COPPERMOLY LIMITED - Annual Report 2022

A.B.N. 54 126 490 855

2022

FOR THE YEAR ENDED 30 JUNE 2022

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COPPERMOLY LIMITED

ANNUAL REPORT 2022

C O N T E N T S

Page Directors’ Report .......................................................................................................... 2 Auditor’s Independence Declaration .......................................................................... 19 Consolidated Statement of Profit or Loss and Other Comprehensive Income ............................................................................ 20 Consolidated Statement of Financial Position ........................................................... 21 Consolidated Statement of Changes in Equity .......................................................... 22 Consolidated Statement of Cash Flows ..................................................................... 23 Notes to the Consolidated Financial Statements ....................................................... 24 Directors’ Declaration ................................................................................................ 45 Independent Audit Report to the Members ................................................................ 46 Shareholder Information ............................................................................................ 49 Corporate Directory ................................................................................................... 50

DIRECTORS’ REPORT

Your Directors present their report on the consolidated entity consisting of Coppermoly Limited and the entities it controlled at the end of, or during, the year ended 30 June 2022.

DIRECTORS

The following individuals were Directors of Coppermoly Limited during the whole of the financial year ended 30 June 2022, and up to the date of this report unless stated otherwise:

Mr Kevin Grice Mr Jincheng Yao Dr Wanfu Huang Mr Zule Lin Mr Xuan Jian

Please see pages 10-11 of the Directors’ Report for further details on each director.

PRINCIPAL ACTIVITIES

The principal activities during the financial year of entities within the consolidated entity were exploration and evaluation of multiple copper-gold projects in Papua New Guinea and in Australia.

There were no significant changes in the principal activities during the year.

RESULTS AND DIVIDENDS

The consolidated entity loss from operating activities after income tax for the period was $1,022,814 (2021: Loss $1,045,713). No dividend has been paid or recommended during the year ended 30 June 2022 (2021: nil).

OPERATING & FINANCIAL REVIEW

Coppermoly Limited is an ASX-listed exploration company targeting various style large scale-low grade projects prospective for copper, gold, silver and zinc. The Company’s projects are located on New Britain Island in Papua New Guinea ( PNG ) and in North Queensland ( Australia ).

Operational Review

During the year ended 30 June 2022 the Group’s principal activity continued to be the exploration and development of its portfolio of copper-gold projects located in Papua New Guinea and Australia. As at 30 June 2022, the consolidated entity had interests in five exploration licences in Papua New Guinea and two exploration permits n Austraia:

PROJECT	PROJECT	DATE FIRST ACQUIRED	AREA	LOCATION
	Granted Exploration Licences – Papua New Guinea

EL 1043 Mt Nakru		08 December 1992	47km²	West New Britain
EL 2379 Simuku		11 September 2015	122km²	West New Britain
EL 2514 Mak Mak		17 September 2017	61km²	West New Britain
EL 2578 Kori River		25 February 2019	396km²	West New Britain
EL 2638 Metelen River		18 May 2020	246km2	West New Britain
	Granted Exploration Licences – Australia
EPM27835 Fox Creek		4 October 2021	320km2	Queensland
EPM27836 Mount Tracey		7 March 2022	294km2	Queensland

Two of the exploration licences currently held by the Company, EL 1043 Mt Nakru and EL 2379 Simuku, are together known as the West New Britain Projects ( WNB Projects ).

The WNB Projects were previously subject to a farm-in agreement with Barrick (PD) Australia Ltd ( Barrick ), a subsidiary of Barrick Gold Corporation. The Company has a binding agreement to reacquire Barrick’s remaining nominal 28%

Page 2

DIRECTORS’ REPORT

interest in the WNB Projects, completion of which will be effected on the payment of a further $4.5M to Barrick within 6 months after the commencement of commercial production at the WNB Projects.

Exploration in New Britain Island

Due to the COVID-19 pandemic and the related restrictions on the ability of Australian based personnel to travel to Papua New Guinea to oversee exploration programs, during the year the Group deferred all planned exploration activities including the proposed drilling program at Mt Nakru. The activities undertaken by the Group during the 2022 financial year were focussed on maintaining the Group’s capability to recommence its exploration programmes when circumstances allow including:

i. Maintaining equipment and infrastructure in Papua New Guinea including access roads and exploration camps.
ii. Maintaining the Group’s exploration licences and relationships with landowners, regulators, and other stakeholders.

The Group remains well funded and is operationally ready to resume exploration activities when circumstances allow.

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Figure 1: Coppermoly’s Exploration Licences on New Britain, PNG

Projects overview

EL1043 Mt Nakru

The Mt Nakru Cu-Au project (EL 1043) comprises two known deposits, Nakru 1 and Nakru 2, which are 1.5 km apart. The Mt Nakru Project hosts JORC Mineral Resources which were estimated by Mining Associates in February 2019 and are summarised in Table 1.[1]

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DIRECTORS’ REPORT

Resource	Mineralised		Grade			Metal
Category	Tonnes(millions)	Copper	Gold	Silver	Copper(kt)	Gold(koz)	Silver(koz)
Indicated	7.03	1.00	0.28	1.81	70	64	409
Inferred	34.36	0.69	0.21	1.55	239	237	1,707
Total	41.39	0.75	0.23	1.59	309	301	2,116

Table 1. Nakru Project Indicated and Inferred Mineral Resource Estimate, Feb 2019 (> 0.3% Cu)

1, See Coppermoly ASX Announcement 28 February 2019. The Company is not aware of any new information or data that materially affects the information included in the referenced ASX announcement and confirms that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed.

High- grade copper-zinc mineralisation zones were reported at surface by trenching at the Nakru 2 North- West (Figure 2) and Nakru 3 Prospects (Figure 3).

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Figure 2 - Clay-silica-pyrite alteration zone with massive sulphur mineralisation veins exposed along surface trenching at the Nakru 2 North-West Prospect

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DIRECTORS’ REPORT

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Figure 3, Massive surlphure mineralisation within Clay-Silica-Pyrite alteration zone in Nakru 3 prospect. (looing to north)

A planned exploration drilling program at Mt Nakru to define the strike length and depth extent of the currently exposed massive and disseminated sulphides has been deferred pending the lifting of COVID-19 related restrictions on travel between Australia and Papua New Guinea.

On 11 August 2021 the Group received confirmation from the Mineral Resources Authority of Papua New Guinea that EL1043 has been renewed for a two-year period expiring 7 December 2022.

Simuku (EL 2379)

The Simuku Project comprises Exploration Licence 2379 on the island of New Britain in Papua New Guinea (Figure 2). Mineralisation at Simuku is copper-molybdenum-gold porphyry style associated with the Simuku-Kulu Intrusive Complex, which is Upper Oligocene in age.

The copper-molybdenum-gold mineralisation is pre-dominantly hosted within the feldspar porphyry and to a lesser extent in the andesitic volcanics, diorite and volcaniclastics. The Simuku porphyry copper-molybdenum-gold deposit is discontinuous over a large area of approximately 4.5 x 2.2 km. The deposit has a very distinct elongate pattern to the mineralisation with an envelope of copper around a molybdenum core exhibiting phyllic alteration (Figure 4).

The content of chalcopyrite (copper sulphide) is quite variable throughout the deposit, whereas pyrite associated with alteration, is ubiquitous across the deposit varying from weak to fine disseminations (<0.5% vol), fracture in-fill, replacements, and veins. The copper mineralisation is assumed to have been emplaced post formation of all the geological units and infiltrated along the faults and fractures.

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DIRECTORS’ REPORT

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Figure 4 – Geology of the Simuku Mineral Resource[5 ]

Table 2 and Figure 5 and 6 detail the Simuku Mineral Resource, which has been reported at a 0.2% copper cut off above a local grid northing of 52145mN. The cut-off grade is consistent with similar bulk mining porphyry copper projects located in PNG.

Category	Mt	Cu %	Aug/t	Ag ppm	Moppm	Cut-Off
Inferred	373.6	0.31	0.05	2.1	59	0.2% Cu
	Table 2 - Simuku Mineral Resource Statement

See Coppermoly ASX Announcement 4 March 2020 for full details of the Simuku Mineral Resource Estimate. The Company is not aware of any new information or data that materially affects the information included in the referenced ASX announcement and confirms that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed.

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DIRECTORS’ REPORT

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

Simuku Grade Tonnage Curves
800.0 1.00
0.90
700.0
0.80
600.0
0.70
500.0
0.60
400.0 0.50
Mt
0.40
300.0 Cu %
0.30
200.0
0.20
100.0
0.10
0.0 0.00
0 0.2 0.4 0.6 0.8 1
Copper Cut Off grade %
Million Tonnes Copper Grade %
----- End of picture text -----

Figure 5- Grade-Tonnage Curves for Domain 1

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Figure 6 - Copper Block Grade Distribution for the Simuku Mineral Resource

Figure 6 illustrates the copper block grade distribution for the Simuku Mineral Resource as an oblique 3-D view.

Coppermoly’s exploration strategy is to investigate areas adjacent to the Simuku Mineral Resource for similar styles of mineralisation to expand the overall Mineral Resource. Recent geophysical studies completed by the Company have outlined target areas near the Simuku Mineral Resource for follow up exploration.

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DIRECTORS’ REPORT

Makmak (EL2514)

Makmak is a greenfields exploration tenement that lies proximal to the Nakru tenement. There are several sites within the tenement where rock chip and stream sediment samples have returned elevated copper and gold analysis.

A plan is proposed to conduct a follow up sampling program around the best results to delineate the extent of potential mineralisation and possibly define a source zone.

Kori River (ELA 2578)

Historic data review was completed, and two mineralisation occurrences, namely Dagi Scarn Cu-Au and Cori Au were identified for field sampling.

The Company has applied for a further 2 year extension. The Company’s minimum expenditure under the exploration has been met for the initial two-year term.

Metelen River (ELA2638)

In May 2020, Coppermoly Limited was granted ELA2638 Metelen River which occupies an area of 246km[2] and is located adjacent to the Company’s existing Mt Nakru and Makmak exploration licences. Renewal application for further 2 years was submitted to the MRA, PNG.

Several stream sediment and rock chip samples retured elevated copper, gold and zinc anomaly. Following up field mapping and sampling are planned for next dry season.

Exploration Projects in Australia

During the year, the Queensland Department of Natural Resources, Mines and Energy (“DNR”). granted two exploration licence EPM 27835 (Fox Creek Project) and EPM 27836 (Mount Tracey Project) to the Company. Thus the Company holds substantial prospective ground for copper gold mineralisation in the Eastern Succession, Mount Isa Inlier, northwest Queensland (Figure 7).

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DIRECTORS’ REPORT

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Figure 7 - Granted tenements (Fox Creek Project and Mount Tracey Project) over total magnetic Image (TMI) showing historic Copper mines zones and major fault zones. (Magnetic data clipped from Mine Department Database NWQ_TMI 2011)

EPM27835, Fox Creek Project and EPM27836, Mount Tracey Project

These two tenemnts cover a terrain which is highly prospective for base metal and gold mineralisation with geological resemblances to the Eloise Cu-Au and Starra Cu-Au deposits.

Three historic copper workings zones are Mount Kalkadoon Cu-Au Zone, Lorna Miss Hit Cu-Au Zone and Fox Extension Cu-Au Zone. Preliminary modelling of historic data warrants further exploration on those zones (Figure 7).

Extensive research on mineralisation model and implication in exploring for those Cu-Au deposits highlighted several key elements: (1) contact zones across major stratigraphic packages such as the Corella/Staveley Formation and Soldiers Cap Group; (2) the district scale basement structure such as the Cloncurry Fault; (3) presence of mafic intrusives / extrusives; (4) spatial proximity to significant granitoids such as the Williams-Naraku Granite.

The Cloncurry Fault is a significant structural zone in the Eastern Succession, striking north-westerly over 150 km in length and extending continuously to at least 20km depth. This fault is broadly associated with a major lithological contact, separating cover sequence units in the Soldiers Cap and Corella/Staveley Formation. It is spatially associated with a series of plutons such as the Saxby Granite and Squirrel Hills Granite. It is recognised to have been a major fluid channel over a significant period of time. Numerous Cu-Au occurrences occur along this fault zone (Figure 7).

Field mapping and sampling program is planned for the coming up field season.

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DIRECTORS’ REPORT

Financial Review

Profit or Loss

For the year ended 30 June 2022 the Group recorded an operating loss after tax of $1,022,814 (2021: Loss of $1,045,713).

Statement of Financial Position

Total assets increased by $1,072,977 over the year due primarily due to exchange rate on capitalised exploration and evaluation expenditure.

Business Risks

The prospects of the Group in progressing their exploration projects may be affected by a number of factors. These factors are similar to most exploration companies moving through exploration phase and attempting to get projects into development. Some of these factors include:

Exploration - the results of the exploration activities may be such that the estimated resources are insufficient to justify the financial viability of the projects. The Group undertakes extensive exploration and product quality testing prior to establishing JORC compliant resource estimates and to (ultimately) support mining feasibility studies. The Group engages external experts to assist with the evaluation of exploration results where required and utilises third party competent persons to prepare JORC resource statements or suitably qualified senior management of the Group. Economic feasibility modelling of projects will be conducted in conjunction with third party experts and the results of which will usually be subject to independent third party peer review.
Social Licence to Operate – the ability of the Group to secure and undertake exploration and development activities within prospective areas is also reliant upon satisfactory access to project areas. To address this risk, the Group develops strong, long term effective relationships with landholders with a focus on developing mutually acceptable access arrangements. The Group takes appropriate legal and technical advice to ensure it manages its compliance obligations appropriately.
Environmental - All phases of mining and exploration present environmental risks and hazards. The Group’s operations are subject to environmental regulations pursuant to a variety of state and municipal laws and regulations. Environmental legislation provides for, among other things, restrictions and prohibitions on spills, releases or emissions of various substances produced in association with mining operations. Compliance with such legislation can require significant expenditures and a breach may result in the imposition of fines and penalties, some of which may be material. Environmental legislation is evolving in a manner expected to result in stricter standards and enforcement, larger fines and liability and potentially increased capital expenditures and operating costs. Environmental assessments of proposed projects carry a heightened degree of responsibility for companies and directors, officers and employees. The Group assesses each of its projects very carefully with respect to potential environmental issues, in conjunction with specific environmental regulations applicable to each project, prior to commencing field exploration. Periodic reviews are undertaken once field exploration commences.
Safety - Safety is of critical importance in the planning, organisation and execution of the Group’s exploration and development activities. The Group is committed to providing and maintaining a working environment in which its employees are not exposed to hazards that will jeopardise an employee’s health, safety or the health and safety of others associated with our business. The Group recognises that safety is both an individual and shared responsibility of all employees, contractors and other persons involved with the operation of the organisation. The Group has a Safety and Health Management system which is designed to minimise the risk of an uncontrolled safety and health event and to continuously improve the safety culture within the organisation.
Funding - the Group will require additional funding to continue exploration and potentially move from the exploration phase to the development phases of its projects. There is no certainty that the Group will have access to available financial resources sufficient to fund its exploration, feasibility or development costs at those times.
Market - there are numerous factors involved with exploration and early stage development of its projects, including variance in commodity price and labour costs which can result in projects being uneconomical.

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DIRECTORS’ REPORT

SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS

Other than the matters noted in this Directors’ Report that has been no significant change in the state of affairs of the Company or the Group during the reporting period.

MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR

No matter or circumstance has arisen since the end of the year that has significantly affected, or may significantly affect the Group’s operations, the result of those operations or the Group’s state of affairs.

ENVIRONMENTAL REGULATION

The consolidated entity is subject to significant environmental regulation in respect of its mineral exploration and mining activities.

The entity has exploration tenements in Papua New Guinea and Australia. The entity is not aware of any breach of environmental regulations during or since the end of the financial year.

NFORMATION ON DIRECTORS		Particulars of	Directors’
		interest in shares and
		options of Coppermoly
		Limited
Director and Experience	Special	Ordinary	Listed
	Responsibilities	Shares	Options
*Kevin Grice*
Non-Executive Director since 15 July 2014.	Member of	2,067,466	Nil
Mr Grice, BComm CPA MAICD, is a successful finance executive with significant experience with listed and unlisted exploration companies. He	Audit Committee.
has held Chief Financial Officer and General Management positions.
Mr Grice has not served as a Director of any other public listed
companies during the last three years.
*Jincheng Yao*
Non-Executive Director since 5 March 2015.	Nil	46,109,075	Nil
Mr Yao, MBA and Bachelor of Commerce, is a finance professional based
in mainland China. He has held various senior executive roles in the
Meijin Group and is currently Vice President and Director of Meijin
Energy Group Limited.
Mr Yao has not served as a Director of any other public listed companies
during the last three years.
*Wanfu Huang*
Managing Director since 11 March 2015.	Member of	108,580,702	Nil
Dr Huang is a member of the Australian Institute of Geoscientists and holds a PhD, a MSc and a BSc. Dr Huang has more than 20 years’	Audit Committee.
experience in the exploration industry. He has held numerous positions
in the industry, covering base metals, gold, iron ore, coal and bauxite in
Australia and overseas.

INFORMATION ON DIRECTORS

Dr Huang has not served as a Director on any other public listed companies during the last three years.

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DIRECTORS’ REPORT

NFORMATION ON DIRECTORS		Particulars of	Directors’
		interest in shares and
		options of Coppermoly
		Limited
Director and Experience	Special	Ordinary	Listed
	Responsibilities	Shares	Options
*Zule Lin*
Non-Executive Director since 11 April 2016.	Nil	14,345,057	Nil
Mr Lin holds a master’s degree in finance and is currently the Chief
Financial Officer of Coppermoly investor Ever Leap Services Ltd parent
company Shanxi Xierun Investment Limited. Mr Lin has more than 15
years of experience in financial management.
Mr Lin has not served as a Director on any other public listed companies
during the last three years.
*Xuan Jian*
Non-Executive Director since 28 August 2019.	Nil	5,758,281	Nil
Mr Jian is a qualified geophysicist, property valuer and is a certified
public accountant (China). Mr Jian has significant international
experience in the resources and investment sectors.
Mr Jian has not served as a Director on any other public listed companies
during the last three years

INFORMATION ON DIRECTORS

COMPANY SECRETARY – QUALIFICATIONS & EXPERIENCE

Craig McPherson

Mr McPherson graduated with a Bachelor of Commerce degree from the University of Queensland and is a member of Chartered Accountants Australia and New Zealand. He has over twenty years of commercial and financial management experience and has held various roles with ASX and TSX listed companies for in excess of ten years in Australia and overseas.

DIRECTORS’ MEETINGS

The number of meetings of the Company’s Board of Directors and of each Board committee held during the year ended 30 June 2022, and the numbers of meetings attended by each Director were:

	Directors’ Meetings	Directors’ Meetings	Audit Committee Meetings	Audit Committee Meetings
	A	B	A	B
Mr K Grice	5	5	2	2
Mr J Yao	2	5	*	*
Dr W Huang	5	5	2	2
Mr Z Lin	2	5	*	*
Mr X Jian	2	5	*	*

A = Number of meetings attended

B = Number of meetings held during the time the Director held office or was a member of the committee during the year

= Not a member of the relevant committee

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DIRECTORS’ REPORT

REMUNERATION REPORT (Audited)

(a) Principles used to determine the nature and amount of remuneration

The following people were the Directors, Executives and Key Management Personnel ( KMP ) of the Group during the period covered by this report:

Name	Position	Period Position Held
K. Grice	Non-Executive Director	15 July 2014 – Current
J. Yao	Non-Executive Director	5 March 2015 – Current
W. Huang	Managing Director	11 March 2015 – Current
Z. Lin	Non-Executive Director	11 April 2016 – Current
X. Jian	Non-Executive Director	28 August 2019 – Current

Apart from the above there were no other executives of the Company and the Group during the current year.

The objective of the Group’s executive reward framework is to ensure reward for performance is competitive and appropriate for the results delivered. The Board ensures that Director and executive rewards satisfy the following key criteria for good reward governance practices:

competitiveness and reasonableness.
acceptability to shareholders.
transparency; and
capital management.

The Group has structured an executive remuneration framework that is market competitive and complementary to the reward strategy of the organisation. Remuneration consultants have not been engaged by the company.

Relationship between remuneration and Company performance

During the past year, the Group has generated losses because it is still involved in exploration and not production.

Overview of the Company’s ordinary share price and other key metrics at year end for the last five years ended 30 June 2022:

0 June 2022:
	2018	2019	2020	2021	2022
Shareprice atyear end	$0.008	$0.006	$0.006	$0.01	$0.01
Change in shareprice1	($0.012)	($0.002)	$0.000	$0.004	$0.000
TSR –year onyear2	(60.0%)	(25.0%)	(0.0%)	66.7%	(0.0%)
Loss for theyear	$627,966	$875,980	$1,212,613	$1,045,713	$1,022,814
KMP remuneration	$163,800	$201,446	$400,583	$324,250	$425,000
Market Capitalisation atyear end	$11M	$10.4M	$12.8M	$21.7M	$21.5M

1 The change in share price as measured by the share price at the end of the year from opening share price. 2

Total shareholder return (TSR) – measured as the percentage change in the share price over the year.

There were no dividends paid during the year ended 30 June 2022 (2021: nil).

The link between remuneration, company performance and shareholder wealth generation is tenuous, particularly in the exploration and development stage of a minerals company.

Share prices are subject to the influence of international economic factors and market sentiment toward the sector and increases or decreases may occur quite independent of executive performance or remuneration.

Non-Executive Directors

Fees and payments to Non-Executive Directors reflect the responsibilities and the demands made on the Directors. NonExecutive Directors’ fees and payments are reviewed periodically by the Board. The Board seeks to ensure NonExecutive Directors’ fees and payments are appropriate and in line with the market.

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DIRECTORS’ REPORT

REMUNERATION REPORT (Audited) (continued)

Directors’ fees

The current base remuneration was last reviewed in March 2014. Directors’ fees are inclusive of committee fees.

Retirement allowances for Directors

The Company provides no retirement allowances for Non-Executive Directors under service contracts.

Executive pay

The executive pay and reward framework can have three components:

base pay and benefits
long-term incentives through options, and
other remuneration such as superannuation.

Base pay

This is structured as a total employment cost package which may be delivered as a mix of cash and prescribed nonfinancial benefits at the executive’s discretion and subject to mutual agreement between the executive and the Company. No non-cash benefits were provided by the Company in the current or prior periods.

Executives are offered a competitive base pay that comprises the fixed component of pay and rewards. Base pay for senior executives is reviewed annually to ensure the executive’s pay is competitive with the market. An executive’s pay is also reviewed on promotion.

There are no guaranteed base pay increases fixed in any senior executive’s contracts. Refer to section (b) for further details.

Benefits

Executives receive no benefits outside of the base pay, non-monetary benefits, options, and superannuation disclosed in this report.

Retirement benefits

Other than the statutory superannuation contribution and superannuation paid by way of salary sacrifice, no retirement benefits are provided for executives.

Coppermoly Limited Employee Incentive Option Plan

There are no Employee Options on issue as at the date of this report.

Coppermoly Limited Directors’ & Officers Option Plan

There are no Directors’ & Officers Options on issue as at the date of this report.

(b) Service Agreements

Remuneration and other terms of employment for the Executive Directors are formalised in service agreements. None of the Directors are eligible to participate in the Coppermoly Limited Employee Incentive Option Plan. Other major provisions of the agreements relating to remuneration are set out below.

Non-Executive Directors are not eligible to receive any termination payments or notice in lieu of termination.

K. Grice, Non-Executive Director

Base fees, for the year 30 June 2022 of $40,000 to be reviewed annually.

J. Yao, Non-Executive Director

Base fees for the year 30 June 2022 of $40,000 to be reviewed annually.

W. Huang, Managing Director

Gross cash salary as at 30 June 2022 of $150,000 per annum (excluding statutory superannuation)
On 2 December 2021, the Company issued 8,333,333 fully paid ordinary shares at an issue price of $0.012 to Dr Wanfu Huang representing a $100,000 payment as part of his agreed remuneration package. The expense for the shares was recognised in FY 2022.
The agreement with Mr Huan has not fixed term and may be terminated by either party by providing 3 months’ notice.

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DIRECTORS’ REPORT

REMUNERATION REPORT (Audited) (continued)

Z. Lin, Non-Executive Director
Base fee for the year 30 June 2022 of $40,000 to be reviewed annually.
X. Jian, Non-Executive Director
Base fee for the year 30 June 2022 of $40,000 to be reviewed annually.

All Directors are required by the Company’s Constitution to retire at the end of the third Annual General Meeting after their appointment and may offer themselves for reappointment.

Directors may give notice of resignation, effective at the time of receipt (which depends upon the means of delivery or transmission). Directors can be suspended from office by a majority of directors at a meeting of the Board called for that purpose.

(c) Details of remuneration

Details of the nature and amount of each element of the remuneration of each key management personnel of the Company and the consolidated entity for the years ended 30 June 2022 and 30 June 2021 are set out in the following tables:

2022	Short-term employee benefits	Short-term employee benefits	Post- Employmen t Benefits	Long- term Benefits	Termination Benefits $	Share- based payments $	Total $	Proportion of remuneration that is performance based %
Name	Cash salary & fees $	Cash/Non -cash Bonus $	Super- annuation $	Long Service Leave $
Directors K. Grice1 J. Yao1 W. Huang2 Z. Lin1 X. Jian1	40,000 40,000 150,000 40,000 40,000	- - 100,000 - -	- - 15,000 - -	- - - - -	- - - - -	- - - - -	40,000 40,000 265,000 40,000 40,000	- - - - -
Total	310,000	100,000	15,000	-	-	-	425,000

1 The Company issued 3,333,334 fully paid shares at an issue price of $0.012 in payment of Non-Executive Directors' fees for the year end 30 June 2022.

2 The Company issued 8,333,333 fully paid ordinary shares at an issue price of $0.012 to Dr Wanfu Huang representing a $100,000 payment as part of his agreed remuneration package.

2021	Short-term employee benefits	Short-term employee benefits	Post- Employment Benefits	Long- term Benefits	Termination Benefits $	Share- based payments	Total $	Proportion of remuneration that is performance based %
Name	Cash salary and fees $	Cash/no n-cash Bonus $	Super- annuation $	Long Service Leave $		Options $
Directors K. Grice1 J. Yao1 W. Huang Z. Lin1 X. Jian1	40,000 40,000 150,000 40,000 40,000	- - - - -	- - 14,250 - -	- - - - -	- - - - -	- - - - -	40,000 40,000 164,250 40,000 40,000	- - - - -
Total	303,333	-	14,250	-	-	-	324,250

1 The Company issued 3,388,456 fully paid shares at an issue price of $0.014 in payment of Non-Executive Directors' fees for the year end 30 June 2021.

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DIRECTORS’ REPORT

REMUNERATION REPORT (Audited) (continued)

(d) Options and rights granted as remuneration

There were no options granted during the year ended 30 June 2022 (2021: nil).

(e) Equity instruments issued on exercise of remuneration options

No equity instruments were issued during the period to KMP as a result of options exercised that had previously been granted as compensation.

(f) Additional disclosures relating to key management personnel

(i) Share holdings

The numbers of shares in the Company held during the financial year by key management personnel of the consolidated entity, including their personally related entities, is set out below.

2022 Name	Balance at the start of the year	Acquired in lieu of remuneration	Acquired as part of remuneration	Disposals	Balance at the end of the year
	Number	Number	Number	Number	Number
K. Grice	4,000,000	3,333,334	-	(5,265,868)	2,067,466
J. Yao	42,775,741	3,333,334	-	-	46,109,075
W. Huang	100,247,368	-	8,333,334	-	108,580,702
Z. Lin	11,011,723	3,333,334		-	14,345,057
X. Jian	2,424,947	3,333,334		-	5,758,281

(ii) Option holdings

There were NIL options over ordinary shares (2021: NIL) in the Company held during the financial year by key management personnel of the consolidated entity, including their personally-related entities, is set out below.

(iii) Convertible notes

The numbers of convertible notes held during the financial year by key management personnel of the consolidated entity, including their personally related entities, is set out below. These are convertible into ordinary shares $0.02 at the note holder’s option being 60,000,000 shares, and may be repaid by Coppermoly any time prior to the Maturity Date subject to Coppermoly paying the note holder a break fee equal to 5% of the repayment amount. The convertible notes bear interest at 7%, while the effective interest rate is 15%.

2022	Balance at the start	Changes during	Balance at the end of
Name	of the year	the year	the year
	Number	Number	Number
K. Grice	-	-	-
J. Yao1	60,000,000	-	60,000,000
W. Huang	-	-	-
Z. Lin	-	-	-
X. Jian	-	-	-

1 Convertible notes issued to a related party - Jade Triumph International Limited

(iv) Other transactions with Directors and executives

There were no other transactions with Directors and executives and their related parties.

END OF REMUNERATION REPORT (Audited)

Page 16

DIRECTORS’ REPORT

SHARES UNDER OPTION

There were no unissued ordinary shares of Coppermoly Limited under option at the date of this report.

SHARES ISSUED ON THE EXERCISE OF OPTIONS

No ordinary shares of Coppermoly Limited were issued during the year ended 30 June 2022 on the exercise of options (2021: nil).

INDEMNIFICATION OF OFFICERS AND AUDITORS

During the financial year the consolidated entity paid insurance premiums in respect of Directors' and Officers' legal expenses and liability insurance. The policies prohibit disclosure of details of the policies or the premiums paid. The consolidated entity has not otherwise, during or since the end of the financial year, except to the extent permitted by law, indemnified or agreed to indemnify an Officer of the Company or any of its controlled entities against a liability incurred as such an Officer.

Other than the standard indemnities, the Company has not indemnified or insured the auditor.

PROCEEDINGS ON BEHALF OF COMPANY

No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of the Company, or to intervene in any proceedings to which the Company is a party, for the purpose of taking responsibility on behalf of the Company for all or part of those proceedings.

No proceedings have been brought or intervened in on behalf of the Company with leave of the Court under section 237 of the Corporations Act 2001 .

AUDITOR’S INDEPENDENCE DECLARATION

A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 19.

NON-AUDIT SERVICES

The Company may decide to employ the auditor on assignments additional to their statutory audit duties where the auditor’s expertise and experience with the Company and/or the Consolidated Entity are important.

Details of the amounts paid or payable to the auditors (BDO Audit Pty Ltd and Sinton Spence Chartered Accountants) for audit and non-audit services provided during the year are set out below.

The Board of Directors has considered the position and, in accordance with the advice received from the Audit Committee, is satisfied that the provision of the non-audit services is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001. The Directors are satisfied that the provision of non-audit services by the auditor, as set out below, did not compromise the auditor independence requirements of the Corporations Act 2001 for the following reasons:

All non-audit services have been reviewed by the Audit Committee to ensure they do not impact the impartiality and objectivity of the auditors;
None of the services undermine the general principles relating to the auditor independence as set out in APES 110 Code of Ethics for Professional Accountants .

Page 17

DIRECTORS’ REPORT

2022	2021
$	$

During the year the following fees were paid or payable for services provided by the auditors, their related practices and non-related audit firms.

Assurance Services

Assurance Services
1. Audit Services – audit or review of financial statements BDO Audit Pty Ltd Australian firm: *Total remuneration for audit services* 2. Taxation Compliance Services BDO Services Pty Ltd Australian firm: *Total remuneration for taxation services*	40,739 36,024
	40,739 36,024
	8,775 4,400
	8,775 4,400

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

==> picture [93 x 51] intentionally omitted <==

Kevin Grice Non-executive Director

Brisbane, Queensland 28 September 2022

Page 18

AUDITOR’S INDEPENDENCE DECLARATION

==> picture [78 x 30] intentionally omitted <==

Tel: +61 7 3237 5999 Fax: +61 7 3221 9227 www.bdo.com.au

Level 10, 12 Creek Street Brisbane QLD 4000 GPO Box 457 Brisbane QLD 4001 Australia

DECLARATION OF INDEPENDENCE BY T J KENDALL TO THE DIRECTORS OF COPPERMOLY LIMITED

As lead auditor of Coppermoly Limited for the year ended 30 June 2022, I declare that, to the best of my knowledge and belief, there have been:

No contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
No contraventions of any applicable code of professional conduct in relation to the audit.

This declaration is in respect of Coppermoly Limited and the entities it controlled during the period.

==> picture [118 x 35] intentionally omitted <==

T J Kendall Director

BDO Audit Pty Ltd

Brisbane, 28 September 2022

BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation.

Page 19

COPPERMOLY LIMITED & ITS CONTROLLED ENTITIES CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2022

Notes Other income 5 Depreciation Employee benefits expense Business development costs Insurances Corporate compliance and shareholder relations Office rental, communication, and consumables Finance costs Other expenses Loss before income tax Income tax (expense) / benefit 7 Net Loss for the year Other comprehensive income Items that may be reclassified to the profit or loss Exchange differences on translation of foreign operations Income tax on items of other comprehensive income Other comprehensive income for the year Total comprehensive income for the year Basic and diluted loss per share 21	2022 2021 $ $
	593 38,852
	593 38,852
	(47,583) (47,180) (568,897) (536,481) (6,569) (102,052) (31,008) (43,533) (157,261) (130,878) (29,999) (35,073) (174,130) (182,468) (7,960) (6,900)
	(1,022,814) (1,045,713) - -
	(1,022,814) (1,045,713)
	1,651,175 (1,611,694) - -
	1,651,175 (1,611,694)

	628,361 (2,657,407)
	Cents Cents (0.05) (0.05)

The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes.

Page 20

COPPERMOLY LIMITED & ITS CONTROLLED ENTITIES CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2022

Notes ASSETS Current Assets Cash and cash equivalents 8 Other receivables Total Current Assets Non-Current Assets Other Receivables Right-of-use-assets 9 Property, plant, and equipment Mineral exploration and evaluation assets 10 Total Non-Current Assets Total Assets LIABILITIES Current Liabilities Trade and other payables 11 Lease Liabilities 12 Provisions Borrowings 13 Total Current Liabilities Non-Current Liabilities Borrowings 13 Total Non-Current Liabilities Total Liabilities Net Assets EQUITY Contributed equity 14 Share Option Reserves 15 Foreign Currency Reserve 15 Accumulated losses Total Equity	2022 2021 $ $
	2,101,502 3,392,794 49,375 68,752
	2,150,877 3,461,546
	18,183 15,588 - 35,654 121,400 173,564 18,267,835 15,798,966
	18,407,418 16,023,772

	20,558,295 19,485,318
	308,483 236,315 - 42,392 22,632 37,514 1,782,230 -
	2,113,345 316,221
	- 1,612,508
	- 1,612,508

	2,113,345 1,928,729

	18,444,950 17,556,589
	31,075,539 30,815,539 3,433,487 3,433,487 (739,350) (2,390,525) (15,324,726) (14,301,912)
	18,444,950 17,556,589

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

Page 21

COPPERMOLY LIMITED & ITS CONTROLLED ENTITIES CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2022

Balance at 1 July 2021 Comprehensive income for the year Loss for the year Foreign currency translation difference Total Comprehensive Income Transactions with owners in their capacity as owners Contributions of equity (note 14) Total transactions with owners In their capacity as owners Balance at 30 June 2022 Balance at 1 July 2020 Comprehensive income for the year Loss for the year Foreign currency translation difference Total Comprehensive Income Transactions with owners in their capacity as owners Value of conversion rights on convertible notes Contributions of equity (note 14) Total transactions with owners In their capacity as owners Balance at 30 June 2021	Contributed Equity Accumulated Losses Share Option Reserve $ $	Foreign Currency Reserve Total $ $
	30,815,539 (14,301,912) 3,433,487 - (1,022,814) - - - -	(2,390,525) 17,556,589 - (1,022,814) 1,651,175 1,651,175
	- (1,022,814) -	1,651,175 628,361
	260,000 - -	- 260,000
	260,000 - -	- 260,000

	31,075,539 (15,324,726) 3,433,487	(739,350) 18,444,950
	30,292,296 (13,256,199) 3,259,762 - (1,045,713) - - - -	(778,831) 19,517,028 - (1,045,713) (1,611,694) (1,611,694)
	- (1,045,713) -	(1,611,694) (2,657,407)
	- - 173,725 523,243 - -	- 173,725 - 523,243
	523,243 - 173,725	- 696,968

	30,815,539 (14,301,912) 3,433,487	(2,390,525) 17,556,589

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

Page 22

COPPERMOLY LIMITED & ITS CONTROLLED ENTITIES CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2022

Notes Cash Flows from Operating Activities Cash receipts from government grants Interest received Finance costs paid Payments to suppliers and employees (incl. GST) Net cash outflow from operating activities 23 Cash Flows from Investing Activities Payments for exploration and evaluation assets Payments for property, plant, and equipment Net cash outflow from investing activities Cash Flows from Financing Activities Repayment of lease liabilities Net cash (outflow)/inflow from financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the financial year Exchange difference on cash Cash and cash equivalents at the end of the financial year 8	2022 2021 $ $
	- 37,500 593 1,352 (1,451) (1,841) (536,956) (708,343)
	(537,814) (671,332)
	(718,612) (503,192) (7,535) (10,204)
	(726,147) (513,396)
	(45,349) (44,028)
	(45,349) (44,028)

	(1,309,311) (1,228,756)
	3,392,794 4,623,149 18,019 (1,599)
	2,101,502 3,392,794

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

Page 23

COPPERMOLY LIMITED & ITS CONTROLLED ENTITIES NOTES TO THE CONSOLIDATED FINANCIALSTATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

The ultimate parent entity Coppermoly Limited, is a public, listed company, incorporated, and domiciled in Australia and having its registered address and principal place of business at 2/42 Morrow Street, Taringa, Queensland.

Coppermoly Limited is an ASX-listed exploration company targeting porphyry style large scale-low grade projects prospective for copper, gold, and molybdenum. Coppermoly Limited’s projects are located on New Britain Island in Papua New Guinea ( PNG ).

The consolidated financial statements of Coppermoly Limited and its subsidiaries (collectively, the Group) for the year ended 30 June 2022 were authorised for issue in accordance with a resolution of the directors on 28 September 2022.

(a) Basis of preparation

This general purpose financial report has been prepared in accordance with Australian Accounting Standards, other authoritative pronouncements of the Australian Accounting Standards Board, and the Corporations Act 2001. The consolidated entity is a for-profit entity for the purposes of preparing these financial statements.

Compliance with IFRS

Australian Accounting Standards include Australian equivalents to International Financial Reporting Standards (AIFRS). Compliance with AIFRS ensures that the consolidated financial statements and notes of Coppermoly Limited comply with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board.

This financial report comprises the consolidated financial statements and notes of Coppermoly Limited and its controlled entities.

Going concern

The Group incurred a net loss of $1,022,814 for the year ended 30 June 2022. As at 30 June 2022 the Group had cash reserves of $2,101,502, a working capital surplus of $37,531 and net assets of $18,444,949. As at 30 June 2022, the Group had capital and other commitments, including minimum expenditure commitments relating to its mineral exploration tenements totalling $295,371 (refer Note 16).

The Board recognises that the Group’s cash and cash equivalents at 30 June 2022 are not sufficient for it to repay the convertible notes on their due date of 18 December 2022 and meet its full exploration expenditure commitments for its various tenements over the full terms of all its exploration tenures or facilitate an expanded exploration program should the Group elect to do so. In addition, the Group's ability to realise the carrying amount of its capitalised exploration and evaluation expenditure asset in the ordinary course of business, is contingent on it maintaining tenure for various areas of interest and being able to access tenements to be able to advance exploration and evaluation efforts. These conditions give rise to a material uncertainty, which may cast significant doubt over the Group’s ability to continue as a going concern.

This being the case, the Group is:

Considering negotiating an extension of the due date for the convertible notes which it has been successful in doing in the past.
Considering all funding options including capital raising and the establishment of joint venture partnerships farmouts or other means of securing additional funding.

On the basis of the above, and considering the Group’ past success in accessing funding, renegotiating the terms of the convertible notes and managing expenditure, the Directors are of the opinion the Group will be able to meet its debts as and when they fall due and realise its assets and settle its liabilities in the ordinary course of business. Accordingly, the financial report does not include any adjustments relating to the recoverability and classification of recorded asset amounts or to the amounts and classification of liabilities may be necessary should the Group be unsuccessful in renegotiating or deferring its exploration expenditure commitments, attracting joint venture partners for the Group’s exploration expenditure commitments and/or raising additional capital. 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 interim financial report.

Page 24

COPPERMOLY LIMITED & ITS CONTROLLED ENTITIES NOTES TO THE CONSOLIDATED FINANCIALSTATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Critical accounting estimates

The preparation of financial statements in conformity with AIFRS requires the use of certain critical accounting estimates. It also requires Management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in note 3.

Historical cost convention

The financial report has been prepared on an accruals basis under the historical cost convention.

(b) Principles of consolidation

Subsidiaries

The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Coppermoly Limited (''company'' or ''parent entity'') as at 30 June 2021 and the results of all subsidiaries for the period then ended.

Subsidiaries are all entities (including structured entities) over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases.

The acquisition method of accounting is used to account for business combinations by the Group.

Intercompany transactions, balances, and unrealised gains on transactions between Group companies are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.

Non-controlling interests in the results and equity of subsidiaries are shown separately in the consolidated statement of profit or loss and comprehensive income, consolidated statement of changes in equity and consolidated statement of financial position respectively.

(c) Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker has been identified as the Board which makes strategic decisions.

(d) Foreign currency translation

(i) Functional and presentation currency

Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (‘the functional currency’). The consolidated financial statements are presented in Australian dollars, which is Coppermoly Limited’s functional and presentation currency.

(ii) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the profit or loss.

Page 25

COPPERMOLY LIMITED & ITS CONTROLLED ENTITIES NOTES TO THE CONSOLIDATED FINANCIALSTATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

(iii) Group companies

The results and financial position of Copper Quest PNG Ltd which has a functional currency of PNG Kina are translated into the presentation currency as follows:

assets and liabilities for each statement of financial position presented are translated at the closing rate at the end of the reporting period;
income and expenses for each statement of profit or loss and other comprehensive income presented are translated at average exchange rates (unless this is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the dates of the transactions); and
all resulting exchange differences are recognised in other comprehensive income.

On consolidation, exchange differences arising from the translation of any net investment in foreign entities, and of borrowings and other financial instruments designated as hedges of such investments, are recognised in other comprehensive income. When a foreign operation is sold or borrowings repaid a proportionate share of such exchange differences are reclassified to profit or loss as part of the gain or loss on sale, where applicable.

(e) Other income

Interest income

Interest income is recognised on a time proportion basis using the effective interest method.

Government grants

Grants from the government are recognised at their fair value where there is a reasonable assurance that the grant will be received and the group will comply with all attached conditions.

(f) Income tax

Current income tax expense is based on the profit before income tax adjusted for any non-tax deductible or nonassessable items between accounting profit and taxable income. Deferred tax assets and liabilities are recognised in respect of temporary differences arising between the tax bases of assets or liabilities and their carrying amounts in the financial statements and unused tax losses.

Deferred tax assets and liabilities are recognised for all temporary differences, with certain limited exceptions, between carrying amounts of assets and liabilities for financial reporting purposes and their respective tax bases at the rate of income tax applicable to the period in which the benefit will be received or the liability will become payable.

Deferred tax assets are only brought to account if it is probable that future taxable amounts will be available to utilise those temporary differences and unused tax losses.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

(g) Impairment of non-financial assets

Non-financial Assets are tested 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 inflows which are largely independent of the cash inflows from other assets or groups of assets (cashgenerating units). Non-financial assets other than goodwill that suffered impairment are reviewed for possible reversal of the impairment at each reporting date.

Page 26

COPPERMOLY LIMITED & ITS CONTROLLED ENTITIES NOTES TO THE CONSOLIDATED FINANCIALSTATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

(h) Cash and cash equivalents

For statement of cash flows presentation purposes, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities on the statement of financial position.

(i) Fair value

The nominal value less estimated credit adjustments of receivables and payables are assumed to approximate their fair values. Where applicable, the fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the current market interest rate that is available to the Group for similar financial instruments.

The carrying values of financial assets and liabilities, excluding convertible notes that are included in borrowings, are assumed to approximate their fair values due to their short-term nature. The value of convertible notes included in borrowings has been estimated by discounting the future contractual cash flows at the current market interest rate that is available to the Group for similar financial instruments.

(j) Property, plant, and equipment

All property, plant and equipment is stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

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 charged to the profit or loss during the financial period in which they are incurred.

Items of property, plant and equipment are depreciated over their estimated useful lives. The diminishing balance method is used. Assets are depreciated from the date of acquisition or, in respect of internally constructed assets, from the time an asset is completed and held ready for use. Estimates of useful lives are made at the time of acquisition and varied as required. Expected useful lives are: Plant and Equipment between 4 years and 7 years.

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 (note 1(g)).

Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in profit or loss.

(k) Trade and other payables

These amounts represent liabilities for goods and services provided to the Group prior to the end of the financial year and which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition.

(l) Borrowings

Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in profit or loss over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a prepayment for liquidity services and amortised over the period of the facility to which it relates.

Page 27

COPPERMOLY LIMITED & ITS CONTROLLED ENTITIES NOTES TO THE CONSOLIDATED FINANCIALSTATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

The fair value of the liability portion of convertible bonds, that do not include a derivative at fair value, is determined using a market interest rate for an equivalent non-convertible bond. This amount is recorded as a liability on an amortised cost basis until extinguished on conversion or maturity of the bonds. The remainder of the proceeds is allocated to the conversion option. This is recognised and included in shareholders’ equity, net of income tax effects.

Borrowings are removed from the statement of financial position when the obligation specified in the contract is discharged, cancelled, or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any non ‑ cash assets transferred or liabilities assumed, is recognised in profit or loss as other income or finance costs.

Where the terms of a financial liability are renegotiated and the entity issues equity instruments to a creditor to extinguish all or part of the liability (debt for equity swap), a gain or loss is recognised in profit or loss, which is measured as the difference between the carrying amount of the financial liability and the fair value of the equity instruments issued.

Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least 12 months after the reporting period.

(m) Provisions

Provisions are recognised when: the Group has a present legal or constructive obligation as a result of past events; it is more likely than not that an outflow of resources will be required to settle the obligation; and the amount has been reliably estimated. Provisions are not recognised for future operating losses.

(n) Employee benefits

(i) Short-term employee benefits

Short term employee benefits are expensed as the related services is provided. Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to be settled wholly within 12 months of the reporting date are measured at the amounts expected to be paid when the liabilities are settled.

(ii) Other Long service benefits

The liability for annual leave and long service leave not expected to be settled within 12 months of the reporting date are measured at the present value of expected future payments to be made in respect of services provided by employees up to the reporting date. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the reporting date on corporate bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows. Remeasurements are recognised in profit or loss in the period in which they arise.

(iii) Share-based payments

Share-based compensation benefits can be provided to directors and employees.

The fair value at grant date is determined using a Black-Scholes option pricing model that considers the exercise price, the term of the option, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield, and the risk-free interest rate for the term of the option.

The fair value of the options granted excludes the impact of any non-market vesting conditions (for example, profitability and sales growth targets). Non-market vesting conditions are included in assumptions about the number of options that are expected to vest. At the end of each reporting period, the Group revises its estimate of the number of options that are expected to vest. The employee benefit expense recognised each period takes into account the most recent estimate.

Upon the exercise of options, the balance of the share-based payments reserve relating to those options is transferred to share capital and the proceeds received, net of any directly attributable transaction costs, are credited to share capital.

Page 28

COPPERMOLY LIMITED & ITS CONTROLLED ENTITIES NOTES TO THE CONSOLIDATED FINANCIALSTATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

(o) 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.

(p) Earnings per share

(i) Basic earnings per share

Basic earnings per share is calculated by dividing the profit or loss attributable to equity holders of the company, excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the period.

(ii) Diluted earnings per share

Potential ordinary shares as a result of options outstanding at the end of the period are not dilutive and therefore have not been included in the calculation of diluted earnings per share.

(q) Mineral exploration and evaluation assets

Exploration and evaluation expenditure in relation to separate areas of interest for which rights of tenure are current is carried forward as an asset in the statement of financial position where it is expected that the expenditure will be recovered through the successful development and exploitation of an area of interest, or by its sale; or exploration activities are continuing in an area and activities have not reached a stage which permits a reasonable estimate of the existence or otherwise of economically recoverable reserves. Where a project or an area of interest has been abandoned, the expenditure incurred thereon is written off in the year in which the decision is made.

(r) Goods and Services Tax (GST)

Revenues, expenses, and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the taxation authority. In this case it is recognised as part of the cost of acquisition of the asset or as part of the expense.

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the taxation authority is included with other receivables or payables in the statement of financial position.

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to the taxation authority, are presented as operating cash flows.

(s) Accounting standards issued but not yet effective

The Directors do not consider that the adoption of any new standards and Interpretations in issue but not yet effective at the date of these financial statements will have a material impact on the financial statements of the Group.

(t) New Accounting Standards and Interpretations

The Group has adopted all the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (the AASB) that are relevant to its operations and effective for the current year. The adoption of these new and revised accounting standards and interpretations did not have any material effect on the financial results or financial position of the Group or the Company for the reporting period.

Page 29

COPPERMOLY LIMITED & ITS CONTROLLED ENTITIES NOTES TO THE CONSOLIDATED FINANCIALSTATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

NOTE 2 FINANCIAL RISK MANAGEMENT

The Group's activities expose it to a variety of financial risks; market risk (including interest rate risk and foreign exchange risk), credit risk and liquidity risk. The Group's overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the Group.

The primary objective of the Group financial risk management is to ensure that the Group has sufficient liquidity to fund its desired exploration and development programs through raising debt and equity funding as appropriate.

(a) Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Group’s income or the value of its holdings of financial instruments.

The objective of market risk management is to manage and control market risk exposures within acceptable parameters while optimising the return.

(i) Foreign exchange risk

Foreign exchange risk arises when future commercial transactions and recognised assets and liabilities are denominated in a currency that is not the Group’s functional currency.

The Group operates internationally and is exposed to foreign exchange risk arising from currency exposure in the PNG Kina.

The Group currently has no material foreign exchange risk, however such risk may arise in future when mine production begins, and product may be sold internationally. The policy of the Group for managing foreign exchange risk is to continuously monitor exchange risk. It is the Group’s policy not to use hedging. As at reporting date the Group has not started production activity and accordingly has minimal exposure to this risk.

(ii) Interest rate risk

Refer to (d) below.

(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 to the Group.

The objective of the Group is to minimise risk of loss from credit risk exposure.

Credit risk arises principally from cash and cash equivalents.

The Group’s maximum exposure to credit risk, without considering the value of any collateral or other security, in the event other parties fail to perform their obligations under financial instruments in relation to each class of recognised financial asset at reporting date is the carrying amount of those assets as indicated in the statement of financial position.

The Group has no significant concentrations of credit risk other than cash at bank and short-term deposits. The Group has all cash deposits with reputable banks such as Westpac, which has a credit rating of AA- long term and A-1+ short term, with a stable outlook (affirmed by S&P Global Rating in June 2022).

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COPPERMOLY LIMITED & ITS CONTROLLED ENTITIES NOTES TO THE CONSOLIDATED FINANCIALSTATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

NOTE 2 FINANCIAL RISK MANAGEMENT (continued)

(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 objective of managing liquidity risk is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when they fall due, under both normal and stressed conditions.

The Group has established several policies and processes for managing liquidity risk. These include:

Continuously monitoring:
actual and daily cashflows and longer-term forecasted cashflows
the maturity profiles of financial assets and liabilities to match inflows and outflows
Maintaining adequate reserves
Monitoring liquidity ratios (working capital)

Prudent liquidity risk management implies maintaining sufficient cash. Due to the lack of material revenue, the Group aims to maintain adequate reserves of liquidity. The Group’s objective is to obtain maximum investment returns whilst maintaining maximum security.

The Group’s practice is to maintain funds, other than those required for working capital, on term deposits with major financial institutions.

Other cash is held in an interest bearing bank account and funds are transferred to operating cheque accounts based on forecast operating requirements.

Summary quantitative data

ummary quantitative data
	2022 $	2021 $
Current assets	2,150,877	3,461,546
Current liabilities	2,113,346	316,221
Surplus	37,531	3,145,325

Maturity analysis

Financial liabilities have differing maturity profiles depending on the contractual term. The table shows the period in which recognised financial liabilities balance will be paid based on the remaining period to repayment date assuming contractual repayments are maintained. Contractual cashflows are at undiscounted values (including future interest expected to be paid). Accordingly, these values may not agree to carrying amount.

(c) Liquidity risk (continued)

	Weighted average interest rate $	Carrying amount $	Contractual cashflow $	Within 1 year $	1-2 years $
2022 Trade and other payables Borrowings Lease Liabilities	0% 15% 14%	331,115 1,782,230 -	331,115 1,864,554 -	331,115 1,864,554 -	- - -

2021 Trade and other payables Borrowings Lease Liabilities	0% 15% 14%	273,830 1,612,508 42,392	273,830 1,864,554 45,348	273,830 - 45,348	- 1,864,554 -

Page 31

COPPERMOLY LIMITED & ITS CONTROLLED ENTITIES NOTES TO THE CONSOLIDATED FINANCIALSTATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

NOTE 2 FINANCIAL RISK MANAGEMENT (continued)

(d) Interest rate risk

Interest rate risk arises principally for cash and cash equivalents. The Group’s borrowings comprise fixed rate borrowings in the form of convertible notes and do not expose the Company to changes in market interest rates.

At the end of the reporting period the Group had the following financial instruments exposed to interest rate risk:

					2022	2021
					$	$
Financial Assets
Cash and cash equivalents				2,101,502		3,392,794
Net exposure				2,101,502		3,392,794
Sensitivity Analysis		Interest Rate Risk			Interest Rate Risk
June 2022			- 1%			+ 1%
	Carrying	Profit	Equity		Profit	Equity
	amount
	$	$		$	$	$
Financial Assets
Cash and cash equivalents	2,101,502	(21,015)	(21,015)		21,015	21,015
Total increase / decrease	-	(21,015)	(21,015)		21,015	21,015

Cash and cash equivalents include deposits at call at floating and short-term interest rates.

Sensitivity Analysis June 2021 Financial Assets Cash and cash equivalents Total increase / decrease	Interest Rate Risk Interest Rate Risk - 1% + 1% Carrying amount Profit Equity Profit Equity $ $ $ $ $
	3,392,794 (33,928) (33,928) 33,928 33,928
	- (33,928) (33,928) 33,928 33,928

Cash and cash equivalents include deposits at call at floating and short-term interest rates.

(d) Interest rate risk (continued)

From time to time the Group has significant interest bearing assets, but they are because of the timing of equity raising and capital expenditure rather than a reliance on interest income. The Group’s income and operating cash flows are not expected to be materially exposed to changes in market interest rates in the future. The policy of the Group is to continuously monitor interest rate risk exposures during the period balances are held and to alter the balance of fixed and floating rate deposits as considered appropriate.

Page 32

COPPERMOLY LIMITED & ITS CONTROLLED ENTITIES NOTES TO THE CONSOLIDATED FINANCIALSTATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

NOTE 2 FINANCIAL RISK MANAGEMENT (continued)

(e) Foreign exchange risk

At the end of the reporting period the Group had the following exposure to foreign currencies:

Financial Assets Cash and cash equivalents Trade and other receivables Financial Liabilities Trade and other payables Net exposure Sensitivity Analysis June 2022 Financial Assets and Liabilities Net exposure – AUD Sensitivity Analysis June 2021 Financial Assets and Liabilities Net exposure - AUD	2022 2021 129,998 20,583 11,625 20,384 141,623 40,967 96,420 14,106 96,420 14,106 45,203 26,861 Foreign Exchange Risk - 10% + 10% Carrying amount Profit Equity Profit Equity $ $ $ $ $ 45,203 (4,520) (4,520) 4,520 4,520 Foreign Exchange Risk - 10% + 10% Carrying amount Profit Equity Profit Equity $ $ $ $ $
	26,861 (2,686) (2,686) 2,686 2,686

Page 33

COPPERMOLY LIMITED & ITS CONTROLLED ENTITIES NOTES TO THE CONSOLIDATED FINANCIALSTATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

NOTE 3 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

The Group makes estimates and assumptions concerning the future when preparing the financial statements. The resulting accounting estimates will, by definition, seldom equal the related actual results. Information about key estimates, assumptions and judgements are described in the following notes:

Going concern assessment

As disclosed in Note 1(a), judgement has been exercised in determining that it is appropriate for the financial statements to be prepared on the going concern basis.

Exploration and evaluation expenditure

As at 30 June 2022 the Group had capitalised exploration and evaluation expenditure of $18,267,835 (refer note 10). The ultimate recoupment of capitalised exploration and development expenditure is dependent on the successful development and commercial exploitation, or alternatively sale, of the respective areas of interest. The Group’s continued development of its mineral property interests is dependent upon the determination of economically recoverable reserves, the ability of the Group to obtain the financing necessary to maintain operations, successfully complete its exploration and development programs and the attainment of future profitable production. The recognition of this expenditure as an asset requires management to make certain estimates and assumptions as to future events and circumstances. These estimates and assumptions may change as new information becomes available.

NOTE 4 PARENT ENTITY INFORMATION

ASSETS Current Assets Non-Current Assets Total Assets LIABILITIES Current Liabilities Non-Current Liabilities Total Liabilities Net Assets EQUITY Contributed equity Share option reserve Accumulated losses Total Equity Net Loss for the year Total comprehensive income for the year	2022 $ 2021 $
	2,009,254 3,388,919 18,440,180 17,510,887
	20,449,434 20,899,806
	2,004,485 275,29 - 1,612,508
	2,004,484 1,887,801

	18,444,950 19,012,005
	31,075,539 30,815,539 2,694,137 3,433,487 (15,324,726) (15,237,021)
	18,444,950 19,012,005
	(87,705) (1,045,712)
	(87,705) (1,045,712)

The Company has committed to provide continued financial support to its subsidiary, Copper Quest PNG Limited, and will not call loans owed by its subsidiary within the next 12 months. The Company has no other guarantees, contractual commitments for the acquisition of property, plant or equipment or contingencies as at 30 June 2022 and 2021.

NOTE 5 OTHER INCOME

Other income comprises the following items: Interest income Government grants	2022 $ 2021 $ 593 1,352 - 37,500 593 38,852

Page 34

COPPERMOLY LIMITED & ITS CONTROLLED ENTITIES NOTES TO THE CONSOLIDATED FINANCIALSTATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

NOTE 6 EXPENSES Loss before income tax includes the following specific expenses: Depreciation Business development costs Defined contribution superannuation expense NOTE 7 INCOME TAX (a) The prima facie tax on loss before income tax is reconciled to the income tax as follows: Loss before income tax expense Tax at the Australian (and PNG) tax rate of 30% (2021: 26%) Non-deductible expenses Non-assessable income Deferred tax assets not recognised Income tax expense / (benefit) (b) Recognised deferred tax assets Unused tax losses Deductible temporary differences (c) Recognised deferred tax liabilities Assessable temporary differences (d) Unrecognised deferred tax assets Deferred tax assets have not been recognised in the Statement of Financial Position for the following items: Unused tax losses for which no deferred tax asset has been recognised Deductible temporary differences Potential benefit at 30% (2021: 26%) There is no expiry date on the future deductibility of unused tax losses. The Group has no franking credits. NOTE 8 CURRENT ASSETS: CASH & CASH EQUIVALENTS Cash at bank and on hand Cash on short-term deposit	2022 $ 2021 $ 47,583 47,180 6,569 102,052 19,531 21,117 2022 $ 2021 $ (1,022,814) (1,045,713) (265,932) (271,885) 174,595 33,315 - (9,750) 91,337 248,320
	- -
	- - 328 528
	328 528
	328 528
	328 528
	16,394,509 14,187,534 192,455 217,181
	16,586,964 14,404,715 4,312,611 3,745,226
	2,089,420 3,380,862 12,082 11,932
	2,101,502 3,392,794

Page 35

COPPERMOLY LIMITED & ITS CONTROLLED ENTITIES NOTES TO THE CONSOLIDATED FINANCIALSTATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

NOTE 9 RIGHT-OF-USE ASSETS

Land and buildings – right-of-use Less: Accumulated depreciation	2022 $ 2021 $ - 106,880 - (71,226)
	- 35,654

The Group leased land and buildings for its commercial office under an agreement of between two to six years, including two options to extend. The lease includes an annual rent review of 3% or CPI, whichever is higher. The lease concluded in June 2022 and the Group has elected to continue leasing the premises for a for a further period of 12 months. The Group is continuing to assess, based on Group activities, the ongoing requirements of the commercial office.

Accounting policy

A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at cost, which comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made at or before the commencement date net of any lease incentives received, any initial direct costs incurred, and, except where included in the cost of inventories, an estimate of costs expected to be incurred for dismantling and removing the underlying asset, and restoring the site or asset.

Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated useful life of the asset, whichever is the shorter. Where the consolidated entity expects to obtain ownership of the leased asset at the end of the lease term, the depreciation is over its estimated useful life. Right-of use assets are subject to impairment or adjusted for any remeasurement of lease liabilities.

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

NOTE 10 MINERAL EXPLORATION AND EVALUATION ASSETS

Capitalised exploration and evaluation expenditure Exploration and evaluation phase – at cost Papua New Guinea Australia Papua New Guinea Balance at the beginning of the financial year Expenditure capitalised during the year Foreign currency exchange differences Balance at the end of the financial year Australia Balance at the beginning of the financial year Expenditure capitalised during the year Foreign currency exchange differences Balance at the end of the financial year	2022 $ 2021 $ 18,232,782 15,798,966 35,053 -
	18,267,835 15,798,966
	15,798,966 16,797,885 1,011,921 586,289 (195,451) (1,585,208)
	18,232,782 15,798,966
	2022 $ 2021 $ - - 35,053 - - -
	35,053 -

The ultimate recoupment of costs carried forward for exploration and evaluation is dependent upon the successful development and commercial exploitation or sale of the respective areas of interest.

Page 36

COPPERMOLY LIMITED & ITS CONTROLLED ENTITIES NOTES TO THE CONSOLIDATED FINANCIALSTATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

West New Britain Project Exploration Licences

In October 2009 the Group signed a Letter Agreement with Barrick to sole fund $20 million to earn up to 72% interest in Coppermoly Limited’s tenements (Mt Nakru and Simuku) ( WNB Projects ) in Papua New Guinea. Barrick earned 72% equity in January 2012. In May 2012 Barrick advised Coppermoly of its intention to divest its interest in the WNB Projects. In July 2013 Coppermoly entered into an agreement with Barrick to re-acquire Barrick’s interest in the WNB Projects on a staged basis to reacquire 100% ownership of these licences. Barrick still holds a nominal 28% interest in the WNB Projects.

Reacquisition Deed

The key remaining term of the Reacquisition Deed with Barrick is:

The Group may acquire the remaining nominal 28% interest in the WNB Projects, which the Company has a binding agreement to acquire, by making a payment of AUD $4,500,000, payable no later than the date that is 6 months after the commencement of commercial production at the WNB Projects. Barrick do not have to contribute any further costs to exploration or development of the projects nor are they entitled to any profits from the projects.

Mount Tracey Project, Australia

During the year, the Queensland Department of Natural Resources, Mines and Energy (“DNR”). granted exploration licence EPM 27836 (Mount Tracey Project) to the Company representing a substantial prospective ground for copper gold mineralisation in the Eastern Succession, Mount Isa Inlier, northwest Queensland.

NOTE 11 CURRENT LIABILITIES: TRADE AND OTHER PAYABLES Trade and other payables Unsecured: Trade creditors Other creditors	2022 $ 2021 $
	88,136 19,093 220,347 217,222
	308,483 236,315

Other creditors includes accrued but unpaid Director fees totalling $160,000 (2021: $160,000).

NOTE 12 LEASE LIABILITIES Opening balance Liability recognised on initial application of AASB16 Interest expense Lease payments Total Lease liability Less: Current lease liability due to be settled within 12 months Non-current lease liability	2022 $ 2022 $
	- 77,679 - - - 8,740 - (44,027)
	- 42,392 - (42,392)
	- -

Accounting policy

A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the present value of the lease payments to be made over the term of the lease, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the consolidated entity's incremental borrowing rate. Lease payments comprise of fixed payments less any lease incentives receivable, variable lease payments that depend on an index or a rate, amounts expected to be paid under residual value guarantees, exercise price of a purchase option when the exercise of the option is reasonably certain to occur, and any anticipated termination penalties. The variable lease payments that do not depend on an index or a rate are expensed in the period in which they are incurred.

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COPPERMOLY LIMITED & ITS CONTROLLED ENTITIES NOTES TO THE CONSOLIDATED FINANCIALSTATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

NOTE 13 BORROWINGS

Borrowings Unsecured: Convertible notes (a) Accrued interest Disclosed as: Current liabilities Non-current liabilities	2022 $ 2021 $ 1,157,260 1,071,537 624,971 540,971
	1,782,230 1,612,508
	1,782,230 - - 1,612,508
	1,782,230 1,612,508

(a) Convertible notes

The terms of the convertible notes are as follows:

Re-issue Date: 19 December 2020 Maturity Date: 19 December 2022 Number of Notes 60,000,000 Note Face Value: $1,200,000 Conversion Price: Convertible into ordinary shares $0.02 at the note holder’s option being 60,000,000 shares.

Repayment upon maturity:

The outstanding principal amounts of the convertible notes (being the outstanding issue price of the convertible notes to the extent that they have not been converted) will be repaid by the Company.

In prior financial periods, the original terms of the notes were varied to extend the Maturity Date to 19 December 2020. On 16 December 2020 the terms of the notes were again varied to further extend the maturity date to 19 December 2022.

The notes may be repaid by Coppermoly any time prior to the Maturity Date subject to Coppermoly paying the note holder a break fee equal to 5% of the repayment amount.

Interest: The convertible notes bear interest at 7%. The effective interest rate is 15%.

The convertible notes are presented in the statement of financial position as follows: Face value of notes issued Other equity securities – value of options issued Cost of convertible notes issue Unwinding of equity portion - interest expense Convertible notes liability	2022 $ 2021 $ 1,200,000 1,200,000 (625,822) (625,822) (13,739) (13,739)
	560,439 560,439 593,821 511,098
	1,157,260 1,071,537

Page 38

COPPERMOLY LIMITED & ITS CONTROLLED ENTITIES NOTES TO THE CONSOLIDATED FINANCIALSTATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

NOTE 14 CONTRIBUTED EQUITY

(a) Paid Up Capital Ordinary shares – fully paid – no par value	2022 2021 2022 2021 Shares Shares $ $
	2,193,956,929 2,172,290,279 31,075,539 30,815,539

Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the Company in proportion to the number of shares held.

On a show of hands every holder of ordinary shares present at a meeting in person or by proxy, is entitled to one vote, and in a poll each share is entitled to one vote.

The Company does not have any authorised capital limit.

(b) Movements in ordinary share capital:

(b) Movements in ordinary share capital:
Date Details	Number of Shares Issue Price$	$
1 July 2020 Balance 17 Dec 2020 Shares issued in lieu of accrued directors fees 17 Dec 2020 Shares issued to Managing Director as remuneration 30 Jun 2021 Balance 2 Dec 2021 Shares issued in lieu of accrued directors fees 2 Dec 2021 Shares issued to Managing Director as remuneration 30 Jun 2022 Balance	2,127,213,969 30,790,595 0.014 14,285,715 0.007 2,172,290,279 13,333,336 0.012 8,333,334 0.012 2,193,956,929	30,292,296 423,243 100,000
		30,815,539
		160,000 100,000
		31,075,539

(c) Capital risk management

The Group manages its capital to ensure that entities in the Group will be able to continue as a going concern. The capital structure of the Group consists of equity attributable to equity holders of the Parent comprising issued capital, reserves and losses as disclosed in the statement of financial position.

The Group reviews the capital structure on an on-going basis with consideration to the cost of capital and the risks associated with each class of capital. The Group is not exposed to externally imposed capital requirements.

(d) Options The number of unissued ordinary shares relating to options not exercised at year end: Unlisted Options over shares in the Parent Entity:	No. of Options No. of Options 2022 2021
	- -
	- -

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COPPERMOLY LIMITED & ITS CONTROLLED ENTITIES NOTES TO THE CONSOLIDATED FINANCIALSTATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

NOTE 14 CONTRIBUTED EQUITY (continued)

(e) Option Issues

No options were issued during the financial years 2022 and 2021.

(f) Option Exercise

No options were exercised during the financial year (2021: Nil).

(g) Option Expiry

No options expired during the financial year (2021: Nil).

NOTE 15 RESERVES Share option reserve Foreign currency translation reserve Movements: Share option reserve Balance at the beginning of the financial year Convertible notes – value of conversion feature and options issued Balance at the end of the financial year Foreign Currency Translation Reserve Balance at the beginning of the financial year Currency translation difference arising during the year Balance at the end of the financial year	2022 $ 2021 $
	3,433,487 3,433,487 (739,350) (2,390,525)
	2,694,137 1,042,962
	3,433,487 3,259,762 - 173,725
	3,433,487 3,433,487
	(2,390,525) (778,831) 1,651,175 (1,611,694)
	(739,350) (2,390,525)

Nature and purpose of reserves

(i) Share Option Reserve

The share option reserve represents accumulation of option premium paid on issuing listed options, the value of expired options and the difference between the proceeds received from a convertible bond that does not have a derivative at fair value and the fair value of the liability on initial recognition.

(ii) Foreign Currency Translation Reserve

Exchange differences arising on translation of the foreign controlled entity are taken to the foreign currency translation reserve. The reserve is recognised in profit or loss when the net investment is disposed.

Page 40

COPPERMOLY LIMITED & ITS CONTROLLED ENTITIES NOTES TO THE CONSOLIDATED FINANCIALSTATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

NOTE 16 COMMITMENTS

OTE 16 COMMITMENTS
(a) Exploration Expenditure Commitments To maintain rights of tenure to exploration tenements the Group is required to perform exploration work to meet the minimum expenditure requirements as specified by various governments. Commitments are not provided for in the accounts and are payable: Not later than 1 year Later than 1 year but not later than 5 years	2022 $ 2021 $
	295,371 74,986 973,726 391,502
	1,269,097 466,488

All exploration expenditure spending commitments had been met as at 30 June 2022

NOTE 17 SUBSEQUENT EVENTS

NOTE 18 KEY MANAGEMENT PERSONNEL DISCLOSURES AND RELATED PARTY TRANSACTIONS Key management personnel compensation: Short-term employee benefits: Cash and accrued directors’ fees Post-employment benefits	2022 $ 2021 $
	410,000 310,000 15000 14,250
	425,000 324,250

As at 30 June 2022 accrued and unpaid Directors fees totalled $260,000 (2021:$160,000).

Transactions with other related parties

During the year ended 30 June 2015 the Group issued convertible notes to Jade Triumph International Limited ( Jade Triumph ) an entity related to Jincheng Yao. The terms and conditions of the notes are included in Note 13 including details of the amounts provided, interest accrued and repayments made. As at 30 June 2022 the balance owed to Jade Triumph was $1,782,231 (30 June 2021 $1,612,508).

Page 41

COPPERMOLY LIMITED & ITS CONTROLLED ENTITIES NOTES TO THE CONSOLIDATED FINANCIALSTATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

NOTE 19 SEGMENT INFORMATION

(a) Description of 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. Operating segments are determined based on financial information reported to the Board which is at the consolidated entity level. Accordingly, the consolidated entity is treated as one operating segment.

Therefore, management identifies the Group as having only one reportable segment. The financial results from this reportable segment are equivalent to the financial statements of the consolidated entity. There have been no changes in the operating segments during the year.

(b) Entity-wide disclosures

The Group’s geographical information is as follows:

Non-current assets 2022 2021	Australia $ Papua New Guinea $
	47,560 18,359,858 54,771 15,969,001

The Group operates primarily in mineral exploration projects in Papua New Guinea. The Group’s corporate office is in Brisbane, Australia.

The Group does not have any products/services it derives material revenue from except interest and government grants which are mainly from Australia.

NOTE	20	AUDITORS’ REMUNERATION	2022	2021
			$	$

During the year the following fees were paid or payable for services provided by the auditor of the parent entity and the auditor of the subsidiary entity, their related practices and non-related audit firms.

Assurance Services 1. Audit Services – audit or review of financial statements BDO Audit Pty Ltd Australian firm: *Total remuneration for audit services* 2. Taxation Compliance Services BDO Services Pty Ltd Australian firm: *Total remuneration for taxation services*	44,900 36,024
	44,900 36,024
	4,564 4,400
	4,564 4,400

Page 42

COPPERMOLY LIMITED & ITS CONTROLLED ENTITIES NOTES TO THE CONSOLIDATED FINANCIALSTATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

NOTE 21 EARNINGS PER SHARE (“EPS”)

OTE 21 EARNINGS PER SHARE (“EPS”)
Basic and diluted earnings (losses) per share (cents per share) Loss used in calculating basic and diluted earnings per share is the net loss for the year. Weighted average number of shares used in the calculation of the basic and diluted EPS The number of potential ordinary shares relating to convertible notes not converted at year end. These potential ordinary shares are not dilutive and, accordingly, were not used in calculating diluted EPS.	2022 2021 (0.05) (0.06) $1,022,814 $1,045,713 No. No. 2,184,756,014 2,151,295,843
	60,000,000 60,000,000

OTE 21
EARNINGS PER SHARE (“EPS”)

Basic and diluted earnings (losses) per share (cents per share)
Loss used in calculating basic and diluted earnings per share is the net loss
for the year.
Weighted average number of shares used in the calculation of the basic and
diluted EPS
The number of potential ordinary shares relating to convertible notes not
converted at year end. These potential ordinary shares are not dilutive and,
accordingly, were not used in calculating diluted EPS.

2022
2021
(0.05)
(0.06)
$1,022,814
$1,045,713
No.
No.
2,184,756,014
2,151,295,843

60,000,000
60,000,000

NOTE 22 CONTINGENCIES

(i) The Macmin Royalty

By an agreement dated 12 June 2002 between Macmin NL, Macmin (PNG) Limited and New Guinea Gold Corporation (NGG Canada), NGG Canada indirectly acquired all rights, title and interests held by Macmin NL in respect of EL 1043 (Mt Nakru) and EL 1077 (Simuku) through the purchase of all the issued capital of Macmin (PNG) Limited (being a wholly owned subsidiary of Macmin NL).

Under the terms of the agreement NGG Canada granted a 1% net smelter return royalty (NSRR) in favour of Macmin NL payable in respect of all mineral products produced from the tenements upon being brought into production. The royalty may remain attached to the tenements and may become payable by the Group upon the tenements being brought into production. This would be subject to legal opinions and negotiations should such circumstances come to bear.

In November 2008, Macmin Silver Ltd (formerly Macmin NL) had been placed into administration. In October 2009, Macmin Silver Ltd emerged from voluntary administration; however, the rights to the 1% net smelter royalty are now attributable to the Creditors’ Trust of Macmin Silver Ltd. On 11 September 2015 EL 2379 was granted to Copperquest PNG Pty Ltd by the PNG Mineral Resources Authority as a consolidated exploration licence combining EL 1077 Simuku and EL 1445 Talelumas.

Due to the number of variables involved it is not practicable to disclose an estimate of the financial effect related to this contingent liability.

(ii) The Reacquisition Deed with Barrick

The Group may acquire Barrick’s remaining nominal 28% interest in the West New Britain Projects by making a payment of AUD $4,500,000, payable no later than the date that is 6 months after the commencement of commercial production at the West New Britain Projects.

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COPPERMOLY LIMITED & ITS CONTROLLED ENTITIES NOTES TO THE CONSOLIDATED FINANCIALSTATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

NOTE 23 (a) RECONCILIATION OF LOSS AFTER INCOME TAX TO NET CASH FLOW FROM OPERATING ACTIVITIES Reconciliation of loss after income tax to net cash inflow from operating activities Profit / (loss) after income tax - Depreciation expense - Non-cash interest expense - Net exchange differences - Payments issued by issue of shares Change in operating assets and liabilities: - Payables and provisions - Trade and other receivables - Prepayments Net cash (outflow) from operating activities	2022 $ 2021 $
	(1,022,814) (1,045,713) 47,583 47,180 172,679 180,627 - 1,599 100,000 - 149,494 162,279 14,946 (29,244) 298 11,940
	(537,814) (671,332)

NOTE 23
(a) RECONCILIATION OF LOSS AFTER INCOME TAX TO NET CASH
FLOW FROM OPERATING ACTIVITIES
Reconciliation of loss after income tax to net cash inflow from
operating activities
Profit / (loss) after income tax
- Depreciation expense
- Non-cash interest expense
- Net exchange differences
- Payments issued by issue of shares
Change in operating assets and liabilities:
- Payables and provisions
- Trade and other receivables
- Prepayments
Net cash (outflow) from operating activities

2022
$
2021
$

(1,022,814)
(1,045,713)
47,583
47,180
172,679
180,627
-
1,599
100,000
-
149,494
162,279
14,946
(29,244)
298
11,940

(537,814)
(671,332)

(b) Net Debt Reconciliation

The below sets out an analysis of net debt and the movements in net debt for each of the periods presented.

Net Debt Cash and cash equivalents Borrowings Lease liabilities	2022 $ 2021 $ 2,101,502 3,392,794 (1,782,230) (1,612,508) - (42,392)
	319,272 1,737,894

(c) Change in liabilities arising from financing activities

Net debt as at 1 July 2020 Cash flows Non-cash flows Net debt as at 30 June 2021 Cash flows Non-cash flows Net debt as at 30 June 2022	Borrowings Lease Liabilities Total 1,614,346 77,679 1,692,025 - (44,028) (44,028) (1,838) 8,741 6,903
	1,612,508 42,392 1,654,900 - (45,349) (45,349) 169,722 2,957 172,680
	1,782,230 - 1,782,231

NOTE 24 SUBSIDIARIES

The consolidated financial statements incorporate the assets, liabilities, and results of the following subsidiary in accordance with the accounting policy described in note 1(b):

	Country of	Class of	Equity Holding	Equity Holding
Name of Entity	Incorporation	Shares	2022	2021
			%	%
Copper Quest PNG Ltd	PNG	Ordinary	100	100
Copperquest Australia Pty Ltd	Australia	Ordinary	100	100

Page 44

DIRECTORS’ DECLARATION

In the Directors’ opinion:

(a) the financial statements and notes set out on pages 20 to 44 are in accordance with the Corporations Act 2001 , including:
(i) complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements; and
(ii) giving a true and fair view of the consolidated entity’s financial position as at 30 June 2022 and of its performance, as represented by the results of its operations, changes in equity and its cash flows, for the financial year ended on that date; and
(iii) complying with International Financial Reporting Standards as disclosed in note 1; and
(b) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable; and
(c) the audited Remuneration Report set out on pages 13 to 16 of the Directors’ Report complies with section 300A of the Corporations Act 2001 .

The Directors have been given the declarations by the Chief Executive Officer and Chief Financial Officer required by section 295A of the Corporations Act 2001 .

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

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Kevin Grice Non-executive Director

Brisbane, Queensland 28 September 2022

Page 45

Tel: +61 7 3237 5999 Level 10, 12 Creek St Fax: +61 7 3221 9227 Brisbane QLD 4000 www.bdo.com.au GPO Box 457 Brisbane QLD 4001 Australia

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INDEPENDENT AUDITOR'S REPORT

To the members of Coopermoly Limited

Report on the Audit of the Financial Report

Opinion

We have audited the financial report of Coopermoly Limited (the Company) and its subsidiaries (the Group), which comprises the consolidated statement of financial position as at 30 June 2022, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the financial report, including a summary of significant accounting policies and the directors’ declaration.

In our opinion the accompanying financial report of the Group, is in accordance with the Corporations Act 2001 , including:

(i) Giving a true and fair view of the Group’s financial position as at 30 June 2022 and of its financial performance for the year ended on that date; and
(ii) Complying with Australian Accounting Standards and the Corporations Regulations 2001 .

Basis for opinion

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

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

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

Material uncertainty related to going concern

We draw attention to Note 1 in the financial report which describes the events and/or conditions which give rise to the existence of a material uncertainty that may cast significant doubt about the group’s ability to continue as a going concern and therefore the group may be unable to realise its assets and discharge its liabilities in the normal course of business. Our opinion is not modified in respect of this matter.

Page 46

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Key audit matters

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

Carrying value of mineral exploration and evaluation assets


*Key audit matter* *How the matter was addressed in our audit*
Refer to note 10 in the financial report. The Group carries exploration and evaluation assets as at 30 June 2022 in relation to the application of the Group’s accounting policy for exploration and evaluation assets. The recoverability of exploration and evaluation assets is a key audit matter due to: • The significance of the total balance; and • The level of procedures undertaken to evaluate management’s application of the requirements of AASB 6_Exploration for and_ Evaluation of Mineral Resources(‘AASB 6’) in light of any indicators of impairment that may be present. Our procedures included, but were not limited to the following: • Obtaining evidence that the Group has valid rights to explore in the areas represented by the capitalised exploration and evaluation expenditure by obtaining supporting documentation such as license agreements and also considering whether the Group maintains the tenements in good standing • Where licenses over areas of interest have expired or are due to expire in the next 12 months we further assessed the basis for continuing to carry the costs, including the status of renewals that had been lodged and obtaining evidence that the licenses remained in force until the renewal process is completed. • Making enquiries of management with respect to the status of ongoing exploration programs in the respective areas of interest and assessing the Group's cash flow budget for the level of budgeted spend on exploration projects. • Enquiring of management, reviewing ASX announcements and reviewing directors' minutes to ensure that the Group had not decided to discontinue activities in any applicable areas of interest and to assess whether there are any other facts or circumstances that existed to indicate impairment testing was required.

Key audit matter
How the matter was addressed in our audit

Refer to note 10 in the financial report.
The Group carries exploration and evaluation
assets as at 30 June 2022 in relation to the
application of the Group’s accounting policy for
exploration and evaluation assets.
The recoverability of exploration and evaluation
assets is a key audit matter due to:
•
The significance of the total balance; and
•
The level of procedures undertaken to
evaluate management’s application of the
requirements of AASB 6_Exploration for and_
Evaluation of Mineral Resources(‘AASB 6’) in
light of any indicators of impairment that may
be present.
Our procedures included, but were not limited to the
following:
•
Obtaining evidence that the Group has valid rights to
explore in the areas represented by the capitalised
exploration and evaluation expenditure by obtaining
supporting documentation such as license agreements
and also considering whether the Group maintains the
tenements in good standing
•
Where licenses over areas of interest have expired or
are due to expire in the next 12 months we further
assessed the basis for continuing to carry the costs,
including the status of renewals that had been lodged
and obtaining evidence that the licenses remained in
force until the renewal process is completed.
•
Making enquiries of management with respect to the
status of ongoing exploration programs in the
respective areas of interest and assessing the Group's
cash flow budget for the level of budgeted spend on
exploration projects.
•
Enquiring of management, reviewing ASX
announcements and reviewing directors' minutes to
ensure that the Group had not decided to discontinue
activities in any applicable areas of interest and to
assess whether there are any other facts or
circumstances that existed to indicate impairment
testing was required.

The directors are responsible for the other information. The other information comprises the information in the Group’s annual report for the year ended 30 June 2022, but does not include the financial report and the auditor’s report thereon.

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

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

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

Page 47

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Responsibilities of the directors for the Financial Report

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

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

Auditor’s responsibilities for the audit of the Financial Report

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

A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance Standards Board website at: https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf

This description forms part of our auditor’s report.

Report on the Remuneration Report

Opinion on the Remuneration Report

We have audited the Remuneration Report included in pages 13 to 16 of the directors’ report for the year ended 30 June 2022.

In our opinion, the Remuneration Report of Coopermoly Limited, for the year ended 30 June 2022, complies with section 300A of the Corporations Act 2001 .

Responsibilities

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

BDO Audit Pty Ltd

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T J Kendall

Director

Brisbane, 28 September 2022

Page 48

SHAREHOLDER INFORMATION

In accordance with ASX Listing Rule 4.10, the Company provides the following information to shareholders not elsewhere disclosed in the Annual Report.

The shareholder information set out below was applicable as at 8 September 2022.

A. CORPORATE GOVERNANCE STATEMENT

The Company has prepared a Corporate Governance Statement which sets out the corporate governance practices that were in operation in the year ended 30 June 2022.

In accordance with ASX Listing Rule 4.10.3, the Corporate Governance Statement will be available for review on the Company’s website www.coppermoly.com.au and will be lodged with the ASX at the same time that this Annual Report is lodged with the ASX.

B. DISTRIBUTION AND NUMBER OF HOLDERS OF EQUITY SECURITIES

The distribution and number of holders of equity securities on issue in the Company as at 8 September 2022, and the number of holders holding less than a marketable parcel of the company’s ordinary shares based on the closing market price as at 8 September 2022 is as follows:

Size of Holding 1 – 1,000 1,001 – 5,000 5,001 – 10,000 10,001 – 100,000 100,001 and over	Fully paid ordinary shares (ASX: COY) Convertible notes Number of holders % of total securities Number of holders % of total securities 44 - - 37 0.01 - - 111 0.05 - - 392 0.73 - - 176 99.21 1 100%
	760 100.00 1 100%

As at 8 September 2022, there were 443 holders who held less than a marketable parcel of shares.

As at 8 September 2022, there were NIL equity securities which were subject to restrictions.

C. VOTING RIGHTS

At a general meeting of the Company, every holder of ordinary shares present in person or by proxy, attorney or representative has one vote on a show of hands, and on a poll, one vote for each ordinary share held.

Convertible notes do not carry any voting rights.

D. ON-MARKEY BUY-BACK

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

E. ON-MARKEY BUY-BACK

The Company did not purchase securities on market during the reporting period.

F. TWENTY LARGEST QUOTED EQUITY SECURITY HOLDERS

The Company has only one class of quoted equity securities, being fully paid ordinary shares (ASX:COY). The names of the twenty largest holders of fully paid ordinary shares, the number of fully paid ordinary shares and the percentage of fully paid ordinary shares on issue as at 31 August 2021 was as follows:

Page 49

CORPORATE DIRECTORY

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G. HOLDERS OF MORE THAN TWENTY PERCENT OF EACH CLASS OF UNQUOTED SECURITIES

Each convertible note entitles the holder to acquire one fully paid ordinary shares subject to any vesting conditions being satisfied and in the case of options subject to the holder paying the conversion price.

The names of the holders of more than 20% of convertible notes is set out below:

	Convertible	% of convertible notes
Name	notes held	issued
Jade Triumph International Limited	60,000,000	100.00%

H. SUBSTANTIAL SHAREHOLDERS

As at 9 September 2022, the names of the substantial shareholders of the Company and the number of equity securities in which those substantial shareholders and their associates have a relevant interest, as disclosed in substantial shareholding notices given to the Company were as follows:

Name	Shares held	% of issued capital
Ever Leap Services Limited	924,742,508	42.15%
Shanghai Fuyuan Investments Limited	404,170,658	18.42%
Shenzhen Beilite Jades Limited	364,444,444	16.61%

Page 50

CORPORATE DIRECTORY

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DIRECTORS
Mr Kevin Grice
Mr Jincheng Yao
Dr Wanfu Huang
Mr Zule Lin
Mr Xuan Jian
COMPANY SECRETARY
Mr Craig McPherson
HEAD OFFICE & REGISTERED OFFICE
2/42 Morrow Street
Taringa Qld 4068, Australia
Telephone: +61 7 3217 7544
Facsimile le: +61 7 3876 0695
Email: [email protected]
Website: www.coppermoly.com.au
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POSTAL ADDRESS
PO Box 5807
Brisbane QLD 4000
SHARE REGISTRY
Boardroom Pty Limited
Level 12
225 George Street
Sydney NSW 2000
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AUDITORS

BDO Audit Pty Ltd Level 10 12 Creek Street Brisbane Qld 4000

BANKERS

Westpac Bank

STOCK EXCHANGE

Coppermoly Limited is listed on the Australian Securities Exchange and the Port Moresby Stock Exchange, Papua New Guinea

AI assistant

COPPERMOLY LIMITED — Annual Report 2022

64690_rns_2022-09-27_7b02c8d6-bd2f-4904-bfcf-4e3aaf892dce.pdf

C O N T E N T S

DIRECTORS’ REPORT

DIRECTORS

PRINCIPAL ACTIVITIES

RESULTS AND DIVIDENDS

OPERATING & FINANCIAL REVIEW

Operational Review

DIRECTORS’ REPORT

Exploration in New Britain Island

Projects overview

EL1043 Mt Nakru

DIRECTORS’ REPORT

Simuku (EL 2379)

DIRECTORS’ REPORT

DIRECTORS’ REPORT

Makmak (EL2514)

Kori River (ELA 2578)

Metelen River (ELA2638)

Exploration Projects in Australia

EPM27835, Fox Creek Project and EPM27836, Mount Tracey Project

Financial Review

Profit or Loss

Statement of Financial Position

Business Risks

SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS

MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR

ENVIRONMENTAL REGULATION

INFORMATION ON DIRECTORS

INFORMATION ON DIRECTORS

COMPANY SECRETARY – QUALIFICATIONS & EXPERIENCE

Craig McPherson

DIRECTORS’ MEETINGS

REMUNERATION REPORT (Audited)

(a) Principles used to determine the nature and amount of remuneration

Relationship between remuneration and Company performance

Non-Executive Directors

REMUNERATION REPORT (Audited) (continued)

Directors’ fees

Retirement allowances for Directors

Executive pay

Base pay

Benefits

Retirement benefits

Coppermoly Limited Employee Incentive Option Plan

Coppermoly Limited Directors’ & Officers Option Plan

(b) Service Agreements

K. Grice, Non-Executive Director

J. Yao, Non-Executive Director

W. Huang, Managing Director

REMUNERATION REPORT (Audited) (continued)

(c) Details of remuneration

REMUNERATION REPORT (Audited) (continued)

(d) Options and rights granted as remuneration

(e) Equity instruments issued on exercise of remuneration options

(f) Additional disclosures relating to key management personnel

(i) Share holdings

(ii) Option holdings

(iii) Convertible notes

(iv) Other transactions with Directors and executives

END OF REMUNERATION REPORT (Audited)

SHARES UNDER OPTION

SHARES ISSUED ON THE EXERCISE OF OPTIONS

INDEMNIFICATION OF OFFICERS AND AUDITORS

PROCEEDINGS ON BEHALF OF COMPANY

AUDITOR’S INDEPENDENCE DECLARATION

NON-AUDIT SERVICES

Assurance Services

DECLARATION OF INDEPENDENCE BY T J KENDALL TO THE DIRECTORS OF COPPERMOLY LIMITED

BDO Audit Pty Ltd

COPPERMOLY LIMITED & ITS CONTROLLED ENTITIES CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2022

COPPERMOLY LIMITED & ITS CONTROLLED ENTITIES CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2022

COPPERMOLY LIMITED & ITS CONTROLLED ENTITIES CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2022

COPPERMOLY LIMITED & ITS CONTROLLED ENTITIES CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2022

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of preparation

Compliance with IFRS

Going concern

COPPERMOLY LIMITED Annual Report 2022