EMPIRE RESOURCES LIMITED — Interim / Quarterly Report 2021

Oct 17, 2021

18 October 2021

ASX Release

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QUARTERLY REPORT FOR THE PERIOD ENDING 30 SEPTEMBER 2021

HIGHLIGHTS

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RC drilling completed at Yuinmery Copper-Gold Project

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• A Zone Prospect

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• 8m @ 0.78% Cu from 124m including 4m @ 1.03% Cu from 128m in YRC21-22

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• 8m @ 0.75% Cu from 68m including 4m @ 0.98% Cu from 72m in YRC21-24

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Smith’s Well Prospect

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• 16m @ 0.51% Cu, 0.16% Ni & 0.031% Co from 255m including 1m @ 1.05% Cu, 0.19% Ni & 0.033% Co from 261m in YRC21-28

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• 5m @ 0.65% Cu, 0.13% Ni & 0.039% Co from 110m including 1m @ 1.90% Cu, 0.18% Ni & 0.038% Co from 112m in YRC21-26

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RC drilling completed at Penny’s Gold Project

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• 5 RC holes for 800m drilled at PF09 prospect

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Fieldwork commences at the Nanadie Copper-Gold Project

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Detailed geological fact mapping completed

1500-point soil sampling program commenced

Strengthening balance sheet and a sound financial position

• $2.16M in cash and financial asset receivables

including $0.78M investment in Dacian Gold (ASX:DCN)

Repayment of $1.5M loan facility

Empire Managing Director, Sean Richardson commented:

“Another exceptional quarter of progress across Empire’s entire exploration portfolio. From first boots on ground at the Nanadie Project through to the excellent deep RC drilling results at Yuinmery plus RC drilling at the Penny’s Gold Project, Empire has advanced on all exploration fronts.

“Empire goes from strength to strength. Having cleared its loan facility and banked a tidy profit from sale of its Dacian holding the Company’s financial position continues to improve”

www.resourcesempire.com.au info@resourcesempire.com.au 159 Stirling Highway, Nedlands WA 6009

t +61 (0) 8 6389 1032

EMPIRE RESOURCES LIMITED ACN 092 471 513 ASX: ERL

ASX Announcement 18 October 2021

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YUINMERY COPPER-GOLD PROJECT

An RC drilling program was completed during the quarter targeted five high priority prospects. In total 14 RC holes for 2,244m of reverse circulation (RC) drilling were completed during June and July 2021 across the YT01, A Zone, Constantine, Smiths Well and Main Road prospects. Results for the June/July RC drilling were received during the quarter[[1]] and are discussed below.

Results from A Zone include 8m @ 0.78% Cu from 124m in drillhole YRC21-22, including 4m @ 1.03% Cu from 128m. At Smith’s Well intercepts include 16m @ 0.51% Cu, 0.16% Ni & 0.031% Co from 255m in drillhole YRC21-28, including 1m @ 1.05% Cu, 0.19% Ni & 0.033% Co from 261m and 5m @ 0.65% Cu, 0.13% Ni & 0.039% Co from 110m in drillhole YRC21-26 including 1m @ 1.90% Cu, 0.18% Ni & 0.038% Co from 112m.

The results from Smith’s Well are from the deepest mineralised intercepts drilled to date, supporting the hypothesis that Smith’s Well may host economic mineralisation at depth.

Encouraging PGM results were also returned from drilling at Constantine Prospect, comprising 12m @ 0.41g/t Pd & 0.05g/t Pt from 120m (EOH) in drillhole YRC21-21 including 4m @ 0.64g/t Pd & 0.06g/t Pt from 124m. The drilling at Constantine ended in mineralisation, indicating the mineralised system extends below current drilling depths.

Empire has designed programs for diamond drilling of the deep copper, nickel and PGM targets. Drilling contractors have been approached and a favourable schedule appears achievable.

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Figure 1 – Yuinmery Base Metal Deposits, Prospects and Drill Collar Locations Base Image 2009 VTEM ch25_1641us_NEshade Geophysics

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EMPIRE RESOURCES LIMITED ASX: ERL

ASX Announcement 18 October 2021

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A Zone – High Grade Copper Opportunity

The A-Zone prospect is located 1.3km along strike from the existing Just Desserts Resource of 2.5Mt @ 1.31% Cu & 0.49g/t Au[[2]] .Previous drilling has returned high-grade results, including 12m @ 2.05% Cu from 138m (YRC18-01) and 7m @ 3.3% Cu from 192m (YRC1126)[[3]] . Limited exploration has been undertaken at A Zone since 2011. With mineralisation open in all directions further drilling offers an opportunity to expand the scale potential of the prospect.

Three holes for 408m were drilled during June testing the potential for shallow high grade copper mineralisation up dip and on strike from mineralisation intersected in YRC18-01. Results demonstrate continuity of the Cu-Au mineralisation and further drilling is planned to test the up-dip projection of the mineralisation.

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Figure 2 – A Zone Oblique Cross Section

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EMPIRE RESOURCES LIMITED ASX: ERL

ASX Announcement 18 October 2021

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Smith’s Well – Copper-Nickel-Cobalt Potential

In May 2020 Empire identified a steeply plunging structure trending in a northeast direction at Smith’s Well. This structure has been tested by RC drilling for over 200m of strike and to 240m vertical depth. The structure is associated with the regional magnetic trend and remains open to the northeast and down dip. There is high probability that the copper-nickel mineralisation will continue beyond the zone already identified.

Drilling to date has returned broad zones of disseminated to matrix sulphide mineralisation, including chalcopyrite, pyrrhotite and pyrite in varying concentrations. Drill intercepts of >1% Cu and associated elevated nickel (>0.2% Ni), low-level gold and cobalt values demonstrate the potential of the prospect[[4]] .

Four RC holes for 746m were drilled at Smith’s Well during June and July 2021 targeting the northeast plunge and down dip extensions of the structure. Three of these holes were drilled in section across the north of the main body of mineralisation (Figure 3). All three holes intersected a steeply dipping, broad zone of Cu-Ni-Co mineralisation paralleling the contact between ultramafic rocks and overlying dolerite. Where seen, this contact can be both sharp and irregular, but the mineralisation occurs as matrix and disseminated sulphides within the ultramafic rocks. A series of deep diamond core holes is planned to further test the mineralised zone at depth and along strike.

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Figure 3 – Smith’s Well Oblique Cross Section

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EMPIRE RESOURCES LIMITED ASX: ERL

ASX Announcement 18 October 2021

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Constantine Prospect – Ni-PGM Potential

Five RC holes for 692m were drilled at the Constantine Prospect. YRC21-20 and YRC21-21 (Figure 4) were drilled to investigate anomalous Ni and PGM values obtained from shallow RAB drilling in 2010/2011. Plotting of the Cu/Pd ratios from a limited number of samples collected below the base of oxidation had indicated the PGM values are indicative of mineralisation rather than normal mantle concentrations.

YRC21-20 terminated in mineralisation after having passed through 56m assaying 0.10% Ni & 0.01% Co from 52m downhole, an intercept that partially overlaps a deeper interval of 28m @ 0.14% Pd from 104m to end of the hole. Similarly, YRC21-21 ended in mineralisation with an intercept of 12m @ 0.41% Pd from 120m.

At this stage of our understanding, it appears the weathered zone is depleted in Ni and PGM with elevated values coming from below the base of oxidation. Whilst these results are highly encouraging further work is required to establish the potential of this discovery.

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Figure 4 – Constantine Prospect 6,840,650mN Cross Section

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EMPIRE RESOURCES LIMITED ASX: ERL

ASX Announcement 18 October 2021

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YT01 Prospect – PGM Discovery

The YT01 prospect was identified by the Company in late 2019 and is associated with a strong east west trending, multi-element (Au-Cu-Zn-Ni) geochemical anomaly that extends over 3.5km in strike length. In June 2020, RC drilling intercepted a broad zone of Cu-Ni-PGM mineralisation. YRC20-28 returned 20m @ 0.39% Cu, 0.11% Ni, 0.02% Co, 0.21g/t Pd & 0.07g/t Pt from 143m[[5]] , including 12m @ 0.38% Cu, 0.34g/t Pd & 0.11g/t Pt from 151m.

One 250m RC hole (YRC21-16, Error! Reference source not found. ) was drilled under YRC20-28 to test for continuity of mineralisation at depth. In the targeted downdip position, this hole intersected 36m of mineralisation assaying 0.34% Cu, 0.07% Ni, 0.16% Pd, 0.03% Pt and 0.07g/t Au . These encouraging results demand follow-up and a deep diamond core hole has been planned for the next round of drilling.

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Figure 5 – YT01 Prospect 687,250mE Cross Section

The geology of the YT01 Prospect is poorly understood. The mineralisation occurs as disseminations towards the base of a complex sequence of sheared and altered mafic to intermediate volcanic rocks, which have locally been intruded by thin dolerite units. This maficintermediate volcanic sequence is underlain by talc-rich rocks which may well be ultramafic.

There is an observed zonation to the mineralisation with gold-copper predominating above about 120m vertical depth below which the mineral assemblage also includes nickel, palladium and platinum as well as copper and gold.

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EMPIRE RESOURCES LIMITED ASX: ERL

ASX Announcement 18 October 2021

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PENNY’S GOLD PROJECT

An RC drilling program was completed during the quarter targeting strike extensions to anomalous bedrock mineralisation of 1m @ 7.27g/t Au and 7,396ppm As from 153m[[6]] intersected at PF09 in hole PRC20-03. In total 5 RC holes for 800m of RC drilling were completed during August 2021. Samples have been submitted for analysis with results received subsequent to the end of the quarter. The deeper RC drilling failed to intercept bedrock mineralisation.

PF09 – New Gold Discovery Potential

Mineralisation at PF09 is associated with quartz veining, disseminated pyrite and arsenopyrite, and ductile shearing in an ultramafic rock unit.

PF09 is characterised by the presence of a flat lying >0.2g/t gold supergene anomaly that is approximately 8m thick (true thickness), 250m wide and open to the north and south. The supergene blanket drapes across a dominant mafic-ultramafic contact. The target is interpreted to coincide with the western limb of the interpreted Penny’s Anticline and the convergence of several cross-cutting structures.

Gold mineralisation at PF09 is strongly associated with arsenic (As), a gold pathfinder element common to Goldfield’s-style mineral systems. The strong correlation of Au and As at PF09 is an encouraging result for the Company.

Future aircore drilling at PF09 will be directed towards determining the extents of the supergene and identifying bedrock mineralisation targets for further RC drilling.

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EMPIRE RESOURCES LIMITED ASX: ERL

ASX Announcement 18 October 2021

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NANADIE COPPER-GOLD PROJECT

Empire Resources’ Nanadie Copper-Gold Project is located 625km northeast of Perth and 70km southeast of Meekatharra in the Murchison District of Western Australia. The project comprises two contiguous granted mineral exploration tenements covering the northernmost section of the Barrambie Greenstone Belt and a third granted tenement south of Cyprium Metals Limited (ASX: CYM) Nanadie Well Copper Gold Project.

Cyprium’s Nanadie Well Copper Gold Project has a JORC 2004 Inferred Resource of 36.07Mt @ 0.42% Cu & 0.06g/t Au containing 151,506 tonnes of copper and 74,233 oz of gold[[7]] .

Empire initiated ground exploration activities soon after the grant of the remaining tenement applications that constitute Empire’s Nanadie Copper-Gold Project. Field work commenced with detailed geological fact mapping completed by experienced geological mapping consultancy, Compass Geological.

The detailed geology mapping, along with compiled available geophysical imagery have contributed to the design of an approximate 1,500-point soil sampling program. Field collection of soil samples commenced during the quarter with processing, analysis and results expected during the December quarter.

Southern Geoscience Consultants (SGC) has been engaged to review, reprocess, and interpret all available historical and publicly available geophysical data. SGC has identified a substantial amount of aerial magnetic and ground electromagnetic survey data that overlay several potentially prospective areas of the project.

The detailed mapping, soil sampling results and the reinterpreted geophysical data will be used to identify potential aircore and/or RC drilling targets.

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EMPIRE RESOURCES LIMITED ASX: ERL

ASX Announcement 18 October 2021

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Figure 6 – E51/1938 Soil Sampling, Geology Mapping, and Interpreted Structures

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EMPIRE RESOURCES LIMITED ASX: ERL

ASX Announcement 18 October 2021

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INVESTMENTS

Dacian Gold

During the March 2021 quarter Dacian Gold Limited (ASX:DCN) completed its scrip offer for NTM Gold Limited (ASX:NTM) and in the process Empire received 16,995,818 Dacian shares for its NTM shares. Empire acquired its shares in NTM in July 2019 at $0.0325 per share for $1,499,875 invested[[8]] , equivalent to $0.08775/DCN share.

During the quarter Empire sold 9,035000 Dacian shares at an average price of $0.229 per share for net proceeds of $2,058,144.

At the close of the quarter the Company held 4.0 million shares in Dacian Gold Limited valued at $0.78 million.

Penny’s Find Royalty

Empire is entitled to royalty payments on gold produced from the Penny’s Find Gold Mine to the extent of 5% of gold recovered up to 50,000 oz and 2.5% on gold produced above that amount.

The Penny’s Find Gold Mine is operated as a joint venture between Orminex Limited (ASX:ONX) and Horizon Minerals Ltd (ASX:HRZ). The joint venture allows resource definition and technical works to be fast tracked with the aim for a development decision to be made during the December Quarter 2021[[9]] .

Horizon Minerals reports that all statutory approvals are in place and a toll milling agreement has been executed for ore processing in the second half of 2021.

Empire is pleased with the progress the joint venture has made so far and looks forward to further development of the Penny’s Find Gold Mine throughout 2021.

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EMPIRE RESOURCES LIMITED ASX: ERL

ASX Announcement 18 October 2021

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CORPORATE

Financial Position

Expenditure during the quarter was approximately $821,000 with cash on hand at quarter’s end of $1,067,000.

Loan Repayment

During the quarter, the Company advised the market[[10]] that it had repaid in full its $1.5M loan facility plus all outstanding interest. The loan facility repayment was paid out of the sale proceeds of Empire’s holding in Dacian Gold Limited (ASX:DCN).

In July 2019 Empire Resources Limited borrowed $1.5M from Empire’s Non-Executive Chairman and major shareholder, Michael Ruane[[11]] . The loan facility allowed Empire to take a placement of 46.15M fully paid ordinary shares in fellow gold explorer NTM Gold Limited (ASX:NTM) at $0.0325 per share.

Eastern Goldfields Milling Services (EGMS)

During the quarter, the Company advised the market[[12]] that it had resolved all disputes[[13]] between Empire and Eastern Goldfields Milling Services Pty Ltd (EGMS). EGMS is a wholly owned subsidiary of Maximus Resources Limited.

The dispute related to the Toll Treatment Campaign by EGMS of ore from Empire’s Penny’s Find Gold Mine through EGMS’ Burbanks toll treatment facility in 2017[[14]] . The dispute was referred to Arbitration and the hearing completed in March 2021.

The parties have agreed to a confidential settlement of issues raised in the Arbitration and to monies payable between the parties in respect of the Toll Treatment Campaign. As a consequence the Arbitration proceeding was terminated on 14 September 2021.

Additional ASX Information

ASX Listing Rule 5.3.5: The Company advises that $127,000 was paid to related parties or their associates during the quarter, comprising Executive Director salary and superannuation, and Non-Executive Director fees.

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EMPIRE RESOURCES LIMITED ASX: ERL

ASX Announcement 18 October 2021

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This announcement is authorised for release by:

Sean Richardson

Managing Director

For further information on the Company Phone: +61 (0)8 6389 1032 www.resourcesempire.com.au

Additional Information

Further details relating to the information in this release can be found in the following ASX announcements:

1. ASX:ERL “ Excellent Results from Yuinmery Drilling ” 22 September 2021

2. ASX:ERL “ Updated Copper-Gold Resource Yuinmery Project ” 17 May 2016

3. ASX:ERL “ Further High Grade Copper Intersected at A Zone Prospect ” 8 June 2018

4. ASX:ERL “ Strong DHEM Responses and Broad Sulphide in Drilling at Yuinmery ” 3 June 2020

5. ASX:ERL “ Encouraging Cu-Ni-PGM Mineralisation in Drilling at Yuinmery ” 23 July 2020

6. ASX:ERL “ Encouraging Gold Intercepts at Penny’s ” 29 March 2021”

7. ASX:CYM “Nanadie Well Copper Project Acquisition” 14 July 2020

8. ASX:ERL “ Empire Makes Investment in NTM Gold Limited ” 11 July 2019

9. ASX:HRZ “ Penny’s Find JV Resource Update ” 14 April 2021

10. ASX:ERL “ Repayment of Loan Facility ” 21 September 2021

11. ASX:ERL “ Empire Makes Investment in NTM Gold Limited ” 11 July 2019

12. ASX:ERL “ Settlement of Arbitration ” 16 September 2021

13. ASX:ERL “ Dispute with Eastern Goldfields Milling Services Pty Ltd ” 29 March 2018

14. ASX:ERL “ Empire Signs a Second Agreement for Processing Penny’s Find Ore ” 5 July 2017

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EMPIRE RESOURCES LIMITED ASX: ERL

ASX Announcement 18 October 2021

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Competent Person Statements

The information in this report that relates to Exploration Results is based on information compiled and/or reviewed by Gerald Johnson, who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Johnson is an independent geological consultant and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity 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”. Mr Johnson consents to the inclusion in the report of the matters based on this information in the form and context in which they appear.

The information is this release concerning the Mineral Resources for the Just Desserts deposit has been estimated by Mr Peter Ball B.Sc who is a director of DataGeo Geological Consultants and is a member of the Australasian Institute of Mining and Metallurgy (AusIMM). Mr Ball has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and qualifies as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Ball consents to the inclusion in this public release of the matters based on his information in the form and context in which it appears.

New Information

Information concerning the current mineral resource estimate relating to the Just Desserts deposit is extracted from the ASX Announcement dated 17 May 2016.

Empire Resources Limited confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and that all material assumptions and technical parameters underpinning the Resource estimate in the relevant market announcement continue to apply and have not materially changed. Empire Resources Limited confirms that the form and context in which the Competent Persons’ findings are presented have not been materially modified from the original market announcements.

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EMPIRE RESOURCES LIMITED ASX: ERL

ASX Announcement 18 October 2021

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About Empire

Empire Resources Limited (ASX:ERL) is a gold and copper focussed exploration and development company. Empire owns four highly prospective projects. The Yuinmery CopperGold Project 470km northeast of Perth in the Youanmi Greenstone Belt, the Barloweerie multielement precious and base metal project, the Nanadie Copper-Gold Project southeast of Meekatharra in the Murchison Region and the Penny’s Gold Project 45km northeast of Kalgoorlie in the prolific Eastern Goldfields Region of Western Australia. Empire’s projects have numerous exploration targets with excellent potential.

Empire has an experienced team of exploration, development and financial professionals who are committed to developing a sustainable and profitable mineral business. Empire seeks to extract value from direct exploration in its existing projects as well as identifying value accretive investment opportunities that complement the Company’s development objectives.

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Empire Resources Project Locations

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EMPIRE RESOURCES LIMITED ASX: ERL

ASX Announcement 18 October 2021

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	Tenement Holdings @ 30 September 2021
Project	Tenement ID % Interest Held 30 June 2021 % Interest Held 30 September 2021 Comments
Penny’s	E27/591 100 100
	E27/592 100 100
	E27/593 100 100
	P27/2245 100 100
	P27/2262 100 100
	E27/640 0 0 Application
Yuinmery	M57/265 100 100
	M57/636 100 100
	E57/1037 100 100
	E57/681 91.89 91.89
	E57/1027 91.89 91.89
	E57/1159 100 100
Barloweerie	E59/2306 100 100
	E59/2521 0 0 Application
	E59/2522 0 0 Application
	E59/2523 0 0 Application
Nanadie Well	E51/1938 100 100
	E51/1985 100 100
	E20/968 100 100
Meekatharra	E51/1995 0 100 Application
Wiluna	P53/1707 0 100 Application

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EMPIRE RESOURCES LIMITED ASX: ERL

Rule 5.5

Appendix 5B

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

Name of entity Empire Resources Ltd ABN Quarter ended (“current quarter”) 32 092 471 513 30 September 2021

Consolidated statement of cash flows	Current quarter $A’000	Year to date (3 months) $A’000
1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for (a) exploration & evaluation (if expensed) (b) development (c) production (d) staff costs (e) administration and corporate costs 1.3 Dividends received (see note 3) 1.4 Interest received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Government grants and tax incentives 1.8 Other (provide details if material) 1.9 Net cash from / (used in) operating activities	- (422) - (31) (32) (214) - (122)	- (422) - (31) (32) (214) - (122)
	(821)	(821)
2. Cash flows from investing activities 2.1 Payments to acquire: (a) entities (b) tenements (c) property, plant and equipment (d) exploration & evaluation (if capitalised) (e) investments (f) other non-current assets

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

Page 1

Appendix 5B

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

Consolidated statement of cash flows	Current quarter $A’000	Year to date (3 months) $A’000
2.2 Proceeds from the disposal of: (a) entities (b) tenements (c) property, plant and equipment (d) investments (e) other non-current assets 2.3 Cash flows from loans to other entities 2.4 Dividends received (see note 3) 2.5 Other (provide details if material) 2.6 Net cash from / (used in) investing activities	2,064 -	2,064 -
	2,064	2-064
3. Cash flows from financing activities 3.1 Proceeds from issues of equity securities (excluding convertible debt securities) 3.2 Proceeds from issue of convertible debt securities 3.3 Proceeds from exercise of options 3.4 Transaction costs related to issues of equity securities or convertible debt securities 3.5 Proceeds from borrowings 3.6 Repayment of borrowings 3.7 Transaction costs related to loans and borrowings 3.8 Dividends paid 3.9 Other (provide details if material) 3.10 Net cash from / (used in) financing activities	- - (1,500) -	- - (1,500) -
	(1,500)	(1,500)
4. Net increase / (decrease) in cash and cash equivalents for the period
4.1 Cash and cash equivalents at beginning of period 4.2 Net cash from / (used in) operating activities (item 1.9 above) 4.3 Net cash from / (used in) investing activities (item 2.6 above) 4.4 Net cash from / (used in) financing activities (item 3.10 above)	1,324 (821) 2,064 (1,500)	1,324 (821) 2,064 (1,500)

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

Page 2

Appendix 5B

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

Consolidated statement of cash flows	Current quarter $A’000	Year to date (3 months) $A’000
4.5 Effect of movement in exchange rates on cash held 4.6 Cash and cash equivalents at end of period
	1,067	1,067
5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts	Current quarter $A’000	Previous quarter $A’000
5.1 Bank balances 5.2 Call deposits 5.3 Bank overdrafts 5.4 Other (provide details) 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above)	1,067	1,324
	1,067	1,324
6. Payments to related parties of the entity and their associates 6.1 Aggregate amount of payments to related parties and their associates included in item 1 6.2 Aggregate amount of payments to related parties and their associates included in item 2
		Current quarter $A'000
		127
		-

Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments

Directors remuneration $120k , Rent and office costs $7k

.

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

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Appendix 5B

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

7.	Financing facilities	Total facility	Amount drawn at
	Note: the term “facility’ includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity.	amount at quarter end $A’000	quarter end $A’000
7.1	Loan facilities	-	-
7.2	Credit standby arrangements
7.3	Other (please specify)
7.4	Total financing facilities

• 7.5 Unused financing facilities available at quarter end

• 7.6 Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well.

Empire Resources Ltd repaid an unsecured loan of $1.5 million plus $122k interest to associates of Dr M Ruane.

8. Estimated cash available for future operating activities	8. Estimated cash available for future operating activities	$A’000
8.1 Net cash from / (used in) operating activities (Item 1.9) 8.2 Capitalised exploration & evaluation (Item 2.1(d)) 8.3 Total relevant outgoings (Item 8.1 + Item 8.2) 8.4 Cash and cash equivalents at quarter end (Item 4.6) 8.5 Unused finance facilities available at quarter end (Item 7.5) 8.6 Total available funding (Item 8.4 + Item 8.5) 8.7 Estimated quarters of funding available (Item 8.6 divided by Item 8.3)		(821) - (821) 1,067 - 1,067
		1.3
8.8 If Item 8.7 is less than 2 quarters, please provide answers to the following questions: 1. Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not?
	Answer: No. Included in operating activities is a non-recurring interest charge of $122k.

Answer: No. Included in operating activities is a non-recurring interest charge of $122k.

1. Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful?

Answer: Post quarter end, the Company had received $314k, which comprised a portion of “Other receivables” recorded in the June 21 accounts. In addition, $428k in proceeds from the sale of DCN shares. The Company received all payments in the first two weeks of October.

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

Answer: Yes. The Company retains a number of financial assets comprising listed securities that it expects will continue to provide sufficient cash flows to fund its operations as and when required.

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

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Appendix 5B

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

Compliance statement

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

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

Date: 18 October 2021...................................................................................

Authorised by: ................................................................................... Simon Storm – Company Secretary

Notes

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

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

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

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

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

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

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