CGN RESOURCES LIMITED — Annual Report 2022

Oct 15, 2023

CGN RESOURCES LIMITED (FORMERLY GEOCRYSTAL LIMITED) AND CONTROLLED ENTITY ABN 51 122 958 810

FINANCIAL REPORT

FOR THE YEAR ENDED 30 JUNE 2022

DIRECTORS' REPORT

The Board of Directors has pleasure in presenting its report, together with the financial statements of the consolidated entity ("the Group") being CGN Resources Limited (formerly GeoCrystal Limited) ("the Company") and its controlled entity for the year ended 30 June 2022.

1. Directors

The names of the directors in office at any time during the year ended 30 June 2022 and until the date of this report are as follows:

Keith Brooks (resigned 12 April 2022) Zlatomir (Zlad) Sas (resigned 12 April 2022) Thomas (Tom) Reddicliffe (resigned 12 April 2022) Grant Mooney (resigned 12 April 2022) Ashley Martin (appointed: 12 April 2022) Daniel (Stan) Wholley (appointed 12 April 2022) Darryl Harris (appointed 12 April 2022)

Daniel (Stan) Wholley - Non-Executive Chairman (Appointed 12 April 2022)

Mr Daniel (Stan) Wholley was appointed as the Non-Executive Chair on 12 April 2022.

Mr Wholley is geologist, entrepreneur, consultant, executive manager and director with 30 years' experience across the entire value chain of the mineral industry.

Mr Wholley has delivered exploration, resource development and mining projects targeting iron ore, base metals, gold and uranium in more than 15 countries. As a consultant he has provided strategic advice to boards from junior explorers through to major mineral houses listed in Australia, Canada and London, and has been a company Director in Canada, Ireland, UK, Indonesia and Australia.

Most recently Stan has been a Director and Executive Operations Manager at leading global geological consultancy CSA Global. During his 15 years with company, the Board and Management oversaw the expansion from a single office in Perth to 12 global offices.

Mr Wholley is regarded as an independent Director and is free from any business or other relationship that could materially interfere with, or reasonably be perceived to interfere with, the independent exercise of the person's judgement.

DIRECTORS' REPORT

Ashley Martin – Managing Director and Chief Executive Officer (Appointed 12 April 2022)

Mr Ashley Martin was appointed as the Managing Director and Chief Executive Officer on 12 April 2022.

Mr Martin brings over 15 years of mining construction and development experience to the Company. Most recently he was the Chief Operating Officer at Voyager Metals Inc. (formerly Vanadium One Iron Corp.), advancing the Mont Sorcier Iron and Vanadium project (Quebec).

At Guyana Goldfields Inc. he held various positions including Manager of Technical Services, Civil Works Manager and Construction Manager for the Aurora Gold Mine (Guyana). He was Senior Project Manager at Treasury Metals Inc. (Canada) and Manager of Business Development at Forrester Metals Inc. (Peru) and Nubian Resources Ltd (USA, Peru).

Mr Martin started his career with Knight Piesold (Perth office, SE Asia, Africa) and received his degree in Civil Engineering from Curtin University, in Western Australia.

Mr Martin is not considered to be an independent Director as he is employed in an executive capacity as Managing Director and Chief Executive Officer.

Darryl Harris - Non-Executive Director (Appointed 12 April 2022)

Mr Harris was appointed on 12 April 2022.

Mr Harris has over 40 years' experience in both primary and secondary metallurgy as well as management experience in coordinating engineering / commercial groups for major projects, and the management of listed mining companies. Specific metallurgical experience includes from feasibility studies through to the project development for a variety of gold, ferrous, diamond and base metal projects. Experience includes the evaluation and development of potential project opportunities for mineral recovery and chemical projects and the coordination of major studies for large global projects including various copper beneficiation and hydro/pyro developments.

Mr Harris is currently contracted as Head of Global Project Solutions for Metso Outotec Australia Ltd. He is currently a non-executive Technical Director of Indo Mines Ltd who are developing an ironsands/ steel project in Indonesia. Additional previous corporate experience includes roles as non-executive Technical Director of Consolidated Tin Mines Limited (ASX:CSD) (delisted) and Managing Director of Beacon Minerals Limited (ASX:BCN).

Mr Harris is regarded as an independent Director and is free from any business or other relationship that could materially interfere with, or reasonably be perceived to interfere with, the independent exercise of the person's judgement.

DIRECTORS' REPORT

Keith Brooks - Non-Executive Chairman: MBA, FCCA, MCT (Resigned 12 April 2022)

Keith Brooks is a (retired) Fellow of the Chartered Association of Certified Accountants, a (retired) Member of the Corporate Treasurers and he holds a Masters in Business Administration from Surrey University. He has 40 years international experience spanning the energy, mining and finance sectors.

Graduating in 1972 he was employed by Amoco UK before moving to Blease Lloyd and qualifying as a Chartered Certified Accountant in 1978. He held various financial and treasury positions within ARCO around the world before joining BP through a takeover. He retired as BP's UK Power Group's Chief Financial Officer in 2002.

Since 2002, Mr Brooks has been involved in projects and venture capital for start-up companies involved in the North American, European and Asian capital markets that has enabled these companies to grow substantially in value. During the past three years Mr Brooks has not had any ASX listed Group directorships.

Zlatomir (Zlad) Sas - Managing Director: B.Sc. (Hons), MAus. IMM (Resigned 12 April 2022)

Zlad Sas is a geologist with over 30 years' experience in diamond exploration having worked extensively on diamond projects in Australia, Africa, India, and Brazil. He graduated with an Honours degree in geology in 1974 from the University of Western Australia and is currently a member of the Australian Institute of Mining and Metallurgy.

For 13 years, Mr Sas was the Managing Director of ASX listed diamond explorer Australian Kimberley Diamonds NL ("AKD"). During the majority of this 13 year period, AKD was involved in various diamond projects, both in Australia and overseas, some of which were in joint venture with Rio Tinto and De Beers. During the past three years Mr Sas has not had any ASX listed Group directorships.

Thomas (Tom) Reddicliffe - Technical Director: B.Sc. (Hons), MSc(Geol) FAusIMM (Resigned 12 April 2022)

Tom Reddicliffe is a geologist with some 35 years of largely Australian focused diamond exploration and evaluation experience having graduated with an Honours degree in geology in 1974 from the University of Queensland. He is currently a Fellow of the Australian Institute of Mining and Metallurgy.

Mr Reddicliffe joined Ashton Mining Limited in 1976, and worked with the AEJV exploration teams at both Ellendale and Argyle. He was appointed the Australian Exploration Manager of Ashton Mining Limited in 1991 and remained in that position up until Ashton was taken over by Rio Tinto in late 2000. During his position as exploration manager with Ashton Mining Limited, Mr Reddicliffe was credited with discovering the Merlin diamond pipes in the Northern Territory in 1993 which became a renowned producer of large, good quality white diamonds. Merlin produced Australia's largest diamond - the 104.73 carat gemstone Jungiila-Bunajina.

DIRECTORS' REPORT

After his tenure with Ashton Mining Limited, Mr Reddicliffe joined Striker Resources (renamed North Australian Diamonds Limited in 2004) as Technical Director from 2003 and was appointed CEO in 2007. Mr Reddicliffe stepped down from the Board of North Australian Diamonds Limited in mid-2011. Mr Reddicliffe has been a Non-Executive-Director in Gibb River Diamonds Limited since 24 March 2020. During the past three years Mr Reddicliffe has not had any other ASX listed Group directorships.

Grant Mooney - Group Secretary: B.Bus., CA (Resigned as Non Executive Director 12 April 2022)

Grant Mooney is the principal of Perth-based corporate advisory firm Mooney & Partners, specialising in provision of corporate advisory services to public companies in the resource and technology sectors. Mr Mooney has gained extensive experience in the resources sector, particularly in the areas of corporate and project management since founding Mooney & Partners in 1999. His experience extends to advice on capital raisings, mergers and acquisitions and corporate governance.

Currently, Mr Mooney serves as Director and Company secretary to several ASX listed companies across a variety of industries including technology and resources. He is a director of ASX listed resource companies Barra Resources Limited, Talga Resources Limited, Gibb River Diamonds Limited and Riedel Resources Limited. He is a director of Carnegie Clean Energy Limited and industrial technology company Aurora Labs Limited. Mr Mooney is a member of the Institute of Chartered Accountants in Australia. During the past three years Mr Mooney has not had any other ASX listed Group directorships.

1. Principal Activities

The principal activities of the Group are review of mineral exploration and development projects. No significant change in the nature of these activities occurred during the year.

2. Financial Results

The net loss of the Group after income tax for the financial year amounted to \$731,033 (2021 net loss: \$196,364).

4. Dividends

No dividends were declared or recommended to be paid during the financial year (2021: \$Nil).

5. Review of Operations

During this reporting period, the Company focused on its Webb diamond/IOCG project comprising 6 granted and 2 application tenements totaling 950 km2 in area located in the Gibson Desert region of Western Australia, some 670km west of Alice Springs, close to the remote Aboriginal community of Kiwirrkurra.

DIRECTORS' REPORT

Webb Diamond JV Project

In September 2012, the Company entered into a farm-in and Joint Venture with mineral explorer Meteoric Resources NL whereby GeoCrystal could earn a 70% interest in the Webb diamond project located in Western Australia by spending \$2M within a period of 4 years. Meteoric elected not to contribute to further exploration expenditure at Webb and therefore diluted their equity in the Webb Diamond JV Project. At the 30 June 2022, the Company had earned an 85% interest in the Webb Diamond JV Project from Meteoric Resources NL following expenditure of \$6.07M.

Since 2013, the Company has focused on the testing of a cluster of some 280 airborne magnetic anomalies identified from old and new regional magnetic survey data and which are believed to represent kimberlite bodies. The magnetic anomalies are clustered within an area of some 400km2 and are situated in sand covered desert terrain.

Drill testing by the Company of these magnetic anomalies commenced in June 2013 and to date 56 kimberlite bodies have been identified at Webb. However, only 70 targets or 25% of these 280 discrete magnetic anomalies have been tested by the drilling programs. No microdiamonds have been recovered as yet from the drill spoils, however microdiamonds have been recovered from the desert sands in the northern part of the project following surface sampling programs. As a result, diamond exploration work by the Company has been prioritised in the northern area.

A technical review of the Webb data base has identified several potential iron-oxidecopper-gold targets ("IOCG") at Webb related to anomalous copper assays from old drill holes. This new exploration target has been supported by technical data releases by Geoscience Australia and the Geological Survey of Western Australia which have confirmed the potential of the Webb region to host significant Cu-Au mineralisation including IOCG deposits.

During the reporting period, an airborne geophysical program (FALCON) was carried out by the Company to better define the IOCG targets. Interpretation of the airborne geophysical survey data is continuing and it is expected that drilling of selected targets will follow next year.

Other Projects

The Company had an 100% interest in the Yambarra diamond project in the Daly River region of the Northern Territory through its wholly owned subsidiary, Geominerals Pty Ltd. Yambarra contains 5 magnetic targets, one of which has been modeled to be a large, bullseye magnetic dipole anomaly, consistent with a kimberlite intrusion. Land access issues with the traditional owners has prevented the Company progressing the project. Subsequently in February 2022, the Company dropped the Yambarra tenement and intends to wind up the subsidiary.

6. Likely Developments

Other than as referred to in this report, further information as to likely developments in the operations of the Group and likely results of those operations would, in the opinion of directors, be speculative.

DIRECTORS' REPORT

7. Significant Changes in the State of Affairs

No significant changes in the state of affairs of the Group occurred during the year.

8. Significant Events after Balance Date

On 28 September 2022, the Company issued 19,221,000 shares at \$0.03 each raising \$576,630 for exploration and working capital. Other than this, there were no events subsequent to the end of the financial year that would have a material effect on these financial statements.

9. Share Options

The Group has 4,166,666 options on issue over ordinary shares. These are exercisable at \$0.25 each and expire on 21 December 2024. (2021: No options on issue)

10. Directors' Meetings

There were two (2) meetings of Directors held during the financial year ended 30 June 2022. The names of Directors who held office during the financial year and their attendance at Board meetings is detailed below:

Director	Number attended	Number eligible to attend
K Brooks (resigned 12/4/22)	2	1
Z Sas (resigned 12/4/22)	2	2
G Mooney (resigned 12/4/22)	2	2
T Reddicliffe (resigned 12/4/22)	2	1
D Wholley (appointed 12/4/22)	-	-
A Martin (appointed 12/4/22	-	-
D Harris (appointed 12/4/22)	-	-

There were five (5) circular resolutions passed by the Board of Directors during the financial year.

11. Auditor

During the year, Walker Wayland Audit (WA) Pty Ltd merged with SW Accountants & Advisors. The Board has received a consent to act as the auditor from SW Audit and has appointed SW audit to be the auditor of The Group.

DIRECTORS' REPORT

12. Proceedings on Behalf of Group

No person has applied for leave of Court to bring proceedings on behalf of the Group or intervene in any proceedings to which the Group is a party for the purpose of taking responsibility on behalf of the Group for all or any part of those proceedings. The Group was not a party to any such proceedings during the year ended 30 June 2022.

13. Environmental Regulations

The Group is required to carry out its activities in accordance with the Mining Laws and regulations in the areas in which it undertakes its exploration activities. The Group is not aware of any matter which requires disclosure with respect to any significant environmental regulation in respect of its operating activities.

14. Auditor's Independence Declaration

The lead auditor's independence declaration for the year ended 30 June 2022 has been received and can be found on page 8.

Signed in accordance with a resolution of the directors

Daniel (Stan) Wholley Non-Executive Chairman Signed at Perth this 11th day of November 2022

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2022

	NOTES	Consolidated 2022 \$	Consolidated 2021 \$
Other income	2	-	22
		-	22
Other administration and overhead expenses		(141,307)	(21,155)
Prospectus costs		(85,135)	-
Depreciation expense		(887)	(2,737)
Rent expense	,	(2,200)	(2,400)
Exploration expenses		(484,367)	(170,125)
Write of investment and loan to subsidiary		(17,137)	-
Total expenses	3	(731,033)	(196,417)
Loss before income tax	3	(731,033)	(196,394)
Income tax benefit	4	-	-
Loss for the year		(731,033)	(196,394)
Other comprehensive income for the year, net of tax		-	-
Total comprehensive loss for the year		(731,033)	(196,394)
Loss attributable to: Members of the entity		(731,033)	(196,394)
Total comprehensive loss attributable to: Members of the entity		(731,033)	(196,394)

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2022

	NOTES
		Consolidated 2022 \$	Consolidated 2021 \$
ASSETS
CURRENT ASSETS
Cash and cash equivalents		157,802	20,331
Trade and other receivables	5	43,472	2,404
Other current assets	6	99,325	3,054
TOTAL CURRENT ASSETS		300,599	25,789
NON-CURRENT ASSETS
Plant & equipment	7	734	1,621
TOTAL NON-CURRENT ASSETS		734	1,621
TOTAL ASSETS		301,422	27,410
LIABILITIES
CURRENT LIABILITIES
Trade and other payables	8	321,170	17,649
Prepaid share applications		-	-
TOTAL CURRENT LIABILITIES		321,170	17,649
TOTAL LIABILITIES		321,1703	17,649
NET ASSETS		(19,837)	9,761
EQUITY
Issued capital	9	5,442,510	4,757,510
Accumulated Losses		(5,462,347)	(4,747,749)
TOTAL EQUITY		(19,837)	9,761

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2022

Note	Ordinary Shares	Accumulated Losses	Total
	\$	\$	\$
Balance at 1 July 2020	4,537,510	(4,551,355)	(13,845)
Loss attributable to the members of the entity	-	(196,394)	(196,394)
Total other comprehensive income for the year	-	-	-
Subtotal	-	(196,394)	(196,394)
Shares issued 22 July 2020	220,000	-	220,000
Balance at 30 June 2021	4,757,510	(4,747,749)	9,761
Balance at 1 July 2021	4,757,510	(4,747,749)	9,761
Loss attributable to the members of the entity	-	(731,033)	(731,033)
Total other comprehensive income for the year	-	-	-
Subtotal	-	(731,033)	(731,033)
Shares issued 20 December 2021	500,000	-	500,000
Conversion of Directors loans 20 December 2021	85,000	-	85,000
Shares issued 28 June 2022	100,000	-	100,000
Adjustment for GeoMinerals – deconsolidation of accumulated losses	-	16,435	16,435
Balance at 30 June 2022	5,442,510	(5,462,347)	(19,837

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2022

	2022	2021
	\$	\$
CASH FLOWS FROM OPERATING ACTIVITIES
Interest received	-	22
Payments to suppliers and employees	(547,529)	(221,253)
NET CASH FLOWS USED IN OPERATING ACTIVITIES (i)	(547,529)	(221,231)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of shares	685,000	-
Prepayments for issue of shares	-	93,000
NET CASH FLOWS FROM FINANCING ACTIVITIES	685,000	93,000
NET INCREASE/(DECREASE)IN CASH AND CASH EQUIVALENTS HELD	137,471	(128,231)
Cash and cash equivalent at beginning of the financial year	20,331	148,562
Cash and cash equivalent at the end of the financial year	157,802	20,331
(i) CASH FLOW INFORMATION Reconciliation of cash flow from operations with loss after income tax.
Loss after income tax	(731,033)	(196,394)
Non-cash flows in loss:
Depreciation	887	2,737
Write off GeoMinerals	17,137	-
Changes in assets and liabilities
(Increase)/ Decrease in receivables	(41,068)	4,461
Increase in other current assets	(96,272)	(2,545)
Increase/ (Decrease) in trade creditors	302,820	(29,490)
NET CASH FLOWS USED IN OPERATING ACTIVITIES	(547,529)	(221,231)

The financial report for CGN Resources Limited for the year ended 30 June 2022 was authorised for issue in accordance with a resolution by the board of directors.

CGN Resources Limited is an unlisted public Group limited by shares, incorporated and domiciled in Australia. Its registered office is located at Suite 4, 6 Richardson Street, West Perth, Western Australia and its principal place of business is located at Level 4, 6 Richardson Street West Perth, Western Australia.

1. STATEMENT OF ACCOUNTING POLICIES

The principal accounting policies adopted in the preparation of the financial report are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

(a) Basis of preparation

This general purpose financial report has been prepared in accordance with Australian Accounting Standards, including Australian Accounting Interpretations of the Australian Accounting Standards Board (AASB) and the Corporations Act 2001. The Group is a forprofit entity for financial reporting purposes under Australian Accounting Standards.

Australian Accounting Standards set out accounting policies that the AASB has concluded would result in a financial report containing relevant information about transactions, events and conditions to which they apply. Compliance with Australian Accounting Standards ensures that the financial statements and notes also comply with International Financial Reporting Standards (IFRS). Material accounting policies adopted in the preparation of this financial report are presented below. They have been consistently applied unless otherwise stated.

Reporting Basis and Conventions

Except for cash flow information, the financial statements have been prepared on an accruals basis and are based on historical costs, modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities.

Critical accounting estimates

The preparation of financial statements in conformity with Australian Accounting Standards requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Group's accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in Note 16.

Going Concern

For the year ended 30 June 2022, the Group has generated a loss after tax of \$731,033 and net cash outflows of \$547,529 from operating activities, as disclosed in the statement of profit or loss and other comprehensive income and statement of cashflows, respectively. The Group's trading and cash flow forecasts for the 12-month period from the date of reporting indicate that there is some risk that it may not meet all its payment obligations unless the Group is able to complete a successful equity/finance raising. These matters present a significant material uncertainty in relation to the Group's ability to continue as a going concern and therefore whether it will realise its assets and extinguish its liabilities in the

1. STATEMENT OF ACCOUNTING POLICIES (continued)

(a) Basis of preparation (continued)

normal course of business and at the amounts stated in the financial report. As a result the Directors have assessed the Group's ability to continue as a going concern and to pay its debts as and when they fall due.

As a junior explorer with a start-up project and a dependency on securing additional funding, the ability of the Group to continue as a going concern and to pay its debts as and when they fall due is dependent on the following:

• The ability of the Group to secure additional funding through either the issue of further shares, debt or a combination of debt and equity. \$576,630 of funding was raised from the issue of 19,221,000 shares in September 2022. The form and value of any further raisings is yet to be determined;
• Deriving revenue through successful exploitation of the Groups tenements; and
• Active management of the current level of discretionary exploration expenditure in line with the funds available to the Group.

After taking into account all available information, the Directors have concluded that there are currently reasonable grounds to believe that the Group will be able to pay its debts as and when they become due and payable, and to continue as a going concern and be in a position to realise its assets and settle its liabilities and commitments in the normal course of business, and at the amounts stated in the financial report. Accordingly, the Directors also believe that it is appropriate to adopt the going concern basis in the preparation of the financial statements.

In the event that the Group does not achieve the conditions stated by the Directors there is a material uncertainty whether the Group will continue as a going concern and therefore the Group may not be able to realise its assets and extinguish its liabilities in the ordinary course of operations, and at the amounts stated in the financial report. No adjustments have been made to the recoverability and classification of recorded asset values and the amount and classification of liabilities that might be necessary should the Group not continue as going concern.

(b) New Accounting Standards for Application in Current and Future Periods

In the year ended 30 June 2022, the Directors have reviewed all of the new and revised Standards and Interpretations issued by the AASB that are relevant to The Group's operations and effective for annual reporting periods commencing on or after 1 July 2021. It has been determined by the Directors that there is no impact, material or otherwise, of the new and revised Standards and Interpretations on The Group and, therefore, no change is necessary to accounting policies.

1. STATEMENT OF ACCOUNTING POLICIES (continued)

(c ) New Accounting Standards for application in future periods

The AASB has issued new and amended accounting standards and interpretations that have mandatory application dates for future reporting periods and which The Group has decided not to early adopt. The Directors have reviewed these standards and there are none which may have a material impact on the Group.

(d) Taxes

(i) Income tax

Current income tax expense charged to the statement of profit or loss and other comprehensive income is the tax payable on taxable income calculated using applicable income tax rates enacted, or substantially enacted, as at reporting date. Current tax liabilities (assets) are therefore measured at the amounts expected to be paid to (recovered from) the relevant taxation authority.

The income tax expense for the year comprises current income tax expense and deferred tax expense (income).

Deferred tax assets and liabilities are ascertained based on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets also result where amounts have been fully expensed but future tax deductions are available. No deferred income tax will be recognised from the initial recognition of an asset or liability, excluding a business combination, where there is no effect on accounting or taxable profit or loss.

Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled, based on tax rates enacted or substantively enacted at reporting date. Their measurement also reflects the manner in which management expects to recover or settle the carrying amount of the related asset or liability.

Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that it is probable that future taxable profit will be available against which the benefits of the deferred tax asset can be utilised.

(i) Income tax

Where temporary differences exist in relation to investments in subsidiaries, branches, associates, and joint ventures, deferred tax assets and liabilities are not recognised where the timing of the reversal of the temporary difference can be controlled and it is not probable that the reversal will occur in the foreseeable future. Current tax assets and liabilities are offset where a legally enforceable right of set-off exists and it is intended that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur. Deferred tax assets and liabilities are offset where a legally enforceable right of set-off exists, the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where it is intended that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur in future periods in which significant amounts of deferred tax assets or liabilities are expected to be recovered or settled.

1. STATEMENT OF ACCOUNTING POLICIES (continued) (d) Taxes

(ii) Goods and Services Tax (GST)

Revenues, expenses and assets are recognised net of the amount of GST except:

• Where the GST incurred on a purchase of goods and services is not recoverable from the taxation authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as part of the expense item as applicable; and
• Receivables and payables are stated with the amount of GST included.

The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the Statement of Financial Position.

Cash flows are included in the 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, are classified as operating cash flows.

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

(e) Exploration, Evaluation and Development Expenditure

All exploration and evaluation expenditure including the acquisition of tenements is expensed to the Statement of Profit or Loss and Other Comprehensive Income as incurred.

(f) Restoration, Rehabilitation and Environmental Expenditure

Restoration, rehabilitation and environmental costs necessitated by exploration and evaluation activities are accrued at the time of those activities and treated as exploration and evaluation expenditure. Costs are estimated on the basis of current undiscounted costs, current legal requirements and current technology.

(g) Impairment of Assets

Assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment. Assets that are subject to amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash generating units).

(h) Cash and Cash Equivalents

Cash and cash equivalents includes cash on hand and deposits held at call with financial institutions which are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, other short term highly liquid investments with original maturities of three months or less and bank overdrafts.

1. STATEMENT OF ACCOUNTING POLICIES (continued)

(i) Interests in Joint Operations

The Group's interest in its joint operations is accounted for by recognising the Group's assets and liabilities from the joint operation, as well as expenses incurred by the Group and the Group's share of income earned from the joint operation, in the financial statements.

(j) Financial Instruments

Recognition and Initial Measurement

Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions to the instrument. For financial assets, this is the date that the Group commits itself to either the purchase or sale of the asset (ie trade date accounting is adopted).

Financial instruments (except for trade receivables) are initially measured at fair value plus transaction costs, except where the instrument is classified "at fair value through profit or loss", in which case transaction costs are expensed to profit or loss immediately. Where available, quoted prices in an active market are used to determine fair value. In other circumstances, valuation techniques are adopted.

Trade receivables are initially measured at the transaction price if the trade receivables do not contain a significant financing component or if the practical expedient was applied as specified in AASB 15.63.

Classification and Subsequent Measurement

Financial liabilities

Financial instruments are subsequently measured at:

• amortised cost; or
• fair value through profit or loss.

A financial liability is measured at fair value through profit and loss if the financial liability is:

• a contingent consideration of an acquirer in a business combination to which AASB 3: Business Combinations applies;
• held for trading; or
• initially designated as at fair value through profit or loss.

All other financial liabilities are subsequently measured at amortised cost using the effective interest method.

The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating interest expense in profit or loss over the relevant period. The effective interest rate is the internal rate of return of the financial asset or liability. That is, it is the rate that exactly discounts the estimated future cash flows through the expected life of the instrument to the net carrying amount at initial recognition.

1. STATEMENT OF ACCOUNTING POLICIES (continued) (j) Financial Instruments

Classification and Subsequent Measurement (continued)

A financial liability is held for trading if:

• it is incurred for the purpose of repurchasing or repaying in the near term;
• part of a portfolio where there is an actual pattern of short-term profit taking; or

– a derivative financial instrument (except for a derivative that is in a financial guarantee contract or a derivative that is in a effective hedging relationships).

Any gains or losses arising on changes in fair value are recognised in profit or loss to the extent that they are not part of a designated hedging relationship are recognised in profit or loss.

The change in fair value of the financial liability attributable to changes in the issuer's credit risk is taken to other comprehensive income and are not subsequently reclassified to profit or loss. Instead, they are transferred to retained earnings upon derecognition of the financial liability. If taking the change in credit risk in other comprehensive income enlarges or creates an accounting mismatch, then these gains or losses should be taken to profit or loss rather than other comprehensive income.

A financial liability cannot be reclassified.

Financial guarantee contracts:

A financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payment when due in accordance with the terms of a debt instrument.

Financial guarantee contracts are initially measured at fair values (and if not designated as at fair value through profit or loss and do not arise from a transfer of a financial asset) and subsequently measured at the higher of:

• the amount of loss allowance determined in accordance with AASB 9.3.25.3; and
• the amount initially recognised less the accumulative amount of income recognised in accordance with the revenue recognition policies.

A financial asset that meets the following conditions is subsequently measured at fair value through other comprehensive income:

• the contractual terms within the financial asset give rise to cash flows that are solely payments of principal and interest on the principal amount outstanding on specified dates;
• the business model for managing the financial assets comprises both contractual cash flows collection and the selling of the financial asset.

By default, all other financial assets that do not meet the measurement conditions of amortised cost and fair value through other comprehensive income are subsequently measured at fair value through profit or loss.

1. STATEMENT OF ACCOUNTING POLICIES (continued) (j) Financial Instruments (continued)

The Group initially designates a financial instrument as measured at fair value through profit or loss if:

• it eliminates or significantly reduces a measurement or recognition inconsistency (often referred to as "accounting mismatch") that would otherwise arise from measuring assets or liabilities or recognising the gains and losses on them on different bases;
• it is in accordance with the documented risk management or investment strategy, and information about the groupings was documented appropriately, so that the performance of the financial liability that was part of a group of financial liabilities or financial assets can be managed and evaluated consistently on a fair value basis;
• it is a hybrid contract that contains an embedded derivative that significantly modifies the cash flows otherwise required by the contract.

The initial designation of the financial instruments to measure at fair value through profit or loss is a one-time option on initial classification and is irrevocable until the financial asset is derecognised.

Equity instruments:

At initial recognition, as long as the equity instrument is not held for trading and not a contingent consideration recognised by an acquirer in a business combination to which AASB 3:Business Combinations applies, The Group made an irrevocable election to measure any subsequent changes in fair value of the equity instruments in other comprehensive income, while the dividend revenue received on underlying equity instruments investment will still be recognised in profit or loss. Regular way purchases and sales of financial assets are recognised and derecognised at settlement date in accordance with The Group's accounting policy.

Derecognition

Derecognition refers to the removal of a previously recognised financial asset or financial liability from the statement of financial position.

Derecognition of financial liabilities:

A liability is derecognised when it is extinguished (ie when the obligation in the contract is discharged, cancelled or expires). An exchange of an existing financial liability for a new one with substantially modified terms, or a substantial modification to the terms of a financial liability is treated as an extinguishment of the existing liability and recognition of a new financial liability.

The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable, including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss.

1. STATEMENT OF ACCOUNTING POLICIES (continued) (j) Financial Instruments (continued)

Derecognition of financial assets:

A financial asset is derecognised when the holder's contractual rights to its cash flows expires, or the asset is transferred in such a way that all the risks and rewards of ownership are substantially transferred.

All of the following criteria need to be satisfied for derecognition of financial asset:

• the right to receive cash flows from the asset has expired or been transferred;
• all risk and rewards of ownership of the asset have been substantially transferred; and
• the Comapny no longer controls the asset (ie The Group has no practical ability to make a unilateral decision to sell the asset to a third party).

On derecognition of a financial asset measured at amortised cost, the difference between the asset's carrying amount and the sum of the consideration received and receivable is recognised in profit or loss.

On derecognition of a debt instrument classified as at fair value through other comprehensive income, the cumulative gain or loss previously accumulated in the investment revaluation reserve is reclassified to profit or loss.

On derecognition of an investment in equity which was elected to be classified under fair value through other comprehensive income, the cumulative gain or loss previously accumulated in the investment revaluation reserve is not reclassified to profit or loss but is transferred to retained earnings.

Impairment of Assets

At the end of each reporting period, The Group assesses whether there is any indication that an asset may be impaired. The assessment will include considering external sources of information and internal sources of information including dividends received from subsidiaries, associates or joint ventures deemed to be out of pre-acquisition profits. If such an indication exists, an impairment test is carried out on the asset by comparing the recoverable amount of the asset, being the higher of the asset's fair value less costs of disposal and value in use, to the asset's carrying amount. Any excess of the asset's carrying amount over its recoverable amount is recognised immediately in profit or loss, unless the asset is carried at a revalued amount in accordance with another Standard (eg in accordance with the revaluation model in AASB 116: Property, Plant and Equipment ). Any impairment loss of a revalued asset is treated as a revaluation decrease in accordance with that other Standard.

Where it is not possible to estimate the recoverable amount of an individual asset, The Group estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Impairment testing is performed annually for goodwill and intangible assets with indefinite lives.

When an impairment loss subsequently reverses, the carrying amount of the asset (or cashgenerating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

(k) Trade and Other Payables

Trade and other payables are initially measured at fair value and subsequently measured at cost using the effective interest method.

Trade and other payables represent the liabilities for goods and services received by The Group that remain unpaid at the end of the reporting period. The balance is recognised as a current liability with the amounts normally paid within 30 days of recognition of the liability.

(l) Contributed Equity

Ordinary shares are classified as equity.

Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds. Incremental costs directly attributable to the issue of new shares or options, for the acquisition of a business, are not included in the cost of the acquisition as part of the purchase consideration.

(m) Share-based payments

Equity-settled share-based payments are measured at fair value at the date of grant. Fair value of shares issued is by reference to the fair value of shares that would be issued in an armslength transaction.

The fair value determined at the grant date of the equity-settled share-based payments is expensed on a straight-line basis over the vesting period, based on the Group's estimate of shares that will eventually vest.

(n) Revenue recognition

Interest revenue

Interest revenue is recognised on a time proportionate basis that takes into account the effective yield on the financial asset.

Sale of financial assets

Profit from sale of held-for-trading investments is recognised at the date of disposal.

(o) Provisions

Provisions are recognised when the Group has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured.

Provisions are measured using the best estimate of the amounts required to settle the obligation at the end of the reporting period.

1. STATEMENT OF ACCOUNTING POLICIES (continued) (p) Property, Plant & Equipment

Each class of property, plant and equipment is carried at cost or fair value, as indicated, less, where applicable, any accumulated depreciation and impairment losses.

Plant and equipment

Plant and equipment are measured on a cost basis and are therefore carried at cost less accumulated depreciation and any accumulated impairment losses. In the event the carrying amount of plant and equipment is greater than the estimated recoverable amount, the carrying amount is written down immediately to the estimated recoverable amount and impairment losses are recognised either in profit or loss or as a revaluation decrease if the impairment losses relate to a revalued asset. A formal assessment of recoverable amount is made when impairment indicators are present (refer to Note 1(g) for details of impairment).

Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All other repairs and maintenance are recognised as expenses in profit or loss in the financial period in which they are incurred.

Depreciation

The depreciable amount of all fixed asset is depreciated on a straight-line basis over the asset's useful life to the Group commencing from the time the asset is held ready for use. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements.

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

Class of Fixed Asset Depreciation Rate

Property, plant & equipment 15%

The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.

An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains or losses are recognised in profit or loss when the item is derecognised. When revalued assets are sold, amounts included in the revaluation surplus relating to that asset are transferred to retained earnings.

1. STATEMENT OF ACCOUNTING POLICIES (continued)

(q) Principles of Consolidation

The consolidated financial statements incorporate the assets, liabilities and results of the parent (GeoCrystal Limited) and all entities controlled by it at the end of the reporting period. A controlled entity is any entity over which GeoCrystal Limited has the ability and right to govern the financial and operating policies so as to obtain benefits from the entity's activities.

Where controlled entities have entered or left the Group during the year, the financial performance of those entities is included only for the period of the year that they were controlled.

In preparing the consolidated financial statements, all intragroup balances and transactions between entities in the consolidated group have been eliminated in full on consolidation.

Non-controlling interests, being the equity in a subsidiary not attributable, directly or indirectly, to a parent, are reported separately within the equity section of the consolidated statement of financial position and consolidated statement of profit or loss and other comprehensive income. The non-controlling interests in the net assets comprise their interests at the date of the original business combination and their share of changes in equity since that date. A list of the subsidiaries is provided at Note 18.

2.	REVENUE AND OTHER INCOME	2022 \$	2021 \$
	Interest received	-	22
	Total other income	-	22

3. LOSS BEFORE INCOME TAX

Other administrative and overhead expenses is determined after charging as expenditure: Auditors' Remuneration

	2022 \$	2021
		\$
- audit and review of financial report	19,581	10,003
	19,581	10,003

4.	INCOME TAX	2022 \$	2021 \$
(a)	Income tax benefit Current income tax benefit	-	-
(b)	Numerical reconciliation of income tax expense to prima facie tax payable	-	-
	Loss from continuing operations before income tax expense	(731,033)	(196,394)
	Tax credit at the Australian tax rate of 30% (2021: 30%) Tax effect of amounts which are not deductible (taxable) in calculating income tax expense:	219,309	58,918
	Net (non-assessable)/non-deductible items	-	18,897
	Tax losses not bought to account	(219,309)	(77,815)
	Income tax benefit	-	-
(c)	Tax losses Unused tax losses for which no deferred tax asset has been
	recognised	3,810,161	3,810,161
	Potential tax benefit at 30% (2021: 30%)	1,143,048	1,143,048

All unused tax losses were incurred by the Company, which is an Australian Entity.

(b) Deferred income tax

	Opening Balance	Change in tax rate	Charged to Income	Charged directly to equity	Closing Balance
	\$	\$	\$	\$	\$
Deferred income tax at 30 June 2022 relates to the following: Deferred tax liabilities: Prepayments	(916)	-	(155)	-	(1,068)
Deferred tax assets:
Accrued expenses	4,350	-	30,143	-	7,393
Capital raising costs	20,417	-	-	-	20,417
Tenement applications	1,534	-	-	-	1,534
	25,385	-	29,988	-	55,373

4. INCOME TAX (continued)

	Opening Balance	Change in tax rate	Charged to Income	Charged directly to equity	Closing Balance
	\$	\$	\$	\$	\$
Deferred income tax at 30 June 2021 relates to the following:
Deferred tax
liabilities:
Prepayments	(153)	-	(763)	-	(916)
Deferred tax assets:
Accrued expenses	3,914	-	436	-	4,350
Capital raising costs	38,987	-	(18,570)	-	20,417
Tenement applications	1,534	-	-	-	1,534
	44,282	-	(18,897)	-	25,385

The temporary differences have not been brought to account because the Directors do not believe it is appropriate to regard realisation of those deferred tax assets as being probable. The benefit of these deferred tax assets will only be obtained if:

• (1) the Group derives future assessable income of a nature and of an amount sufficient to enable the benefit from the deductions for the temporary differences to be realised;
• (2) the Group continues to comply with the conditions for deductibility imposed by tax legislation; and
• (3) no changes in tax legislation adversely affect the entity in realising the benefit from the deductions for the temporary differences.

		2022 \$	2021 \$
5.	TRADE AND OTHER RECEIVABLES
	Trade Debtors	43,472	2,404
6.	OTHER CURRENT ASSETS
	Prepayments	99,325	3,054
7.	PLANT AND EQUIPMENT
		2022	2021
		\$	\$
	Plant and Equipment – at cost	9,593	14,276
	Plant and Equipment – accumulated deprecation	(8,859)	(12,655)
	Total Plant and Equipment	734	1,621

7. PLANT AND EQUIPMENT (continued)

		Plant and	Total
		Equipment
		\$	\$
	Balance as at 30 June 2020	4,358	4,358
	Additions	-	-
	Depreciation	(2,737)	(2,737)
	Balance as at 30 June 2021	1,621	1,621
	Additions	-	-
	Disposal – cost	(4,683)	-
	Depreciation	(887)	(887)
	Disposal – accumulated depreciation	4,683	-
	Balance as at 30 June 2022	734	734
8.	TRADE AND OTHER PAYABLES	2022	2021
		\$	\$
	Trade creditors and accrued expenses	321,170	17,649
9.	ISSUED CAPITAL
		2022	2021
		\$	\$
	71,213,142 (2019: 60,213,138) Ordinary Shares, fully paid	4,757,510	4,757,510
	Movements during the period	\$	Number of Shares
	Opening Balance at 1 July 2020	4,537,510	60,213,138
	Shares issued	220,000	11,000,000
	Closing Balance at 30 June 2021	4,575,510	71,213,142
	Shares issued	585,000	58,500,000
	1:6 share consolidation	-	(108,094,267)
	Shares issued	100,000	3,333,334
	Closing Balance at 30 June 2022	5,442,510	24,952,209

Ordinary shares participate in dividends and the proceeds on winding up in proportion to the number of shares held. In March 2022 The Group implemented a 1 for every 6 shares held rounded up, as approved at a general meeting.

At the shareholders' meetings each ordinary share is entitled to one vote when a poll is called, otherwise each shareholder has one vote on a show of hands.

The Group's debt and capital includes ordinary share capital, and financial liabilities, supported by financial assets.

There are no externally imposed capital requirements.

Management effectively manages the Group's capital by assessing the Group's financial risks and adjusting its capital structure in response to changes in these risks and in the market. These responses include the management of debt levels, distributions to shareholders and share issues.

There have been no changes in the strategy adopted by management to control the capital of the Group since the prior year.

10. SHARE BASED PAYMENTS

Included under Directors fees in the statement of profit or loss and other comprehensive income is nil which relates to equity settled share based transactions.

11. FINANCIAL REPORTING BY SEGMENTS

The Group operates predominantly in the mineral exploration industry in Australia.

12. RELATED PARTY DISCLOSURES

(a) The Group's main related parties are as follows:

(i) Key management personnel:

Any persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any director (whether executive or otherwise) of that entity, are considered key management personnel.

(ii) Other related parties:

Other related parties include entities over which key personnel exercise significant influence.

(b) Transactions with related parties:

There were no transactions with related parties during the financial year, other than disclosed in this note.

(c) Key Management Personnel Compensation

Key management and personnel of the Group have received remuneration from the Group or any related party as follows:

	30 June 2022	30 June 2021
Short-term employee benefits	-	14,500
Post-employment benefits	-	1,344
Other long-term benefits	-	-
Termination benefits	-	-
Share based payments	-	-
Total Compensation	-	15,844

Included in short-term employee benefits are equity settled share based transactions of nil (2021: nil).

(d) Other payments to Directors or Director related entities

During the year a Group associated with Grant Mooney, Mooney and Partners was paid for office rental totaling \$2,200 (2021: \$2,400).

13. EVENTS OCCURRING AFTER BALANCE DATE

On 28 September 2022, the Company issued 19,221,000 shares at \$0.03 each raising \$576,630 for exploration and working capital. Other than this, there were no events subsequent to the end of the financial year that would have a material effect on these financial statements.

14. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

Key estimates

Impairment- non-financial assets including intangible assets.

The Group tests annually whether the assets have suffered any impairment. Management exercise its judgment in the process of applying the Group's accounting policies by evaluating conditions specific to the Group and to the particular asset that may lead to impairment. These include technology and economic environments. If an impairment trigger exists, the recoverable amount of the asset is determined.

Key judgments

Provision for impairment of receivables.

The Group assesses impairment at the end of each reporting period by evaluating the conditions and events specific to The Group that may be indicative of impairment triggers. Recoverable amounts of relevant assets are reassessed using value-in-use calculations, which incorporate various key assumptions.

Coronavirus (COVID-19) pandemic

Judgement has been exercised in considering the impacts that the Coronavirus (COVID-19) pandemic has had, or may have, on the Group based on known information. This consideration extends to the nature of the products and services offered, customers, supply chain, staffing and geographic regions in which the Group operates. Other than as addressed in specific notes, there does not currently appear to be either any significant impact upon the financial statements or any significant uncertainties with respect to events or conditions which may impact the Group unfavourably as at the reporting date or subsequently as a result of the Coronavirus (COVID-19) pandemic.

15. COMMITMENTS

The Group has \$426,000 (2021: \$315,000) of commitments for expenditure for tenements granted and held at the end of the financial year.

16. FINANCIAL INSTRUMENTS

Overview

The Group has exposure to the following risks from their use of financial instruments:

• interest rate risk.
• credit risk
• liquidity risk

This note presents information about the Group's exposure to each of the above risks.

The Board of Directors has overall responsibility for the establishment and oversight of the risk management framework.

Risk management policies are established by the board of directors to identify and analyse the risks faced by the Group, to set appropriate risk limits and controls, and to monitor risks and adherence to limits.

The Group's principal financial instruments are cash, held-for-trading investments and payables.

(a) Interest Rate Risk

The Group's exposure to interest rate risk, which is the risk that a financial instrument's value will fluctuate as a result of changes in market interest rates and the effective weighted average interest rates on those financial assets and financial liabilities, is as follows:

30 June 2022	Weighted Av Effective Interest	Floating Interest Rate	Non Interest Bearing	Total
	Rate %	\$	\$	\$
Financial Assets
Cash and cash equivalents	0.1%	157,801	-	157,801
Trade and other Receivables		-	43,476	43,476
Other current assets		-	99,325	99,325
		157,801	142,801	300,602
Financial Liabilities
Trade and other Payables		-	321,170	321,170

16. FINANCIAL INSTRUMENTS (continued)

(a) Interest Rate Risk (Continued)

30 June 2021	Weighted Av Effective Interest	Floating Interest Rate	Non Interest Bearing	Total
	Rate %	\$	\$	\$
Financial Assets
Cash and cash equivalents	0.1%	20,331	-	20,331
Trade and other Receivables		-	2,404	2,404
Other current assets		-	3,054	3,054
		20,331	5,458	25,789
Financial Liabilities
Trade and other Payables		-	17,649	17,649

It is the Group's policy to settle trade payables within the credit terms allowed and therefore not incur interest on overdue balances.

Sensitivity analysis

If interest rates on cash balances had weakened/strengthened by 1% at 30 June, there would be no material impact on the Statement of Profit or Loss and Other Comprehensive Income. There would be no material effect on the equity reserves other that those directly related to Statement of Comprehensive Income movements.

(b) Credit Risk

Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations.

The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to recognised financial assets is the carrying amount, net of any allowances for doubtful debts, as disclosed in the Statement of Financial Position and notes to the financial statements.

(c) Liquidity Risk

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

The following are the contractual maturities of financial liabilities:

Non derivative financial	2022	2022	2021	2021
liabilities:	\$	\$	\$	\$
	Carrying	Under 6	Carrying	Under 6
	Amount	Months	Amount	Months
Trade and other payables	321,170	321,170	17,649	17,649
	371,170	321,170	17,649	47,139

(d) Net Fair Values

The net fair value of cash and non-interest bearing monetary assets and financial liabilities of the Group approximates their carrying amount.

17. CONTROLLED ENTITY

The subsidiaries listed below have share capital consisting solely of ordinary shares which are held directly by the Group. The proportion of ownership interests held equals the voting rights held by the Group. Each subsidiary's principal place of business is also its country of incorporation.

Name of Subsidiary	Principal Place of Business	Ownership interest held by the Group		Proportion of non controlling interest
		2022	2021	2022	2020
Geominerals Pty Ltd	Perth, Australia	0%	100%	0%	0%

18. CESSATION OF ACTIVITIES - GEOMINERALS PTY LTD

In February 2022, the remaining tenement was dropped in GeoMinerals Pty Ltd, and the Directors subsequently decided to write this investment off. The Directors intend to deregister the company. As a result, loans and investments of totaling \$16,521 were written off as at 30 June 2022. The financial position and Statement of Profit or Loss and other comprehensive income without the consolidated entity is shown in note 19 below.

19. PARENT ENTITY

	Parent Entity
	2022	2021
	\$	\$
Statement of Financial Position
Assets
Current Assets	305,599	30,700
Non-Current Assets	12,872	13,142
Total Assets	318,470	43,842
Liabilities
Current liabilities	379,100	17,645
Total Liabilities	379,100	17,645
NET ASSETS	(60,629)	26,197
Equity
Issued Capital	5,442,510	4,757,510
Accumulated losses	(5,503,139)	(4,731,313)
TOTAL EQUITY	(60,629)	26,197
Statement of Profit and Loss and Other Comprehensive Income
Total loss	(771,826)	(196,394)

Total Comprehensive loss (771,826) (196,394) Guarantees

There are no guarantees entered into by the parent entity in the financial year ended 30 June 2022 in relation to the debt of the subsidiary.

DIRECTORS' DECLARATION

The Directors of CGN Resources Limited declare that:

• 1. the financial statements and notes, as set out on pages 9 to 31, are in accordance with the Corporations Act 2001 and:
• a. comply with Accounting Standards which, as stated in the accounting policy Note 1 to the financial statements, constitute explicit and unreserved compliance with International Accounting Reporting Standards (IFRS); and
• b. give a true and fair view of the financial position as at 30 June 2022 and of the performance for the year ended on that date of the Group; and
• 1. in the directors' opinion there are reasonable grounds to believe that the Group will be able to pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the Board of Directors.

On behalf of the Board of Directors:

Daniel (Stan) Wholley Non-Executive Chairman Signed at Perth this 11th day of November 2022