CZR RESOURCES LTD — Interim / Quarterly Report 2019

Mar 14, 2019

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COZIRON RESOURCES LIMITED & CONTROLLED ENTITIES ABN 91 112 866 869

CONSOLIDATED INTERIM FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2018

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COZIRON RESOURCES LIMITED & CONTROLLED ENTITIES

FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2018

TABLE OF CONTENTS

Corporate Directory ........................................................................................................................................... 3 Directors’ Report ................................................................................................................................................ 4 Auditor’s Independence Declaration ................................................................................................................ 16 Consolidated Statement Profit or Loss and Other Comprehensive Income .................................................... 17 Consolidated Statement of Financial Position ................................................................................................. 18 Consolidated Statement of Changes in Equity ................................................................................................ 19 Consolidated Statement of Cash Flow ............................................................................................................ 20 Notes to the Consolidated Financial Statements ............................................................................................ 21 Directors’ Declaration ...................................................................................................................................... 27 Independent Auditor’s Review Report ............................................................................................................. 28

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COZIRON RESOURCES LIMITED & CONTROLLED ENTITIES

FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2018

CORPORATE DIRECTORY

DIRECTORS

Adam Sierakowski (Chairman) Stephen Lowe Robert Ramsay Simon Jackson

COMPANY SECRETARY Stephen Hewitt-Dutton

PRINCIPAL OFFICE Level 24

44 St George’s Terrace PERTH WA 6000 Telephone: (08) 6211 5099 Facsimile: (08) 9218 8875

REGISTERED OFFICE

Level 24

44 St George’s Terrace PERTH WA 6000 Telephone: (08) 6211 5099 Facsimile: (08) 9218 8875 Website: www.coziron.com

AUDITORS

BDO Audit (WA) Pty Ltd 38 Station Street Subiaco WA 6008 Telephone: (08) 6382 4600 Facsimile: (08) 6382 4601

SHARE REGISTRAR

Automic Registry Services Level 2, 267 St George's Terrace Perth, Western Australia 6000 Telephone: 1300 288 664

STOCK EXCHANGE LISTING

Australian Securities Exchange (Home Exchange: Perth, Western Australia) Code: CZR

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COZIRON RESOURCES LIMITED & CONTROLLED ENTITIES

FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2018

DIRECTORS’ REPORT

Your directors submit the financial report of the consolidated group for the half-year ended 31 December 2018.

DIRECTORS

The names of directors who held office during or since the end of the half-year:

Adam Sierakowski (Chairman) Stephen Lowe Robert Ramsay Simon Jackson (appointed 29 January 2019)

REVIEW OF OPERATIONS

Introduction

Coziron Resources Ltd (CZR) has exploration focussed primarily on feed-stock materials for steel-making but also investigates any other opportunities for mineralisation particularly in commodities such as gold, copper and base-metals. CZR holds an 85% interest in the Yarraloola and Buddadoo Projects, a 70% interest in the Shepherd's Well and Yarrie Iron Ore Projects and is acquiring a 70% interest in the Croydon Top-Camp project.

Each project is located in proximity to transport infrastructure (Fig 1). Details of the projects and an overview of results from the past six months are presented in the following sections.

Buddadoo Project

The 192 km[2] Buddadoo Project (E59/1350) is located about 200km east of Geraldton Port and 60km from a rail siding at Morawa that connects to Perth and Geraldton (Fig 1). The area is also serviced by a bitumen-road between the towns of Morawa and Yalgoo and a number of station tracks (Fig 1). The tenement covers part of the Gullewa Greenstone Belt which is cut by major faults and intruded by granitic and gabbroic rocks. Historical exploration on E59/1350 identified mineralisation at two sites. In the north at Edamurta, gold, copper and zinc is associated with felsic and mafic volcanics, while in the south adjacent to the Buddadoo Hills, copper and bands of vanadiferous magnetite are hosted by gabbroic rocks (Fig 1).

During the past 6 months the company commenced metallurgical sampling and processing of material from BUDRC013 and BUDRC027 in the Buddadoo Hills that were part of the 28 hole RC drilling programme completed early in 2018 (CZR:ASX 22[nd] August 2018). In addition, follow-up and extensional soil and rock-chip sampling was undertaken over targets showing potential for gold and copper mineralisation (CZR:ASX 22[nd] August 2018). At Edamurta West, located approximately 10 km north-east of the Deflector Gold Mine soil samples at 20 to 40m intervals on E-W lines spaced 200m apart outline anomalism in gold to 200ppb, arsenic to 100 ppm and anomalous antinomy that is open along strike and extends over a distance of about 1.2 km (Fig 2). Copper Valley at the southern end of the Buddadoo tenement has historical occurrences of copper mineralisation located towards the eastern end of a 500 m wide NW-trending regional structure (Fig 2). Recent rock chips collected at intervals where mineralisation was detected along a strike length of about 5 km report copper to 15.2% and gold to 0.6g/t (Table 1). There are also rock-chips from areas with tungsten anomalism in soils to 500 ppm on the eastern flank of the Buddadoo Hills that have reported gold to 1.2 g/t and tungsten to 4.5% (Table 1).

The next phase of work at Buddadoo is to increase the amount of RC and diamond drilling on the rocks with the vanadiferous magnetite for geochemical and metallurgical samples with the results to contribute to the generation of a JORC resource. The more advanced copper and gold anomalies are also ready for a first round of RC drilling.

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COZIRON RESOURCES LIMITED & CONTROLLED ENTITIES

FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2018

DIRECTORS’ REPORT (Continued)

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Fig 1. Location of the Coziron Resouces Ltd tenements in Western Australia.

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COZIRON RESOURCES LIMITED & CONTROLLED ENTITIES

FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2018

DIRECTORS’ REPORT (Continued)

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Fig 2. Major exploration prospects on the Buddadoo Project (E59/1350 and EA59/2349 over the Geological Survey of Western Australia 1:500,000 scale regional geology.

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COZIRON RESOURCES LIMITED & CONTROLLED ENTITIES

FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2018

DIRECTORS’ REPORT (Continued)

Table 1 Rock-chip samples from Copper Valley with copper (Cu) greater than 1% and Buddadoo Hills with tungsten (W) greater than 1% (full assay details are reported ASX:CZR 19/11/2018).

Sample Number	Easting Z50 GDA	Northing Z50 GDA	Au ppb	Au rpt	Ag ppm	As ppm	Bi ppm	Cu %	Te ppm	W ppm
Copper Valley
AE2018-009	449498	6821997	598	470	18.4	1.2	15.6	11.4	22.4	15.5
AE2018-010	449498	6821972	267	252	68.4	1	21.5	15.2	16.4	3.5
AE2018-011	451134	6822002	193		6	0.4	9.38	2.64	4.8	1.5
PK2018-014	451648	6820852	8		1.4	15.2	5.06	3.48	0.6	3.9
PK2018-015	451640	6820844	5		2.1	-0.2	8.38	10.4	1.4	0.3
PK2018-016	451642	6820834	-1		24.7	5.6	19.4	9.41	3.6	0.6
PK2018-017	451646	6820799	1		0.4	3.2	1.36	5.72	0.4	21.5
PK2018-018	451650	6820809	12		0.8	0.8	6.34	3.69	2.4	16.4
PK2018-019	451643	6820831	1		0.9	-0.2	13.3	6.24	1	1
PK2018-020	451600	6820888	21		0.8	-0.2	10.9	8.51	1.4	4.65
PK2018-021	451587	6820900	10		2.6	3	6.62	5.39	1.6	5.5
PK2018-024	449509	6822000	155		18.4	1	23.8	6.03	22.4	2
RR2018-007	449752	6821996	314	343	4.2	2.8	12.1	5.67	12.4	116
Buddadoo Hills
PK2018-003	449653	6824220	-1		-0.1	1.6	21.5	-0.01	-0.2	15900
PK2018-010	449625	6824235	1160		0.7	3.2	1510	-0.01	157	45500
PK2018-032	449860	6823818	-1		-0.1	1.4	8.16	-0.01	-0.2	18700

- Croydon Top Camp Project

Coziron has entered into an agreement with Creasy Group to acquire a 70% interest in Croydon Top-Camp (CTCP E47/2150) project. CTCP is subdivided into two main blocks of tenement that cover a crustal-scale northeast trending fault-system which separates granitic rocks of the Pilbara Craton from deformed, metasedimentary rocks of the De Grey Superbasin (Fig 3). The eastern block of CTCP has reported gold occurrences, while the western block of the CTCP has a long history of gold prospecting and small-scale mining activity at several areas within a 100 km[2] area of the Constantine Sandstone.

In the half year, CZR received reports of 53.5g of gold being recovered by prospectors using metal detectors on 40E prospecting permits covering the Top Camp prospect area (CZR:ASX 20[th] September 2018, 6[th] December 2018). Morphological features on the gold support a primary rather from a lode-style deposit and these are a group of widespread and economically significant deposits across the Pilbara and Yilgarn of Western Australia. The company also acquired a detailed airborne magnetic and radiometric survey from MagSpec Airborne Surveys Ltd over the project, submitted 187 stored auger-pulps and collected additional soil and rock-chip from an initial site visit for comprehensive geochemical analysis (CZR:ASX 10[th] October 2018, 6[th] December 2018).

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COZIRON RESOURCES LIMITED & CONTROLLED ENTITIES

FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2018

DIRECTORS’ REPORT (Continued)

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Fig 3. Croydon Top-Camp project (E47/2150) showing location of gold occurrences from the Geological Survey of Western Australia in sediments of the DeGrey Superbasin separated by a crustal-scale fault from granitic rocks of the Pilbara Craton and overlain by younger rocks of the Fortescue Group (Geology from GSWA digital 1:100K mapping).

The aero-magnetic data outlines the structural framework of the CTCP which has extensive areas of thin colluvial and alluvial cover in the centre of the project area. The magnetics show the contrast between weakly magnetic sedimentary rocks in the Mallina Basin and the gneissic and granitic rocks from the basement in the east. Martin Prospect in the east of CTCP is hosted by nickel and chromium-rich rocks and located in a zone at least 40m wide with copper (Cu) from 500 to 1000 ppm and zinc (Zn) from 400 to 3000 ppm against a background of copper and zinc at less than 100ppm (Fig 4). This suggests the setting represents part of an Archean-age greenstone belt hosting VMS mineralisation. The zone of mineralisation at Martin Prospect represents a drilltarget.

In the west, gridded auger, soils and rock-chips from the carbonate-rich metasediments in the 1.5km long by 500m wide Top Camp Prospect have a high proportion of samples with anomalous gold and pathfinder-elements (Fig 5; CZR:ASX on 10[th] of October 2018, 6[th] December 2018). Samples report gold (Au) to 25g/t, arsenic (As) typically 50 to 200 ppm, and antinomy (Sb) from 20 to 50 ppm. As the new assays are compiled with historical results, they highlight areas in the core of the Top Camp prospect that are ready for a RC drilling programme. There are also areas such as the Bottom Camp prospect (Fig 3) showing gold and pathfinder-element anomalism in widely spaced soil and rock-chip samples where programmes of infill and extensional work have the potential to rapidly generate additional drill targets in areas with good access (6[th] December 2018).

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COZIRON RESOURCES LIMITED & CONTROLLED ENTITIES

FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2018

DIRECTORS’ REPORT (Continued)

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Fig 4 Distribution of richly mineralised soil and rock-chip samples from the Martin Prospect on the CTCP project (E47/2150) in the Pilbara of Western Australia overlain on high resolution ESRI satellite imagery.

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COZIRON RESOURCES LIMITED & CONTROLLED ENTITIES

FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2018

DIRECTORS’ REPORT (Continued)

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Fig 5. Gold (Au) results from re-assayed auger samples and new soil samples from the Top Camp Prospect overlain onto the ESRI satellite imagery highlighting the lighter coloured, carbonate-rich sediments from the Mallina Formation in the DeGrey Basin.

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COZIRON RESOURCES LIMITED & CONTROLLED ENTITIES

FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2018

DIRECTORS’ REPORT (Continued)

Yarraloola Iron-ore Project

The Yarraloola Project consists of eight exploration licences, two prospecting licenses and a mining lease application with a total area of 896 km[2] (Fig 6). The project has a basement of Archean and Proterozoic-aged rocks that are in parts overlain by younger sediments of the Carnarvon Basin. All the sequences are prospective for iron mineralisation. In the east, Archaean-age sediments in the Hamersley Basin include iron-rich members of the Marra Mamba, Brockman and Boolgeeda Iron formations. In the central and western parts, Proterozoicage metasedimentary and metavolcanic rocks of the Ashburton Basin contain an iron formation. In the south, the Coziron tenements cover parts of the Robe River pisolitic iron-stone that was deposited in paleo-river channels associated with the Carnarvon Basin and this system currently support large-scale mining operations at Warramboo, Mesa A and Mesa J (Fig 6).

Logistically, the Yarraloola tenements are serviced by established infrastructure that includes bitumen roads and gas-pipelines and these provide opportunities to lower the cost of development for any ore discoveries. There are also proposals for additional facilities to be developed within the region. BC Iron Ltd has approval for a new haul-road and port at Cape Preston East, while the API joint-venture is preparing a feasibility study for a railway through the West Pilbara to a port at Anketell Point. Both of these planned infrastructure projects traverse the Coziron tenements and have the potential to improve the economics of any iron-ore deposits discovered in the project area.

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Fig 6. Yarraloola tenements showing the Robe Mesa, extension to the east and the P529 Deposits, distribution of the pisolitic iron-stone, the Ashburton magnetite project, the Marra Mamba, Brockman and Boolgeeda Iron Formations.

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COZIRON RESOURCES LIMITED & CONTROLLED ENTITIES

FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2018

DIRECTORS’ REPORT (Continued)

In the period since CZR acquired the Yarraloola project the company has generated fully reported JORCcomplaint resources for the Robe Mesa, Robe East Extension and P529 Deposits (Fig 6; 7[th] December 2015, 8[th] February 2016, 26[th] April 2017, 9[th] May 2017). The results for the deposits are summarised in the following tables.

February 2016 Robe Mesa Deposit – above a Fe cut-off grade of 50%.

Category	Mt	Fe%	**SiO2% **	**Al2O3% **	**TiO2% **	LOI%	P%	S%	**Feca% **
Indicated	65.7	53.8	8.3	3.4	0.14	10.6	0.04	0.02	60.2
Inferred	18.8	53.8	8.2	3.4	0.14	10.7	0.05	0.02	60.3
**Total **	84.5	53.8	8.3	3.4	0.14	10.6	**0.04 **	**0.02 **	60.2

February 2016 Robe Mesa Deposit –above a Fe cut-off grade of 55%.

Category	Mt	Fe%	**SiO2% **	**Al2O3% **	**TiO2% **	LOI%	P%	S%	**Feca% **
Indicated	19.5	56.0	6.0	2.7	0.10	10.7	0.04	0.02	62.7
Inferred	5.2	56.0	5.8	2.8	0.1	10.7	0.05	0.02	62.7
**Total **	24.6	56.0	5.9	2.7	0.1	10.7	**0.04 **	**0.02 **	62.7

.

April 2017 Robe East Extension – above a Fe cut-off grade of 50%.

Category	Tonnes Mt	Fe %	SiO2 %	Al2O3 %	TiO2 %	LOI %	P %	S %	Feca %
Inferred	4.6	51.8	9.7	3.8	0.2	10.9	0.1	0.02	58.2
**Total **	4.6	51.8	9.7	3.8	0.2	10.9	0.1	**0.02 **	58.2

May 2017 P529 Deposit –above a Fe cut-off of 50%.

Category	Tonnes Mt	Fe %	SiO2 %	Al2O3 %	TiO2 %	LOI %	P %	S %	Feca %
Inferred	4.2	53.0	9.1	3.9	0.2	10.4	0.04	0.01	59.2
**Total **	4.2	53.0	9.1	3.9	0.2	10.4	**0.04 **	**0.01 **	59.2

CZR has also reported results from RC and diamond drill-holes from the Ashburton Magnetite Project that covers a high-order, magnetic target some 12km long and 1km wide on tenements E08/1826 and E08/1686 in the West Pilbara (Fig 6). The sulphide-poor mineralisation is hosted by micaceous and siliceous rocks without asbestiform minerals in the Ashburton Basin some 15km west of the contact with iron formations of the Hammersley Basin (ASX: report 15[th] March 2017). The weathering interface is shallow and typically ends at about 30 m below surface and down-hole intercepts with magnetic susceptibility greater than 10,000 SI units assay with Fe greater than 20% report and a concentrate mass-recovery up to 42% with Fe greater than 67% and SiO2 less than 5% at a measured P80 of 22 microns. Of the prospects within the Ashburton that are being evaluated, drill-holes into Spinifex Hill and Rossi Hill report the broadest intercepts, higher mass yields (greater than 25%) and better quality concentrates (Fe greater than 76% and SiO2 less than 5%; Fig 8, Fig 9; ASX: reports 28[th] April 2016, 3[rd] August 2016, 1[st] June 2017).

During the past 6 months, no fieldwork has been undertaken on the project. Priority fieldwork for 2019 on the CID deposits and targets at Yarraloola is to RC drill to increase the volume of CID, complete metallurgical work and complete a transportation study. The Ashburton magnetite also required sampling of RC material to determine mass yield and concentrate quality as contributions to the generation of a JORC resource.

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COZIRON RESOURCES LIMITED & CONTROLLED ENTITIES

FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2018

DIRECTORS’ REPORT (Continued)

Shepherds Well Project

The Shepherds Well Project consists of one exploration license (E08/2361) covering an area of 192.2km[2 ] and is located 60-100 km southwest of Karratha (Fig 1). The tenement is serviced by bitumen road access from the Great Northern Highway, is contiguous with the Yarraloola Project and is only 25-50km from the proposed public access port at Cape Preston. The project covers part of the Cleaverville terrain that is part of the basement of the Pilbara beneath the Hamersley Basin. Activities by the company have outlined two drill-ready anomalies. There is an outcrop of ultramafic rock at Dorper Rise with nickel, copper and gold anomalism and along Suffolk Ridge, a linear magnetic feature has lead, zinc and silver anomalism (Fig 7). There is also anomalous gold soil and drainage samples collected near the base of the Fortescue Basalt that requires follow-up (Fig 10; CZR:ASX 11[th] October 2017).

No fieldwork has been undertaken in the past 6 months. The priority field programme for 2019 is the RC drilling of the Dorper Rise and Suffolk Ridge prospects.

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Fig 7. Map of the total magnetic intensity over the Shepherds Well Project (E08/2361) showing the traces of the main magnetic anomalies in the north, a locality identified by the Company with outcropping banded iron formation and a site of anomalous silver, lead and zinc.

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COZIRON RESOURCES LIMITED & CONTROLLED ENTITIES

FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2018

DIRECTORS’ REPORT (Continued)

Yarrie Project

The Yarrie Project consists of six granted exploration licences (E45/3725, E45/3728, E45/4065, E45/4433, E45/4604, and E45/4605) that cover a total of 419km[2] , about 160km east of Port Hedland (Fig 1). Yarrie is serviced by bitumen and gravel roads and a natural gas pipeline between Pt Hedland and the Telfer coppergold mine. The BHPB-owned rail connection between the Yarrie mining area and Port Hedland also services this area.

The Yarrie tenements have two prospects reporting historical drill-intercepts of high-grade (+62% Fe) iron-ore from the Nimingarra Iron Formation. There is also the potential for gold and base-metals on the tenements. No fieldwork has been undertaken at Yarrie for the past 6 months but the focus of exploration for 2019 is an RC drilling programme at the Kennedy Gap prospect (Fig 8).

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Fig 8. Regional setting of the Yarrie Project and the Yarrie-Goldsworthy iron-ore deposits overlain onto the magnetic intensity with the most intense responses attributed to the Nimingarra Iron Formation .

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COZIRON RESOURCES LIMITED & CONTROLLED ENTITIES

FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2018

DIRECTORS’ REPORT (Continued)

SIGNIFICANT CHANGES IN STATE OF AFFAIRS

Other than as outlined in the review of operations, there were no significant changes in the state of affairs of the Group during the half year.

SUBSEQUENT EVENTS

Subsequent to the end of the reporting period the Company has:

1. Extended the repayment date on the loan from Creasy Group to 30 April 2019 (note 5); and

2. Entered into loan agreements with entities associated with Adam Sierakowski, Stephen Lowe and Simon Jackson for them to provide interim loan funding of $50,000, $50,000 and $25,000 respectively. Terms of the loans are as follows:

3. a. Interest at 10% is payable on any advance;

4. b. The term is 6 months;

5. c. The Lender has the option of securing the loan over the Company’s assets;

6. d. Repayment of the Loan (and any accrued interest) must be made in cash, unless the lender elects, at its sole discretion, that repayment be made in shares or a combination of both. The shares to be issued will be at the lower of $0.02, or the price at which the Company completes a capital raising during the term of the loan, and be subject to shareholder approval; and

7. e. The Company may repay the advances made at any time prior to the last repayment date, which is 6 months after the advance is made, unless an extension is agreed in writing by both parties.

Other than as outlined above, there has not been any matter or circumstance that has arisen after reporting date that has significantly affected, or may significantly affect, the operations of the consolidated entity, the results of those operations, or the state of affairs of the consolidated entity in future financial periods.

AUDITOR’S INDEPENDENCE DECLARATION

The lead auditor’s independence declaration under section 307C of the Corporations Act 2001 for the half-year ended 31 December 2018 is set out on page 16.

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

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Adam Sierakowski Chairman

Dated this 14th day of March 2019

Competent Persons Statement

The information in this report that relates to mineral resources and exploration results is based on information compiled by Rob Ramsay BScHons, MSc PhD, Member of the Australian Institute of Geoscientists. Rob Ramsay is a full-time Consultant Geologist for Coziron and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Rob Ramsay has given his consent to the inclusion in this report of the matters based on the information in the form and context in which it appears.

Cautionary Statements

There are some historical exploration results included that have not been collected and reported in accordance with the JORC Code 2012 and the Competent Person has not done sufficient work to disclose the exploration results in accordance with JORC Code 2012. However, there is nothing that has come to the attention of the acquirer that causes it to question the accuracy or reliability of the former owner’s Exploration Results but the acquirer has not independently validated the former owners Exploration Results and therefore is not to be regarded as reporting, adopting or endorsing those results. The announcement is not otherwise misleading.

15

38 Station Street Subiaco, WA 6008 PO Box 700 West Perth WA 6872 Australia

Tel: +61 8 6382 4600 Fax: +61 8 6382 4601 www.bdo.com.au

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DECLARATION OF INDEPENDENCE BY GLYN O'BRIEN TO THE DIRECTORS OF COZIRON RESOURCES LIMITED

As lead auditor for the review of Coziron Resources Limited for the half-year ended 31 December 2018, I declare that, to the best of my knowledge and belief, there have been:

1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; and

2. No contraventions of any applicable code of professional conduct in relation to the review.

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

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Glyn O’Brien

Director

BDO Audit (WA) Pty Ltd

Perth, 14 March 2019

BDO Audit (WA) Pty Ltd ABN 79 112 284 787 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 (WA) 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 other than for the acts or omissions of financial services licensees

COZIRON RESOURCES LIMITED & CONTROLLED ENTITIES

FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2018

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 31 DECEMBER 2018

(a) Note Other income Exploration costs Employee benefits expense Compliance and professional fees Depreciation Occupancy costs Administration expenses Finance costs 2 (Loss) before income tax Income tax expense (Loss) from continuing operations after related income tax expense for the half year attributable to members of Coziron Resources Limited Other comprehensive income Total comprehensive loss attributable to the members of Coziron Resources Limited (Loss) per share for the half year attributable to members of Coziron Resources Limited Basic loss per share (cents) Diluted loss per share (cents)	Half-Year 31 December 2018 $ Half-Year 31 December 2017 $ 493 676 (524,883) (499,691) (59,000) (59,000) (116,830) (138,241) (1,887) (2,456) (12,000) (12,000) (37,082) (17,154) (93,810) (12,329)
	(844,999) (740,195) - -
	(844,999) (740,195) - -
	(844,999) (740,195)
	(0.05) (0.04) (0.05) (0.04)

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

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COZIRON RESOURCES LIMITED & CONTROLLED ENTITIES

FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2018

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2018

Note ASSETS Current Assets Cash and cash equivalents Other receivables Total Current Assets Non-Current Assets Property, plant and equipment Exploration assets 3 Total Non-Current Assets TOTAL ASSETS LIABILITIES Current Liabilities Trade and other payables 4 Borrowings 5 Total Current Liabilities TOTAL LIABILITIES NET ASSETS EQUITY Contributed equity 6 Reserves Accumulated losses TOTAL EQUITY	As At 31 December 2018 $ As At 30 June 2018 $ 62,921 117,897 299,627 132,907
	362,548 **250,804 **
	20,510 20,949 11,481,916 11,481,916
	11,502,426 11,502,865
	11,864,974 11,753,669
	342,056 385,752 2,000,000 1,000,000
	2,342,056 **1,385,752 **
	2,342,056 **1,385,752 **
	9,522,918 10,367,917
	28,833,286 28,833,286 159,158 159,158 (19,469,526 ) (18,624,527)
	9,522,918 10,367,917

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

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COZIRON RESOURCES LIMITED & CONTROLLED ENTITIES

FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2018

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 DECEMBER 2018

Note Balance at 1 July 2018 Total comprehensive loss for the half-year Balance at 31 December 2018 Balance at 1 July 2017 Total comprehensive loss for the half-year Shares issued – Repayment of loan 7 Share issue costs Balance at 31 December 2017	Ordinary Shares Reserves Accumulated Losses Total Equity $ $ $ 28,833,286 159,158 (18,624,527) 10,367,917 - - (844,999) (844,999)
	28,833,286 159,158 (19,469,526) 9,522,918
	28,333,286 159,158 (16,740,951) 11,751,493 - - (740,195) (740,195) 500,000 - - 500,000 - - - -
	28,833,286 159,158 (17,481,146) 11,511,298

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

19

COZIRON RESOURCES LIMITED & CONTROLLED ENTITIES

FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2018

CONSOLIDATED STATEMENT OF CASH FLOW FOR THE HALF-YEAR ENDED 31 DECEMBER 2018

Cash flows from operating activities Payments to suppliers and employees Payment for exploration expenditure Interest received Net cash flows used in operating activities Cash flows from investing activities Acquisition of plant and equipment Net cash flows used in investing activities Cash flows from financing activities Proceeds from borrowings Net cash inflows from financing activities Net (decrease) in cash held Cash and cash equivalents at the beginning of the half-year Cash and cash equivalents at the end of the half-year	Half-Year 31 December 2018 $ Half-Year 31 December 2017 $ (319,111) (192,165) (734,910) (625,570) 493 791
	(1,053,528) (816,944)
	(1,448) -
	(1,448) -
	1,000,000 500,000
	1,000,000 500,000
	(54,976) (316,944) 117,897 369,923
	62,921 52,979

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

20

COZIRON RESOURCES LIMITED & CONTROLLED ENTITIES

FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2018

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2018

1. STATEMENT OF SIGNIFICANT ACCOUNT POLICIES

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

Basis of Preparation

The half-year consolidated financial statements are general purpose financial statements prepared in accordance with the requirements of the Corporations Act 2001 , Australian Accounting Standard AASB 134 Interim Financial Reporting , Australian Accounting Interpretations and other authoritative pronouncements of the Australian Accounting Standards Board.

It is recommended that this financial report be read in conjunction with the annual financial report for the year ended 30 June 2018 and any public announcements made by Coziron Resources Limited and its controlled entities during the half-year in accordance with continuous disclosure requirements arising under the Corporations Act 2001 .

The half-year report does not include full disclosures of the type normally included in an annual financial report. Therefore, it cannot be expected to provide a full understanding of the financial performance, financial position and cash flows of the group as in the full financial report.

The accounting policies and methods of computation adopted in the preparation of the half-year financial statements are consistent with those adopted and disclosed in the Group’s annual financial report for the financial year ended 30 June 2018 except for the impact (if any) of the new and revised Standards and Interpretations effective 1 July 2018 as discussed below.

It has been determined by the Group that there is no impact, material or otherwise, of the new and revised Standards and Interpretations on its business and, therefore, no change is necessary to Group accounting policies.

Accounting Standards Issued

In the half-year ended 31 December 2018, the Group has reviewed all of the new and revised Standards and Interpretations issued by the AASB that are relevant to its operations and effective for reporting periods beginning on or after 1 July 2018. As a result of this review, the Group has initially applied AASB 9 and AASB 15 from 1 July 2018.

Due to the transition methods chosen by the Group in applying AASB 9 and AASB 15, comparative information throughout the interim financial statements has not been restated to reflect the requirements of the new standards.

It has been determined by the Group that there is no impact, material or otherwise, of the new and revised Standards and Interpretations on its business and, therefore, no change is necessary to the Group’s accounting policies.

21

COZIRON RESOURCES LIMITED & CONTROLLED ENTITIES

FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2018

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2018

New Accounting Standards not yet mandatory or early adopted

Reference	Title	Summary	Application date	Expected Impact
AASB 16	Leases	AASB 16 eliminates the operating and finance lease classifications for lessees currently accounted for under AASB 117 Leases. It instead requires an entity to bring most leases onto its balance sheet in a similar way to how existing finance leases are treated under AASB 117. An entity will be required to recognise a lease liability and a right of use asset in its balance sheet for most leases. There are some optional exemptions for leases with a period of 12 months or less and for low value leases. Lessor accounting remains largely unchanged from AASB 117.	Financial years beginning on or after 1 January 2019	No expected impact

Reporting basis and conventions

The half-year statements have been prepared on an accruals basis and is based on historical costs modified by the revaluation of selected non-current assets, financial assets and financial liabilities for which the fair value basis of accounting has been applied.

Going Concern

The Group has incurred a net loss after tax for the half year ended 31 December 2018 of $844,999 (2018: $740,195) and experienced net cash outflows from operating activities of $1,053,528 (2018: $816,944). At 31 December 2018, the Group had current assets of $362,548 (30 June 2018: $250,804).

The ability of the Group to continue as a going concern is dependent on securing additional funding through debt or equity issues or partial sale of its mineral properties as and when the need to raise working capital arises, to continue to fund its operational activities.

These conditions indicate a material uncertainty that may cast a significant doubt about the Group’s ability to continue as a going concern and, therefore, that it may be unable to realise its assets and discharge its liabilities in the normal course of business.

Management believe there are sufficient funds to meet the Group’s working capital requirements as at the date of this report. Subsequent to period end the Group expects to receive additional funds through debt or equity issues.

The financial statements have been prepared on the basis that the Group is a going concern, which contemplates the continuity of normal business activity, realisation of assets and settlement of liabilities in the normal course of business for the following reasons:

• The Group has a proven history of successfully raising capital.

• Directors have provided short term loans of $125k (as disclosed in note 12).

• The Directors have agreed to defer payment of amounts owing to related party creditors of $86k until completion of a capital raising.

• The Directors believe that there is sufficient cash available for the Group to continue operating until it can raise sufficient further capital to fund its ongoing activities.

• The fact that future exploration and evaluation expenditures are generally discretionary in nature and may be slowed or suspended as part of the management of the Group's working capital and other forecast commitments.

22

COZIRON RESOURCES LIMITED & CONTROLLED ENTITIES

FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2018

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2018

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

2. LOSS BEFORE INCOME TAX

The following revenue and expense items are relevant in explaining the financial performance for the half-year: Interest revenue Expenses Exploration costs Compliance and professional fees Interest paid or payable	Half-Year 31 December 2018 $ Half-Year 31 December 2017 $ 493 676 (524,883) (499,691) (116,830) (138,241) (93,810) (12,329)

3. EXPLORATION ASSETS

A reconciliation of the movements in the capitalised exploration assets is detailed below:

Opening balance at the beginning of the half-year Closing Balance	31 December 2018 $ 30 June 2018 $ 11,481,916 11,481,916
	11,481,916 11,481,916

Exploration costs are only carried forward to the extent that they are expected to be recouped through the successful development or sale of the area or where activities in the area have not yet reached a stage that permits reasonable assessment of the existence of economically recoverable reserves.

4. TRADE AND OTHER PAYABLES

Trade payables Accruals Employee entitlements Other	31 December 2017 $ 30 June 2018 $ 178,501 321,697 154,710 64,055 1,356 - 7,489 -
	342,056 385,752

23

COZIRON RESOURCES LIMITED & CONTROLLED ENTITIES

FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2018

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2018

5. BORROWINGS

	31 December	30 June
	2018	2018
	$	$
Secured
Other loans	2,000,000	1,000,000

On 30 January 2018 the Company announced that it had secured a debt facility of $1,000,000 from the Company's largest shareholder, the Creasy group. The funds were used to cover exploration works to be undertaken at the Company's Buddadoo project near Geraldton, WA and working capital as the Company finalises other funding initiatives.

On 2 August 2018 the Company announced that it had secured a $1,000,000 extension to the debt facility from the Company's largest shareholder, the Creasy group. The funds are to be used to cover exploration costs and working capital as the Company finalises other funding initiatives. The following terms now cover the full $2 million advanced under facility:

1. The additional funds have been received in a single advance of $1,000,000 on 2 August 2018;

2. Interest at 10% is payable on any advance;

3. The loan has a term of 6 months from the date of the advance. Subsequent to year end the facility was extended to 30 April 2019;

4. The Lender has the option of securing the loan over the Company’s assets;

5. Repayment of the Loan (and any accrued interest) must be made in cash unless the lender elects, at its sole discretion, that repayment be made in shares or a combination of both. The shares to be issued will be at the lower of $0.02, or the price at which the Company completes a capital raising during the term of the loan, and be subject to shareholder approval; and

6. The Company may repay the advance at any time prior to the last repayment date, which is 6 months after the advance is made, unless an extension is agreed in writing by both parties.

6. ISSUED CAPITAL

6. ISSUED CAPITAL
Ordinary shares Movements in ordinary shares on issue Shares on issue at 1 July - Shares issued – Repayment of Loan - Issue costs At 31 December	As At 31 December 2018 $ As At 30 June 2018 $ 28,833,286 28,833,286 2018 2018 2017 2017 No. $ No. $	As At 31 December 2018 $ As At 30 June 2018 $ 28,833,286 28,833,286
	1,785,551,268 28,833,286 1,752,217,935 28,333,286 - - 33,333,333 500,000 - - - -
	1,785,551,268 28,833,286 1,785,551,268 28,833,286

24

COZIRON RESOURCES LIMITED & CONTROLLED ENTITIES

FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2018

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2018

Options

Outstanding at beginning of year Issued during the year Expired during the period Outstanding at the end of the year Exercisable at the end of the year	2018 No. 2018 Weighted average exercise price 2017 No. 2017 Weighted average exercise price
	8,750,000 0.035 17,500,000 0.0325 - - - - (8,750,000) - (8,750,000) -
	- - 8,750,000 0.035
	- - 8,750,000 0.035

7. SHARE BASED PAYMENTS

Ordinary Shares

Shares provided in repayment of loan Total share based payments	As At 31 December 2018 $ As At 30 June 2018 $ - 500,000
	- 500,000

Loan Agreement – Yandal Investments Pty Ltd

On 30 August 2017 the Company entered into a Loan Agreement with Yandal Investments Pty Ltd under which the Company was advanced $500,000. The loan had a period of six months with the option of early repayment. Under the terms of the Loan agreement Yandal could elect to be repaid by the issue of shares at $0.015 per share. At the Company's Annual General Meeting held on 22 November 2017 the shareholders approved the issue of 33,333,333 Shares at an issue price of $0.015 per Share in full repayment of the principal amount of the loan. During the period of the loan, interest of $12,329 (10% pa) accrued and will be paid in cash by the Company.

8. SEGMENT INFORMATION

The Group operates predominantly in one geographical segment, being Western Australia, and in one industry, being mineral exploration. The reporting segment is represented by the primary statements forming this financial report.

9. CONTINGENT LIABILITIES

As at the date of the report, the Directors are not aware of any material contingent liabilities that would require disclosure.

10. COMMITMENTS

Exploration commitments Payable: Within one year Later than one year but not later than 5 years Later than 5 years	31 December 2018 30 June 2018 $ $ 1,414,693 1,179,556 1,864,408 681,318 - - 3,279,101 1,860,874

25

COZIRON RESOURCES LIMITED & CONTROLLED ENTITIES

FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2018

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2018

11. RELATED PARTY TRANSACTIONS

Transactions with related parties

During the period the Company entered into an extension of the Loan Agreement with its major shareholder Yandal Investments Pty Ltd as disclosed in Note 5.

Other than as disclosed above, transactions with related parties during the half-year were on the same basis as stated in the 30 June 2018 Annual Report.

12. SUBSEQUENT EVENTS

Subsequent to the end of the reporting period the Company has:

1. Extended the repayment date on the loan from Creasy Group to 30 April 2019 (note 5); and

2. Entered into loan agreements with entities associated with Adam Sierakowski, Stephen Lowe and Simon Jackson for them to provide interim loan funding of $50,000, $50,000 and $25,000 respectively. Terms of the loans are as follows:

3. a. Interest at 10% is payable on any advance;

4. b. The term is 6 months;

5. c. The Lender has the option of securing the loan over the Company’s assets;

6. d. Repayment of the Loan (and any accrued interest) must be made in cash, unless the lender elects, at its sole discretion, that repayment be made in shares or a combination of both. The shares to be issued will be at the lower of $0.02, or the price at which the Company completes a capital raising during the term of the loan, and be subject to shareholder approval; and

7. e. The Company may repay the advances made at any time prior to the last repayment date, which is 6 months after the advance is made, unless an extension is agreed in writing by both parties.

Other than as outlined above, there has not been any matter or circumstance that has arisen after reporting date that has significantly affected, or may significantly affect, the operations of the consolidated entity, the results of those operations, or the state of affairs of the consolidated entity in future financial periods.

13. FAIR VALUE OF FINANCIAL INSTRUMENTS

Due to their short term nature, the carrying amounts of the current receivables and current payables are assumed to approximate their fair value.

26

COZIRON RESOURCES LIMITED & CONTROLLED ENTITIES

FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2018

DIRECTORS’ DECLARATION FOR THE HALF-YEAR ENDED 31 DECEMBER 2018

The directors of the Company declare that:

1. The financial statements and notes, as set out on pages 17 to 26:

2. (a) comply with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 and other mandatory professional reporting requirements; and

3. (b) give a true and fair view of the economic entity’s financial position as at 31 December 2018 and of its performance for the half-year ended on that date.

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

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

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Adam Sierakowski Chairman

Dated this 14th day of March 2019

27

Tel: +61 8 6382 4600 38 Station Street Fax: +61 8 6382 4601 Subiaco, WA 6008 www.bdo.com.au PO Box 700 West Perth WA 6872 Australia

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INDEPENDENT AUDITOR’S REVIEW REPORT

To the members of Coziron Resources Limited

Report on the Half-Year Financial Report

Conclusion

We have reviewed the half-year financial report of Coziron Resources Limited (the Company) and its subsidiaries (the Group), which comprises the consolidated statement of financial position as at 31 December 2018, 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 halfyear then ended, notes comprising a statement of accounting policies and other explanatory information, and the directors’ declaration.

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

• (i) Giving a true and fair view of the Group’s financial position as at 31 December 2018 and of its financial performance for the half-year ended on that date; and

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

Emphasis of matter – Material uncertainty relating 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 conclusion is not modified in respect of this matter.

Directors’ responsibility for the Half-Year Financial Report

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

Auditor’s responsibility

Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity , in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the half-year financial report is not in accordance with the Corporations Act 2001 including giving a true and fair view of the Group’s financial position as at 31 December 2018 and its financial performance for the half-year ended on that date and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 .

BDO Audit (WA) Pty Ltd ABN 79 112 284 787 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 (WA) 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 other than for the acts or omissions of financial services licensees

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As the auditor of the Group, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

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

Independence

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

BDO Audit (WA) Pty Ltd

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Glyn O’Brien

Director

Perth, 14 March 2019