DYNAMIC METALS LIMITED — Annual Report 2022

Jan 11, 2023

DYNAMIC METALS LIMITED

A.B.N. 37 659 154 480

FINANCIAL REPORT FOR THE PERIOD FROM INCORPORATION ON 24 MAY 2022 TO 30 JUNE 2022

CORPORATE DIRECTORY

Board and Management

Justin Mannolini Non-Executive Chairman Karen Wellman Managing Director & Chief Executive Officer Lindsay Dudfield Non-Executive Director Patricia (Trish) Farr Executive Director/Company Secretary

Registered Office & Principal Place of Business

Level 2 9 Havelock Street West Perth, WA 6005 Telephone: +61 (8) 9321 7550 Facsimile: +61 (8) 9321 7950 Email: enquiry@jindalee.net Web: www.jindalee.net

Auditors

Hall Chadwick WA Audit Pty Ltd 283 Rockeby Road Subiaco, WA 6008

Legal Advisors

Hamilton Locke L27, 152-158 St George’s Terrace Perth, WA 6000

CONTENTS

DIRECTORS’ REPORT .................................................................................................................. 2 STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME.................................... 4 STATEMENT OF FINANCIAL POSITION ......................................................................................... 5 STATEMENT OF CASH FLOWS ..................................................................................................... 6 STATEMENT OF CHANGES IN EQUITY .......................................................................................... 7 NOTES TO THE FINANCIAL STATEMENTS ..................................................................................... 8 DIRECTORS’ DECLARATION ....................................................................................................... 16 AUDITOR’S INDEPENDENCE DECLARATION ............................................................................... 17 INDEPENDENT AUDITOR’S REPORT ........................................................................................... 18

1

DYNAMIC METALS LIMITED DIRECTORS’ REPORT

DIRECTORS’ REPORT

The Directors present their report on Dynamic Metals Limited ( Dynamic or Company ) for the period from the date of incorporation of the Company on 24 May 2022 to 30 June 2022.

Directors

The following persons were directors of Dynamic Metals Limited during the whole of the financial period and up to the date of this report:

Justin Mannolini (appointed 24 May 2022) Karen Wellman (appointed 24 May 2022) Lindsay Dudfield (appointed 24 May 2022) Patricia Farr (appointed 24 May 2022)

Principal activities

The principal activity of Dynamic during the period was mineral exploration. During the period there was no change in the nature of this activity.

Financial results

The consolidated loss of the Company after providing for income tax for the period ended 30 June 2022 was a loss of $10,455.

Dividends

No dividends have been declared during the financial period and no dividends have been recommended by the Directors.

Significant changes in the state of affairs

During the period there has been no significant change in the state of affairs of the Company.

Operations and financial review

Dynamic’s strategy is to identify and acquire mineral exploration projects with the potential to transform the value of the Company. During the period, the Company applied for prospective tenements in Western Australia which it will continue to explore during the next financial year.

Impact of COVID-19

The Company continues to monitor the ongoing and evolving situation relating to the Coronavirus pandemic (COVID-19) and the potential implications for the health and wellbeing of the Company’s contractors and stakeholders. The Company has implemented various health and safety measures and has concluded at this time that there has been no material impact on the Company’s solvency or its ability to continue as a going concern.

Financial

The net assets of the Company have decreased by $10,445 over the period ended 30 June 2022, principally due to the loss for the period of $10,455. The Company has been funded by its parent entity, Jindalee Resources Limited, during the period and Jindalee has agreed to continue this funding for at least 12 months from the date of this report unless alternative sources of funding are put in place earlier.

The Directors believe the Company is in a sound financial position to continue its exploration endeavours.

Events since the end of the financial year

There has not arisen in the interval between the end of the financial period and the date of this report any item, transaction or event of a material and unusual nature likely, in the opinion of the Directors, to affect significantly the operations, the results of those operations, or the state of affairs of the Company in future financial years.

2

DYNAMIC METALS LIMITED DIRECTORS’ REPORT

Likely developments and expected results of operations

The Directors are not aware of any developments that might have a significant effect on the operations of the Company in subsequent financial years not already disclosed in this report.

Environmental regulation

The Company is subject to significant environmental regulation in respect of its exploration activities. Tenements in Western Australia are granted subject to adherence to environmental conditions with strict controls on clearing, including a prohibition on the use of mechanised equipment or development without the approval of the relevant government agencies, and with rehabilitation required on completion of exploration activities. These regulations are controlled by the Department of Mines and Petroleum.

Directors and Officers insurance

The parent company of Dynamic, Jindalee Resources Limited, paid a premium during the year in respect of a directors and officers liability insurance policy, insuring the directors and officers of the Company against a liability incurred whilst acting in the capacity of a director, secretary or executive officer to the extent permitted by the Corporations Act 2001 . The Directors have not included details of the nature of the liabilities covered or the amount of the premium paid in respect of the policy as such disclosure is prohibited under the terms of the contract of insurance.

Proceedings on behalf of the 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 by section 307C of the Corporations Act 2001 is included on page 17.

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

K Wellman Managing Director Perth 6 September 2022

3

DYNAMIC METALS LIMITED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE PERIOD ENDED 30 JUNE 2022

Note Exploration expenditure Depreciation expense Corporate expenses Other expenses Loss before income tax Income tax benefit 4 Loss after income tax Loss attributable to owner of Dynamic Metals Limited Other comprehensive income Items that may be reclassified to profit or loss Other comprehensive income for the year Total comprehensive loss for the year attributable to the ordinary equity holders of the Company	24 May to 30 June 2022 $
	(7,262) (173) (3,000) (20)
	(10,455) -
	(10,455)
	(10,455)
	-
	-
	(10,455)

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

4

DYNAMIC METALS LIMITED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2022

Notes CURRENT ASSETS Other receivables Prepayments Total Current Assets NON-CURRENT ASSETS Plant and equipment 5 Total Non-Current Assets TOTAL ASSETS CURRENT LIABILITIES Trade and other payables Total Current Liabilities NON-CURRENT LIABILITIES Loan from parent entity 6 Total Non-Current Liabilities TOTAL LIABILITIES NET LIABILITIES EQUITY Contributed equity 7 Accumulated losses 8 TOTAL EQUITY	2022 $
	4,717 723
	5,440
	50,390
	50,390
	55,830
	3,000
	3,000
	63,275
	63,275
	66,275
	(10,445)
	10 (10,455)
	(10,445)

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

5

	DYNAMIC METALS LIMITED
	STATEMENT OF CASH FLOWS
FOR	THE PERIOD ENDED 30 JUNE 2022
	Note	24 May to
		30 June 2022
		$
Cash flows from operating activities
Net cash outflow from operating activities	10	-
Cash flows from investing activities
Net cash outflow from investing activities		-
Cash flows from financing activities
Net cash inflow from financing activities		-
Net movement in cash and cash equivalents		-
Cash and cash equivalents at the beginning of the financial
period		-
Cash and cash equivalents at the end of the financial period		-

All expenditure in the period was paid for by the Company’s parent company, Jindalee Resources Limited. (Refer to Notes 2(a) and 6.)

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

6

DYNAMIC METALS LIMITED STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED 30 JUNE 2022

Balance at 24 May 2022 Total comprehensive loss for the period: Loss for the period Total comprehensive loss for the period Transactions with owners in their capacity as owners Issue of shares net of costs Balance at 30 June 2022	Contributed equity Accumulated losses Total equity $ $ $
	- - -
	- (10,455) (10,455)
	- (10,455) (10,455)
	10 - 10
	10 (10,455) (10,445)

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

7

DYNAMIC METALS LIMITED NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2022

1. CORPORATION INFORMATION

These financial statements of Dynamic Metals Limited are for the period from incorporation on 24 May 2022 to 30 June 2022 and were authorised for issue in accordance with a resolution of directors on 6 September 2022.

Dynamic Metals Limited is a company limited by shares, incorporated in Australia and is a wholly owned subsidiary of Jindalee Resources Limited.

The nature of the operations and principal activities of the Company are described in Note 3.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

In order to assist in the understanding of the financial statements, the following summary explains the material accounting policies that have been adopted in the preparation of the accounts.

(a) Statement of Compliance These general purpose financial statements have been prepared in accordance with Australian Accounting Standards, other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001 .

Compliance with IFRS

The financial statements of Dynamic Metals Limited also comply with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB).

Going concern

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

For the period ended 30 June 2022 the Company incurred a net loss of $10,445 and held nil cash at period end.

The Company is continuing to expand its exploration activities and the Company’s parent, Jindalee Resources Limited, has provided assurance that it will continue to provide funds to the Company to support these activities. Accordingly, the Directors consider that it is appropriate to prepare the financial statements on the going concern basis.

In the event that the Company is unable to achieve continued support from its parent, material uncertainty would exist that may cast doubt on the ability of the Company to continue as a going concern.

These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or to the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

(b) New Accounting Standards, interpretations and amendments adopted by the Company

A number of new standards, amendments to standards and interpretations issued by the AASB which are not yet mandatorily applicable to the Company have not been applied in preparing these financial statements and none are expected to be relevant to the Company. The Company does not plan to adopt these standards early.

(c) Basis of Preparation/Accounting The financial statements have been prepared on an accruals basis and are based on historical costs and do not take into account changing money values or, except where stated, current valuations of non-current assets. Cost is based on the fair values of the consideration given in exchange for assets.

In applying IFRS, management is required to make judgements, estimates and assumptions that affect the application of accounting policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making judgements about carrying values of assets and liabilities that are not readily available from other sources. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

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DYNAMIC METALS LIMITED NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2022

Accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions or other events is reported. These accounting policies have been consistently applied throughout the period.

The significant accounting policies set out below have been applied in the preparation and presentation of the financial statements for the period ended 30 June 2022.

(d) Cash and Cash Equivalents For the purposes of the statement of cash flows, cash and cash equivalents includes cash on hand, and term deposits repayable on demand with a financial institution. No cash was held by the Company at period end.

(e) Other Receivables

Receivables are recognised initially at fair value, less any allowance for expected credit losses

(f) Plant and Equipment

Plant and equipment is stated at cost less accumulated depreciation and any impairment in value.

Depreciation is calculated using the prime cost method and is brought to account over the estimated economic lives of all plant and equipment. The rate used is 12.5% and is based on the useful life of the asset, being a motor vehicle.

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

The carrying amount of an asset is written down immediately to its recoverable amount if the carrying amount is greater than its estimated recoverable amount.

Depreciation methods, useful lives and residual values are reassessed at each reporting date.

(g) Impairment of Assets The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any such indication exists, or when impairment testing for an asset is required, the Company makes an estimate of the asset’s recoverable amount. An asset’s recoverable amount is the higher of its fair value less costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets and the asset’s values in use cannot be estimated to be close to its fair value. In such cases the asset is tested for impairment as part of the cash generating unit to which it belongs. When the carrying amount of an asset or cash-generating unit exceeds its recoverable amount, the asset or cash-generating unit is considered impaired and is written down to its recoverable amount.

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Impairment losses relating to continuing operations are recognised in those expense categories consistent with the function of the impaired asset.

As assessment is also made at each reporting date as to whether there is any indication that previously recognised impairment losses may no longer exist or may have decreased. If such indication exists, the recoverable amount is estimated. A previously recognised impairment loss is reversed only if there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognised. If that is the case the carrying amount of the asset is increased to its recoverable amount. That increased amount cannot exceed the carrying amount that would have been determined, net of depreciation, had the impairment loss been recognised for the asset in prior years. Such reversal is recognised in profit or loss unless the asset is carried at the revalued amount, in which case the reversal is treated as a revaluation increase. After such a reversal the depreciation charge is adjusted in future periods to allocate the asset’s revised carrying amount, less any residual value, on a systematic basis over its remaining useful life.

(h) Exploration and Evaluation Expenditure

The Company’s policy with regards to exploration and evaluation expenditure, including the costs of acquiring licences and permits, is to capitalise this expenditure as exploration and evaluation assets on an area of interest basis. Under this method exploration and evaluation expenditure is carried forward on the following basis:

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DYNAMIC METALS LIMITED NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2022

• i) Each area of interest is considered separately when deciding whether, and to what extent, to carry forward or write off exploration and evaluation costs.

• ii) Exploration and evaluation expenditure related to an area of interest is carried forward provided that rights to tenure of the area of interest are current and that one of the following conditions is met:

• such evaluation costs are expected to be recouped through successful development and exploitation of the area of interest or alternatively, by its sale; or

• exploration and/or evaluation activities in the area of interest have not yet reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves and active and significant operations in relation to the area are continuing.

Exploration and evaluation costs accumulated in respect of each particular area of interest include only net direct expenditure. The Company did not hold any granted tenements at period end hence all exploration related expenditure during the period has been expensed.

(i) Trade and Other Payables

Trade payables and other payables are carried at amortised cost and represent liabilities for goods and services provided to the Company prior to the end of the financial year that are unpaid and arise when the Company becomes obliged to make future payments in respect of the purchase of these goods and services. The amounts are unsecured and usually paid within 30 days of recognition.

(j) Contributed Equity

Issued and paid up capital is recognised at the fair value of the consideration received by the Company. Any transaction costs arising on the issue of ordinary shares are recognised directly in equity as a reduction of the share proceeds received.

(k) Income Tax and Other Taxes Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the reporting date.

Deferred income tax is provided on all temporary differences at the statement of financial position date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.

Deferred income tax liabilities are recognised for all taxable temporary differences except:

• When the deferred income tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; or

• When the taxable temporary difference is associated with investments in subsidiaries, associates or interests in joint ventures, and the timing of the reversal of the temporary difference can be controlled and it is probable that the temporary difference will not reverse in the foreseeable future.

Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax assets and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and the carry-forward of unused tax credits and unused tax losses can be utilised, except:

• When the deferred income tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; or

• When the deductible temporary difference is associated with investments in subsidiaries, associates or interest in joint ventures, in which case a deferred tax asset is only recognised to the extent that it is probable that the temporary difference will reverse in the foreseeable future and taxable profit will be available against which the temporary difference can be utilised.

10

DYNAMIC METALS LIMITED NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2022

The carrying amount of deferred income tax assets is reviewed at each statement of financial position date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised.

Unrecognised deferred income tax assets are reassessed at each statement of financial position date and are recognised to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.

Income taxes relating to items recognised directly in equity are recognised in equity and not in profit or loss.

Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred tax assets and liabilities relate to the same taxable entity and the same taxation authority.

Goods & Services Tax

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

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

• Receivables and payables are stated with the amount of GST included.

The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the statement of financial position.

Cash flows are included in the statement of cash flows on a gross basis and the GST component of cash flow arising from investing and financing activities, which is recoverable from, or payable to, the taxation authority are classified as operating cash flows.

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

(l) Critical Accounting Estimates and Judgements Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that may have a financial impact on the Company and that are believed to be reasonable under the circumstances.

Accounting for capitalised exploration and evaluation expenditure

The Company’s accounting policy is stated at Note 2(h). There is some subjectivity involved in the carrying forward as capitalised or writing off to the statement of profit or loss and other comprehensive income exploration and evaluation expenditure, however management give due consideration to areas of interest on a regular basis and are confident that decisions to either write off or carry forward such expenditure fairly reflect the prevailing situation.

(m) Dividends

Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion of the entity, on or before the end of the reporting period but not distributed at the end of the reporting period.

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DYNAMIC METALS LIMITED NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2022

3. SEGMENT INFORMATION

Management has determined that the Company has one reportable segment, being mineral exploration in Australia. As the Company is focused on mineral exploration, the Board periodically monitors the projects based on actual versus budgeted exploration expenditure incurred in each of these geographical locations. This internal reporting framework is most relevant to assist the Board with making decisions regarding the Company and its ongoing exploration programmes and activities, while also taking into consideration the results of exploration work that has been performed to date.

4. TAXATION

Income tax expense Current tax Deferred tax Numerical reconciliation of income tax expense to prima facie tax payable Loss before income tax: Tax at the Australian tax rate of 30% Tax effect of amounts which are not deductible in calculating taxable income: Tax losses not recognised Total income tax benefit	2022 $
	- -
	-
	(10,455)
	(3,137) 3,137
	-

The franking account balance at period end was $nil.

The Company has unrecognised deferred tax assets at period-end of $3,137 representing unrecognised tax losses.

The Company is not considered to be a base rate entity for income tax purposes and is therefore subject to income tax at a rate of 30%

Net deferred tax assets have not been brought to account as it is not probable within the immediate future that tax profits will be available against which deductible temporary differences and tax losses can be utilised. The Company’s ability to use losses in the future is subject to the Company satisfying the relevant tax authority’s criteria for using these losses.

5. PLANT AND EQUIPMENT

Plant and equipment - at cost Accumulated depreciation Total plant and equipment Reconciliation of the carrying amount of plant and equipment: Carrying amount at beginning of period Additions Depreciation expense for period Carrying amount at end of period	2022 $
	50,563 (173)
	50,390
	- 50,563 (173)
	50,390

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DYNAMIC METALS LIMITED NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2022

6. LOAN FROM PARENT ENTITY

. LOAN FROM PARENT ENTITY
Loan from parent entity	2022 $
	63,275

The loan from the Company’s parent entity (Jindalee Resources Limited) relates primarily to funding of the Company’s exploration activities. This loan is interest-free and repayable on demand.

The parent entity has resolved not to demand repayment of this loan within 12 months from the date of this report.

7. CONTRIBUTED EQUITY

Share capital 1 ordinary fully paid share	2022 $
	10

Ordinary shares participate in dividends. On winding up of the Company any proceeds would be distributed in proportion to the number of shares held.

At shareholder meetings, 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 upon a poll each share entitles the holder to one vote.

8. ACCUMULATED LOSSES

. ACCUMULATED LOSSES
Retained earnings at the beginning of the financial period Loss attributable to members of the Company Accumulated losses at the end of the financial period	2022 $
	- (10,455)
	(10,455)

9. DIVIDENDS

No dividend has been declared for the period ended 30 June 2022.

10. RECONCILIATION OF LOSS AFTER INCOME TAX TO NET CASH OUTFLOW FROM OPERATING ACTIVITIES

Loss after income tax Depreciation expense Change in operating assets and liabilities during the financial year: Increase in receivables Increase in prepayments Increase in trade and other payables Increase in loan payable to parent Net cash outflow from operating activities	2022 $
	(10,455) 173 (4,717) (723) 3,000 (12,722)
	-

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DYNAMIC METALS LIMITED NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2022

11. PARENT ENTITY

The immediate and ultimate parent entity is Jindalee Resources Limited (incorporated in Australia), which at 30 June 2022 owned 100% of the issued share capital of the Company.

12. CONTINGENCIES

There are no contingencies of the Company at balance date.

13. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

(a) Overview

The Company's principal financial instruments comprise receivables, payables and borrowings. The main risks arising from the Company's financial instruments are credit risk and liquidity risk.

This note presents information about the Company's exposure to each of the above risks, its objectives, policies and processes for measuring and managing risk and the management of capital.

The Company manages its exposure to key financial risks in accordance with its parent’s financial risk management policy. Key risks are monitored and reviewed as circumstances change (eg acquisition of a new project) and policies are revised as required. The overall objective is to support the delivery of the Company's financial targets whilst protecting future financial security.

Given the nature and size of the business and uncertainty as to the timing and amount of cash inflows and outflows, the Company does not enter into derivative transactions to mitigate the financial risks.

The Directors have overall responsibility for the establishment and oversight of the risk management framework. The Board of the parent entity and the Directors review and agree policies for managing the Company's financial risks as summarised below.

Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset, financial liability and equity instrument are disclosed in Note 2 of the financial statements.

(b) Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations. This arises principally from other receivables.

There are no significant concentrations of credit risk within the Company. The carrying amount of the Company's financial assets represents the maximum credit risk exposure.

(c) Liquidity Risk

The liquidity position of the Company is managed together with the parent entity to ensure sufficient liquid funds are available to meet financial commitments in a timely and cost-effective manner. The Board reviews the Company’s liquidity position on a regular basis, including cash flow forecasts, to determine the forecast liquidity position and maintain appropriate liquidity levels.

There are no unused borrowing facilities from any financial institution

14

DYNAMIC METALS LIMITED NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2022

14. COMMITMENTS

Capital Commitments

There are no capital expenditure commitments for the Company as at 30 June 2022.

15. EVENTS OCCURING AFTER THE REPORTING PERIOD

There has not arisen in the interval between the end of the financial year and the date of this report any item, transaction or event of a material and unusual nature likely, in the opinion of the Directors, to affect significantly the operations, the results of those operations, or the state of affairs of the Company in future financial years.

15

DYNAMIC METALS LIMITED DIRECTORS’ DECLARATION

DYNAMIC METALS LIMITED ACN 659 154 480

DECLARATION BY DIRECTORS

In the Directors’ opinion:

1. The financial statements, comprising the statement of profit or loss and other comprehensive income, statement of financial position, statement of cash flows, statement of changes in equity and accompanying notes are in accordance with the Corporations Act 2001 , and:

2. (a) comply with Accounting Standards and the Corporations Regulations 2001 and other mandatory professional reporting requirements; and

3. (b) give a true and fair view of the entity’s financial position as at 30 June 2022 and of its performance for the period ended on that date.

4. In the directors’ opinion, subject to the matters stated in note 2(a), there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

5. Note 2(a) confirms that the financial statements also comply with International Reporting Standards as issued by the International Accounting Standards Board.

This declaration is made in accordance with a resolution of the Board of Directors and is signed for and on behalf of the directors by:

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K Wellman
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Managing Director 6 September 2022 at Perth, Western Australia.

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To the Board of Directors,

Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001

As lead audit Director for the audit of the financial statements of Dynamic Metals Limited for the financial period 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

• any applicable code of professional conduct in relation to the audit.

Yours Faithfully

HALL CHADWICK WA AUDIT PTY LTD MARK DELAURENTIS CA Director

Dated Perth, Western Australia this 6[th] day of September 2022

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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DYNAMIC METALS LIMITED

Report on the Audit of the Financial Report

Opinion

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

In our opinion:

• a. the accompanying financial report of the Company is in accordance with the Corporations Act 2001, including:

• (i) giving a true and fair view of the Company’s financial position as at 30 June 2022 and of its financial performance for the period then ended; and

• (ii) complying with Australian Accounting Standards and the Corporations Regulations 2001.

• b. the financial report also complies with International Financial Reporting Standards as disclosed in Note 2.

Basis for Opinion

We conducted our audit in accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance about whether the financial report is free from material misstatement. 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 Company in accordance with the auditor independence requirements of 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 (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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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Material Uncertainty Related to Going Concern

We draw attention to Note 2(a) in the financial report which indicates that the Company incurred a net loss of $10,455 during the period ended 30 June 2022. As stated in Note 2(a), these events or conditions, along with other matters as set forth in Note 2(a), indicate that a material uncertainty exists that may cast significant doubt on the Consolidated Entity’s ability to continue as a going concern. Our opinion is not modified in this respect of this matter.

Other Information

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

Our opinion on the financial report does not cover the other information and accordingly 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.

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 Note 2(a), the directors also state in accordance with Australian Accounting Standard AASB 101 Presentation of Financial Statements , that the financial report complies with International Financial Reporting Standards.

In preparing the financial report, the directors are responsible for assessing the Company’s ability 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 Company or to cease operations, or has no realistic alternative but to do so.

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Auditor’s Responsibilities for the Audit of the Financial Report

Our responsibility is to express an opinion on the financial report based on our audit. 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.

As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

• Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.

• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the financial report. We are responsible for the direction, supervision and performance of the Company audit. We remain solely responsible for our audit opinion.

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We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

HALL CHADWICK WA AUDIT PTY LTD MARK DELAURENTIS CA Director

Dated Perth, Western Australia this 6[th] day of September 2022