EMU NL — Interim / Quarterly Report 2024

Mar 14, 2024

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ABN 50 127 291 927

INTERIM FINANCIAL REPORT

FOR THE HALF YEAR ENDED

31 DECEMBER 2023

This interim financial report does not include all the notes of the type normally included in an annual financial report. This report is to be read in conjunction with the Annual Report for the year ended 30 June 2023 and any public announcements made by Emu NL during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001 .

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CONTENTS

	Page Number
DIRECTORS’ REPORT	4
AUDITOR’S INDEPENDENCE DECLARATION	17
CONSOLIDATED STATEMENT OF FINANCIAL PERFORMANCE	18
CONSOLIDATED STATEMENT OF FINANCIAL POSITION	19
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY	20
CONSOLIDATED STATEMENT OF CASH FLOWS	21
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS	22
DIRECTORS’ DECLARATION	27
INDEPENDENT AUDITOR’S REVIEW REPORT TO THE MEMBERS	28

COMPETENT PERSON’S STATEMENT

Any details contained herein that pertain to exploration results, mineral resources or mineral reserves are based upon information compiled by Mr Kurtis Dunstone, a Competent Person who is a Member of the Australian Institute of Geoscientists. Mr Dunstone is an employee of EMU NL and has sufficient experience in 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” . Mr Dunstone consents to the inclusion herein of the matters based upon his information in the form and context in which it appears.

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DIRECTORS’ REPORT

Your directors are pleased to present their report on the consolidated entity (referred to hereafter as the Group) consisting of Emu NL and the entities it controlled at the end of, or during, the half-year ended 31 December 2023.

DIRECTORS

The names of the directors who held office during or since the end of the period are:

Peter Thomas

Gavin Rutherford

Terrence Streeter Tim Staermose

REVIEW AND RESULTS OF OPERATIONS

Revenues and results

A summary of the Group’s revenues and results for the period is set out below:

Consolidated entity revenues and loss	Half Year Ended 31 December 2023	Half Year Ended 31 December 2023
	Revenues $	Net Result $
	10,925	(1,173,585)

REVIEW OF OPERATIONS

Exploration activity focus during the half centred on the Georgetown Project in North Queensland. Two separate reconnaissance field programmes were conducted during July and December 2023. Activity at the Georgetown Project was prioritised as Rare Earth projects, particularly clay hosted projects, have progressively lost investor and market interest as global REE prices collapsed.

At its Annual General Meeting, held in November 2023, the EMU’s board advised attendees that exploration activity and expenditures at its REE projects would be wound back. This decision was made despite the completion of excellent programmes of exploration work at all of EMU’S WA REE projects resulting in significant TREO[1] grades.

The Georgetown Project offers early-stage exploration over very prospective ground with potential for scale deposits to be discovered. More than 1,000 mineral occurrences have been reported from historic mining and prospect areas. EMU’s early work at Georgetown has been targeted towards prospects that may have the potential to evolve into scale mining operations.

The two field trips conducted during the half, resulted in the overall collection of 557 rock, stream, termite mound and soil samples. Assay results from the sampling have provided significant encouragement. Success has been achieved with the discovery of a high-grade copper vein swarm within the northern, Fiery Creek tenement pointing to potential

1 Total Rare Earth Oxides

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DIRECTORS’ REPORT (Continued)

early, scale exploration success. High grade copper, gold, lead and silver results have been recorded and confirmed from a number of separately identified prospective areas. Anomalous pathfinder elements at prospects located within all 3 tenements, have also provided further encouragement for follow up work.

GEORGETOWN PROJECT

EMU completed its maiden 15-day reconnaissance field survey during July and August 2023. A substantial high grade, outcropping, copper in quartz veining, (potentially polymetallic) system was identified within the Fiery Creek tenement with assay results from in situ rock sampling evidencing broad, high-grade copper and silver mineralisation.

EMU’s updated the market with its results following this field trip[2]

• Assays results record up to 18% copper (180,100ppm) and up to 6.4 ounces silver (200 g/t) from rock samples in broad quartz breccia hosted veins at Fiery Creek

• Extensive 750m x 750m intrusive related, north-south striking, outcropping copper veining up to 2m wide identified from field mapping

• Veining displays extensive secondary copper mineralisation at surface

• Multi element assay results indicate the possibility of a significant copper dominant, polymetallic system with pathfinder element anomalism widespread throughout the sampled area

• EMU posits a further ~2km strike of the copper-silver mineralisation extending to the south

• Assays from rock chip samples report up to 35.4 ounces per tonne (1,100 g/t) silver and 26% (261,000ppm) lead from Snake Creek prospect area

• Extensive pegmatite veining up to 50m wide and striking approximately 2km observed within Fiery Creek and the Perpendicular Peak tenements

Fiery Creek Copper Veining

In the central zone of a circular geophysics anomaly known as the Yataga Granodiorite, within the Fiery Creek tenement, the exploration team discovered swarms of north-south trending, subvertical quartz breccia veins with extensive secondary copper mineralisation including malachite, chrysocolla, azurite, covellite and chalcocite. These outcropping veins were observed to be up to 2m wide and were able to be followed along-strike for hundreds of metres.

The veins are cut by east-west trending faults. Scattered small pits and rock piles indicate historical workings in the area. No record of modern exploration has been published and none is thought to have been undertaken.

The mineralised veining was noted to be rich in oxides and sulphides, coinciding with natural clearings in the vegetation, indicating that the shedding sulphides within the immediate vein areas are preventing plant growth. These visible, linear, cleared areas, which can be determined from satellite imagery as open ground, free from vegetation, provide EMU with strong vectors for follow up work.

2 ASX Release “Copper Silver Lead Assay Results Pegmatite Fields Georgetown” 5 October 2023

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DIRECTORS’ REPORT (Continued)

EMU’s field team collected samples from surface rocks, termite mounds and stream sediments. These samples were returned to Labwest in Perth with assay results confirming a copper-rich (polymetallic) prospect with grades of up to 18% copper and 6.4 ounces per tonne of silver.

During the second field trip in December 2023, samples were collected in the southern area of the outcropping copper veining at Fiery Creek with assays results pending at period end. Library samples of the rock were dispatched for petrography follow up work to determine mineralisation characteristics which would provide further targeting information. EMU has since updated the market of the strong likelihood of a potential scale Copper Moly system at Fiery Creek following the receipt of final assays and petrographical information.

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Figure 1. Aeromagnetic map of prominent Yataga Granitoid intrusive feature with sample area marked in red and EMU’s review of vegetation destruction indicating extensions of copper-silver rich veining.

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DIRECTORS’ REPORT (Continued)

Snake Creek Lead-Silver

Evidence of historic workings were observed at Snake Creek. Shallow trenches were observed, aligned along an east - west trending shear zone in a rhyolitic host rock. Fresh veins of sulphides were seen in the ore, including pyrite and galena. Alteration around these shear zones was primarily chloritic, with some possible silica flushing indicating quartz with extensive iron oxide and boxworks after sulphides. Some narrow stockwork quartz veining was also identified in the area.

The historic workings were noted to be up to 2m wide. Assay results from samples taken during the survey from the area report lead values up to 26.1% and silver values up to 35.4 ounces per tonne, (1,100 grams per tonne). The field survey provided encouragement for the targeting of an additional potential scale project. EMU has commenced further work to verify the significance of this mineralisation.

Munitions Creek Prospect

The Munitions Creek area was identified as a priority during the pre-fieldwork, with historic rock chip samples reporting significant gold values[3] . The gold-hosting structure was observed to be a 3-4m wide blue-grey quartz vein with a fine, brecciated fracture network. The vein strikes NE-SW and is roughly sub-vertical to steeply dipping towards the east. The 200m strike, multiple vein occurrence suggests a stacked vein system. EMU has since commenced new work to ascertain the potential scale of the prospect.

Pegmatities

A pegmatite swarm was mapped in the south of the Fiery Creek tenement. The pegmatites were between 5m-50m wide and were continuous, cross faulted, and extended up to 1.9 kilometers in strike. They trend east-west and are subvertical. The pegmatites show some displacement along north-south trending faults and were observed to contain large mica balls up to 20cm across, are variably potassic and often show graphic textures. The pegmatites were very coarse grained with an abundance of micas and feldspars observed.

Some east-west trending pegmatitic veins were also found at Munitions Creek prospect and were sampled. These were similar in character to those found in Fiery Creek.

GEORGETOWN GOLD[4]

At its Sandy Creek area in the Georgetown tenement, EMU recorded gold grades of up to 36.1g/t from rock samples. Sandy creek is situated close to the historic gold mining town of Georgetown. The area is marked by a significant number of old workings and presents EMU with an excellent follow up target prospect. EMU’s rock samples, obtained from the Dagworth prospect, recorded up to 15.4g/t. EMU conducted a review of historic information recorded from its Georgetown Project tenements which was presented in its 7 December ASX release:

3 ASX Release “Scale Project Added to Exploration Portfolio” 1 September 2022

4 ASX Release “EMU Records Gold Assays to 36.1 g/t at Georgetown QLD” 7 December 2023

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DIRECTORS’ REPORT (Continued)

• Camp Oven Creek area historic surface rock assay results ranging from 12.9 up to 224 g/t gold and 24 to 135 g/t silver from rock samples in broad rhyolite breccia hosted veins in the NW[5] .

• 15 historic rock values greater than 31.1 g/t gold (> 1 Ounce) identified from zones in the Camp Oven Creek, 130 Quartz Vein and Quartz 250 Prospects (“new historic information”)[6] .

• Three historic rock samples in the Quartz 130 prospect returned values ranging from 51 g/t gold up to 73 g/t gold[7] .

• Limited historic drilling at Rhyolite Breccia/Turtle Arm returned values to 2m at 15.8g/t Au and 3m at 2.8g/t Au.

• 86 historic surface rock samples greater than 1 g/t gold with a weighted average of 17.3 g/t within Georgetown EPM 27667 - NW Camp Oven Creek/Turtle Arm quadrant[8] .

• 2 EMU Reconnaissance rock samples returned 36.1 g/t gold and 25.6 g/t gold respectively from the Sandy Creek prospect just south of Georgetown

• Limited historic drilling at Munitions Creek (EPM 27642) returned values to 4m at 2.73/t Au and 1m at 10.85g/t Au .

5 GSQ Open Data Portal (https://geoscience.data.qld.gov.au) Company Report CR20472 (Emu Appendix 1 – CR20472 Appendix 3). Table 4.

6 GSQ Open Data Portal (https://geoscience.data.qld.gov.au) Company Reports 20472, 23854, 71155. Also see table 4. Described as “new” in the sense that knowledge of this information is new to EMU. 7 GSQ Open Data Portal (https://geoscience.data.qld.gov.au) Company Report 23854, 71155. Also see table 4.

8 GSQ Open Data Portal (https://geoscience.data.qld.gov.au) Company Reports 20472, 21962, 23854, 28639, 42618, 71155. Table 4.

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DIRECTORS’ REPORT (Continued)

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Figure 2 - Identified current and historic Gold Occurrences at Fiery Creek and Georgetown Tenements

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DIRECTORS’ REPORT (Continued)

CONDINGUP REE PROJECT

Before the decline in the REE market, assay results from EMU’s maiden aircore drilling programme were received from Condingup REE Project. The 34 hole 2,2762m aircore drilling programme, was highly successful for REE concentrations with all holes reporting REE TREO grades up to 2,513ppm TREO. This result confirmed EMU’s credible endeavour to meet market aspirations and investor expectation to search for and acquire clay hosted REE projects. In its release to the market, following the drilling, EMU highlighted[9]

• Extensive high grade assay results recorded from standard 4m composite samples up to 2,513pmm Total Rare Earth Oxides (TREO)

• High value Magnetic Rare Earth Oxide (MREO) ratio to TREO of 21% (average for drilling programme) extending to a maximum of 40.7% at Merivale Rd

• Heavy Rare Earth (HREO) ratio of up to 53.08%

• The aircore programme targeted only a minor portion of viable clay trap sites and deeply weathered Booanya granites within the 1,560 square kilometre project, indicating the vast scale of prospectivity available over the project for further testing

• First phase aircore drilling programme demonstrated continuity of grade and thickness over multiple kilometres in the wide-spaced drill programme with mineralised lenses running up 6-8kms in length

• Anomalous grade >300ppm TREO values intersected in 33 of the 34 holes drilled over significant intercepts up to a maximum 59m vertical drill intercept

• High grade >750ppm TREO values intersected in 67% of holes drilled. Flat-lying REE zones located in relatively shallow thick clay zones immediately above fresh granite lithologies

The “proof of concept” roadside aircore drilling programme tested three main targets at Kettles-Parmango, Merivale and Baring Roads where interpreted bedrock mapping indicated deep clay traps within the prospective Booanya Suite granitic intrusives. The three drill targets were tested by continuous 4m composite sampling through the complete weathering profile from surface to bedrock. Overall, the drilling tested only a very small proportion of the substantial 1,560 square kilometre Condingup REE Project, leaving scope for multiple target areas remaining for follow-up work. (see Figure 3– Drill Collar Location Plan ).

9 ASX Release “Extensive High Grade REEs over multiple km at Condingup Project” 9 October 2023

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DIRECTORS’ REPORT (Continued)

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Figure 3 –Drill Collar Plan showing positions relative to geology and Emu tenement boundaries

The Condingup aircore drilling programme and multielement analysis of the sampling confirmed significant grades of REE mineralisation over wide intercepts in the maiden drilling programme designed to test the proof of concept.

The assay results returned anomalous grade >300ppm TREO values in 33 of the 34 holes completed, demonstrating the prospectivity of the region and the fertility of the host rocks. Consistent wide mineralised intercepts confirmed the Condingup REE Project as a project that stood “head-to-head” alongside its peers in the globally significant Esperance clay hosted REE province.

The distribution of anomalous REE elements generally occupy a variable but wide interval of clays and saprolite immediately above the granite bedrock. The width of intercepts in the vertical drilling range up to 59m (Hole 23CAC019) and the lateral extensions of these “lenses” reach at least 6-8km, which pointed to significant project prospectivity and economics within the market, at the time the drilling took place.

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DIRECTORS’ REPORT (Continued)

Badja Gold/Tungsten/Lithium Project

Following a review of the Badja project’s structural and geochemistry datasets by a consulting geologist, Mr Nigel Maund, EMU conducted a short field verification survey during September 2023. This survey identified the presence of LCT (Lithium-Cesium-Tantalum) pegmatites. Subsequent LIBS analyser testwork of rock samples, the UV fluorescing of spodumene and the visual identification of the crystal morphology support the presence of lithium-bearing spodumene crystals contained in mafic rock samples returned from the field. The LIBS analyser reading on the hand samples have obtained values of 1,426ppm Li (equivalent to 0.31% Li2O), see Figure 4 below. LCT pegmatite occurrences at Badja are interpreted to be sourced from discrete highly fractionated, late-stage granite plutons on the south-west portion of the project.

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Figure 4. – Hand-specimen of spodumene crystals in LCT pegmatite showing strong pink fluorescence, a characteristic feature under long-wavelength UV light. See location of sample in Figure 5.

Mr Maund was commissioned in July 2023 to investigate the importance of the regional granite intrusive bodies surrounding the project area.[10] EMU’s geologists posit that the late stage, fractionated, intrusive

10 Report by Mr Nigel Maund BSc (Hons)Lond., MSc, DIC, MBA, F.Aus.IMM, FAIG, F.SEG, FGS, MMSA, Consultant Economic Geologist “A Report on Badja Gold Project Area Near the Historic “Gnows Nest” Gold Mine, Wadgingarra Gold Field, Badja Station, Western Australia”, 25 August 2023

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DIRECTORS’ REPORT (Continued)

granite plutons, identified primarily from airborne geophysical surveys, are the key drivers of high-grade gold and tungsten occurrences at Badja. The investigation by Mr Maund revealed major LCT Pegmatite pathfinder geochemistry and element associations in historic and recent EMU geochemistry leading to the field survey.

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DIRECTORS’ REPORT (Continued)

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Figure 5. – Conceptual model for LCT pegmatites in the western and southern intrusive-mafic contacts at Badja. Multi-element geochemistry, particularly the immobile elements (eg., Rb, Cs & Be) supports a latestage fractionated granite source. Note location of sample and spodumene specimen reported in this announcement.

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DIRECTORS’ REPORT (Continued)

EMU received several approaches from interested parties. EMU continues to evaluate the interest looking to realise maximum value for the asset either through sale or retention. EMU’s work at Badja has defined and upgraded what is now regarded as a multi-element project adding prospectivity for high grade gold and tungsten and lithium.

VIPER GRACELAND AND MERREDIN REE PROJECTS

EMU conducted no further work other than administrative requirements to retaining these projects. EMU has since indicated its intention to surrender the projects given the state of the REE market and the significant holding costs involved in maintaining the tenements.

SUNFIRE PROJECT

EMU has no further updates to report on the Sunfire Project as it awaits direction from the WA Government as to its intention to allow drilling activities in the old forestry workings in the state forest. EMU has not received any feedback from its correspondence most recently dated November 2022.

EMU has met all required environmental obligations with respect to accessing WA State Forest areas within the project with the commencement of onsite exploration activities. There continues to be a complete lack of progress coupled with the absence of any indication from Government departments as to the likely probability of drilling consent being forthcoming. This lack of progress and inability by the Government departments to determine the viability of ongoing exploration and drill testing of the Sunfire Ni-Cu targets has frustrated exploration that would have been in the interest of the State and its peoples. EMU has placed progress on the back burner to allow Governmental instrumentalities to respond at their glacial pace.

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DIRECTORS’ REPORT (Continued)

CORPORATE

Changes in Securities

During the reporting period:

• 574,750,007 fully paid ordinary shares were issued at $0.0015 each as a private placement to sophisticated and professional investors resulting in the Company receiving a total of $862,125 before costs;

• 287,375,004 options (exercisable at $0.003 each, expiry 31 December 2026) to acquire fully paid ordinary shares were issued on the basis of 1 option for every 2 shares subscribed pursuant to the above placement; and

• 30,000,000 options (exercisable at $0.003 each, expiry 31 December 2026) to acquire fully paid ordinary shares were issued to the lead manager in respect of services provided to the above placement.

Other

The Annual General Meeting of Members (AGM) was held on 30 November 2023. All resolutions considered at the AGM were passed on a poll.

EVENTS SUBSEQUENT TO END OF PERIOD

Since the reporting date, and as of the date of this report, no other matter or circumstance has arisen which has significantly affected, or may significantly affect the operations of the Company, the result of those operations, or the state of affairs of the Company in subsequent financial years.

AUDITOR’S INDEPENDENCE DECLARATION

A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 17.

This report is made in accordance with a resolution of directors.

Signature of Peter S Thomas affixed to original document and held on file

Peter S Thomas

Chairman 15 March 2024

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AUDITOR’S INDEPENDENCE DECLARATION

To those charged with the governance of Emu NL

As auditor for the review of Emu NL for the half-year ended 31 December 2023, I declare that, to the best of my knowledge and belief, there have been:

• i) no contraventions of the independence requirements of the Corporations Act 2001 in relation to the review; and

• ii) no contraventions of any applicable code of professional conduct in relation to the review.

This declaration is in respect of Emu NL and the entities it controlled during the period.

Signature of Elderton Audit Pty Ltd affixed to original document and held on file

Elderton Audit Pty Ltd

Signature of Sajjad Cheema affixed to original document and held on file

Sajjad Cheema

Director

15 March 2024

Perth

Limited liability by a scheme approved under Professional Standards Legislation

T +61 8 6324 2900 E info@eldertongroup.com A Level 32, 152 St Georges Terrace, Perth WA 6000 ABN 51 609 542 458 W www.eldertongroup.com

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CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 31 DECEMBER 2023

REVENUE Interest revenue FOREX gain EXPENDITURE Depreciation expense Exploration and tenement expenses Key management personnel compensation Other expenses LOSS BEFORE INCOME TAX Income tax expense LOSS FOR THE HALF-YEAR ATTRIBUTABLE TO MEMBERS OF EMU NL OTHER COMPREHENSIVE INCOME Items that may be reclassified to profit or loss Adjustment to fair value of available-for-sale financial assets Other comprehensive income for the period, net of tax TOTAL COMPREHENSIVE (LOSS) FOR THE PERIOD ATTRIBUTABLE TO MEMBERS OF EMU NL Basic and diluted loss per share (cents)		Half-Year Ended 31 December	Half-Year Ended 31 December
	Notes	2023 $	2022 $
		10,925 5,864 - 81 (6,915) (4,056) (569,727) (494,653) (224,417) (197,674) (383,451) (178,283)
		(1,173,585) (868,721) - -
		(1,173,585) (868,721)
		- -
		- -
		(1,173,585) (868,721)
		(0.07) (0.13)

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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CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2023

CURRENT ASSETS Cash and cash equivalents Trade and other receivables TOTAL CURRENT ASSETS NON-CURRENT ASSETS Motor vehicles, plant and equipment TOTAL NON-CURRENT ASSSETS TOTAL ASSETS CURRENT LIABILITIES Trade and other payables TOTAL CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Contributed equity Reserves Accumulated losses TOTAL EQUITY		31 December	30 June
	Notes	2023 $	2023 $
	3 4	789,997 1,149,742 61,470 53,446
		851,467 1,203,188
		537 7,452
		537 7,452
		852,004 1,210,640
		219,555 213,709
		219,555 213,709
		219,555 213,709
		632,449 996,931
		34,376,313 33,606,226 142,617 103,600 (33,886,481) (32,712,895)
		632,449 996,931

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

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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 DECEMBER 2023

Issued Capital $ Share-based Payments Reserve $ Accumulated Losses $ Total $ BALANCE AT 1 JULY 2022 31,233,579 126,000 (30,725,292) 634,287 Loss for the period - - (868,721) (868,721) Other comprehensive income - - - - TOTAL COMPREHENSIVE INCOME - - (868,721) (868,721) TRANSACTIONS WITH OWNERS IN THEIR CAPACITY AS OWNERS Proceeds from issue of shares and options 968,188 - - 968,188 Share issue costs (55,939) - - (55,939) Reversal of KMP and other share based payments on exercise of options - (41,000) - (41,000) SUB-TOTAL 912,249 (41,000) - 871,249 BALANCE AT 31 DECEMBER 2022 32,145,828 85,000 (31,594,013) 636,815 BALANCE AT 1 JULY 2023 33,606,226 103,600 (32,712,895) 996,931 Loss for the period - - (1,173,585) (1,173,585) Other comprehensive income - - - - TOTAL COMPREHENSIVE INCOME - - (1,173,585) (1,173,585) TRANSACTIONS WITH OWNERS IN THEIR CAPACITY AS OWNERS Proceeds from issue of shares 862,125 - - 862,125 Share issue costs (92,038) - - (92,038) Share based payments - options issued to lead manager - 39,017 39,017 SUB-TOTAL 770,087 39,017 - 809,104 BALANCE AT 31 DECEMBER 2023 34,376,313 142,617 (33,886,481) 632,449	Issued Capital $	Share-based Payments Reserve $	Accumulated Losses $	Total $
	31,233,579 126,000 (30,725,292) 634,287
	- - (868,721) (868,721) - - - -
	- - (868,721) (868,721)
	770,087 39,017 - 809,104
	34,376,313 142,617 (33,886,481) 632,449

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

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CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE HALF-YEAR ENDED 31 DECEMBER 2023

CASH FLOWS FROM OPERATING ACTIVITIES Expenditure on mining interests Payments to suppliers and employees Interest received Net cash used in operating activities CASH FLOWS FROM INVESTING ACTIVITIES Payments for new tenements Net cash provided by investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issue of securities Proceeds from exercise of options Share issue costs Net cash provided by financing activities Net increase / (decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the half-year Effects of exchange rate changes on cash and cash equivalents CASH AND CASH EQUIVALENTS AT THE END OF THE HALF-YEAR	Half Year Ended 31 December	Half Year Ended 31 December
	2023 $	2022 $
	(506,519) (315,622) (615,744) (532,722) 10,925 5,864
	(1,111,338) (842,480)
	(57,511) (84,385)
	(57,511) (84,385)
	901,142 923,688 - 3,500 (92,038) (55,939)
	809,104 871,249
	(359,745) (55,616) 1,149,742 784,956 - 81
	789,997 729,422

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

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1: BASIS OF PREPARATION OF THE HALF-YEAR FINANCIAL REPORT

This condensed consolidated interim financial report for the half-year reporting period ended 31 December 2023 has been prepared in accordance with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Act 2001 and does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended 30 June 2023 and any public announcements made by Emu NL during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001 .

The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period.

These financial statements have been prepared on an accruals and historical cost basis, except where indicated.

Going concern

The financial statements have been prepared on the going concern basis, which contemplates the continuity of normal business activities and the realisation of assets and settlement of liabilities in the normal course of business.

As disclosed in the financial statements, the Group incurred a loss of $1,173,585 and had net operating cash outflows of $359,745.

The ability of the entity to continue as a going concern is dependent on securing additional capital raising activities to continue its operational and exploration activities.

Should the entity 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 entity not continue as a going concern.

EMU expects that it will continue to have negative operating cash flows as is usual for mining exploration entities, but expenditures on discretionary exploration expenses have been significantly curtailed and will be dependent on available cash resources. The Company is rationalising its tenement holdings consistent with its perception of market support/lack of support therefor. The Company is considering opportunities to raise equity funding and/or the trade sale of one or more tenements.

NOTE 2: SEGMENT INFORMATION

The Group has identified that it operates in only one segment based on the internal reports that are reviewed and used by the board of directors (chief operating decision makers) in assessing performance and determining the allocation of resources. The Group's principal activity is mineral exploration.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

NOTE 3: ISSUED CAPITAL

Movements in Fully Paid Ordinary Shares during the half-year: Beginning of the financial period Issued during the period: Fully paid shares issued – Placement at $0.00672 each Fully paid shares issued – Placement at $0.0015 each Transaction costs: End of the financial period Movements in Partly-Paid Ordinary Shares during the half-year: Beginning of the financial period Issued during the period: Partly paid shares issued pursuant to exercise of options on 15.11.2022 at $0.0001 each End of the financial period Movements in Performance Rights: Beginning of the financial period End of the financial period	31 Dec 2023	31 Dec 2023	31 Dec 2022	31 Dec 2022
	Number of securities	$	Number of securities	$
	1,450,021,279 32,149,570 549,814,484 29,780,423 - - 137,453,621 923,688 574,750,007 862,125 - (92,038) - (55,939)
	2,024,771,286 32,919,657 687,268,105 30,648,172
	75,485,069 1,371,656 40,485,069 1,368,156
	- - 35,000,000 129,500
	75,485,069 1,371,656 75,485,069 1,497,656
	48,571,429 85,000 48,571,429 85,000
	48,571,429 85,000 48,571,429 85,000

As at 31 December 2023, the Company had 2,024,771,286 fully paid ordinary shares, 40,485,069 partly paid ordinary (contributing) shares on issue (3 cents paid, 3 cents unpaid), 35,000,000 partly paid ordinary (contributing) shares on issue (0.01 cents paid, 4 cents unpaid), and 48,571,429 Performance Rights subject to terms and conditions being met before vesting.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

NOTE 4: RESERVES

Share Based Payments Reserve Balance at the beginning of the period Option issued to lead manager Balance at the end of the period Total Reserves Beginning of the financial period Movements of options during the half-year Issued, exercisable at $0.003 (to acquire one fully paid share), expiring 31 December 2026 – free attaching options issued together with placement of fully paid ordinary shares at $0.0015 Issued to lead manager - options exercisable at $0.003 (to acquire one fully paid share), expiring 31 December 2026 End of the financial period		31 Dec 2023
		$ 103,600 39,017
		142,617
		142,617
	Number of Options
	31 Dec 2023	31 Dec 2022
	172,453,621 68,320,000 287,375,004 - 30,000,000 (35,000,000)
	489,828,625 33,320,000

NOTE 5: DIVIDENDS

No dividends were paid during the half-year. No recommendation for payment of dividends has been made.

NOTE 6: CONTINGENCIES and COMMITMENTS

Tenement Expenditure Commitments

In order to maintain current rights of tenure to exploration tenements held in Western Australia, the Group has certain obligations to perform minimum exploration on the tenements in which it has an interest. These obligations may in some circumstances be varied or deferred. Tenement rentals and minimum expenditure obligations may be varied or deferred on application and are expected to be met in the normal course of business and have not been provided for in the financial report. The minimum statutory expendire commitments required to be spent on the granted tenements for the next twelve months amounts to $1,057,980.

Avenger Projects

The acquisition of the Graceland, Viper, and Sunfire Tenement (together the Avenger Projects ) was under a sale and purchase agreement ( Avenger SPA ) dated 24 September 2020. Under that Avenger SPA, it was agreed to pay Avenger a 1% gross revenue royalty on minerals produced and sold by EMU from the Avenger Projects.

During this reporting period, no such minerals have been produced or sold.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Gnows Nest Project

The Gnows Nest Project was acquired under an agreement dated 19 September 2020 ( Coruscant Agreement ).

$1,360,000 was paid as performance-based consideration ( Future Consideration ) satisfied by the grant of 48,571,429 Performance Rights on 8 June 2021 ( Gnows Nest Performance Rights ). These Performance Rights will vest and convert into 48,571,429 Shares, conditional upon EMU (or EMU’s wholly owned subsidiary, Coruscant) announcing in relation to the Gnows Nest Project by 22 September 2025 either (i) an Indicated Mineral Resource (as that term is used in the JORC Code) which includes in the grade tonnage curve at least 50,000 ounces of gold at a grade of at least 3.5gpt; or (ii) a Reserve (as that term is used in the JORC Code) of at least 34,000 ounces (excluding the gold Current Resource Inventory of 13,400 ounces) ( Gnows Nest JORC Milestone ). The Gnows Nest Performance Rights will also vest and convert if the Gnows Nest JORC Milestone is not met by 21 September 2025, and less than $1 million in exploration and development expenditure has been spent after 23 September 2020 on the Gnows Nest Project by EMU/Coruscant.

As at the end of this reporting period, no event has occurred which results in a requirement for the Gnows Nest Performance Rights to vest into fully paid Shares.

Georgetown Earn-in - Key Terms of the Agreement

The material commercial terms of the farm-in and joint venture Heads of Agreement between EMU NL (for its wholly owned subsidiary Georgetown Projects Pty Ltd) and Rugby Resources Ltd are summarised below.

EMU may earn a 50% interest in the tenements by spending not less than $750K on exploration or development (includes all expenses other than annual statutory tenement charges) and a further 30% interest (for a total 80% interest) by spending a further $1.1M (for a total earn-in spend of $1.85M).

EMU will manage the project and determine all programmes and budgets during the earn in period. EMU may withdraw at any time but must keep the tenements in good standing and is liable for the cost of all rehabilitation works required consequent on its farm-in activities.

The optional earn-in spend rate for first a 50% interest, then an additional 30% interest for a total of 80%, is as follows:

First Earn-in Period – 24 August 2026	First Earn-in Amount (50%)	$750K
Second Earn-in Period – 24 August 2028	Second Earn-in Amount (30%)	$1,100K (aggregate $1.85M – for 80%)

If EMU’s rate of expenditure (incurred or, in the case of rehabilitation, provided for) falls below that stipulated, it shall cease to have the right to earn any (further) interest. If it has earned no interest, the agreement shall be at an end but without releasing EMU from its obligation, up to the date of the agreement ending, to maintain the tenements and undertake rehabilitation required by its activites.

If EMU earns an interest in the tenements, then once it ceases to have the right to earn (further) interest pursuant to the farm-in, a JV will be formed.

Either party may choose to dilute its interest in the JV, but if a party’s interest is diluted to less than 5%, that interest will convert to a 2% NSR - save if EMU’s interest is diluted to less than 5% and its expenditure then aggregates less than $1.5m, its NSR conversion right shall reduce from 2% to 1%.

EMU was to and has paid Rugby $50,000 within 10 days of the parties executing a long form farm-in and joint venture agreement (which the parties have agreed to negotiate in good faith with a view to replacing the HOA).

Rugby warranted the tenements were in good standing. Current annual tenement fees are approximately $45k.

Exploration on the tenements is subject to the native title conditions as per relevant legislation.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

Other than as described above, there are no material contingent liabilities or contingent assets of the Group at the reporting date.

NOTE 7: SUBSEQUENT EVENTS

Since the reporting date, and as of the date of this report, the Company has given notice of a General Meeting of Members called to held 11 April 2024 at which meeting, the following resolution will be considered:

“That, pursuant to and in accordance with section 254H of the Corporations Act and for all other purposes, with effect from 22 April 2024, the Share capital of the Company will be consolidated on the basis that:

• (a) every 30 Shares will be consolidated into one Share; and

• (b) where the number of Shares held by a Shareholder of the Company as a result of the consolidation effected by paragraph (a) of this Resolution includes any fraction of a Share, that fraction of a Share be rounded up to the next whole number of Shares.”

Other than as noted above, no other matter or circumstance has arisen which has significantly affected, or may significantly affect the operations of the Company, the result of those operations, or the state of affairs of the Company in subsequent financial years.

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DIRECTORS’ DECLARATION

In the directors’ opinion:

1. the financial statements and notes set out on pages 16 to 23 are in accordance with the Corporations Act 2001 , including:

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

3. (b) giving a true and fair view of the consolidated entity’s financial position as at 31 December 2023 and of its performance for the half-year ended on that date; and

4. there are reasonable grounds to believe that Emu NL 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 directors.

Signature of Peter S Thomas affixed to original document and held on file

Peter S Thomas

Chairman

15 March 2024

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Independent Auditor's Review Report

To the members of Emu NL

Report on the Half-Year Financial Report

Conclusion

We have reviewed the half-year financial report of EMU NL (“the Company”) and its controlled entities (“the Group”), which comprises the condensed consolidated statement of financial position as at 31 December 2023, the condensed consolidated statement of profit or loss and other comprehensive income, condensed consolidated statement of changes in equity and the condensed consolidated statement of cash flows for the half-year ended on that date, notes comprising a summary of significant 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 to believe that the accompanying half-year financial report of EMU NL is not in accordance with the Corporations Act 2001 including:

(i) giving a true and fair view of the EMU NL 's financial position as at 31 December 2023 and of its financial performance for the half-year then ended; and

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

Basis for Conclusion

We conducted our review in accordance with ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity . Our responsibilities are further described in the Auditor’s Responsibilities for the Review of the Financial Report section of our report. We are independent of the Group 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 ( including Independence Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

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

Limited liability by a scheme approved under Professional Standards Legislation T +61 8 6324 2900 E info@eldertongroup.com A Level 32, 152 St Georges Terrace, Perth WA 6000 ABN 51 609 542 458 W www.eldertongroup.com

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Report on the Half-Year Financial Report (Continued)

Material Uncertainty related to Going Concern

We draw attention to the note 1 of the financial report, which described that the ability of the Group to continue as a going concern is dependent on raising equity finance. The company incurred a net loss of $1,173,585 during the period ended December 31, 2023. As a result, there is a material uncertainty related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern, and therefore the Group may be unable to realise its assets and extinguish its liabilities in the normal course of business and at the amounts stated in the financial report.

Our opinion is not modified in respect of this matter.

Responsibility of the Directors for the 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 the 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 gives a true and fair view and is free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility for the Review of the Financial Report

Our responsibility is to express a conclusion on the half-year financial report based on our review. ASRE 2410 requires us to conclude whether 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 2023, and of its financial performance for the half-year ended on that date, and complying with Accounting Standards 134 Interim Financial Reporting and the Corporations Act 2001.

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.

Signature of Elderton Audit Pty Ltd affixed to original document and held on file

Elderton Audit Pty Ltd

Signature of Sajjad Cheema affixed to original document and held on file

Sajjad Cheema

Director

15 March 2024 Perth

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