BRIGHTSTAR RESOURCES LIMITED — Interim / Quarterly Report 2021

Aug 6, 2020

Rule 5.5

Appendix 5B

Mining exploration entity or oil and gas exploration entity monthly cash flow report

Name of entity

Name of entity
STONE RESOURCES AUSTRALIA LIMITED
ABN		Month ended (“current month”)
44 100 727 491		31 JULY 2020

Consolidated statement of cash flows	Consolidated statement of cash flows	Current month	Year to date (1
		$A’000	months)
			$A’000
1.	Cash flows from operating activities
1.1	Receipts from customers	35	35
1.2	Payments for
	(a) exploration & evaluation (if expensed)	(80)	(80)
	(b) development	-	-
	(c) production	(3)	(3)
	(d) staff costs	(33)	(33)
	(e) administration and corporate costs	(20)	(20)
1.3	Dividends received (see note 3)	-	-
1.4	Interest received	-	-
1.5	Interest and other costs of finance paid	-	-
1.6	Income taxes paid	-	-
1.7	Government grants and tax incentives	13	13
1.8	Other (provide details if material)	-	-
1.9	Net cash from / (used in) operating	(88)	(88)
	activities
2.	Cash flows from investing activities
2.1	Payments to acquire:
	(a) entities	-	-
	(b) tenements	-	-
	(c) property, plant and equipment	-	-
	(d) exploration & evaluation (if capitalised)	-	-
	(e) investments	-	-
	(f) other non-current assets	-	-

ASX Listing Rules Appendix 5B (01/12/19) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity monthly cash flow report

Consolidated statement of cash flows	Consolidated statement of cash flows	Current month	Year to date (1
		$A’000	months)
			$A’000
2.2	Proceeds from the disposal of:
	(a) entities	-	-
	(b) tenements	-	-
	(c) property, plant and equipment	-	-
	(d) investments	-	-
	(e) other non-current assets	-	-
2.3	Cash flows from loans to other entities	-	-
2.4	Dividends received (see note 3)	-	-
2.5	Other (provide details if material)	-	-
2.6	Net cash from / (used in) investing	-	-
	activities
3.	Cash flows from financing activities
3.1	Proceeds from issues of equity securities
	(excluding convertible debt securities)	-	-
3.2	Proceeds from issue of convertible debt	-	-
	securities
3.3	Proceeds from exercise of options	-	-
3.4	Transaction costs related to issues of equity	-	-
	securities or convertible debt securities
3.5	Proceeds from borrowings	97	97
3.6	Repayment of borrowings	-	-
3.7	Transaction costs related to loans and	-	-
	borrowings
3.8	Dividends paid	-	-
3.9	Other (provide details if material)	-	-
3.10	Net cash from / (used in) financing	97	97
	activities
4.	Net increase / (decrease) in cash and
	cash equivalents for the period
4.1	Cash and cash equivalents at beginning of	75	75
	period
4.2	Net cash from / (used in) operating	(88)	(88)
	activities (item 1.9 above)
4.3	Net cash from / (used in) investing activities	-	-
	(item 2.6 above)
4.4	Net cash from / (used in) financing activities	97	97
	(item 3.10 above)

ASX Listing Rules Appendix 5B (01/12/19) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity monthly cash flow report

Consolidated statement of cash flows Current month $A’000 4.5 Effect of movement in exchange rates on cash held (1) 4.6 Cash and cash equivalents at end of period 83	Year to date (1 months) $A’000 (1) 83
5. Reconciliation of cash and cash equivalents at the end of the month (as shown in the consolidated statement of cash flows) to the related items in the accounts Current month $A’000 5.1 Bank balances 58 5.2 Call deposits 25 5.3 Bank overdrafts - 5.4 Other (provide details) - 5.5 Cash and cash equivalents at end of month (should equal item 4.6 above) 83	Previous month $A’000 50 25 - - 75
6. Payments to related parties of the entity and their associates Current month $A'000 6.1 Aggregate amount of payments to related parties and their associates included in item 1 6 6.2 Aggregate amount of payments to related parties and their associates included in item 2 - Note: if any amounts are shown in items 6.1 or 6.2, your monthly activity report must include a description of, and an explanation for, such payments
	Current month $A'000 6 -

The payments in item 6.1 were remunerations paid to the directors for the month.

ASX Listing Rules Appendix 5B (01/12/19) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity monthly cash flow report

7.	Financing facilities		Total facility	Amount drawn at
	Note: the term “facility’ includes all forms of financing	amount at month		month end
	arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity.		end $A’000	$A’000
7.1	Loan facilities		-	-
7.2	Credit standby arrangements		-	-
7.3	Other (please specify)		-	-
7.4	Total financing facilities		-	-
7.5	Unused financing facilities available at month		end	-
7.6	Include in the box below a description of each facility above, including the lender, interest
	rate, maturity date and whether it is secured or unsecured. If any additional financing
	facilities have been entered into or are proposed		to be entered into after month end, include
	a note providing details of those facilities as well.

8. 8.1 8.2 8.3 8.4 8.5 8.6 8.7	Estimated cash available for future operating activities $A’000 Net cash from / (used in) operating activities (Item 1.9 and excluding non-recurring Item 1.7) (88) Capitalised exploration & evaluation (Item 2.1(d)) - Total relevant outgoings (Item 8.1 + Item 8.2) (88) Cash and cash equivalents at month end (Item 4.6) 83 Unused finance facilities available at month end (Item 7.5) - Total available funding (Item 8.4 + Item 8.5) 83 Estimated months of funding available (Item 8.6 divided by Item 8.3) 0.94
8.8	If Item 8.7 is less than 6 months, please provide answers to the following questions: 1. Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not?
	Answer: It is reasonably expected that the entity will suffer negative operating cash flows in the next three months.
	2. Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful?
	Answer: The entity’s parent entity (Stone Resources Limited) will provide adequate financial support to the entity. In addition, the entity has identified an opportunity to dispose of the North Project to generate sufficient funds to take the entity going forward. Please refer to the ASX announcements dated 25 March 2020 and 29 June 2020 for details.

ASX Listing Rules Appendix 5B (01/12/19) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 5B

Mining exploration entity or oil and gas exploration entity monthly cash flow report

1. Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis?

Answer: Refer to the answer to Question 2 above. It is reasonably expected that the entity will be able to continue its operations and to meet its business objectives. Additionally, in order to continue to meet its business objectives, the entity has engaged a corporate advisor to provide corporate advisory service to the entity and will continue to implement stringent cost reduction methods.

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

• 2 This statement gives a true and fair view of the matters disclosed.

Date: 7 August 2020

Authorised by: By the board (Name of body or officer authorising release – see note 4)

Notes

1. This monthly cash flow report provide a basis for informing the market about the entity’s activities for the past month, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.

2. If this monthly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this monthly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4. If this report has been authorised for release to the market by your board of directors, you can insert here: “By the board”. If it has been authorised for release to the market by a committee of your board of directors, you can insert here: “By the [ name of board committee – eg Audit and Risk Committee ]”. If it has been authorised for release to the market by a disclosure committee, you can insert here: “By the Disclosure Committee”.

5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations , the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.

ASX Listing Rules Appendix 5B (01/12/19) + See chapter 19 of the ASX Listing Rules for defined terms.

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