assets of disposal groups classified as held for sale are presented separately on the face of the statement of financial position, in current assets. The liabilities of disposal groups classified as held for sale are presented separately on the face of the statement of financial position, in current liabilities.

(j) Exploration and evaluation costs

Exploration and evaluation expenditure is carried at cost. If indication of impairment arises, the recoverable amount is estimated and an impairment loss is recognised to the extent that the recoverable amount is lower than the carrying amount.

Exploration and evaluation costs are accumulated separately for each current area of interest and carried forward provided that one of the following conditions is met:

• such costs are expected to be recouped through successful development or sale; or

• exploration activities have not yet reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves, and active and significant operations in relation to the area are continuing.

Impairment of exploration and evaluation costs

To the extent that capitalised exploration and evaluation expenditure is determined not to be recoverable in the future, profits/ (losses) and net assets will be varied in the period in which this determination is made.

Farm-outs

The Group will account for farm-out arrangements as follows:

• The Group will not record any expenditure made by the farminee on its behalf;

• The Group will not recognise a gain or loss on the farm-out arrangement but rather will redesignate any costs previously capitalised in relation to the whole interest as relating to the partial interest retained; and

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)

(m) Trade and other payables

Trade and other payables are carried at amortised cost and represent liabilities for goods and services provided to the Group prior to the end of the financial year that are unpaid and arise when the Group becomes obliged to make future payments in respect of the purchase of the goods and services.

(n) Provisions

Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

When the Group expects some or all of a provision to be reimbursed, for example under an insurance contract, the reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain. The expense relating to any provision is presented in the consolidated statement of comprehensive income net of any reimbursement.

Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation at the balance date. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. The increase in the provision resulting from the passage of time is recognised in finance costs.

Employee leave benefits

Wages, salaries, annual leave and sick leave

Liabilities for wage and salaries, including non-monetary benefits and annual leave entitlements expected to be settled within 12 months of the reporting date are recognised in provisions in respect of employees’ service up to the reporting date. They are measured at the amounts expected to be paid when the liabilities are settled. Liabilities for non-accumulating sick leave are recognised when the leave is taken and are measured at the rates paid or payable.

Long service leave

• Any cash consideration to be received will be credited against costs previously capitalised in relation to the whole interest with any excess to be accounted for by the Group as gain on disposal.

(k) Trade and other receivables

Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less any allowance for expected credit losses. Trade receivables are generally due for settlement within 30 days.

The consolidated entity has applied the simplified approach to measuring expected credit losses, which uses a lifetime expected loss allowance. To measure the expected credit losses, trade receivables have been grouped based on days overdue.

Other receivables are recognised at amortised cost, less any allowance for expected credit losses.

(l) Leases

At the inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset (“right-of-use” asset), the Group uses the definition of a lease in AASB 16.

Right-of-use assets and corresponding lease liabilities are recognised in the statement of financial position with a depreciation charge for the right-of-use assets (included in operating costs) and an interest expense on the recognised lease liabilities (included in finance costs).

The Group has elected not to recognise a right-of-use asset and corresponding lease liability for short-term leases with terms of 12 months or less and leases of low-value assets. Lease payments on these assets are expensed to profit or loss as incurred.

The liability for long service leave is recognised in the provision for employee benefits and measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures, and periods of service. Expected future payments are discounted using market yields at the reporting date in national government bonds with terms to maturity and currencies that match, as closely as possible, the estimated future cash outflows.

Defined contribution superannuation expense

Contributions to defined contribution superannuation plans are expensed in the period in which they are incurred.

(o) Share-based payment transactions

The Group provides benefits to employees and directors of the Group in the form of share-based payment transactions, whereby services are rendered in exchange for shares or rights over shares (‘equity-settled transactions’).

The cost of equity-settled transactions is measured by reference to the fair value at the date at which they are granted. The fair value of options and performance rights with market performance criteria is determined using either a Black Scholes or binomial option pricing model. The fair value of performance rights with non-market performance criteria is determined by reference to the Company’s closing share price on the trading day prior to grant.

The cost of equity-settled transactions is recognised, together with a corresponding increase in equity, over the period in which the performance conditions are fulfilled, ending on the date on which the recipient becomes fully entitled to the award (‘vesting date’).

078

079

NAVARRE MINER ALS LIMITED

ANNUAL REPORT 2021

U N E A R T H I N G P R O S P E R I T Y

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)

(o) Share-based payment transactions (cont.)

The cumulative expense recognised for equity-settled transactions at each reporting date until vesting date reflects (i) the extent to which the vesting period has expired and (ii) the number of awards that, in the opinion of the directors, based on the best available information at balance date, will ultimately vest. No adjustment is made for the likelihood of market conditions being met as the effect of these conditions is included in determination of fair value at grant date. The charge or credit for the period represents the movement in cumulative expense recognised as at the beginning and end of the period.

No expense is recognised for awards that do not ultimately vest, except for awards where vesting is conditional upon a market condition.

Where the terms of an equity-settled award are modified, as a minimum an expense is recognised as if the terms had not been modified. In addition, an expense is recognised for any increase in the value of the transaction as a result of the modification, as measured at the date of modification.

Where an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any expense not yet recognised for the award is recognised immediately. However, if a new award is substituted for the cancelled award and designated as a replacement award on the date that it is granted, the cancelled and new award are treated as if they were a modification of the original award, as described in the previous paragraph.

The dilutive effect, if any, of outstanding options and performance rights is reflected as additional share dilution in the computation of earnings per share.

(p) Contributed equity

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares, options or performance rights are shown in equity as a deduction, net of tax, from the proceeds.

(q) Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Specific recognition criteria must also to be met:

Interest income

Revenue is recognised as the interest accrues using the effective interest method.

(r) Income tax

Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantially enacted by the reporting date.

Deferred income tax is provided on all temporary differences at balance date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.

Deferred income tax liabilities are recognised for all taxable temporary differences, except:

• where the deferred income tax liability arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; or

• when the taxable temporary difference is associated with investments in subsidiaries, associates or interests in joint ventures, and the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)

(r) Income tax (cont.)

Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax assets and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carryforward of unused tax assets and unused tax losses can be used, except:

• where the deferred income tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and

• when the deductible temporary difference is associated with investments in subsidiaries, associates or interests in joint ventures, in which case a deferred tax asset is only recognised to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be applied.

The carrying amount of deferred income tax assets is reviewed at each balance date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised.

Unrecognised deferred income tax assets are reassessed at each reporting date and are recognised to the extent that it is has become probable that future taxable profit will allow the deferred tax asset to be recovered.

Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the balance date.

Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right of set off exists to set off current tax assets against current liabilities and the deferred tax assets and liabilities relate to the same taxable entity and the same taxable authority.

Income taxes relating to items recognised directly in equity are recognised in equity and not in the consolidated statement of comprehensive income.

(s) Goods and services tax

Revenues, expenses and assets are recognised net of GST, except receivables and payables which are stated with GST included. Where GST incurred on a purchase of goods or services is not recoverable from the taxation authority, the GST is recognised as part of the cost of acquisition of the asset or as part of the expense item as applicable.

The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the consolidated statement of financial position.

Cash flows are included in the consolidated statement of cash flows on a gross basis and the GST component of cash flows arising from investing and financing activities, which is recoverable from, or payable to, the taxation authority is classified as operating cash flows.

Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the taxation authority.

(t) Earnings per share

Basic earnings per share is calculated as net profit/(loss) attributable to members divided by the weighted average number of ordinary shares.

Diluted earnings per share is calculated as net profit/(loss) attributable to members divided by the weighted average number of ordinary shares and dilutive potential ordinary shares.

(u) Going concern

The financial report has been prepared on the going concern basis, which contemplates the continuity of normal business activity and the realisation and settlement of liabilities in the normal course of the business.

080

081

NAVARRE MINER ALS LIMITED

ANNUAL REPORT 2021

U N E A R T H I N G P R O S P E R I T Y

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)

(v) Parent entity financial information

The financial information for the parent entity, Navarre Minerals Limited, disclosed in Note 25 has been prepared on the same basis as the consolidated financial statements, except as set out below.

Investments in subsidiaries

Investments in subsidiaries are accounting for at cost less accumulated impairment losses in the financial statements of Navarre Minerals Limited.

NOTE 3: SEGMENT INFORMATION

The Group’s reportable segment is confined to mineral exploration only within Australia.

NOTE 4: NET ADMINISTRATION EXPENSES

NOTE 4: NET ADMINISTRATION EXPENSES
Net administration expenses Consultants' fees and expenses Directors’ remuneration (non-executive) Salaries and on-costs Share based payments Investor relations Business development1 Motor vehicle expenses Audit costs Stock exchange, registry, and reporting costs Travel and meal costs Depreciation and amortisation Other administration expenses Gross administration expenses Capitalised as exploration and evaluation costs2 Net administration expenses	Consolidated 2021 2020 $ $ 34,760 10,231 80,702 136,127 1,720,276 849,608 512,111 224,272 273,281 196,718 1,243,572 - 3,229 19,249 27,700 27,537 101,669 71,699 27,781 8,592 55,135 16,657 160,523 87,909
	4,249,739 1,648,599 (1,502,573) (748,244)
	2,738,166 900,355

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021
NOTE 5: INCOME TAX
	Consolidated
	2021	2020
Statement of Comprehensive Income	$	$
Current income tax
Current income tax credit	283,427	226,899
Tax losses not recognised as probable	(283,427)	(226,899)
	-	-
Deferred income tax
Temporary differences	3,250,630	1,284,598
Tax losses brought to account offsetting temporary differences	(3,250,630)	(1,284,598)
	-	-
Income tax expense reported in the consolidated statement of comprehensive income	-	-
	Consolidated
	2021	2020
Tax Reconciliation	$	$
A reconciliation between tax expense and the product of accounting loss before income tax multiplied by the Group’s applicable income
tax rate is as follows:
Accounting loss before tax	(2,723,684)	(984,124)
At the statutory 30% tax rate (2020: 30%)	817,105	295,237
Share based payment expense	(156,333)	(67,282)
Capital expenses	(373,072)	-
Non-deductible expenses	(4,273)	(1,057)
Tax losses not brought to account	(283,427)	(226,898)
Income tax expense reported in the consolidated statement of comprehensive income	-	-

1 Navarre has undertaken significant programs to pursue its stated strategic aim of exploring opportunities to further grow the business.

2 The amount capitalised as exploration and evaluation costs, totalling $1,502,573 (2020: $748,244), forms part of the exploration and evaluation expenditure for the year as set out in Note 14.

082

083

NAVARRE MINER ALS LIMITED

ANNUAL REPORT 2021

U N E A R T H I N G P R O S P E R I T Y

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2021

NOTE 5: INCOME TAX (cont.)

NOTE 5: INCOME TAX (cont.)
Deferred Income Tax Deferred income tax at 30 June relates to the following: CONSOLIDATED Deferred tax liabilities Interest receivable Exploration and evaluation costs Gross deferred income tax liabilities Deferred tax assets Accruals Provisions Share issue costs Capital expenses Temporary differences not recognised as not probable Tax losses brought to account to offset net deferred tax liability Gross deferred income tax assets Net Deferred Tax Asset Deferred tax expense	Statement of Financial Position Income Statement 2021 2020 2021 2020 $ $ $ $ (80) (3,617) 3,537 3,209 (7,864,174) (4,589,285) (3,274,889) (1,289,975) (7,864,254) (4,592,902) 41,525 40,904 621 (2,293) 54,321 34,220 20,101 4,461 411,101 81,840 - - 373,072 - - - (784,173) (81,840) - - 7,768,408 4,517,778 3,250,630 1,284,598 7,864,254 4,592,902 - -
	- -

Tax consolidation

• (i) Members of the tax consolidated group

Navarre Minerals Limited and its 100% owned Australian resident subsidiaries have formed a tax consolidated group. Navarre Minerals Limited is the head entity of the tax consolidated group.

• (ii) Tax effect accounting by members of the tax consolidated group

Measurement method adopted under UIG 1052 Tax Consolidated Accounting

The head entity and the controlled entities in the tax consolidated group continue to account for their own current and deferred tax amounts. The Group has applied the group allocation approach in determining the appropriate amount of current taxes and deferred taxes to allocate to members of the tax consolidated group. The current and deferred tax amounts are measured in a systematic manner that is consistent with the principles in AASB 112 Income Taxes.

In addition to its own current and deferred tax amounts, the head entity also recognises current tax liabilities (or assets) and the deferred tax assets arising from unused tax losses and unused tax credits assumed from controlled entities in the tax consolidated group.

Tax losses

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

NOTE 5: INCOME TAX (cont.)

In June 2018, the Company received an allocation of up to $1,576,603 exploration credits in the Federal Government’s Junior Minerals Exploration Incentive (“JMEI”) scheme for FY2019. The JMEI scheme enables eligible exploration companies to create exploration credits by giving up a portion of their tax losses from greenfields minerals expenditure and distributing these exploration credits to eligible investors who were issued new shares in the Company’s capital raising activities during FY2019. On 11 November 2019, the Company created JMEI tax credits totalling $977,070 which have been applied and distributed on a pro-rata basis to eligible investors. Accordingly, carry forward tax losses have been reduced by $3,256,901 (i.e. $977,070 grossed up by 30%). The balance of unused JMEI tax credits from FY2019 ($599,533) were carried forward to FY2020.

In June 2019, the Company received an allocation of up to $1,500,000 exploration credits in the Federal Government’s JMEI scheme for FY2020. Subsequent to FY2020, the Company calculated that out of the $1,500,000 of exploration credits allocated to the Company, a maximum of $1,425,603 were distributable for FY2020 (based on $4,752,009 capital raised during FY2020 multiplied by the Company’s tax rate of 30%).

On 9 December 2020, the Company created JMEI tax credits totalling $1,267,182. Of these, $599,533 were applied and distributed on a prorata basis to FY2019 eligible investors and the remaining $667,649 were applied and distributed on a pro-rata basis to FY2020 eligible investors. Accordingly, carry forward tax losses have been reduced by $4,223,941 (i.e. $1,267,182 grossed up by 30%).

The balance of unused JMEI tax credits from FY2020 ($757,954) have been carried forward to FY2021 and, depending on the tax loss recorded for the FY2021, will be distributed to the FY2020 eligible investors.

The JMEI scheme replaced the previous Exploration Development Incentive scheme (“EDI”) scheme from 1 July 2017. The EDI operated for a three year period (FY15 – FY17) and the Company issued exploration credits to shareholders to the value of $666,519. The value of tax losses forgone is $2,341,207.

NOTE 6: EARNINGS/(LOSS) PER SHARE

Basic earnings/(loss) per share amounts are calculated by dividing net loss for the year attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the year.

Diluted earnings/(loss) per share amounts are calculated by dividing the net loss attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on the conversion of all the dilutive potential ordinary shares into ordinary shares.

For the year ended 30 June 2021 and for the comparative period, there are no dilutive potential ordinary shares as conversion of share options and performance rights would decrease the loss per share and hence are non-dilutive.

The following data was used in the calculations of basic and diluted loss per share:

The following data was used in the calculations of basic and diluted loss per share:
	Consolidated
	2021	2020
	$	$
Net loss	(2,723,684)	(984,124)
	Shares	Shares
Weighted average number of ordinary shares used in calculation of basic loss per share	548,193,192	464,660,543

At balance date, the Group has estimated unused gross tax losses of $29,895,000 (2020: $21,175,000) that are available to offset against future taxable profits subject to continuing to meet relevant statutory tests. To the extent that it does not offset a net deferred tax liability, a deferred tax asset has not been recognised in the accounts for these unused losses because it is not probable that future taxable profit will be available to use against such losses.

084

085

NAVARRE MINER ALS LIMITED

ANNUAL REPORT 2021

U N E A R T H I N G P R O S P E R I T Y

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2021

NOTE 7: CASH AND CASH EQUIVALENTS

NOTE 7: CASH AND CASH EQUIVALENTS
Cash at bank and in hand Cash at bank earns interest at floating rates based on daily bank rates.	Consolidated 2021 2020 $ $ 14,095,825 2,596,648

NOTE 8: TRADE AND OTHER RECEIVABLES

NOTE 8: TRADE AND OTHER RECEIVABLES
	Consolidated
	2021	2020
	$	$
Goods and services tax refund	583,690	86,808
Interest receivable	265	12,057
Prepaid Tandarra joint venture advance	49,849	56,795
Other	99,498	25,162
	733,302	180,822

At balance date, no receivables are past due or impaired. Due to the short term nature of these receivables, their carrying value approximates fair value. Trade receivables are non-interest bearing and are generally on 30-90 day terms. Details regarding the credit risk of current receivables are disclosed in Note 20.

NOTE 9: OTHER FINANCIAL ASSETS

NOTE 9: OTHER FINANCIAL ASSETS
Current Term Deposits Non-current Bank Guarantees – Exploration Permit bonds NOTE 10: NON-CURRENT ASSETS CLASSIFIED AS HELD FOR SALE Current Tenement – EL 4590	Consolidated 2021 2020 $ $ 80,000 3,010,000
	Consolidated 2021 2020 $ $ 110,000 110,000
	Consolidated 2021 2020 $ $ 423,442 -

In February 2021, the Company executed a binding terms sheet with Resource Base for the sale of the Company’s Black Range base metal exploration tenement (EL 4590), subject to various conditions precedent. Subsequent to balance date, all applicable conditions precedent were satisfied and EL 4590 was transferred to Resource Base.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

NOTE 11: PROPERTY, PLANT AND EQUIPMENT

NOTE 11: PROPERTY, PLANT AND EQUIPMENT
At cost Accumulated depreciation Movement in Plant and Equipment Net carrying amount at beginning of year Additions Depreciation Net carrying amount at end of year The useful life of the plant and equipment is estimated for 2021 at 3 to 5 years. NOTE 12: LEASEHOLD IMPROVEMENTS At cost Accumulated depreciation Movement in Leasehold Improvements Net carrying amount at beginning of year Additions Depreciation Net carrying amount at end of year NOTE 13: RIGHT-OF-USE ASSETS Land and buildings Accumulated depreciation	Consolidated 2021 2020 $ $ 397,013 272,226 (268,806) (232,701)
	128,207 39,525
	39,525 44,416 124,787 11,766 (36,105) (16,657)
	128,207 39,525
	Consolidated 2021 2020 $ $ 14,716 7,602 (8,362) (7,602)
	6,354 -
	- - 7,114 - (760) -
	6,354 -
	Consolidated 2021 2020 $ $ 119,581 - (18,269) -
	101,312 -

Additions to the right-of-use assets during the year were $119,581 (2020: $0)

086

087

NAVARRE MINER ALS LIMITED

ANNUAL REPORT 2021

U N E A R T H I N G P R O S P E R I T Y

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

NOTE 14: EXPLORATION AND EVALUATION COSTS

NOTE 14: EXPLORATION AND EVALUATION COSTS
Balance at beginning of year Expenditure for the year Classified as held for sale Expenditure written-off during the year	Consolidated 2021 2020 $ $ 15,297,618 10,997,701 11,375,185 4,480,027 (423,442) - (35,447) (180,110)
	26,213,914 15,297,618

Capitalised exploration and evaluation costs at 30 June 2021 relate to Stawell Corridor $16,765,655 (2020: $8,934,520), Bendigo North $6,450,357 (2020: $5,067,766), St Arnaud Gold Project $2,468,130 (2020: $836,027), Jubilee Gold Project $521,087 (2020: $35,486) and Stavely Arc Project $8,685 (2020: $423,819).

NOTE 15: TRADE AND OTHER PAYABLES

NOTE 15: TRADE AND OTHER PAYABLES
Trade Creditors Trade payables are non-interest bearing and are normally settled on 30 day terms. NOTE 16: EMPLOYEE BENEFITS PROVISION Current Annual leave entitlement Long service leave entitlement Non-current Long service leave entitlement NOTE 17: LEASE LIABILITIES Current Lease liability Non-current Lease liability	Consolidated 2021 2020 $ $ 1,160,986 429,664
	Consolidated 2021 2020 $ $ 109,428 59,045 66,971 52,664
	176,399 111,709
	Consolidated 2021 2020 $ $ 4,671 2,359
	Consolidated 2021 2020 $ $ 17,973 -
	Consolidated 2021 2020 $ $ 86,096 -

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

NOTE 18: CONTRIBUTED EQUITY AND RESERVES

ISSUED AND PAID UP CAPITAL Ordinary shares Movements in Ordinary Shares Balance at beginning of year Share Issues: Share placement at $0.11 Share placement at $0.125 Share placement at $0.100 Share Purchase Plan at $0.100 Exercise of performance rights Exercise of employee share options Exercise of other share options Cost of equity instruments exercised Transaction costs Balance at end of year	Consolidated 2021 2021 2020 2020 Shares $ Shares $ 695,172,151 51,813,994 478,242,151 29,634,657
	478,242,151 29,634,657 435,010,251 25,155,010 - - 43,181,900 4,750,009 64,000,000 8,000,000 43,181,900 4,750,009 100,000,000 10,000,000 - - 48,930,000 4,893,000 - - 500,000 - - - 1,300,000 146,400 50,000 2,000 2,200,000 288,860 - - - 221,414 - 437 - (1,370,337) - (272,799)
	695,172,151 51,813,994 478,242,151 29,634,657

(a) Terms and Conditions of Ordinary Shares

Ordinary shares entitle their holder to receive dividends as declared. In the event of winding up the Company, ordinary shares entitle their holder to participate in the proceeds from the sale of all surplus assets in proportion to the number of and amounts paid up or which should have been paid up on shares held. Each ordinary share entitles the holder to one vote, either in person or by proxy, at a meeting of the Company. Ordinary shares issued during the year and since the end of the year, from date of issue rank equally with the ordinary shares on issue.

(b) Share Options

Employee Options

At 30 June 2021, 10,600,000 options over unissued shares granted to senior employees and non-executive directors of the Company were outstanding. The options are granted pursuant to the Navarre Minerals Limited Option Plan, details of which are set out in Note 23.

Other Options

At 30 June 2021, 1,800,000 share options over unissued shares granted to Zenix Nominees Pty Ltd, a subsidiary of Hartleys Limited, as part consideration for Hartleys’ role as manager for the Share Placement completed in April/May 2019, were outstanding.

(c) Share Performance Rights

At 30 June 2021, 3,800,000 performance rights over unissued shares granted to senior employees of the Company were outstanding. The performance rights are granted pursuant to the Navarre Minerals Limited Performance Rights Plan, details of which are set out in Note 23.

(d) Capital Management

Capital is defined as equity. When managing capital, management’s objective is to ensure the entity continues as a going concern as well as to maintain optimal returns to shareholders and benefits of other stakeholders. All methods of returning funds to shareholders outside of dividend payments or raising funds are considered within the context of the Group’s objectives.

088

089

NAVARRE MINER ALS LIMITED

ANNUAL REPORT 2021

U N E A R T H I N G P R O S P E R I T Y

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

NOTE 18: CONTRIBUTED EQUITY AND RESERVES (cont.)

The Group will seek to raise further capital, if required, as and when necessary to meet its projected operations. The decision of how the Group will raise future capital will depend on market conditions existing at that time. It is the Group’s plan that this capital will be raised by any one or a combination of the following: placement of shares, pro-rata issue to shareholders, the exercise of outstanding options, and/or a further issue of shares to the public. Should these methods not be considered to be viable, or in the best interests of shareholders, then it would be the Group’s intention to meet its obligations by either partial sale of the Group’s interests or farm-out, the latter course of action being part of the Group’s overall strategy.

The Group is not subject to any externally imposed capital requirements.

OTHER RESERVES

Share Based Payments Reserve

The share based payments reserve records the value of benefits provided as equity instruments to directors, employees and consultants under share-based payment plans (Note 23).

under share-based payment plans (Note 23).
Balance at beginning of year Cost of share based payments Cost of expired equity instruments transferred to accumulated losses Cost of exercised equity instruments transferred to issued capital Balance at end of year ACCUMULATED LOSSES Balance at beginning of year Net loss for the year Cost of equity instruments expired Balance at end of year	Consolidated 2021 2020 $ $ 672,749 521,068 521,111 224,272 (64,842) (72,154) (221,414) (437)
	907,604 672,749
	Consolidated 2021 2020 $ $ (9,616,525) (8,704,555) (2,723,684) (984,124) 64,842 72,154
	(12,275,367) (9,616,525)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

NOTE 19: STATEMENT OF CASH FLOWS RECONCILIATION

Reconciliation of net loss after tax to net cash flows used in operating activities

Reconciliation of net loss after tax to net cash flows used in operating activities
Net loss Adjustments for: Exploration expenditure written-off Depreciation and amortisation (net of allocation to exploration licences) Share based payments (net of allocation to exploration licences) Changes in assets and liabilities (Increase)/decrease in trade and other receivables (net of allocation to exploration licences) Increase in trade and other payables (net of allocation to exploration licences) Increase in provisions (net of allocation to exploration licences) Net cash flows used in operating activities	Consolidated 2021 2020 $ $ (2,723,684) (984,124) 35,447 180,110 6,526 1,836 288,377 104,898 (482,518) 21,326 26,421 27,657 22,316 7,225
	(2,827,115) (641,072)

NOTE 20: FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Group’s principal financial instruments comprise cash and short term deposits, the main purpose of which is to finance the Group’s operations. The Group has various other financial assets and liabilities such as trade receivables and trade payables, which arise directly from its operations. The main risks arising from the Group’s financial instruments are credit risk, interest rate risk and liquidity risk. The Board of Directors has reviewed each of those risks and has determined that they are not significant in terms of the Group’s current activities.

Credit risk

The Group trades only with recognised, creditworthy third parties. Receivable balances are monitored on an ongoing basis with the results being that the Group’s exposure to bad debts is not significant.

Credit risk arises from the financial assets of the Group, which comprise cash and cash equivalents and trade, other receivables and other financial assets. The Group's exposure to credit risk arises from potential default of the counter party, with a maximum exposure equal to the carrying amount of these instruments. No collateral is held as security. Exposure at balance date is the carrying value as disclosed in each applicable note.

Interest rate risk

The Group’s exposure to the risk of changes in market interest rates relates primarily to the Group’s cash and cash equivalents with a floating interest rate. The impact of a 1.0% change in the market interest rates will not have a material impact on the Group’s financial position.

There is no impact on equity other than the above net profit sensitivities on retained earnings/accumulated losses.

Liquidity Risk

The Group’s exposure to financial obligations relating to corporate administration and projects expenditure, are subject to budgeting and reporting controls, to ensure that such obligations do not exceed cash held and known cash inflows for a period of at least 1 year.

Ultimate responsibility for liquidity risk management rests with the Board of Directors, which has built in an appropriate liquidity risk framework for the management of the Group’s short, medium and longer term funding and liquidity management requirements. The Group manages liquidity risk by maintaining adequate equity funding through the monitoring of future cash flow forecasts of its operations, which reflect management’s expectations of the settlement of financial assets and liabilities.

090

091

NAVARRE MINER ALS LIMITED

ANNUAL REPORT 2021

U N E A R T H I N G P R O S P E R I T Y

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2021

NOTE 20: FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (cont.)

The Group has limited financial resources and will need to raise additional capital from time to time as such fund raisings will be subject to factors beyond the control of the Group and its directors. When Navarre requires further funding for its programs, then it is the Group’s intention that the additional funds will be raised by any one or a combination of the following: placement of shares, pro-rata issue to shareholders, the exercise of outstanding options, and/or a further issue of shares to the public. Should these methods not be considered to be viable, or in the best interests of shareholders, then it would be the Group’s intention to meet its obligations by either partial sale of the Group’s interests or farm-out, the latter course of action being part of the Group’s overall strategy.

Maturity Analysis

At balance date, the Group holds $1,160,986 of financial liabilities consisting of trade and other payables. All financial liabilities will mature within 12 months.

Fair Values

The aggregate net fair values of the financial assets and liabilities are the same as the carrying values in the consolidated statement of financial position.

NOTE 21: COMMITMENTS AND CONTINGENCIES

(a) Commitments

(a) Commitments
Operating Lease Future minimum rentals payable under operating lease for office premises and storage yard at balance date: Payable not later than one year Exploration Commitments – Exploration Permits Estimated cost of minimum work requirements contracted for under exploration permit is estimated at balance date: Payable not later than one year Payable later than one year but not later than five years Payable later than five years	2021 2020 $ $ 3,690 2,390
	2021 2020 $ $ 925,450 727,350 4,291,100 2,195,000 392,000 588,000
	5,608,550 3,510,350

Exploration commitments at 30 June 2021 relate to Bendigo North (the Company’s 49% interest in the Tandarra Gold Project) $1,151,500 (2020: $1,274,000), Western Victoria Copper Project (the are no expenditure commitments for EL 4590 or EL 5425, see below for details) $0 (2020: $154,000), Stawell Corridor $1,341,400 (2020: $1,703,050), St Arnaud Gold Project $2,985,250 (2020: $209,500) and Jubilee Gold Project $130,400 (2020: $169,800).

During FY2019, the Company received notification from the Victorian Department of Economic Development, Jobs, Transport and Resources (DEDJTR) that Retention Licence RL 6660 had been granted for a ten-year term expiring on 2 November 2028 for the Tandarra Gold Project. The programme of work and milestones were also agreed with the DEDJTR and will require expenditure of $3.1 million during the ten-year period. The Company is obligated to pay 49% of the required exploration programme expenditure of $3.1 million over the period of the licence.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

NOTE 21: COMMITMENTS AND CONTINGENCIES (cont.)

Exploration commitments for Stavely (EL 5425) during the reporting period were met by Stavely Minerals Limited (Stavely) under an earnin, pursuant to which Stavely may earn up to 80% interest in EL 5425. During FY2020, the Company received notification that Stavely had satisfied the conditions for the first earn-in stage by sole funding $150,000 of exploration costs in the first two years, to earn a 51% equity interest in EL 5425 in accordance with the Stavely Farm-in and Joint Venture Agreement signed in January 2018. Stavely has also elected to proceed to the second earn-in stage and sole fund a further $300,000 of exploration costs over the next three years to earn an additional 29% equity interest.

In June 2020, the Company executed an Asset Sale Agreement to acquire 100% of the Jubilee Gold Project (EL 006689), under which, and upon transfer of the tenement, the Group would be required to meet all exploration commitments for the tenement. During the reporting period, the transfer of the tenement by the Victorian Department of Jobs, Precincts and Regions to the Group was completed.

In February 2021, the Company executed a binding terms sheet with Resource Base for the sale of the Company’s Black Range base metal exploration tenement (EL 4590), subject to various conditions precedent. Subsequent to balance date, all applicable conditions precedent were satisfied and EL 4590 was transferred to Resource Base. Therefore, there are no exploration commitments for Black Range (EL 4590) at balance date.

The Company currently has seven exploration licence applications in process. If these licences are granted, there will be minimum expenditure commitment applicable to the tenements. The amount of this commitment is currently unknown.

In order to maintain current rights of tenure to exploration tenements, the Group is required to perform work to meet the minimum expenditure requirements set by the Victorian State Government. These obligations are expected to be fulfilled in the normal course of operations. Exploration interests may be relinquished or joint ventured to reduce this expense to the Group. The Victorian State Government has the authority to defer, waive or amend the minimum expenditure requirements.

NOTE 22: RELATED PARTY DISCLOSURES

Subsidiaries

The consolidated financial statements include the financial statements of Navarre Minerals Limited and the following subsidiaries:

Country of Incorporation Black Range Metals Pty Ltd Australia Loddon Gold Pty Ltd Australia North Central Gold Exploration Pty Ltd Australia Tandarra Gold Pty Ltd Australia Western Victoria Gold Pty Ltd Australia Compensation of key management personnel by category: Short term employee benefits Post-employment benefits Share-based payments Long service leave expense	Entity Interest 2021 2020 % % 100 100 100 100 100 100 100 100 100 100 Consolidated 2021 2020 $ $ 1,128,018 737,247 100,145 83,952 450,746 239,676 16,619 8,318
	1,695,528 1,069,193

Details of compensation of individual key management personnel are set out in the Remuneration Report.

092

093

NAVARRE MINER ALS LIMITED

ANNUAL REPORT 2021

U N E A R T H I N G P R O S P E R I T Y

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

NOTE 23: SHARE BASED PAYMENT PLANS

The Group has established the Navarre Minerals Limited Option Plan (“Option Plan”) and the Navarre Minerals Limited Performance Rights Plan (“Performance Rights Plan”), both of which have been approved by shareholders at a general meeting, whereby the Group may, at the discretion of the Board of Directors, grant options over ordinary shares and performance rights over ordinary shares in the Company to certain key management personnel of the Group. The options and performance rights are issued for nil consideration and are granted in accordance with performance guidelines established by the Nomination and Remuneration Committee.

In November 2020, 1,500,000 performance rights were issued to the Managing Director, pursuant to the Performance Rights Plan.

In addition to options issued under the Option Plan and Performance Rights Plan, the Group may also issue options to service providers as consideration for services provided to the Group.

Set out below are summaries of options granted under the Option Plan:

2021

2021
Grant date Expiry date Exercise price 22/02/2017 31/12/2021 $0.072 22/02/2017 31/12/2021 $0.090 29/01/2018 29/01/2023 $0.150 10/04/2018 10/04/2023 $0.150 06/06/2018 06/06/2021 $0.150 21/02/2019 21/02/2024 $0.120 17/05/2019 17/05/2024 $0.120 17/05/2019 17/05/2022 $0.1313 Weighted average exercise price 2020 Grant date Expiry date Exercise price 23/06/2015 31/12/2019 $0.040 22/02/2017 31/12/2021 $0.072 22/02/2017 31/12/2021 $0.090 29/01/2018 29/01/2023 $0.150 10/04/2018 10/04/2023 $0.150 06/06/2018 06/06/2021 $0.150 21/02/2019 21/02/2024 $0.120 17/05/2019 17/05/2024 $0.120 17/05/2019 17/05/2022 $0.1313 Weighted average exercise price	Held at 1 July 2020 Options Granted Options Exercised Options Lapsed Held at 30 June 2021 200,000 - 200,000 - - 200,000 - - - 200,000 2,000,000 - - - 2,000,000 4,650,000 - - 750,000 3,900,000 1,000,000 - - 1,000,000 - 1,700,000 - - - 1,700,000 5,450,000 - 1,100,000 1,550,000 2,800,000 4,000,000 - 2,200,000 - 1,800,000
	19,200,000 - 3,500,000 3,300,000 12,400,000
	$0.1335 $0.0000 $0.1244 $0.1359 $0.1354 Held at 1 July 2019 Options Granted Options Exercised Options Lapsed Held at 30 June 2020 50,000 - 50,000 - - 200,000 - - - 200,000 200,000 - - - 200,000 2,750,000 - - 750,000 2,000,000 5,400,000 - - 750,000 4,650,000 1,000,000 - - - 1,000,000 2,100,000 - - 400,000 1,700,000 6,100,000 - - 650,000 5,450,000 4,000,000 - - - 4,000,000
	21,800,000 - 50,000 2,550,000 19,200,000
	$0.1338 $0.0000 $0.0400 $0.1376 $0.1335

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

NOTE 23: SHARE BASED PAYMENT PLANS (cont.)

Set out below are the options, vested and exercisable at the end of the financial year:

Set out below are the options, vested and exercisable at the end of the financial year:
Grant date Expiry date 22/02/2017 31/12/2021 22/02/2017 31/12/2021 29/01/2018 29/01/2023 10/04/2018 10/04/2023 06/06/2018 06/06/2021 21/02/2019 21/02/2024 17/05/2019 17/05/2024 17/05/2019 17/05/2022	2021 2020 Options Options - 200,000 200,000 200,000 2,000,000 - 3,900,000 - - 1,000,000 1,700,000 566,666 2,533,334 3,634,334 1,800,000 4,000,000
	12,133,334 9,601,000

The weighted average share price during the financial year was $0.1508 (2020: $0.1062).

The weighted average remaining contractual life of options outstanding at the end of the financial year was 1.27 years (2020: 2.84 years). Set out below are summaries of performance rights granted under the Performance Rights Plan:

2021

2021
Grant date Expiry date 18/11/2019 31/12/2022 18/05/2020 30/06/2023 27/11/2020 31/12/2024 2020 Grant date Expiry date 18/11/2019 31/12/2022 18/05/2020 30/06/2023	Held at 1 July 2020 Performance Rights Granted Performance Rights Exercised Performance Rights Lapsed Held at 30 June 2021 1,500,000 - - - 1,500,000 1,300,000 - - - 1,300,000 - 1,500,000 500,000 - 1,000,000
	2,800,000 1,500,000 500,000 - 3,800,000
	Held at 1 July 2019 Performance Rights Granted Performance Rights Exercised Performance Rights Lapsed Held at 30 June 2020 - 1,500,000 - - 1,500,000 - 1,300,000 - - 1,300,000
	- 2,800,000 - - 2,800,000

094

095

NAVARRE MINER ALS LIMITED

ANNUAL REPORT 2021

U N E A R T H I N G P R O S P E R I T Y

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

NOTE 23: SHARE BASED PAYMENT PLANS (cont.)

For the performance rights granted during the current financial year, the valuation model inputs used to determine the fair value at grant date are as follows:

		Share price at	Expected		Risk-free	Fair value at
Grant date	Expiry date	grant date	volatility	Dividend yield	interest rate	grant date
27/11/2020	31/12/2024	$0.215	70%	0%	0.07%	$0.215
27/11/2020	31/12/2024	$0.215	70%	0%	0.07%	$0.186
27/11/2020	31/12/2024	$0.215	70%	0%	0.07%	$0.180

Set out below are the performance rights, vested and exercisable at the end of the financial year:

Set out below are the performance rights, vested and exercisable at the end of the financial year:
Grant date Expiry date 18/11/2019 31/12/2022 18/05/2020 30/06/2023	2021 2020 Performance Rights Performance Rights 1,500,000 166,666 1,300,000 -
	2800000 166666

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

NOTE 25: PARENT ENTITY INFORMATION

NOTE 25: PARENT ENTITY INFORMATION
Information relating to Navarre Minerals Limited Current assets Total assets Current liabilities Total liabilities Issued capital Share based payment reserve Accumulated losses Total shareholders’ equity (Loss) of the parent entity Total comprehensive (loss) of the parent entity Details of any guarantees entered into by the parent entity in relation to the debts of its subsidiaries Details of any contingent liabilities of the parent entity Details of any contractual commitments by the parent entity for the acquisition of property, plant or equipment	2021 2020 $ $ 25,054,107 7,031,809 42,243,450 21,549,176 (1,337,385) (541,373) (1,446,126) (543,732) 51,813,994 29,634,657 907,604 672,749 (11,924,274) (9,301,962)
	40,797,324 21,005,444
	(2,687,154) (983,857)
	(2,687,154) (983,857)
	n/a n/a
	n/a n/a
	n/a n/a

NOTE 26: EVENTS SUBSEQUENT TO BALANCE DATE

NOTE 24: AUDITOR’S REMUNERATION

NOTE 24: AUDITOR’S REMUNERATION
Amounts received or due and receivable by RSM Australia Partners for: Audit or review of the financial reports Other non-audit services1	Consolidated 2021 2020 $ $ 27,700 27,100 150,700 -
	178,400 27,100

On 16 February 2021, Navarre announced the execution of a binding agreement with Resource Base Limited (Resource Base) for the sale of the Company’s Black Range base metal exploration tenement (EL 4590) in western Victoria, which includes the Eclipse prospect.

As consideration for acquiring 100% ownership in the tenement, Resource Base agreed to provide Navarre the following consideration, subject to the satisfaction or waiver of certain conditions precedent:

• (a) $1,520,000 in Resource Base shares on settlement (at Resource Base Initial Public Offering price of $0.20 per share);

• (b) 2,500,000 Resource Base shares on the announcement of a JORC compliant Inferred Mineral Resource of

1 The other non-audit services make up part of the business development expenditure set out in Note 4. This expenditure was incurred to pursue its stated strategic aim of exploring opportunities to further grow the business.

• (i) a minimum of 100,000 ounces of gold at a minimum grade of no less than 1 g/t; or

• (i) a minimum of a combined 100,000 tonnes of copper and zinc, each at a minimum grade of 1%, within 5 years of the settlement date; and

• (c) 6,000,000 Resource Base shares on delivery of a definitive feasibility study within 5 years of settlement which indicates a project net present value of greater than $250,000,000.

• In addition, Navarre was entitled to nominate one non-executive director to sit on the Board of Resource Base.

On 12 July 2021, following successful completion of its Initial Public Offering, Resource Base was admitted to the Official List of ASX Limited. As a result, the Company was issued 7,600,000 fully paid ordinary shares in Resource Base.

On 1 July 2021, Navarre issued 3,300,000 share performance rights to senior staff of the Company under the terms of the Navarre Minerals Limited Performance Rights Plan.

In September 2021, Navarre’s application to participate in the Federal Government’s Junior Minerals Exploration Incentive (JMEI) scheme for the 2021/2022 income tax year was accepted by the Australian Taxation Office. The Company has received an allocation of up to $1,250,000 exploration credits which can be distributed to eligible shareholders, being those that are Australian resident shareholders who apply for and are issued new shares in Navarre’s capital raising activities between 1 September 2021 and 30 June 2022.

096

097

NAVARRE MINER ALS LIMITED

ANNUAL REPORT 2021

U N E A R T H I N G P R O S P E R I T Y

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2021

DIRECTORS’ DECLARATION

In accordance with a resolution of the directors of Navarre Minerals Limited, I state that:

NOTE 26: EVENTS SUBSEQUENT TO BALANCE DATE (cont.)

In the opinion of the Directors:

Other than the above, there has not arisen in the interval between the end of the financial year and the date of this report any item, transaction or event of a material and unusual nature likely, in the opinion of the directors of the Company, to significantly affect the operations of the Group, the results of those operations, or state of affairs of the Group, in future financial years.

• (a) The financial statements and notes of Navarre Minerals Limited for the financial year ended 30 June 2021 are in accordance with the Corporations Act 2001, including:

• (i) Giving a true and fair view of the Company’s and the consolidated entity’s financial position as at 30 June 2021.

• (ii) Complying with Accounting Standards (including the Australian Accounting Interpretations) and Corporations Regulations 2001.

• (b) The financial statements and notes also comply with International Financial Reporting Standards as disclosed in Note 2(a)(i).

• (c) 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 has been made after receiving the declarations required to be made to the Directors in accordance with Section 295A of the Corporations Act 2001 for the financial year ended 30 June 2021.

Signed in accordance with a resolution of directors made pursuant to section 295(5)(a) of the Corporations Act 2001.

On behalf of the Board

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K Wilson Chairman

Melbourne, 17 September 2021

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Key Audit Matters

RSM Australia Partners

Level 21, 55 Collins Street Melbourne VIC 3000 PO Box 248 Collins Street West VIC 8007 T +61 (0) 3 9286 8000 F +61 (0) 3 9286 8199 www.rsm.com.au

INDEPENDENT AUDITOR’S REPORT To the Members of Navarre Minerals Limited

Opinion

We have audited the financial report of Navarre Minerals Limited (the Company) and its subsidiaries (the Group), which comprises the consolidated statement of financial position as at 30 June 2021, the consolidated statement of comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and the directors' declaration.

In our opinion the accompanying financial report of the Group is 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 2021 and of its financial performance for the year then ended; and

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

Basis for Opinion

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

We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor's report.

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

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matter described below to be the key audit matter to be communicated in our report.

Key Audit Matter How our audit addressed this matter Carrying Value of Capitalised Exploration Expenditure Refer to Note 14 in the financial statements

Our audit procedures in relation to the carrying value of exploration and evaluation expenditure included:

The Group has capitalised exploration and evaluation expenditure, with a carrying value of $26,213,914 as at 30 June 2021.

• obtaining evidence that the Group has valid rights to explore in the specific areas of interest;

• enquiring with management and reviewing the basis on which they have determined that the exploration and evaluation of mineral resources has not at the reporting date, reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves;

• enquiring with management and reviewing budgets and plans to assess whether active and significant operations are continuing in the specific areas of interest;

• reviewing whether management has received any data which might cause them to conclude that the exploration and evaluation asset is unlikely to be recovered in full from successful development or by sale; and

• reviewing minutes of director meetings and Australian Securities and Investments Commission announcements to ensure the Directors have not resolved to discontinue activities in the specific areas of interest.

Under AASB 6 Exploration for and Evaluation of Mineral Resources, the Group is required to test the exploration and evaluation asset for impairment when facts and circumstances suggest that the carrying amount may exceed the recoverable amount. We determined this to be a Key Audit Matter due to the significant management judgement involved in assessing the carrying value of the asset.

Other Information

The directors are responsible for the other information. The other information comprises the information included in the Group's annual report for the year ended 30 June 2021 but does not include the financial report and the auditor's report thereon.

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

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

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

THE POWER OF BEING UNDERSTOOD

AUDIT | TAX | CONSULTING

RSM Australia Partners is a member of the RSM network and trades as RSM. RSM is the trading name used by the members of the RSM network. Each member of the RSM network is an independent accounting and consulting firm which practices in its own right. The RSM network is not itself a separate legal entity in any jurisdiction. RSM Australia Partners ABN 36 965 185 036

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Liability limited by a scheme approved under Professional Standards Legislation

0101

ANNUAL REPORT 2021

U N E A R T H I N G P R O S P E R I T Y

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ADDITIONAL SHAREHOLDER INFORMATION

Responsibilities of the Directors for the Financial Report

The information set out below was compiled as at 13 September 2021.

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

In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so.

Auditor's Responsibilities for the Audit of the Financial Report

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

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_responsibilities/ar2.pdf. This description forms part of our auditor's report.

Report on the Remuneration Report

Opinion on the Remuneration Report

We have audited the Remuneration Report included the directors' report for the year ended 30 June 2021.

In our opinion, the Remuneration Report of Navarre Minerals Limited for the year ended 30 June 2021, complies with section 300A of the Corporations Act 2001.

Responsibilities

The directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.

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1. Listing Information

The Company is listed, and all of the Company’s issued shares are quoted on, the Australian Securities Exchange (ASX).

2. Distribution of Equity Securities

(i) Ordinary share capital

697,972,151 fully paid ordinary shares are held by 4,505 individual shareholders.

At a general meeting of shareholders, on a show of hands, each person who is a shareholder or sole proxy has one vote. On a poll, each shareholder is entitled to one vote for each fully paid share.

(ii) Unquoted options on issue

12,400,000 unquoted options are held by 5 individual option holders.

There are no voting rights attached to these options.

• (iii) Unquoted share performance rights on issue

• 4,300,000 unquoted options are held by 8 individual option holders.

There are no voting rights attached to these performance rights.

• (iv) Analysis of number of shareholders by size of holding

Ordinary shares Holders Total Units % IC 1 – 1000 147 15,860 0.000 1,001 – 5,000 407 1,544,380 0.220 5,001 – 10,000 728 5,866,906 0.840 10,001 – 100,000 2,301 94,637,050 13,560 >100,001 922 595,907,955 85.380 Totals 4,505 697,972,151 100.000	Options over ordinary shares Holders Total Units % IC - - - - - - - - - - - - 5 12,400,000 100.000 5 12,400,000 100.000	Performance rights over ordinary shares Holders Total Units % IC - - - - - - - - - - - - 8 4,300,000 100.000 8 4,300,000 100.000

RSM AUSTRALIA PARTNERS

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624 holders holding a total of 1,934,962 shares held less than a marketable parcel of ordinary shares.

J S CROALL

Partner

Dated: 17 September 2021 Melbourne, Victoria

0102

NAVARRE MINER ALS LIMITED

ADDITIONAL SHAREHOLDER INFORMATION

3. 20 Largest Shareholders

The following table sets out the top 20 holdings of the Company’s shares:

	Number of	% Issued
Shareholder	shares	capital
Newmarket Gold NT Holdings Pty Ltd	47,981,303	6.902
Dr Stephen Garth Nordstrom	46,935,000	6.752
VBS Exchange Pty Ltd	42,433,412	6.104
Holdings associated with Geoff McDermott	14,555,792	2.094
Holdings associated with Kevin Wilson	13,906,085	2.000
Maradox Pty Ltd	10,000,000	1.439
Kirkland Lake Gold Ltd	8,800,000	1.266
Pe Group Holdings Pty Ltd	8,703,774	1.252
Spruzen Corporation Pty Ltd	6,300,000	0.906
Mr Howard Manly Dimond & Mrs Linda Margaret Doris Dimond	6,000,000	0.863
Valleytech Instrumentation Pty Ltd	5,900,000	0.849
Campbell Kitchener Hume & Associates Pty Ltd	5,500,000	0.791
Greenhill Road Investments Pty Ltd	5,151,000	0.741
ESM Limited	4,500,000	0.647
Arc De Triomphe Securities Pty Ltd	4,300,000	0.619
BNP Paribas Nominees Pty Ltd	4,137,015	0.595
Mr Robert John Annells & Mrs Kimberley Jane Hodge	4,000,000	0.575
Citicorp Nominees Pty Limited	3,933,285	0.566
Tattersfield Securities Limited	3,861,114	0.555
Mr Ralph Douglas Russell	3,759,915	0.541
	250,657,695	36.057

4. Substantial Shareholders

The substantial holders in the Company, as disclosed in substantial holding notices given to the Company, are set out below:

		% Issued
Shareholder	No of shares	Capital
Dr Stephen Garth Nordstrom1	46,600,000	7.21
VBS Exchange Pty Ltd2	44,748,745	8.25
Newmarket Gold NT Holdings Pty Ltd3	18,469,272	19.95

• 1 As set out in substantial holding notice dated 4 June 2021.

• 2 As set out in substantial holding notice dated 4 August 2020.

• 3 As set out in substantial holding notice dated 19 March 2015.

5. Other information

The Company is not currently conducting an on-market buy-back.

A N N U A L R E P O R T 2 0 2 1

40-44 Wimmera Street PO Box 385 Stawell Victoria 3380 Australia +61 (3) 5358 8625 info@navarre.com.au navarre.com.au

@Navarre Minerals Ltd @NavarreMinerals @NavarreMinerals

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