BOWEN COKING COAL LIMITED — Interim / Quarterly Report 2021

Mar 9, 2021

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BOWEN COKING COAL LTD AND CONTROLLED ENTITIES

ABN: 72 064 874 620

HALF YEAR REPORT FOR THE PERIOD ENDED 31 DECEMBER 2020

BOWEN COKING COAL LTD - ACN 064 874 620

HALF YEAR REPORT 2020

Contents

Cautionary Statements	2
Corporate Information	3
Directors’ Report	4
Auditor’s Independence Declaration	8
Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income	9
Condensed Consolidated Statement of Financial Position	10
Condensed Consolidated Statement of Changes in Equity	11
Condensed Consolidated Statement of Cash Flows	12
Notes to The Financial Statements	13
Directors’ Declaration	20
Independent Auditor’s Report	21

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BOWEN COKING COAL LTD - ACN 064 874 620

HALF YEAR REPORT 2020

Cautionary Statements

Forward-looking statements

This document may contain certain forward-looking statements. Such statements are only predictions, based on certain assumptions and involve known and unknown risks, uncertainties and other factors, many of which are beyond the Company’s control. Actual events or results may differ materially from the events or results expected or implied in any forward-looking statement.

The inclusion of such statements should not be regarded as a representation, warranty or prediction with respect to the accuracy of the underlying assumptions or that any forward-looking statements will be or are likely to be fulfilled. Bowen Coking Coal Ltd undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this document (subject to securities exchange disclosure requirements).

The information in this document does not take into account the objectives, financial situation or particular needs of any person or organisation. Nothing contained in this document constitutes investment, legal, tax or other advice.

Competent Person Statement

All exploration results and Mineral Resources referred to in this Half Year Report have previously been announced to the market by the Company in accordance with the requirements of Chapter 5 of the ASX Listing Rules and the JORC Code 2012, including as to the requirements for a statement from a Competent Person and the relevant announcements have been referred to in the body of the Half Year Report. The Company confirms that it is not aware of any new information or data that materially affects that information. In respect of the Mineral Resources, all material assumptions and technical parameters continue to apply and have not materially changed.

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BOWEN COKING COAL LTD - ACN 064 874 620

HALF YEAR REPORT 2020

Corporate Information

Directors and Company Secretary

Nicholas Jorss (Executive Chairman) Gerhard Redelinghuys (Managing Director) Blair Sergeant (Executive Director - Corporate Development) Neville Sneddon (Non-Executive Director) Matthew Latimore (Non-Executive Director)

Mr Daryl Edwards (Chief Financial Officer) Mr Duncan Cornish (Company Secretary)

Head Office and Registered Office

Bowen Coking Coal Ltd Level 7, 167 Eagle Street Brisbane QLD 4000 Tel: +61 7 3191 8413 www.bowencokingcoal.com.au

Auditors

RSM Australia Partners Level 6, 340 Adelaide Street Brisbane QLD 4000

Share Registry

Link Market Services Limited Level 21, 10 Eagle Street Brisbane QLD 4000 Tel: 1300 554 474 www.linkmarketservices.com.au

Stock Exchange Listing

Australian Securities Exchange Ltd ASX Code: BCB

Australian Company Number

064 874 620

Solicitor

Colin Biggers & Paisley Pty Ltd Level 35, 1 Eagle Street Brisbane QLD 4000

Banker

Westpac Banking Corporation Limited

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BOWEN COKING COAL LTD - ACN 064 874 620

HALF YEAR REPORT 2020

Directors’ Report

The Directors of Bowen Coking Coal Limited (the Company ) present their Report together with the financial statements of the Consolidated Entity, being the Company and its Controlled Entities, for the period ended 31 December 2020.

DIRECTORS

The names of Directors who held office of the Company during the whole of the financial half-year and up to the date of this report, unless otherwise stated:

Nicholas Jorss Executive Chairman (moved from Non-Executive Director to Executive Chairman on 25 February 2021) Gerhard Redelinghuys Managing Director Blair Sergeant Executive Director Steven Formica Non-Executive Director (resigned 31 October 2020) James Agenbag Non-Executive Director (resigned 31 October 2020) Neville Sneddon Non-Executive Director (moved from Non-Executive Chairman to NonExecutive Director on 25 February 2021) Matthew Latimore Non-Executive Director

COMPANY SECRETARY

Duncan Cornish

PRINCIPAL ACTIVITIES

The principal activity of the Consolidated Entity is exploration and development of coal projects with a primary focus on metallurgical coal.

REVIEW OF RESULTS

The loss after tax for the period ended 31 December 2020 was $1,718,298 (2019: $987,932).

REVIEW OF OPERATIONS

Bowen Coking Coal Limited continued to execute on its strategy of taking the Company from a developer to a producer, by progressing several of its projects along the development curve, with a view to having Broadmeadow East and Isaac River “shovel ready” as soon as practically possible.

Highlights:

• Acquiring the 33mt Broadmeadow East Coking Coal project and associated Mining Lease.

• Expediting exploration and permitting at both Broadmeadow East and Isaac River

• Securing investment from Sumitomo to continue farming-into the Hillalong JV through a further $2.5m investment to earn an additional 5% interest in Hillalong

• Completing coal quality confirmatory drilling at Hillalong North demonstrating the potential to produce a low ash primary coking coal

• Submitting Environmental Authority application for Isaac River, which followed the Mining Lease application submitted earlier in the year;

• Raising $5.25m to acquire and accelerate Broadmeadow East development and securing a further $0.9m funding though the exercise of Options.

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BOWEN COKING COAL LTD - ACN 064 874 620

HALF YEAR REPORT 2020

Directors’ Report

PROJECTS

Broadmeadow East Coking Coal Project (ML 70257) (“Broadmeadow East”)

Broadmeadow East is located about 25 km northeast of the township of Moranbah, in the Central Bowen Basin. It is the Company’s most advanced opencut coking coal project. In a significant milestone, on the 24 June 2020, the Company announced that it had executed binding agreements with Peabody (Burton Coal) Pty Ltd (“Peabody”), a wholly owned subsidiary of US headquartered Peabody Energy Corporation, to effect the acquisition of the Broadmeadow East coking coal project, located within the undeveloped Mining Lease 70257 (“Project” or “Broadmeadow East”). On 30 September 2020, all conditions relating to the acquisition of Broadmeadow East were satisfied and the deal was completed.

The Company’s independent consultants, Xenith Consulting, were commissioned to review all available and relevant data and have completed a Resource Estimate of 33Mt, in accordance with the JORC Code (2012).

The transaction included access rights to both the New Lenton Joint Venture Coal Handling and Preparation Plant (“CHPP”) and the Train Load Out Facility (“TLO”), which are connected by an established haul road passing immediately adjacent to the Project. The Company has secured throughput capacity of a minimum of 1Mtpa, with the ability to potentially increase this capacity to a total of 2Mtpa, subject to agreement.

BCB commenced analysing the washability data and determined that the coal can be washed at lower density levels (albeit at lower primary yields) to create a higher quality coking coal at ~8.7% ash with CSNs as high as 7 whilst still producing a high-energy secondary thermal coal.

Post completion of the Broadmeadow East acquisition, the Company mobilised a drilling team to conduct a coal quality and groundwater monitoring campaign.

The primary purpose of the program was to obtain up to six core samples for detailed coal quality analysis on a ply-by-ply basis in order to optimise the mine plan, as well as providing valuable information for marketing studies and potential off-take agreements. At the end of the half-year, all six of the core holes had been completed and samples dispatched to the laboratory.

Mine planning studies have been undertaken by Xenith Consulting and field work for the EA amendment has been managed by Nitro Solutions. Final permitting and a “Decision to Mine” is planned for the second half of the year.

Hillalong Coking Coal Project (EPC 1824 & EPC 2141)

‐ The Hillalong Coking Coal Project is located in the northern Bowen Basin approximately 105 km west southwest of Mackay. The 99 km[2 ] Project, comprising EPC 1824 and EPC 2141, is currently the subject of a farm-in agreement with Sumitomo Corporation (the “Sumitomo Farm-In”), which has earned a 10% interest in the project post expending $2.5m on the Phase 1 exploration program.

In a significant milestone for BCB, Sumitomo confirmed that it will proceed with Phase 2 of the Hillalong Farm-In. This decision was taken following the successful Phase 1 exploration program completed earlier in the year that resulted in a maiden JORC Resource of 43Mt and confirmation that the project is capable of producing a low ash, high quality coking coal.

Sumitomo, a multi-billion-dollar Japanese conglomerate, in confirming its decision to proceed with Phase 2 of the Farm-In, now has the ability to earn an additional 10% in the Hillalong project by funding a further A$5m of exploration expenditure. ( see ASX Release 4 May 2020 and 18 November 2019). The Sumitomo Farm-In is in the process of being converted into a formal joint venture. Sumitomo already has interests in Clermont, Rolleston and Oaky Creek mines, as well as Glencore’s

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BOWEN COKING COAL LTD - ACN 064 874 620

HALF YEAR REPORT 2020

Directors’ Report

Hail Creek Mine which neighbours the Hillalong tenements and produces more than five million tonnes of coking coal annually.

BCB and Sumitomo have agreed to vary the terms of the Sumitomo Farm-In, signed last year, in that the next stage of exploration would now be split into two equal parts:

• Phase 2A (Sumitomo to spend $2.5 million to earn a further 5% interest)

• Four drill sites targeting the Rangal seams in the southern project area;

• Seven drill sites targeting the Moranbah seams on the southern nose of the Hillalong anticline;

• 37 kms of seismic survey covering the northern and southern project areas; and

• Phase 2B (Sumitomo to spend $2.5 million to earn a further 5% interest) will be subject to further approval from Sumitomo – to be determined based on the results of Phase 2A.

During the period under review, the Company received the washability results from four holes not affected by intrusions, which demonstrated that the Elphinstone seam has the potential to produce a single primary coking coal with 10.5% ash and CSN’s up to 8. Average yields of 84% were identified over the deposit increasing to 93% in some parts of the resource. The Hynds Upper seam has the potential to produce a high quality, 8.5% ash primary coking coal product with a secondary high energy thermal coal at a combined yield of 87%.

Isaac River Coking Coal Project (MLA 700062, 700063, MDL 444 & EPC 830)

The Isaac River Coking Coal Project is located west of Moranbah, in the Bowen Basin, close to rail and road infrastructure. In October 2020 the Company announced it had lodged a site-specific Environmental Authority (“EA”) application with the Queensland Government Department of Environment and Science for Isaac River. Further to the lodging of the Mining Lease Application (MLA) in Q1, 2020, the lodgement of the EA application for Isaac River represented a significant milestone in the critical path to converting the project into a producing asset.

MLA’s 700062 & 700063 were lodged earlier in the year covering most of MDL 444, road access to the project as well as a small section of EPC 830. The Initial Development Plan submitted with the MLA proposed a contractor operated opencut operation along with highwall / auger mining, utilising offsite infrastructure and toll washing of run-of-mine coal at a nearby facility. Infrastructure discussions with regional producers are underway and final permitting is expected early in the second half of the year.

CORPORATE

Placements Raise $5.25m (before costs)

The Company completed two private placements during the half year ended 31 December 2020 raising a total of $5.25m (both at a price of $0.05 per share). Funds raised under the placements were applied to:

• the acquisition and transaction costs of the Broadmeadow East project, related environmental and mining studies and to accelerate the Broadmeadow East development program; and

• general working capital purposes, including Isaac River permitting and business development opportunities.

The Company is advancing mine planning and environmental approvals to fast-track opencut production at the Broadmeadow East mining lease, in conjunction with the permitting process for Isaac River.

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BOWEN COKING COAL LTD - ACN 064 874 620

HALF YEAR REPORT 2020

Directors’ Report

Options Exercised raising $900,000

During the reporting period, the Company received notice of exercise for a total of 30 million options with an expiry date of 12 December 2020, raising total proceeds of $900,000. Importantly, the Company’s Executive Chairman and former founding Managing Director of Stanmore Coal, Mr Nick Jorss, exercised over two thirds of those options, personally committing $550,000 of the aforementioned $900,000 received and increasing his direct and indirect shareholding in the Company to over 60,957,120 shares, representing 6.5% of the Company’s outstanding shares on issue.

COVID-19 Impact

The COVID-19 pandemic impacted the Company on several fronts during the half year ended 31 December 2020. The Hillalong exploration program was impacted by inter-state travel restrictions for the exploration team and also additional costs to keep the team on site and compliant with Queensland Government regulations. International travel restrictions and working from home policies by larger corporations impacted Phase 2 Farm-in negotiations with Sumitomo Corporation, the completion of the Broadmeadow East transaction with Peabody Energy and other interaction with larger companies. However, the Company advanced these negotiations and discussions via telephone and video conferencing with limited face to face interaction. Social distancing restrictions and inter-state travel restrictions resulted in roadshows, shareholder meetings and board meetings being scheduled as virtual events.

EVENTS SUBSEQUENT TO REPORTING DATE

On 1 February 2021, 4,200,000 unlisted options were exercised into ordinary shares and a further 12,000,000 performance rights were issued.

On 1 March 2021, 4,000,000 performance rights, that had previously vested, were converted into ordinary shares.

No other matters or circumstances have arisen since the end of the period which will significantly affect, or may significantly affect, the state of affairs or operations of in future financial periods.

AUDITOR’S DECLARATION OF INDEPENDENCE

The auditor’s independence declaration for the period ended 31 December 2020 has been received and is included within the financial statements.

This report is made in accordance with a resolution of Directors, pursuant to section 306(3)(a) of the Corporation Act 2001. Signed on behalf of the Directors.

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Gerhard Redelinghuys Managing Director 10 March 2021

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AUDITOR’S INDEPENDENCE DECLARATION

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

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

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

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RSM Australia Partners

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Brisbane, Queensland Dated: 10 March 2021

Albert Loots Partner – Assurance & Advisory

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BOWEN COKING COAL LTD - ACN 064 874 620

HALF YEAR REPORT 2020

Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income for the period ended 31 December 2020

Note	31-Dec-20 $ 31-Dec-19 $
Other income Administration expenses Employee benefits expenses Exploration expenses Share based payments Loss before tax Income tax benefit/(expense) Net loss for the period from operations Other comprehensive income Total comprehensive loss for the period Net loss for the period from operations attributable to: Owners of Bowen Coking Coal Limited Non-controlling interests Total comprehensive loss for the period attributable to: Owners of Bowen Coking Coal Limited Non-controlling interests Basic loss per share (cents) Diluted loss per share (cents)	396 12,902 (1,098,590) (399,144) (462,919) (391,857) (15,313) (95,784) (141,872) (114,049)
	(1,718,298) (987,932) - -
	(1,718,298) (987,932)
	- -
	(1,718,298) (987,932)
	(1,683,297) (987,932) (35,001) -
	(1,718,298) (987,932) (1,683,297) (987,932) (35,001) -
	(1,718,298) (987,932) (0.19)¢ (0.13)¢ (0.18)¢ (0.12)¢

The accompanying notes form part of these financial statements.

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BOWEN COKING COAL LTD - ACN 064 874 620

HALF YEAR REPORT 2020

Consolidated Statement of Financial Position As at 31 December 2020

Note	31-Dec-20 $ 30-Jun-20 $
ASSETS Current Assets Cash and cash equivalents 2 3,756,618 2,394,319 Trade and other receivables 3 691,951 164,260 Other assets 4 58,341 19,849 Total Current Assets 4,506,910 2,578,428 Non-Current Assets Exploration and evaluation assets 5 11,336,423 9,117,268 Deposit 6 5,500 - Total Non-Current Assets 11,341,923 9,117,268 Total Assets 15,848,833 11,695,696 LIABILITIES Current Liabilities Trade and other payables 7 673,449 730,047 Other liabilities 8 - 485,000 Total Current Liabilities 673,449 1,215,047 Non-Current Liabilities Provisions 9 292,054 - Total Non-Current Liabilities 292,054 - Total Liabilities 965,503 1,215,047 Net Assets 14,883,330 10,480,649 EQUITY Contributed equity 10 62,521,750 56,399,643 Reserves 579,911 581,039 Accumulated losses (48,183,330) (46,500,033) Equity attributable to owners of the parent company 14,918,331 10,480,649 Non-controlling interests (35,001) - Total Equity 14,883,330 10,480,649 The accompanying notes form part of these financial statements.	3,756,618 2,394,319 691,951 164,260 58,341 19,849
	4,506,910 2,578,428
	11,336,423 9,117,268 5,500 -
	11,341,923 9,117,268
	15,848,833 11,695,696
	673,449 730,047 - 485,000
	673,449 1,215,047
	292,054 -
	292,054 -
	965,503 1,215,047
	14,883,330 10,480,649
	62,521,750 56,399,643 579,911 581,039 (48,183,330) (46,500,033)
	14,918,331 10,480,649 (35,001) -
	14,883,330 10,480,649

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BOWEN COKING COAL LTD - ACN 064 874 620

HALF YEAR REPORT 2020

Consolidated Statement of Changes in Equity For the Period Ended 31 December 2020

	Attributable to Owners of Parent Company	Attributable to Owners of Parent Company	Attributable to Owners of Parent Company
Consolidated Entity	Contributed Equity Reserves	Accumulated Losses	Total	Non-controlling Interests Total Equity
	$ $	$	$	$ $
Balance at 1 July 2019 Loss for the period Other comprehensive income Total comprehensive loss for the period Equity issues Conversion of performance shares Share based payments Equity issue expenses Balance at 31 December 2019 Balance at 1 July 2020 Loss for the period Other comprehensive income Total comprehensive loss for the period Equity issues Share based payments Equity issue expenses Balance at 31 December 2020	53,398,058 471,863 - - - -	(44,442,221) (987,932) -	9,427,700 (987,932) -	- 9,427,700 - (987,932) - -
	- - 2,989,760 - 89,700 (89,700) - 114,049 (20,000) -	(987,932) - - - -	(987,932) 2,989,760 - 114,049 (20,000)	- (987,932) - 2,989,760 - - - 114,049 - (20,000)
	56,457,518 496,212	(45,430,153)	11,523,577	- 11,523,577
	56,399,643 581,039 - - - -	(46,500,033) (1,683,297) -	10,480,649 (1,683,297) -	- 10,480,649 (35,001) (1,718,298) - -
	- - 6,293,000 (143,000) - 141,872 (170,893) -	(1,683,297) - - -	(1,683,297) 6,150,000 141,872 (170,893)	(35,001) (1,718,298) - 6,150,000 - 141,872 - (170,893)
	62,521,750 579,911	(48,183,330)	14,918,331	(35,001) 14,883,330

The accompanying notes form part of these financial statements.

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BOWEN COKING COAL LTD - ACN 064 874 620

HALF YEAR REPORT 2020

Consolidated Statement of Cash Flows For the Period Ended 31 December 2020

Note	31-Dec-20 $ 31-Dec-19 $
Cash flows from operating activities Interest received Other receipts Payments to suppliers and employees Net cash used in operating activities Cash flows from investing activities Payment for exploration and evaluation assets Payments for exploration costs recoverable from farmee Net cash used in investing activities Cash flows from financing activities Proceeds from equity issues Payment for costs of equity issues Net cash provided from financing activities Net increase in cash held Cash and cash equivalents at beginning of the period Cash and cash equivalents at period end 2	396 12,902 58,801 - (1,598,390) (1,485,420)
	(1,539,193) (1,472,518)
	(1,990,194) (504,816) (544,545) (358,896)
	(2,534,739) (863,712)
	5,665,000 2,989,760 (228,769) (20,000)
	5,436,231 2,969,760
	1,362,299 633,530 2,394,319 2,043,310
	3,756,618 2,676,840

The accompanying notes form part of these financial statements.

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BOWEN COKING COAL LTD - ACN 064 874 620

HALF YEAR REPORT 2020

Notes to the Consolidated Financial Statements For the Period Ended 31 December 2020

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

These general purpose financial statements for the interim half-year reporting period ended 31 December 2020 have been prepared in accordance with the Corporations Act 2001 and Australian Accounting Standard AASB 134 "Interim Financial Reporting". Compliance with AASB 134 ensures compliance with International Financial Reporting Standard IAS 34 ‘Interim Financial Reporting’.

The financial statements are for the Consolidated Entity consisting of Bowen Coking Coal Ltd and its Controlled Entities. Bowen Coking Coal Ltd is a listed public company, incorporated and domiciled in Australia. The financial statements have been prepared on an accruals basis and are based on historical cost, modified by the measurement at fair value of selected non-current assets, financial assets and liabilities. The financial report was authorised for issue on 10 March 2021 by the directors of the Company.

This interim financial report does not include all notes of the type normally included in the Annual Financial Report. Accordingly, this report is to be read in conjunction with the Annual Report of Bowen Coking Coal Limited (the "Company") as at 30 June 2020.

The same accounting policies and methods of computation have generally been followed in these half-year financial statements as compared with the most recent annual financial statements except for the adoption of new and amended standards as set out below.

Going Concern

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

For the half-year ended 31 December 2020 the Group generated a consolidated loss of $1,718,298 and incurred operating cash outflows of $1,539,193 and investing cash outflows of $2,534,739.

The Group’s ability to continue to adopt the going concern assumption will depend upon the Group being able to manage its liquidity requirement and by taking some or all of the following actions:

1. raising additional capital;

2. successful exploration and subsequent exploitation of the Group’s tenements; and

3. reducing its working capital expenditure.

The directors have concluded as a result of the requirement to raise funds in the future there exists a material uncertainty that may cast significant doubt regarding the Group's ability to continue as a going concern and therefore, the Group may be unable to realise their assets and discharge their liabilities in the normal course of business. Nevertheless, after taking into account the current financial position of the Group, and the Group’s ability to raise further capital, the directors have a reasonable expectation that the Group will have adequate resources to fund its future operational requirements and for these reasons they continue to adopt the going concern basis in preparing the financial report.

Should the Group be unable to continue as a going concern, it may be required to realise its assets and extinguish its liabilities other than in the ordinary course of business, and at amounts that differ from those stated in the financial statements. This financial report does not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts or classification of liabilities and appropriate disclosures that may be necessary should the Group be unable to continue as a going concern.

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BOWEN COKING COAL LTD - ACN 064 874 620

HALF YEAR REPORT 2020

Notes to the Consolidated Financial Statements for the Period Ended 31 December 2020

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Exploration and Evaluation Assets

Exploration and evaluation expenditure incurred is accumulated in respect of each identifiable area of interest. Such expenditures comprise net direct costs and an appropriate portion of related overhead expenditure but do not include overheads or administration expenditure not having a specific nexus with a particular area of interest. These costs are only carried forward to the extent that they are expected to be recouped through the successful development of the area or where activities in the area have not yet reached a stage which permits reasonable assessment of the existence of economically recoverable reserves and active or significant operations in relation to the area are continuing.

A regular review will be undertaken on each area of interest to determine the appropriateness of continuing to carry forward costs in relation to that area of interest. A provision is raised against exploration and evaluation assets where the directors are of the opinion that the carried forward net cost may not be recoverable or the right of tenure in the area lapses. The increase in the provision is charged against the results for the year. Accumulated costs in relation to an abandoned area are written off in full against profit or loss in the year in which the decision to abandon the area is made.

When production commences, the accumulated costs for the relevant area of interest are amortised over the life of the area according to the rate of depletion of the economically recoverable reserves.

When preparing the financial statements, management undertakes a number of judgements, estimates and assumptions about recognition and measurement of assets, liabilities, income and expenses. The actual results may differ from the judgements, estimates and assumptions made by management, and will seldom equal the estimated results. Information about significant judgements, estimates and assumptions that have the most significant effect on recognition and measurement of assets, liabilities, income and expense is provided below.

Exploration and evaluation expenditure

The application of the Consolidated Entity’s accounting policy for exploration and evaluation expenditure requires judgement in determining whether it is likely that future economic benefits are likely either from future exploitation or sale or where activities have not reached a stage which permits a reasonable assessment of the existence of reserves.

Farm-outs — in the exploration and evaluation phase

The Group does not record any expenditure made by the farmee on its account. It also does not recognise any gain or loss on its exploration and evaluation farm-out arrangements, but redesignates any costs previously capitalised in relation to the whole interest as relating to the partial interest retained. Any cash consideration received directly from the farmee is credited against costs previously capitalised in relation to the whole interest with any excess accounted for by the farmor as a gain on disposal.

New and Amended Standards and Interpretations for Future Periods

The Group has adopted all of the new or amended Accounting Standards and Interpretations issued by the AASB that are necessary for the current reporting period.

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BOWEN COKING COAL LTD - ACN 064 874 620

HALF YEAR REPORT 2020

Notes to the Consolidated Financial Statements for the Period Ended 31 December 2020

NOTE 2: CASH AND CASH EQUIVALENTS

		31-Dec-20 30-Jun-20
		$ $
Cash at bank Deposits at call NOTE 3: RECEIVABLES		3,654,680 1,527,604 101,938 866,715
		3,756,618 2,394,319
		31-Dec-20 30-Jun-20
		$ $
Current: Other receivables Contribution receivable per farm-in agreement NOTE 4: OTHER ASSETS		191,371 164,260 500,580 - 691,951 164,260
		31-Dec-20 30-Jun-20
		$ $
Current: Prepayments NOTE 5: EXPLORATION AND EVALUATION ASSETS		58,341 19,849
		58,341 19,849
		31-Dec-20 30-Jun-20
		$ $
Exploration and evaluation expenditure carried forward in respect of areas of interest are: Acquisitions - at cost Exploration and evaluation phase - at cost Movement in exploration and evaluation assets: Acquisitions: Opening balance - at cost Acquisition costs during the period Total acquisitions costs Exploration and evaluation phase – at cost: Opening balance - at cost Capitalised exploration expenditure Total exploration and evaluation phase – at cost: Carrying amount at the end of the period		5,612,051 4,319,997 5,724,372 4,797,271
		11,336,423 9,117,268
		4,319,997 4,219,997 1,292,054 100,000
		5,612,051 4,319,997 4,797,271 3,305,013 927,101 1,492,258
		5,724,372 4,797,271 11,336,423 9,117,268

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BOWEN COKING COAL LTD - ACN 064 874 620

HALF YEAR REPORT 2020

Notes to the Consolidated Financial Statements for the Period Ended 31 December 2020

NOTE 6: OTHER NON-CURRENT RECEIVABLES

		31-Dec-20 30-Jun-20 $ $ 5,500 - 5,500 - 31-Dec-20 30-Jun-20 $ $ 621,935 691,174 51,514 38,873 673,449 730,047 31-Dec-20 30-Jun-20 $ $ - 485,000 - 485,000 31-Dec-20 30-Jun-20 $ $ 292,054 - 292,054 -
Deposit: office rental bond NOTE 7: TRADE AND OTHER PAYABLES
Trade payables and accrued expenses Short term employee benefits NOTE 8: OTHER CURRENT LIABILITIES
Partial proceeds from placement completed in July 2020 NOTE 9: NON- CURRENT LIABILITIES
Rehabilitation provision NOTE 10: CONTRIBUTED EQUITY Ordinary shares
	31-Dec-20 30-Jun-20
	No. of Shares $ No. of Shares $
Balance at beginning of period Share issues: Placement – 7 August 2019 Conversion of Class A performance shares - 19 August 2019 Exercise of 2.0c options: Jul to Oct 2019 Exercise of 4.0c options: Jul to Oct 2019 Placement – 3 July 2020 Placement – 9 November 2020 Exercise of options Fair value of options exercised Share issue transaction costs Balance at end of period	803,762,262 56,399,643 706,274,262 53,398,058 - - 10,000,000 500,000 - - 13,000,000 89,700 - - 24,488,000 489,760 - - 50,000,000 2,000,000 45,000,000 2,250,000 - - 60,000,000 3,000,000 - - 30,000,000 900,000 - - - 143,000 - - - (170,893) - (77,875)
	938,762,262 62,521,750 803,762,262 56,399,643

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BOWEN COKING COAL LTD - ACN 064 874 620

HALF YEAR REPORT 2020

Notes to the Consolidated Financial Statements for the Period Ended 31 December 2020

NOTE 10: CONTRIBUTED EQUITY (continued)

Ordinary shareholders are entitled to participate in dividends and the proceeds on the winding up of the company in proportion to the number of and amount paid on the shares held. Every ordinary shareholder present at a meeting in person or by proxy is entitled to one vote on a show of hands or by poll. Ordinary shares have no par value.

		31-Dec-20 30-Jun-20
		Number Number
	Listed options Balance at beginning of period Options granted Options exercised Balance at end of period Unlisted options Balance at beginning of period Options granted Options exercised Options lapsed Balance at end of period Performance rights Balance at beginning of period Performance rights granted Performance rights lapsed Balance at end of period Class A performance shares Balance at beginning of period Granted Converted Balance at end of period	- 50,000,000 - - - (50,000,000)
		- -
		65,700,000 90,378,000 3,400,000 - (30,000,000) (24,488,000) - (190,000)
		39,100,000 65,700,000
		12,000,000 - - 12,000,000 (2,000,000)
		10,000,000 12,000,000
		- 13,000,000 - - - (13,000,000)
		- -

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BOWEN COKING COAL LTD - ACN 064 874 620

HALF YEAR REPORT 2020

Notes to the Consolidated Financial Statements for the Period Ended 31 December 2020

NOTE 11: OPERATING SEGMENTS

The Group has identified its operating segments based on the internal reports that are reviewed and used by the Board of Directors (chief operating decision makers) in assessing performance and determining the allocation of resources.

The Group is managed primarily on geographic basis, that is, the location of the respective areas of interest (tenements) in Australia. Operating segments are determined on the basis of financial information reported to the board of directors which is at the consolidated entity level. The Group does not have any products or services that it derives revenue from. The Group’s exploration and development activities in Australia is the Group’s sole focus.

Accordingly, management currently identifies the Group as having only one reportable segment, being the exploration of mineral projects in Australia. There have been no changes in the reporting segments during the half-year. Accordingly, all significant operating decisions are based upon analysis of the consolidated entity as one segment. The financial results from this segment are equivalent to the financial statements of the Group as a whole.

NOTE 12: EVENTS AFTER THE END OF THE REPORTING PERIOD

On 1 February 2021, 4,200,000 unlisted options were exercised into ordinary shares and a further 12,000,000 performance rights were issued.

On 1 March 2021, 4,000,000 performance rights, that had previously vested, were converted into ordinary shares.

There are no other matters or circumstances that have arisen since the end of the period which will significantly affect, or may significantly affect, the state of affairs or operations of the Consolidated Entity in future financial periods.

NOTE 13: COMMITMENTS AND CONTINGENCIES

	31-Dec-20 30-Jun-20
	$ $
(a) Commitments relating to operating expenditures Not longer than 1 year More than 1 year but not longer than 5 years More than 5 years	450,400 567,400 736,000 745,650 - -
	1,186,400 1,313,050

(b) Contingent assets

There are no contingent assets as at 31 December 2020.

(c) Contingent liabilities

On 24 June 2020 the Company announced that it had executed binding agreements with Peabody (Burton Coal) Pty Ltd (“Peabody”), a wholly owned subsidiary of US headquartered Peabody Energy Corporation, to acquire the Broadmeadow East coking coal project, located within undeveloped Mining Lease 70257 (“ML”, “Project” or “Broadmeadow East”).

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BOWEN COKING COAL LTD - ACN 064 874 620

HALF YEAR REPORT 2020

Notes to the Consolidated Financial Statements for the Period Ended 31 December 2020

NOTE 13: COMMITMENTS AND CONTINGENCIES (continued)

Total consideration payable was as follows:

1. Cash consideration of $1,000,000, payable upon Completion;

2. Assumption of environmental rehabilitation obligations;

3. Royalty payable of $1/t on all coal produced and sold from ML 70257, to a maximum of 1.5Mt, being $1.5M; and

4. $500,000 cash consideration for land compensation, payable only upon site works commencing or the renewal of the ML, whichever occurs first.

The acquisition was completed on 30 September 2020, with the cash consideration being paid and the assumption of the environmental rehabilitation obligation (recorded in the accounts as a provision). Items 3 and 4 above remain contingent liabilities.

There were no other contingent liabilities at the end of the reporting period.

NOTE 14: INTERESTS IN CONTROLLED ENTITIES

The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in accordance with the accounting policy described in Note 1:

	Country of	Ownership interest	Ownership interest
	incorporation	31-Dec-20	30-Jun-20
Coking Coal One Pty Ltd	Australia	100%	100%
Cabral Metais Ltd (dormant)	Brazil	100%	100%
Bowen Coking Coal Marketing Pty Ltd	Australia	50%	50%

NOTE 15: RELATED PARTY TRANSACTIONS

Parent Entity

Bowen Coking Coal Ltd is the legal parent and ultimate parent entity of the Group.

Subsidiaries

Interest in subsidiaries are disclosed in Note 14.

Key Management Personnel

	31-Dec-20 31-Dec-19
	$ $
Short-term employee benefits Share-based payments Provision for leave entitlements	450,278 382,008 30,763 64,644 12,641 9,849
	493,682 456,501

Entities related to Key Management Personnel

	31-Dec-20	31-Dec-19
	$	$
Marketing service fees paid to M Resources Pty Ltd, a company controlled by Mr Latimore	70,000		-

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BOWEN COKING COAL LTD - ACN 064 874 620

HALF YEAR REPORT 2020

Directors’ Declaration

The Directors of the Consolidated Entity declare that:

The financial statements and notes are in accordance with the Corporations Act 2001 and:

• (a) comply with Australian Accounting Standard AASB 134 ‘Interim Financial Reporting’, the Corporations Regulations 2001 and other mandatory professional reporting requirements; and

• (b) give a true and fair view of the Consolidated Entity’s financial position as at 31 December 2020 and of the performance for the period ended 31 December 2020.

In the Directors’ opinion there are reasonable grounds to believe that the Consolidated Entity will be able to pay its debts as and when they become due and payable.

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

On behalf of the directors

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Gerhard Redelinghuys Managing Director 10 March 2021

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INDEPENDENT AUDITOR’S REVIEW REPORT TO THE MEMBERS OF BOWEN COKING COAL LIMITED

Report on the Half-Year Financial Report

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

Directors’ Responsibility for the Half-Year Financial Report

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

Auditor’s Responsibility

Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity , in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the half-year financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the consolidated entity’s financial position as at 31 December 2020 and its performance for the half-year ended on that date; and complying with Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 . As the auditor of Bowen Coking Coal Limited, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

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

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Independence

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001 . We confirm that the independence declaration required by the Corporations Act 2001 , which has been given to the directors of Bowen Coking Coal Limited, would be in the same terms if given to the directors as at the time of this auditor’s review report.

Material Uncertainty Related to Going Concern

We draw attention to Note 1 in the half-year financial report, which indicates that the consolidated entity incurred a net loss of $1,718,298 during the half-year ended 31 December 2020 and incurred operating cash outflows of $1,539,193 and investing cash outflows of $2,534,739. As stated in Note 1, these events or conditions, along with other matters as set forth in Note 1, indicate that a material uncertainty exists that may cast significant doubt on the consolidated entity's ability to continue as a going concern. Our conclusion is not modified in respect of this matter.

Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of Bowen Coking Coal Limited is not in accordance with the Corporations Act 2001 including:

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

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

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RSM AUSTRALIA PARTNERS

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Brisbane, Queensland Dated: 10 March 2021

Albert Loots Partner – Assurance & Advisory

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