FIREBIRD METALS LIMITED - Annual Report 2021

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ABN 24 610 035 535

Annual Report - 30 June 2021

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Corporate Directory

Directors Non-executive Chairperson - Evan Cranston Managing Director - Peter Allen Non-executive Director - Ashley Pattison Finance Director - Wei Li Non-executive Director – Simon Lawson (Resigned 18 March 2021) Company secretary Mr Alex Neuling Ms Natalie Teo (Resigned 18 March 2021) Registered office Suite 20, 513 Hay Street Subiaco WA 6008 Share registry Automic Registry Pty Ltd Level 2, 267 St Georges Terrace Perth WA 6000 Auditor Grant Thornton Audit Pty Ltd Level 43, 152-158 St Georges Terrace Perth WA 6000 Solicitors Steinepreis Paganin Lawyers & Consultants Level 4, The Read Building 16 Milligan Street Perth WA 6000 Bankers National Australia Bank Level 4 (UB4440), 800 Bourke Street Docklands VIC 3008 Australia Stock exchange listing Firebird Metals Limited securities are listed on the Australian Securities Exchange (ASX code: FRB) Corporate Governance Statement The Corporate Governance Statement has been released to ASX on 29 September 2021 and is available on the Company's website at www.firebirdmetals.com.au/corporate-governance/ Website www.firebirdmetals.com.au

Annual Report - 30 June 2021

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Competent persons statement & forward looking statement	4
Directors' report	5
Auditor's independence declaration	19
Statement of profit or loss and other comprehensive income	20
Statement of financial position	21
Statement of changes in equity	22
Statement of cash flows	23
Notes to the financial statements	24
Directors' declaration	38
Independent auditor's report to the members of Firebird Metals Limited	39
Shareholder information	42

Annual Report - 30 June 2021

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Competent Persons Statement

The information in this Report that relates to Exploration Results and Mineral Resources of the Company is based on, and fairly represents, information and supporting documentation that has been reviewed and prepared by Robert Wason, who is a Senior Consultant - Geology at Mining Insights Pty Ltd and is a member of AusIMM.

Mr. Wason has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity, which they are undertaking to qualify as an Expert and Competent Person as defined under the VALMIN Code and in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (“JORC Code 2012”). Mr. Wason consents to the inclusion in this a nnouncement of the matters based on the information in the form and context in which they appear.

The information in this report that relates to Exploration Results is based on information compiled by Mr Mark Pudovskis. Mr Pudovskis is a full-time employee of CSA Global Pty Ltd and is a Member of the Australasian Institute of Mining and Metallurgy.

Mr Pudovskis has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as Competent Person as defined in the 2012 edition of the Australasian Code for the Reporting of Exploration Results, Mineral Resources, and Ore Reserves (JORC Code). Mr Pudovskis consents to the disclosure of the information in this report in the form and context in which it appears.

Forward Looking Statement

This report may contain certain forward-looking statements and projections regarding estimated, resources and reserves; planned production and operating costs profiles; planned capital requirements; and planned strategies and corporate objectives. Such forward looking statements/projections are estimates for discussion purposes only and should not be relied upon. They are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors many of which are beyond the control of Firebird Metals Limited. The forward-looking statements/projections are inherently uncertain and may, therefore, differ materially from results ultimately achieved.

Firebird Metals Limited does not make any representations and provides no warranties concerning the accuracy of the projections and disclaims any obligation to update or revise any forward looking statements/projects based on new information, future events or otherwise except to the extent required by applicable laws. While the information contained in this report has been prepared in good faith, neither Firebird Metals Limited or any of its directors, officers, agents, employees or advisors give any representation or warranty, express or implied, as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. Accordingly, to the maximum extent permitted by law, none of Firebird Metal Limited, its directors, employees or agents, advisers, nor any other person accepts any liability whether direct or indirect, express or limited, contractual, tortuous, statutory or otherwise, in respect of, the accuracy or completeness of the information or for any of the opinions contained in this presentation or for any errors, omissions or misstatements or for any loss, howsoever arising, from the use of this presentation.

Annual Report - 30 June 2021

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Director’s Report

The Directors present their report, together with the financial statements, on Firebird Metals Limited (referred to hereafter as the 'Company') for the year ended 30 June 2021.

Directors

The following persons were directors of Firebird Metals Limited during the whole of the financial year and up to the date of this report, unless otherwise stated:

Non-executive Chairperson - Evan Cranston (Appointed 18 March 2021) Managing Director - Peter Allen (Appointed 1 March 2021) Non-executive Director - Ashley Pattison (Appointed 15 January 2021) Finance Director - Wei Li (Appointed 15 January 2021) Non-executive Director – Simon Lawson (Resigned 18 March 2021)

Company Secretary

Alexander Neuling (Appointed 18 March 2021) Natalie Teo (Resigned 18 March 2021)

Principal activities

During the financial year the principal activities of the Company consisted of:

Exploration and development of Oakover Manganese Project; and
Exploration of other manganese projects in the East Pilbara Manganese Province.

Dividends

There were no dividends paid or declared during the current financial year.

Review of operations

The Company successfully listed on the Australian Stock Exchange (ASX) on 18 March 2021 after completing a heavily oversubscribed Initial Public Of fering (IPO) of $5,500,000. The Company’s primary focus is to further explore and develop its flagship Oakover Manganese Project in the East Pilbara Manganese Region. The project currently has 64Mt inferred resource of manganese at 10% Mn (JORC 2012) (H&SC Consultants, August 2012).

At the date of the report, the Company is conducting infill and extensional resource drilling at the Oakover Manganese Project. Metallurgical work also began to assess the most efficient way of liberating manganese from the exiting resource. Various other consultants have been engaged with the aim of conducting a Prefeasibility Study of this project for both Direct Shipping Ore (DSO) and conventional processing options.

In addition to the Oakover Manganese Project, the Company is actively pursuing other manganese opportunities in the region, in particular DSO opportunities.

The Company engaged CSA Global Pty Ltd (CSA Global) to provide technical and exploration support to the Company for the drilling campaign and for CSA Global to complete a Mineral Resource estimate.

Annual Report - 30 June 2021

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Project Locations

Below (Figure 1) is a map showing the Company’s project locations

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Figure 1: Project Locations

Oakover Manganese Project

The Oakover Manganese Project comprises one granted exploration license (E 52/3577) and two exploration licence applications (E 46/1392 and E 52/3948). The project covers 118 blocks or approximately 360km[2] . The Oakover Manganese Project is located 85 km east of Newman in the Eastern Pilbara region of Western Australia and about 100 km south of the Ant Hill manganese deposit and about 50 km from the Nicholas Downs (formerly known as Balfour Downs) manganese deposit.

The Oakover Manganese Project has been the subject of a thorough exploration programme and substantial hydrometallurgical test work.

The previous exploration includes rock chip sampling, geophysical surveys and drilling (mostly Reverse circulation (RC) drilling) and an estimate of mineral resource (Table 1) of 64.1Mt @10% Manganese (Mn) using 8% Mn cut-off grade (JORC 2012) (H&SC Consultants, August 2012).

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Annual Report - 30 June 2021

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Since the Company’s successful admission to the ASX in March 2021, the new management has dedicated a significant amount of effort in further developing this project by:

Commencement of a 11,500m RC drilling programme to in-fill existing resource and extension of current resource area;
Initiating of metallurgical test work using previously drilled but untested diamond core; and
Assessing the potential for Direct Shipping Ore (DSO) on part of its resource.

Disraeli Manganese Project

The Disraeli Project comprises one of the exploration licence applications (E 46/1389). The project covers 22 blocks or approximately 70 km[2] . The Disraeli Project is located within the Southeast Pilbara region of Western Australia, approximately 230km North East of Newman, 110km South East of Nullagine in Western Australia. Woodie Woodie manganese mine site is about 50km north of the Disraeli Project.

The tenement is located at the far southeast of the Pilbara Craton and comprises an area spanning the eastern Hamersley Basin and the northeastern lobe of the Bangemall Basin.

Several geological formations contain dolomite and shale, considered the most prospective host rocks for manganese in the East Pilbara Region. At Disraeli, manganese mineralisation is hosted by shales of probable Balfour Formation and as flat lying, secondary layers beneath Quaternary/Tertiary cover.

The previous exploration includes rock chip sampling, geophysical Induced Polarisation (IP) surveys and two drill holes. Disraeli is an early-stage exploration project. The target areas for mineralisation are the manganese seams hosted by the Carawine Dolomite, the upper member of the Hamersley.

Hill 616 Manganese Project

Exploration licence E52/3633 forms the Hill 616 Manganese Project covering 5 blocks or approximately 15.7 km[2] of the established mineralogical terrain of in the South-eastern Pilbara Mining District and is located approximately 85km southeast of Newman within the Peak Hill Mineral Field.

The Hill 616 Manganese Project is located on the eastern margin of the Archaean Sylvania Inlier. The granite-greenstone basement rocks of the Sylvania Inlier are unconformably overlain by rocks of the Hamersley Basin. The mineralisation at Hill 616 was generally found to be shallow (mostly within 20 metres of the surface), gently dipping and laterally extensive across the target area. The lateritic profile and subsequent Mn mineralisation show the zonation within the regolith and distribution of Mn mineralisation. The higher-grade manganese material is generally located within the upper portion of the regolith profile at shallow depths (0 to 15 metres).

The previous exploration includes rock chip sampling and RC drilling.

The Hill 616 area is highly prospective for Mn mineralisation given that the project is known to contain rock types prospective for two styles of Mn mineralisation (stratabound supergene and hydrothermal) and location in the known East Pilbara manganese province. The previous drilling results and the continuity of the surface mineralisation is very encouraging. Supergene enrichment between a depleted lateritic cap and the underlying pallid clay zone has produced a Mn-Fe rich zone with grades in the 10-15% Mn range. The Mn trend at Hill 616 remains open along strike in both North-West and South-East direction.

Raggard Hills Manganese Project

Raggard Hills consists of a single exploration licence application covering an area of 25.6km[2] . The project is located in the Eastern Pilbara Region of Western Australia, 280km south-east of Port Hedland. The world class Woodie Woodie Manganese Mine is located 33km SSW of the Project.

The basement to the project is comprised of Archaean granites and gneisses. These are unconformably overlain by rocks of the Fortescue Group including basalt, sandstones, shales, dolomites, cherts, and felsic volcanic.

Rock chip samples from this project area is up to 62% Mn. (ASX announcement 15 June 2021)

Financial Results and Financial Position

The loss for the Company after providing for income tax amounted to $3,394,941 (30 June 2020: $655,739).

The net assets of the Company increased by $8,877,633 to $4,941,344 (30 June 2020: net liabilities of $3,936,289).

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The Company’s working capital, being current assets less current liabilities was $3, 710,041 at 30 June 2021 (2020: deficit of $3,981,289). During the year the Company had a negative cash flow from operating activities of $303,169 and $779,227 from investing activities (2020: $635,739 from operating activities and nil from capitalised exploration and evaluation activities).

During the financial year, operating expenses increased following an increase in activity. Administrative and corporate expenses were $331,781 (2020: $267).

Significant changes in the state of affairs

The Company was a wholly owned subsidiary of ASX listed Firefly Resources Limited (FFR). FFR announced the demerger and Initial Public Offering (IPO) of the Company on 18 December 2020. The Company successfully raised $5.5 million from its IPO and was admitted to ASX on 18 March 2021.

Matters subsequent to the end of the financial year

The impact of the Coronavirus (COVID-19) pandemic is ongoing and while the financial impact to the Company has been minimal up to 30 June 2021, it is not practicable to estimate the potential impact, positive or negative, after the reporting date. The situation is continually evolving and is dependent on measures imposed by the Australian Government and other countries, such as maintaining social distancing requirements, quarantine, travel restrictions and any economic stimulus that may be provided.

No other matter or circumstance has arisen since 30 June 2021 that has significantly affected, or may significantly affect the Company’s operations, the results of those operations, or the Company’s state of affairs in future financial years.

Likely developments and expected results of operations

The likely developments in the Company’s operations in future years and the expected result from those operations are dependent on exploration success in the various exploration areas in which the Company currently holds an interest. The ability of the Company to fund the ongoing operations also remains a key dependency.

Environmental regulation

The Company holds participating interests in a number of exploration tenements. The various authorities granting such tenements require the tenement holder to comply with the terms of the grant of the tenement and all directions given to it under those terms of the tenement. To the best of the Directors' knowledge, the Company has adequate systems in place to ensure compliance with the requirements of all environmental legislation described above and are not aware of any breach of those requirements during the financial year and up to the date of the Directors' report.

Information on directors

Name:	Mr Evan Cranston
Title:	Non-executive Chairperson (appointed on 18 March 2021)
Qualifications:	BComm. LLB
Experience and expertise:	Mr Cranston is an experienced mining executive with a background in corporate and
	mining law. He is the principal of corporate advisory and administration firm Konkera
	Corporate and has extensive experience in the areas of equity capital markets,
	corporate finance, structuring, asset acquisition, corporate governance and external
	stakeholder relations.
Other current directorships: ^	Benz Mining Corp. (BNZ.ASX) (appointed 17 September 2020)
	Carbine Resources Limited (CRB.ASX) (appointed 23 March 2010)
	Vital Metals Limited (VML.ASX) (appointed 22 October 2019)
	African Gold Limited (A1G.ASX) (appointed 22 March 2018)
Former directorships (last 3 years)*	Boss Energy Limited (formerly Boss Resources Limited) (resigned 5 June 2020)
	New Century Resources Limited (resigned 9 July 2020)
Special responsibilities:	None
Interests in shares:	497,230 fully paid ordinary shares (via related entities)
Interests in unlisted options:	2,000,000

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Name: Mr Peter Allen Title: Managing Director

Experience and expertise:

Mr Allen is a mining executive with more than 20 years’ experience in marketing of manganese, lithium and a range of other commodities. He previously held the MD of Marketing for Consolidated Minerals Limited which operates Woodie Woodie mine in WA and Nsuta Manganese mine in Ghana. He assisted manganese focused explorer Element 25 (ASX.E25) and Gulf Manganese Corporation (ASX.GMC) with PFS & product marketing. More recently, he was the marketing manager for AVZ Minerals (ASX.AVZ), a company focused on the Manono lithium project.

Other current directorships: ^ None Former directorships (last 3 years)* None Special responsibilities: None Interests in shares: 200,000 fully paid ordinary shares (via related entities) Interests in performance rights: 2,100,000

Name: Mr Ashley Pattison Title: Non-executive Director Qualifications: BBus Accounting & Business Law

Experience and expertise: Mr Pattison qualifies as a Chartered Accountant with over 20 years’ experience in the resource sector across corporate finance, strategy and project operations. Having lived and worked in several countries, he has gained substantial exposure to exploration and producing operations in Australia and South America. He has also held senior executive positions including as Managing Director of a number of listed and private mining companies over the past 10 years and also as CEO of a listed mining service company.

Other current directorships: ^ Firefly Resources Limited (ASX.FFR) (appointed on 3 September 2020) Industrial Minerals Limited (ASX.IND) (appointed 23 February 2021)

Former directorships (last 3 years) None Special responsibilities: None Interests in shares: 1,104,693 fully paid ordinary shares (via related entities) Interests in unlisted options: 1,500,000 Name: Mr Wei Li CA* Title: Finance Director Qualifications: MPAcc Experience and expertise: Mr Li is a Chartered Accountant with extensive professional experience in the resource industry, international trade, capital markets, project managing initial public offers and spin- outs and financial accounting. Mr Li’s experience includes being employed by, and acting as, Director and Chief Financial Officer for several companies, predominantly in the resources sector. Prior to these roles, he managed a private base metal exploration company in the Northern Territory and assisted in commissioning a A$150 million Electrolytic Manganese Dioxide (EMD) plant in Hunan China.

Other current directorships: ^ None Former directorships (last 3 years)* None Special responsibilities: None Interests in shares: 696,010 fully paid ordinary shares (via related entities) Interests in Performance rights: 1,200,000

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Name:	Mr Simon Lawson (resigned 18 March 2021)
Title:	Non-executive Director
Qualifications:	MSc in Geology
Experience and expertise:	Mr Lawson has a Master of Science in Geology from Auckland University and has
	over 15 years of exploration, production and management experience in gold and
	base metals. He has previously held senior geology roles at major Australian gold
	producer Northern Star Resources Ltd, where as Principal Geologist, he was part of
	the team which took the company from junior explorer to a major multi-mine
	producer, today valued at over $10 Billion.
Other current directorships: ^	Firefly Resources Limited (appointed 1 May 2018)
Former directorships (last 3 years)*	None
Special responsibilities:	None
Interests in shares:	Nil
Interests in Performance rights:	Nil

^'Other current directorships' quoted above are current directorships for listed entities only and excludes directorships of all other types of entities, unless otherwise stated.

*'Former directorships (last 3 years)' quoted above are directorships held in the last 3 years for listed entities only and excludes directorships of all other types of entities, unless otherwise stated.

Meetings of directors

The number of meetings of the Company's Board of Directors ('the Board') held during the year ended 30 June 2021, and the number of meetings attended by each director were:

	Full Board
	Attended	Held
Mr Evan Cranston	1		1
Mr Peter Allen	1		1
Mr Ashley Pattison	1		1
Mr Wei Li	1		1
Mr Simon Lawson (resigned 18 March 2021)	nil		nil

Held: represents the number of meetings held during the time the director held office.

Company Secretary

Mr Alexander Neuling BSc., FCA(ICAEW), FCIS

Mr Neuling is a chartered accountant and chartered company secretary with over 15 years corporate and financial experience, including 10 years as company secretary, CFO &/or a director of various ASX listed companies in the Oil & Gas, Mineral Exploration, Biotech Mining Services sectors. Prior to these roles, Alex worked at Deloitte in London and in Perth.

Annual Report - 30 June 2021

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Remuneration report (audited)

Introduction

The Directors of Firebird Metals Limited present the Remuneration Report (the Report) for the Company for the year ended 30 June 2021. This Report forms part of the Directors’ Report and has been audited in accordance with section 300A of the Corporations Act 2001 . The Report details the remuneration arrangements for Firebird Metals Limited’s key management personnel (KMP):

Non-executive directors (NEDs)
Executive directors and senior executives (collectively the executives).

KMP are those persons who, directly or indirectly, have authority and responsibility for planning, directing and controlling the major activities of the Company.

The table below outlines the KMP of the Company during the financial year ended 30 June 2021. Unless otherwise indicated, the individuals were KMP for the entire financial year.

NAME	POSITION
Evan Cranston	Non-executive Chairperson	Appointed on 18 March 2021
Peter Allen	Managing Director	Appointed on 1 March 2021
Ashley Pattison	Non-Executive Director	Appointed on 15 January 2021
Wei Li	Finance Director	Appointed on 15 January 2021
Simon Lawson	Non-executive Director	Resigned 18 March 2021
Alexander Neuling	Company Secretary	Appointed 18 March 2021
Natalie Teo	Company Secretary	Resigned 18 March 2021

Remuneration Governance

The Board has decided there are no efficiencies to be gained from forming a separate remuneration committee and hence the current board members carry out the roles that would otherwise be undertaken by a remuneration committee with each director excluding themselves from matters in which they have a personal interest.

The Board considers and recommends compensation arrangements for the non-executive chairperson, directors and senior executives; remuneration policies and practices; retirement and termination policies and practices; Company share schemes and other incentive schemes; Company superannuation arrangements and remuneration arrangements for members of the Board.

The Board obtains professional advice where necessary to ensure that the Company attracts and retains talented and motivated directors, executives and employees who can enhance Company performance through their contributions and leadership.

Remuneration Framework

The Board recognises that the Company’s performance and ultimate success in project delivery depend very much on its ability to attract and retain highly skilled, qualified and motivated people in an increasingly competitive remuneration market. At the same time, remuneration practices must be transparent to shareholders and be fair and competitive, taking into account the nature and size of the organisation and its current stage of development.

The approach to remuneration has been structured with the following objectives:

to attract and retain a highly skilled executive team at the current stage in the Company’s project development and who are motivated and rewarded for successfully delivering the short and long-term objectives of the Company, including successful project delivery;
to link remuneration with performance, based on long-term objectives and shareholder return, as well as critical short-term objectives which are aligned wi th the Company’s business strategy;
to set clear goals and reward performance for successful project development in a way which is sustainable, including in respect of health and safety, environment and community-based objectives;
to be fair and competitive against the market;
to preserve cash where necessary for exploration, by having the flexibility to attract, reward or remunerate executives with an appropriate mix of equity-based incentives;
to reward individual performance and Company performance thus promoting a balance of individual performance and teamwork across the executive management team and the organisation; and
to have flexibility in the mix of remuneration, including offering a balance of conservative long-term incentive

Annual Report - 30 June 2021

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instruments such as options to ensure executives are rewarded for their efforts, but also share in the upside of the Company’s growth and are not adversely affected by tax consequences.

The remuneration framework provides a mix of fixed and variable “at risk” remuneration and a blend of short and longterm incentives.

The remuneration for executives has three components:

Fixed remuneration, inclusive of superannuation and allowances;
Short Term Incentives (“STI”) under a performance-based cash bonus incentive plan; and
Long Term Incentives (“LTI”) through participation in the Company’s shareholder approved equity incentive plans.

These three components comprise each executive’s total annual remuneration.

Executive Director Remuneration

Fixed Remuneration

All executives receive a fixed base cash salary and other associated benefits. All executives also receive a superannuation guarantee contribution required by Australian legislation which was 9.5% at 30 June 2021. No executives receive any other retirement benefits.

Fixed remuneration of executives will be set by the Board each year and is based on market relativity and individual performance. In setting fixed remuneration for executives, individual performance, skills, expertise and experience are also taken into account to determine where the executive’s remuneration should sit within the market range. Where appropriate, external remuneration consultants will be engaged to assist the Board to ensure that fixed remuneration is set to be consistent with market practices for similar roles.

Fixed remuneration for executives will be reviewed annually to ensure each executive’s remuneration remains fair and competitive. However, there is no guarantee that fixed remuneration will be increased in any service contracts for executives.

Short Term Incentives

The executive directors and other executives are eligible to earn short-term cash bonuses upon achievement of significant performance- based outcomes aligned with the Company’s strate gic objectives at that time. These performance-based outcomes are considered to be an appropriate link between executive remuneration and the potential for the creation of shareholder wealth. Given the Company’s recent listing, no short-term incentives were paid during the year.

Long Term Incentives

The objective of the LTI plan is to reward executives and directors in a manner which aligns this element of remuneration with the creation of shareholder wealth. As such LTIs are made to executives and directors who are able to influence the generation of shareholder wealth and thus have an impact on the Company’s performance.

The Company prohibits directors or executives from entering into arrangements to protect the value of any Firebird Metals shares, options or performance rights that the director or executive has become entitled to as part of his/her remuneration package. This includes entering into contracts to hedge their exposure.

The following table sets out the number of share options and performance rights granted to Directors and the executive management team during the year:

executive management team	during the year:	during the year:
	Options		Performance Rights
	2021	2020	2021	2020
Evan Cranston	2,000,000	-	-	-
Peter Allen	-	-	2,100,000	-
Ashley Pattison	1,500,000	-	-	-
Wei Li	-	-	1,200,000	-
Simon Lawson*	-	-	-	-
Alexander Neuling	-	-	-	-
Natalie Teo*	-	-	-	-

*Resigned 18 March 2021

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Non-executive Remuneration

Non- executive directors’ fees are paid within an aggregate limit which is approved by the shareholders from time to time. Retirement payments, if any, are determined in accordance with the rules set out in the Company’s Constitution and the Corporations Act at the time of the director’s re tirement or termination. Non- executive directors’ remuneration may include an incentive portion consisting of bonuses and/or options, as considered appropriate by the Board, which is subject to shareholder approval in accordance with the ASX Listing Rules.

The aggregate remuneration, and the manner in which it is apportioned amongst non-executive directors, is reviewed annually. The Board considers the amount of director fees being paid by comparable companies with similar responsibilities and levels of experience of the non-executive directors when undertaking the annual review process.

The current maximum amount of non- executive directors’ fees payable is fixed at $300,000 in total, for each 12 -month period, until varied by ordinary resolution of shareholders.

Use of remuneration advisors

During the year ended 30 June 2021, the Board did not engage the services of remuneration consultants.

Voting and comments made at the company’s last Annual General Meeting

The Company was admitted to ASX on 18 March 2021, No AGM has been held to the date of this report.

Consequences of Performance on Shareholder Wealth

In considering the Company’s performance and benefits for shareholder wealth, the Board has regard to the following indices in respect of the current and previous financial years:

	2021 $	2020 $	2019 $
Revenue	Nil	Nil	Nil
Net loss	(3,394,941)	(655,739)	(1,589,010)
Share price at end of year	$0.615	N/A	N/A
Basic loss per share	(21,8) cents	(4.2)* cents	(10.2)* cents
Diluted loss per share	(21.8) cents	(4.2)* cents	(10.2)* cents

The Company commenced trading on the ASX on 18 March 2021 with an initial public offering price of $0.20.

Weighted average number of ordinary shares for financial year 2020 and 2019 are adjusted retrospectively to be the same as financial year 2021.

Consultancy service agreements Name: Peter Allen Title: Managing Director Term of agreement: Agreement begins 1 March 2021 Details: Annual remuneration of $240,000 plus statutory superannuation. 3-month notice period and 6-month termination payment.

Name: Wei Li Title: Finance Director Term of agreement: Agreement begins 15 January 2021 Details: Annual remuneration of $84,000 plus statutory superannuation. 3-month notice period and 3-month termination payment.

Company secretarial agreement

The Company has an agreement with Alexander Neuling through his consulting company Erasmus Consulting Pty Ltd for the provision of company secretarial services to the Company. The Erasmus Consulting Pty Ltd Agreement commenced on 18 March 2021 and will continue until terminated by mutual agreement or either party on 30 days' written notice. The Company will pay Erasmus Consulting Pty Ltd minimum retainer of $2,880 per month (plus GST) for a maximum16 hours Company Secretarial services which commenced on 18 March 2021. Any additional work will be charged at $180 per hour (plus GST). The Erasmus Consulting Pty Ltd Agreement contains additional provisions considered standard for agreements of this nature.

Annual Report - 30 June 2021

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Statutory and Share-based Reporting

Director and KMP Remuneration

Details of the nature and amount of each major element of remuneration of each Director and KMP of Firebird Metals Limited during the year are:

		SHORT TERM BENEFITS	POST EMPLOYMENT	SHAREBASED PAYMENTS (NON-CASH)	SHAREBASED PAYMENTS (NON-CASH)
Directors and executive officers	Year	Salary, fees and annual leave $	Superannuation Benefits $	Options and Rights $	Options subject to shareholder approval	Total $	Performance based % of remuneration
Evan Cranston Non-Executive Chairperson	2021	17,258	1,640	44,000	497,198	560,096	97%
	2020	-	-	-	-	-	-
Ashley Pattison Non-Executive Director	2021	22,500	2,138	33,000	497,198	554,836	96%
	2020	-	-	-	-	-	-
Simon Lawson*Non-Executive Director	2021	-	-	-	-	-	-
	2020	-	-	-	-	-	-
Alexander Neuling Company Secretary	2021	11,925	-	-	497,198	509,123	98%
	2020	-	-	-	-	-	-
Natalie Teo* Company Secretary	2021	-	-	-	-	-	-
	2020	-	-	-	-	-	-
Peter Allen Managing Director	2021	95,000	7,600	173,873	497,198	773,671	87%
	2020	-	-	-	-	-	-
Wei Li Finance Director	2021	38,500	3,658	99,356	497,198	638,712	93%
	2020	-	-	-	-	-	-
Total directors and executive officer’s remuneration	2021	185,183	15,036	350,229	2,485,990	3,036,438	93%
	2020	-	-	-	-	-	-

*Resigned on 18 March 2021

Natalie Teo*	Natalie Teo*	Simon Lawson*	Simon Lawson*	Wei Li**	Wei Li**	Peter Allen**	Peter Allen**	Alexander Neuling**	Alexander Neuling**	Ashley Pattison**	Ashley Pattison**	Evan Cranston**	Evan Cranston**
2020	2021	2020	2021	2020	2021	2020	2021	2020	2021	2020	2021	2020	2021	Financial Year
-	-	-	-	-	-	-	-	-	-	-	1,500,000	-	2,000,000	No. option awarded during the year
-	-	-	-	-	-	-	-	-	-	-	27/1/21	-	27/1/21	Award date
-	-	-	-	-	-	-	-	-	-	-	2.2	-	2.2	Fair value per option at award date Cents
-	-	-	-	-	-	-	-	-	-	-	18/3/21	-	18/3/21	Vesting date
--	-	--	-	-	-	-	-	-	-	-	30	-	30	Exercise price Cents
-	-	-	-	-	-	-	-	-	-	-	18/3/24	-	18/3/24	Expiry date
-	-	-	-	-	-	-	-	-	-	-	1,500,000	-	2,000,000	No. vested during the year
-	-	-	-	-	-	-	-	-	-	-	-	-	-	No. lapsed during the year
-	-	-	-	-	-	-	-	-	-	-	1,500,000	-	2,000,000	Closing balance of options
-	-	-	-	-	-	-	-	-	-	-	33,000	-	44,000	Value of options granted during the year $
-	-	-	-	-	-	-	-	-	-	-	-	-	-	Value of options exercised during the year $

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Annual Report - 30 June 2021

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Director and KMP Remuneration Movements in Performance Rights

The movement during the reporting period in the number of performance rights in Firebird Metals Limited held, directly, indirectly or beneficially, by each KMP, including their related parties, is as follows:

	Held at 1 July 2020 or date of appointment	Granted as compensation	Converted	Lapsed / forfeited	Held at 30 June 2021	Vested and exercisable at 30 June 2021
Peter Allen	-	2,100,000	-	-	2,100,000	-
Wei Li	-	1,200,000	-	-	1,200,000	-
Total	-	3,300,000	-	-	3,300,000	-
Performance Rights*	Milestone
Tranche 1 Milestone	1,100,000 of the performance rights will vest upon announcement by the Company on the ASX market announcements platform of a minimum of 125MT of Inferred, Indicated and/or Measured Resources, at a minimum cut off of 10% manganese, reported in accordance with the JORC Code 2012, on any one or more of the Tenements.
Tranche 2 Milestone	1,100,000 of the performance rights will vest upon announcement by the Company on its ASX market announcements platform of the Company entering into a long-term offtake agreement for a minimum of 1MT of manganese ore (Offtake Agreement) and the shipping of a minimum of 250,000 tonnes of manganese ore pursuant to the Offtake Agreement that has been extracted from one or more of the Tenements.
Tranche 3 Milestone	1,100,000 of the performance rights will vest upon the volume weighted average market price of the Company’s Shares trading on ASX over 20 consecutive trading days on which the Shares have traded being at least $0.40 and this event occurring no earlier than 90 days after listing.

*Each Performance Right will expire if not vested by 18 March 2026.

There were no performance rights movement in financial year 2020.

Shareholdings of KMP

Shares held in Firebird Metals Limited (number)

	Held at 1 July 2020 or date of appointment	Acquired	Disposal	Held at 30 June 2021 or date of resignation
Evan Cranston	-	497,230	-	497,230
Peter Allen	-	200,000	-	200,000
Ashley Pattison	-	1,104,693	-	1,104,693
Wei Li	-	696,010	-	696,010
Simon Lawson*	-	64,259	-	64,259
Alexander Neuling	-	211,630	-	211,630
Natalie Teo*	-	-	-	-
Total	-	2,773,822	-	2,773,822

There were no shareholding movement in financial year 2020.

Share-based compensation (non-cash)

Options

3,500,000 options granted during the year to directors was part of employment package as outlined in the Company’s Prospectus lodged with ASIC on 27 January 2021. The option has a fair value of $0.022 per option. The total value of options recognised by the Company is $77,000.

A further 10,000,000 options were granted to directors and Company secretary on 10 May 2021 to retain services of the recipients and align their interests with stronger share price performance of the Company. The option has a fair value of 24.8 cents per option. The total value of options recognised by the Company is $2,485,991. The approval to issue the options will be subject to shareholder approval at the Company’s Annual General Meeting expected to be in the last quarter of 2021 calendar year.

Annual Report - 30 June 2021

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Performance rights

Tranche 1 & 2 of the performance rights have non-market vesting conditions only. Management estimates the number of units that are expected to vest, and the total fair value of the issuance is recognised over the vesting period (which is the period to expiry). Management estimated only Tranche 1 can meet performance milestone and recognised cost of $220,000.

Tranche 3 Performance Rights are linked to market based vesting conditions and a trinomial valuation model is used. The total value recognised by the Company is $53,229.

Loans to key management personnel

There were no loans to key management personnel of the Company, including their personally related parties, as at 30 June 2021.

Other transactions and balances with KMP and their related parties

There were no other transactions and balances with key management personnel of the Company, including their personally related parties, as at 30 June 2021.

End of Remuneration Report

Shares under option

There are 8,000,000 ordinary shares of Firebird Metals Limited under option at the date of this report. An additional 10,000,000 of the options will not be issued until shareholder approval.

Performance Shares

Unissued ordinary shares of Firebird Metals Limited subject to performance conditions at the date of this report are as follows:

Date of issue	Expiry Date	Exercise price	Number on issue
18/03/2021	18/03/2026	-	3,300,000

Shares issued on the exercise of options

There were no ordinary shares of Firebird Metals Limited issued on the exercise of options during the year ended 30 June 2021.

Indemnity and insurance of officers

The Company has indemnified the directors and executives of the Company for costs incurred, in their capacity as a director or executive, for which they may be held personally liable, except where there is a lack of good faith.

During the financial year, the Company paid a premium in respect of a contract to insure the directors and executives of the Company against a liability to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits disclosure of the nature of the liability and the amount of the premium.

Indemnity and insurance of auditor

To the extent permitted by law, the Company has agreed to indemnify its auditors, Grant Thornton Audit Pty Ltd (Grant Thornton), as part of the terms of its audit engagement agreement against claims by third parties arising from the audit (for an unspecified amount). No payment has been made to indemnify Grant Thornton during or since the financial year.

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.

Non-audit services

There were no non-audit services provided during the financial year by the auditor. Refer to Note 15 in respect to fees paid for Auditor’s remuneration.

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 immediately after this directors' report.

Annual Report - 30 June 2021

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Auditor

In accordance with Listing Rule 3.16.3 and ASIC Regulatory Guide 26, Grant Thornton Audit Pty Ltd (Grant Thornton) has been appointed auditor of the Company following the resignation of Stantons International Audit and Consulting Pty Ltd on 12 August 2021.

This report is made in accordance with a resolution of directors, pursuant to section 298(2)(a) of the Corporations Act 2001.

On behalf of the directors

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_________ Peter Allen Managing Director

29 September 2021

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Level 43, 152-158 St Georges Terrace Perth WA 6000

Correspondence to: PO Box 7757 Cloisters Square Perth WA 6850

T +61 8 9480 2000 F +61 8 9322 7787 E [email protected] W www.grantthornton.com.au

Auditor’s Independence Declaration

To the Directors of Firebird Metals Limited

In accordance with the requirements of section 307C of the Corporations Act 2001 , as lead auditor for the audit of Firebird Metals Limited for the year ended 30 June 2021, I declare that, to the best of my knowledge and belief, there have been:

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

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GRANT THORNTON AUDIT PTY LTD Chartered Accountants

==> picture [80 x 38] intentionally omitted <==

L A Stella Partner – Audit & Assurance

Perth, 29 September 2021

Grant Thornton Audit Pty Ltd ACN 130 913 594

www.grantthornton.com.au

a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389

‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited.

Liability limited by a scheme approved under Professional Standards Legislation.

1 9

Annual Report - 30 June 2021

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Statement of profit or loss and other comprehensive income For the year ended 30 June 2021

or the year ended 30 June 2021
Notes Exploration expenditure Administration costs Depreciation and amortisation expenses Share based payments Operating Loss Interest expenses Loss before income tax Income tax expense Loss after income tax for the year Other comprehensive income Other comprehensive loss for the year, net of income tax Total other comprehensive loss for the year Basic loss per share (cents) 14 Diluted loss per share (cents) 14	2021 2020 $ $ (220,541) (655,472) (331,781) (267) (4,913) - (2,836,920) -
	(3,394,155) (655,739) (786) -
	(3,394,941) (655,739) - -
	(3,394,941) (655,739)
	- -
	(3,394,941) (655,739)
	(21.8) (4.2) (21.8) (4.2)

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

Annual Report - 30 June 2021

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Statement of financial position As at 30 June 2021

Notes Current assets Cash and cash equivalents 3 Trade and other receivables 5 Total current assets Non-current assets Right of use assets 12 Exploration and evaluation assets 11 Total non-current assets Total assets Current liabilities Trade and other payables 6 Borrowings 7 Lease liabilities 8 Total current liabilities Non-current liabilities Lease liabilities 8 Total Non-current liabilities Total liabilities Net assets / (Net Liabilities) Equity Issued capital 9 Reserves 10 Accumulated losses Total equity/(Deficit)	2021 2020 $ $ 3,808,085 100 104,993 -
	3,913,078 100
	113,010 - 1,174,680 45,000
	1,287,690 45,000
	5,200,768 45,100
	146,048 - - 3,981,389 56,989 -
	203,037 3,981,389
	56,387 -
	56,387 -
	259,424 3,981,389

	4,941,344 (3,936,289)
	9,335,854 100 2,936,820 - (7,331,330) (3,936,389)
	4,941,344 (3,936,289)

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

Annual Report - 30 June 2021

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Statement of changes in equity As at 30 June 2021

Balance at 1 July 2019 Loss after income tax expense for the year Other comprehensive income for the year, net of tax Total comprehensive income for the year Balance at 30 June 2020 Loss after income tax expense for the year Other comprehensive income for the year, net of tax Total comprehensive income for the year Transactions with owners in their capacity as owners: Issue of shares to Firefly Resources Limited Issue of shares at Initial Public Offering Issue of shares to vendors of projects Issue of performance rights Issue of options Cost of capital raising Balance at 30 June 2021	Issued capital Share based payment reserve Accumulated losses Total equity/deficit $ $ $ $ 100 - (3,280,650) (3,280,550) - - (655,739) (655,739) - - - -
	- - (655,739) (655,739)

	100 - (3,936,389) (3,936,289)
	- - (3,394,941) (3,394,941) - - - -
	- - (3,394,941) (3,394,941)
	4,144,486 - - 4,144,486 5,515,000 - - 5,515,000 400,000 - - 400,000 - 273,229 - 273,229 - 2,663,591 - 2,663,591 (723,732) - - (723,732)
	9,335,854 2,936,820 (7,331,330) 4,941,344

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

Annual Report - 30 June 2021

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Statement of cash flows For the year ended 30 June 2021

Notes
Cash flows from operating activities
Payments to suppliers and employees
Net cash used in operating activities
4
Cash flows from investing activities
Payment of principal portion of lease liability
Exploration and evaluation expenditure capitalised
Net cash used in investing activities
Cash flows from financing activities
Proceeds from capital raising
Cost of capital raising
Interest on leases
Net cash from financing activities
Net change in cash and cash equivalents held
Cash and cash equivalents at beginning of financial year
Cash and cash equivalents at end of financial year

2021
2020
$
$
(303,169)
-
(303,169)
-
(4,547)
-
(774,680)
-
(779,227)
-
5,515,020
-
(623,852)
-
(787)
4,890,381
-
3,807,985
-
100
100
3,808,085
100

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

Annual Report - 30 June 2021

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1. Corporate information

Firebrid Metals Limited (Firebird Metals or the Company) is a for-profit entity for the purpose of preparing the financial statements. Principal activities include exploration and evaluation of mineral resources and pursuing various investment opportunities in the resources sector designed to add shareholder value by acquiring, exploring, evaluating and exploiting mineral resource project opportunities in Australia.

Firebird Metals is domiciled in Australia whose shares are publicly traded and listed on the 18 March 2021 on Australian Securities Exchange (ASX:FRB). The address of its registered office and its principal place of business Suite 20, 513 Hay Street, Subiaco WA 6008.

The financial statements were approved and authorised for issue by the Board of Directors on 29 September 2021.

2. Basis of preparation and statement of compliance

The financial report is a general-purpose financial report, which has been prepared in accordance with the requirements of the Corporations Act 2001, Australian Accounting Standards and other authoritative pronouncements of the Australian Accounting Standards Board. Compliance with Australian Accounting Standards results in full compliance with the International Financial Reporting Standards (IFRS) as issued by the International Accounting Board (IASB).

The financial report has been prepared on a historical cost basis.

The accounting policies used in the preparation of this financial report, as described below. The financial report is presented in Australian Dollars, being the functional currency of the Company.

3. Cash and cash equivalents

. Cash and cash equivalents
Cash in hand Cash at Bank Total Cash and cash equivalents . Reconciliation of net profit after tax to net cash flows from operations Cash flows from operating activities Loss after income tax Adjustment for non-cash items Share based payments Exploration expenses written off Others Changes in assets and liabilities (Increase)/decrease in trade and other receivables (Decrease)/increase in trade and other payables Net cash used in operating activities . Trade, other receivables and prepayments Other receivables Other prepayments Total trade, other receivables and prepayments	2021 $ 2020 $
	100 100 3,807,985 -
	3,808,085 100
	2021 $ 2020 $
	(3,394,941) - 2,836,920 - 208,097 - 5,699 - (104,992) - 146,048 -
	(303,169) -
	2021 $ 2020 $
	43,697 - 61,296 -
	104,993 -

4. Reconciliation of net profit after tax to net cash flows from operations

5. Trade, other receivables and prepayments

Annual Report - 30 June 2021

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6. Trade and other payables

. Trade and other payables
Trade payables Other payables and accruals Total trade and other payables . Borrowings Loan from parent entity Total borrowings	2021 $ 2020 $
	120,288 - 25,760 -
	146,048 -
	2021 $ 2020 $
	- 3,981,389
	- 3,981,389

7. Borrowings

The Company was a fully owned subsidiary of Firefly Resources Limited (FFR). FFR financed all operations of the Company until the successful Initial Public Offering (IPO) by the Company in March 2021. The entire amount of ‘ loan from parent entity ’ was converted in to Company’s shares as part of the demerger transaction from FFR. There was no interest charged on the loan amount.

8. Lease liabilities

Current Lease liabilities Non-current Lease liabilities Future Minimum lease payments at 30 June 2021 are as follows:	2021 $ 2020 $
	56,989 -
	56,387 -

Lease payments Finance charges Net present values	Minimum lease payments due
	Within one year 1-5 years After 5 years Total
	64,000 58,667 - 122,667 (7,011) (2,280) - (9,291) 60,905 51,720 - 112,625

Lease payments not recognised as a liability

The Company has elected not to recognise a lease liability for short term leases (leases with an expected term of 12 months or less) or for leases of low value assets. Payments made under such leases are expensed on a straight-line basis. In addition, certain variable lease payments are not permitted to be recognised as lease liabilities are expensed as incurred.

9. Share capital

. Share capital
Share capital at 1 July 2019 Shares issue At 30 June 2020 Shares issued to Firefly Resources Limited at $0.20 per share Shares issued at Initial Public Offering $0.20 per share Shares issued to vendors of projects at $0.20 per share Less cost of shares issues At 30 June 2021	No. of shares $
	100 100 - - 100 100
	24,999,900 4,144,486 27,575,000 5,515,000 2,000,000 400,000 - (723,732)
	54,575,000 9,335,854

The share capital of the Company consists only of fully paid ordinary shares. The shares do not have a par value. All shares are equally eligible to receive dividends and the repayment of capital and represent one vote at the shareholders’ meeting.

Annual Report - 30 June 2021

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10. Reserves

0. Reserves
Notes Balance at 1 July 2019 Transactions with owners in their capacity as owners Balance at 30 June 2020 Broker options–4.5M broker options at IPO 10.1 Director options–3.5M director options at IPO 10.1 Performance rights–3.3M director performance rights at IPO 10.1 Directors and management options–10M options 10.1 Balance at 30 June 2021*	Share- based payments reserve $ Option payments reserve $ Total reserves $
	- - - - - - - - - - 99,900 99,900 - 77,700 77,700 273,229 - 273,229 - 2,485,991 2,485,991
	273,229 2,663,591 2,936,820

*Broker options are recorded as cost of capital raising.

10.1 Share-based payments

During the financial year:

2,000,000 shares were issued to vendors of Hill 616 & Disraeli projects
13,500,000 options were issued to directors and management of the Company
4,500,000 options were issued to brokers
3,300,000 performance rights were issued to directors of the Company

Set out below is a summary of unlisted options and performance rights outstanding at 30 June 2021:

Unlisted broker options Unlisted directors’ options Unlisted directors’ & management options Performance rights (tranche 1) Performance rights (tranche 2) Performance rights (tranche 3)	Vested Unvested Grant date Issue date Expiry date Share price at grant date Cents Exercise price Cents Fair value per unit Cents Total fair value $
	4,500,000 - 27/1/21 18/3/21 18/3/24 10 30 2.22(1) 99,900 3,500,000 - 27/1/21 18/3/21 18/3/24 10 30 2.22(1) 77,700 - 10,000,000 10/5/21 - 30/11/26 53 100 24.82,485,991 - 1,100,000 27/1/21 18/3/21 18/3/26 20 N/A 20(2) 220,000 - 1,100,000 27/1/21 18/3/21 18/3/26 20 N/A -(2) - - 1,100,000 27/1/21 18/3/21 18/3/26 20 N/A 1.613(3) 53,229

(1) Valuation was determined using a Black Scholes pricing model

(2) The performance rights have non-market vesting conditions only. Management estimates the number of units that are expected to vest, and the total fair value of the issuance is recognised over the vesting period (which is the period to expiry).

(3) The performance rights have market vesting conditions only. Valuation was determined using a Trinomial Valuation model. Valuation is done by independent third party.

Annual Report - 30 June 2021

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10.2 Share options and performance rights issued during the year

Share options

The Company has determined the fair value of its options awarded using the Black Scholes pricing model. The following share options were issued during the year ended 30 June 2021, alongside the key inputs in the pricing model , including the Company’s risk - free borrowing rate and volatility of the Company’s shares.

4,500,000 unlisted options were issued to Advisors and 3,500,000 unlisted options were issued to Directors in consideration for capital raising services in connection with the Initial Public Offering. These options vested immediately and have no vesting conditions.

The Company also issued 10,000,000 options to Directors and management during the period to align their long-term interests with the Company. Subject to shareholders approval, all options will vest immediately and have no vesting conditions.

Below is a summary of the key information of the options:

				Fair value				Value of
				of options				options
Granted				at grant	Exercise			granted
during the	Grant	Vesting	Expiry	date	price	Risk free	Expected	during the
year	date	date	date	(cents)	(cents)	rate	volatility	year ($)
3,500,000	27/1/21	18/3/21	18/3/24	2.22	30	0.26%	75%	77,700
4,500,000	27/1/21	18/3/21	18/3/24	2.22	30	0.26%	75%	99,900
10,000,000	10/5/21	-	30/11/26	24.8	100	0.26%	75%	2,485,991
							Total	2,663,591

The amount of $77,700 was expensed as a share-based payment. The amount of $99,900 was recorded as share issue transaction costs, this treatment was selected based on the nature of the services provided by the advisors as mentioned above. The amount of $2,485,991 was recorded as share-based payment.

Performance rights

								Amount of	Amount of
				Fair value of			No.	expense	expense
				performance		No.	lapsed	recognised	recognised
Awarded				right at	Service	vested	during	during the	during the
during	Award	Vesting	Expiry	award date	period	during	the	prior year	year
the year	date	date	date	(cents)	date	the year	year	($)	($)
1,100,000	18-3-21	N/A	18-3-26	20	N/A	-	-	-	220,000
1,100,000	18-3-21	N/A	18-3-26	-	N/A	-	-	-	-
1,100,000	18-3-21	N/A	18-3-26	1.613	N/A	-	-	-	53,229
								Total	273,229

The table above discloses the number of performance rights granted, vested or lapsed during the year. Each performance rights converts to one ordinary share in the Company upon satisfaction of the performance conditions linked to the rights. The rights do not carry any other privileges. The fair value of the performance rights granted is determined based on the number of rights awarded multiplied by the share price of the Company on the date awarded.

Below details the performance rights’ milestones:

Tranche 1 1,100,000 of the performance rights will vest upon announcement by the Company on the ASX market Milestone announcements platform of a minimum of 125MT of Inferred, Indicated and/or Measured Resources, at a minimum cut off of 10% manganese, reported in accordance with the JORC Code 2012, on any one or more of the Tenements.

Tranche 2 1,100,000 of the performance rights will vest upon announcement by the Company on its ASX market Milestone announcements platform of the Company entering into a long-term offtake agreement for a minimum of 1MT of manganese ore ( Offtake Agreement ) and the shipping of a minimum of 250,000 tonnes of manganese ore pursuant to the Offtake Agreement that has been extracted from one or more of the Tenements.

Annual Report - 30 June 2021

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Tranche 3 1,100,000 of the performance rights will vest upon the volume weighted average market price of the Milestone Compa ny’s Shares trading on ASX over 20 consecutive trading days on which the Shares have traded being at least $0.40 and this event occurring no earlier than 90 days after listing.

11. Exploration and evaluation

Opening balance as at 1 July Exploration and evaluation written off Payment for historical data Acquisition of projects–share-based payments Exploration expenditures Closing balance as at 30 June 2. Right of use assets Gross carrying amount Balance 1 July Additions Balance Depreciation & Amortisation Balance 1 July Amortisation Balance Carry amount	2021 $ 2020 $
	45,000 65,000 - (20,000) 500,000 - 400,000 - 229,680 -
	1,174,680 45,000
	2021 $ 2020 $
	- - 117,923 - 117,923 -
	- - (4,913) - (4,913) -
	113,010 -

12. Right of use assets

The following describes the nature of the Company’s leasing activities by type of right of use asset recognised on the balance sheet:

Right of use asset	Warehouse
Number of right assets leased	1
Range of remaining term	1.9 years

13. Risk management framework

The Company’s Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk management framework.

The Company’s principal financial instruments comprise cash. The Company has various other fi nancial instruments such as trade debtors and trade creditors, which arise directly from its operations. It is, and has been throughout the period under review, the Company’s policy that no trading in financial instruments shall be undertaken.

13.1 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 and arises principally from the Company’s receivables.

The Company holds the majority of its cash and cash equivalents with banks and financial institution counterparties with acceptable credit ratings. As part of managing its credit risk on cash and cash equivalents, all of Company funds are held in Australian banks, which have a higher credit rating amongst the banks and financial institution counterparties.

Annual Report - 30 June 2021

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The carrying amount of financial assets represents the maximum credit exposure. The maximum credit exposure to credit risk at the end of the reporting period was as follows:

Cash and cash equivalents Trade and other receivables	2021 $ 2020 $
	3,808,085 100 104,993 -

None of the Company’s trade and other receivables are past due as at 30 June 2021 (2020: Nil).

13.2 Liquidity risk

Liquidity risk arises from the possibility that the Company might encounter difficulty in settling its debts or otherwise meeting its obligations related to financial liabilities.

The Company manages liquidity risk by monitoring forecast cash flows, only investing surplus cash with major financial institutions; and comparing the maturity profile of financial liabilities with the realisation profile of financial assets.

The Board meets on a regular basis to analyse financial risk exposure and evaluate treasury management strategies in t he context of the most recent economic conditions and forecasts. The Board’s overall risk management strategy seeks to assist the Company in managing its cash flows. Financial liabilities are expected to be settled within 12 months.

months.
Trade and other payables Refer to Note 8 for maturities analysis on lease liabilities.	2021 $ 2020 $
	146,048 -

Risks associated with market risk, credit risk and liquidity risk are not considered material with respect to the above items.

13.3 Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates will affect the Company’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

Interest rate risk

The Company’s exposure to market risk for changes in interest rates relates primarily to the Company’s cash. Cash includes funds held in cheque accounts during the year, which earned nil interest.

The Company has no loans or borrowings.

14. Loss per share

4. Loss per share
Net loss attributable to ordinary equity holders of the Company Weighted average number of ordinary shares outstanding during the yearused in calculation of basic and diluted loss per share* Loss per share (cents per share)	2021 $ 2020 $
	(3,394,941) (655,739) 15,550,208 15,550,208 (21.8) (4.2)

*Weighted average number of ordinary shares for financial year 2020 is adjusted retrospectively.

15 . Auditor’s remuneration

5. Auditor’s remuneration
Auditor–Stantons International Audit and Consulting Pty Ltd Auditor–Grant Thornton Audit Pty Ltd Total Auditor’s remuneration	2021 $ 2020 $
	1,200 5,000 20,000 -
	21,200 5,000

Annual Report - 30 June 2021

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16. Income tax expense

6. Income tax expense
Accounting loss before tax Income tax expense to accounting profit Domestic tax rate for Firebird Metals Limited 26% (27.5% in 2020 FY) Expenditures allowed for income tax purposes Exploration and evaluation Capital raising costs Expenditures not allowed for income tax purposes Share-based payments Deferred Tax Asset losses not brought to account Income tax expense (benefit)	2021 $ 2020 $
	(3,394,941) (655,739) (882,685) (180,328) (193,365) 6,000 (165,321) - 751,784 - 489,587 174,328
	- -

Tax losses have not been brought to account as utilisation of these losses is not probable. Income tax losses can only be recovered by the Company deriving future assessable income, conditions for deductibility imposed by law being complied with and no charged in tax legislation adversely affecting the realisation of the benefit from the deductions. Therefore, carry forward losses may not be available to offset future assessable income.

As at 30 June 2021 the Company had accumulated losses of $7,331,330 (2020: $3,936,389), as set out in the statement of financial position that may be applied in its calculation of carry-forward tax losses that may be potentially be offset against future assessable income.

17. Related parties

Names and positions of key management personnel in office at any time during the financial year:

Evan Cranston	Non-executive Chairperson	Appointed on 18 March 2021
Peter Allen	Managing Director	Appointed on 1 March 2021
Ashley Pattison	Non-Executive Director	Appointed on 15 January 2021
Wei Li	Finance Director	Appointed on 15 January 2021
Simon Lawson	Non-executive Director	Resigned 18 March 2021
Alexander Neuling	Company Secretary	Appointed 18 March 2021
Natalie Teo	Company Secretary	Resigned 18 March 2021
		2021	2020
		$	$
Short term benefits		185,183		-
Post-employment benefits		15,036		-
Share-based payments (non-cash)		2,836,219		-
Total		3,036,438		-

18. Commitments

8. Commitments
Exploration commitments Due within 1 year Due greater than 1 year and less than 5 Serviced office commitments Due within 1 year Due greater than 1 year and less than 5 Total	2021 $ 2020 $
	92,000 69,000 - - 15,000 - - -
	107,000 69,000

Annual Report - 30 June 2021

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19. Summary of significant accounting policies

Trade and Other Payables

These amounts represent liabilities for amounts owing at the end of the reporting period. The amounts are unsecured and are usually paid within 30 days of recognition.

Trade and other payables are initially recognised at fair value less transaction costs and subsequently carried at amortised cost.

Income taxes

Tax expense recognised in profit or loss comprises the sum of deferred tax and current tax not recognised in other comprehensive income or directly in equity.

Current income tax assets and/or liabilities comprise those obligations to, or claims from, the Australian Taxation Office (‘ATO’) and other fiscal authorities relating to the current or prior reporting periods that are unpaid at the reporting date. Current tax is payable on taxable profit, which differs from profit or loss in the financial statements. Calculation of current tax is based on tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period.

Deferred income taxes are calculated using the liability method on temporary differences between the carrying amounts of assets and liabilities and their tax bases. However, deferred tax is not provided on the initial recognition of goodwill or on the initial recognition of an asset or liability unless the related transaction is a business combination or affects tax or accounting profit. Deferred tax on temporary differences associated with investments in subsidiaries and joint ventures is not provided if reversal of these temporary differences can be controlled by the Company and it is probable that reversal will not occur in the foreseeable future.

Deferred tax assets and liabilities are calculated, without discounting, at tax rates that are expected to apply to their respective period of realisation, provided they are enacted or substantively enacted by the end of the reporting period. Deferred tax assets are recognised to the extent that it is probable that they will be able to be utilised against future taxable income, based on the Company’s forecast of future operating results which is adjusted for significa nt nontaxable income and expenses and specific limits to the use of any unused tax loss or credit. Deferred tax liabilities are always provided for in full. Deferred tax assets and liabilities are offset only when the Company has a right and intention to set off current tax assets and liabilities from the same taxation authority.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and demand deposits, together with other short-term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.

Equity

Share capital is recognised at the fair value of the consideration received. Any transaction costs associated with the issuing of shares are deducted from share capital, net of any related income tax benefits.

Goods and Services Tax (GST)

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Tax Office. In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the statement of financial position are shown inclusive of GST.

Cash flows are presented in the statement of cash flows on a gross basis, except for the GST components of investing and financing activities, which are disclosed as operating cash flows.

Exploration and evaluation expenditure

Exploration and evaluation expenditure incurred is capitalised and accumulated in respect of each identifiable area of interest. The costs are only carried forward to the extent that they are valid exploration and evaluation expenditure in area of interests that have current tenement licenses belonging to the company and expected to be recouped through the successful development of the area or where activities in the area have not yet reached a stage that permits reasonable assessment of the existence of economically recoverable resources and further work is intended to be performed. Accumulated costs in relation to an abandoned area will be written off in full against the profit and loss in the year in which the decision to abandon the area is made.

A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry forward costs in relation to that area of interest.

Annual Report - 30 June 2021

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Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Where the Company expects some or all of a provision to be reimbursed, for example under an insurance contract, the reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain. The expense relating to any provision is presented in the statement of comprehensive income net of any reimbursement.

Provisions a re measured at the present value of management’s best estimate of the expenditure required to settle the present obligation at the end of the reporting period.

Share-based payment transactions

The Company may provide benefits to individuals acting as, and providing services similar to employees (including Directors) of the Company in the form of share-based payment transactions, whereby individuals render services in exchange for shares, options or rights over shares (‘equity settled transactions’).The cos t of these equity settled transactions with employees is measured by reference to the fair value at the date at which they are granted. In valuing equity settled transactions, no account is taken of any performance conditions, other than conditions linked to the value of the shares of the Company (‘market conditions’).

The cost of the equity settled transactions is recognised, together with a corresponding increase in equity, over the period in which the performance conditions are fulfilled, ending on the date on which the relevant employees become fully entitled to the award (‘vesting date’).

The cumulative expense recognised for equity settled transactions at each reporting date until vesting date reflects (i) the extent to which the vesting period has expired and (ii) the number of awards that, in the opinion of the Directors of the Company, will ultimately vest. This opinion is formed based on the best available information at the balance date. No adjustment is made for the likelihood of the market performance conditions being met as the effect of these conditions is included in the determination of fair value at the grant date.

Leases

The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

Company as a lessee

The Company applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. The Company recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets.

i) Right-of-use assets

The Company recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets, as follows:

Plant and machinery 3 to 15 years • Motor vehicles and other equipment 3 to 5 years

If ownership of the leased asset transfers to the Company at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset.

The right-of-use assets are also subject to impairment. Refer to the accounting policies in section impairment of nonfinancial assets.

ii) Lease liabilities

At the commencement date of the lease, the Company recognises lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in-substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Company and payments of penalties for terminating the lease, if the lease term reflects the Company exercising the option to terminate.

Annual Report - 30 June 2021

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Variable lease payments that do not depend on an index or a rate are recognised as expenses (unless they are incurred to produce inventories) in the period in which the event or condition that triggers the payment occurs.

In calculating the present value of lease payments, the Company uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset.

iii) Short-term leases and leases of low-value assets

The Company applies the short-term lease recognition exemption to its short-term leases of machinery and equipment (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases of office equipment that are considered to be low value. Lease payments on short-term leases and leases of low-value assets are recognised as expense on a straight-line basis over the lease term.

Employee entitlements

Provision is made for employee entitlement benefits accumulated as a result of employees rendering services up to the reporting date. Liabilities arising in respect of wages and salaries, annual leave and other benefits due to be settled within twelve months of the reporting date are measured at rates which are expected to be paid when the liability is settled.

All other employee entitlement liabilities are measured at the present value of estimated payments to be made in respect of services rendered up to reporting date.

Contributions for other post-employment benefits to defined contribution plans are recognised in comprehensive income as incurred during the period in which employees render the related service.

Operating expenses

Operating expenses are recognised in profit or loss upon utilisation of the service or at the date of their origin.

Financial assets

Initial recognition and measurement

Financial assets are classified, at initial recognition, as subsequently measured at amortised cost, fair value through other comprehensive income (OCI), and fair value through profit or loss.

The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow characteristics and the Company’s business model for managing them. With the exception of trade receivables that do not contain a significant financing component or for which the Company has applied the practical expedient, the Company initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs. Trade receivables that do not contain a significant financing component or for which the Company has applied the practical expedient are measured at the transaction price.

In order for a financial asset to be classified and measured at amortised cost or fair value through OCI, it needs to give rise to cash flows that are ‘solely payments of principal and interest (SPPI)’ on the principal amount outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level. Financial assets with cash flows that are not SPPI are classified and measured at fair value through profit or loss, irrespective of the business model.

The Company’s business model for managing financial assets refers to how it manages its financial assets in or der to generate cash flows. The business model determines whether cash flows will result from collecting contractual cash flows, selling the financial assets, or both. Financial assets classified and measured at amortised cost are held within a business model with the objective to hold financial assets in order to collect contractual cash flows while financial assets classified and measured at fair value through OCI are held within a business model with the objective of both holding to collect contractual cash flows and selling.

Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place (regular way trades) are recognised on the trade date, i.e., the date that the Company commits to purchase or sell the asset.

Annual Report - 30 June 2021

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Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in four categories:

Financial assets at amortised cost (debt instruments)
Financial assets at fair value through OCI with recycling of cumulative gains and losses (debt
instruments)
Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon derecognition (equity instruments)
Financial assets at fair value through profit or loss

Financial assets at amortised cost (debt instruments)

Financial assets at amortised cost are subsequently measured using the effective interest (EIR) method and are subject to impairment. Gains and losses are recognised in profit or loss when the asset is derecognised, modified or impaired.

The Company’s financial assets at amortised cost includes trade receivables, and loan to an associate and loan to a director included under other non-current financial assets.

Impairment

Further disclosures relating to impairment of financial assets are also provided in the following notes:

Disclosures for significant assumptions Note 19
• Trade receivables Note 5

The Company recognises an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Company expects to receive, discounted at an approximation of the original effective interest rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.

ECLs are recognised in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL).

For trade receivables and contract assets, the Company applies a simplified approach in calculating ECLs. Therefore, the Company does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date. The Company has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment.

Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.

The Company’s financial liabilities include trade and other payables and borrowings.

Subsequent measurement

For purposes of subsequent measurement, financial liabilities are classified in two categories:

Financial liabilities at fair value through profit or loss
Financial liabilities at amortised cost (loans and borrowings)

Annual Report - 30 June 2021

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Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss.

Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. This category also includes derivative financial instruments entered into by the Company that are not designated as hedging instruments in hedge relationships as defined by IFRS 9. Separated embedded derivatives are also classified as held for trading unless they are designated as effective hedging instruments. Gains or losses on liabilities held for trading are recognised in the statement of profit or loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated at the initial date of recognition, and only if the criteria in IFRS 9 are satisfied. The Company has not designated any financial liability as at fair value through profit or loss.

Financial liabilities at amortised cost (loans and borrowings)

This is the category most relevant to the Company. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit or loss.

This category generally applies to interest-bearing loans and borrowings.

Derecognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit or loss.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the statement of financial position if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.

Significant estimates and judgements

The Company has applied the following estimates and judgments pertaining to the financial report:

Exploration and evaluation assets

Exploration and evaluation expenditure incurred by or on behalf of the Company is accumulated separately for each area of interest. Such expenditure comprises direct and indirect costs but does not include general overheads or administrative expenditure not having a specific nexus with a particular area of interest. Exploration expenditure for each area of interest is carried forward as an asset provided the rights to tenure of the area of interest are current and one of the following conditions is met:

(i) The exploration and evaluation expenditures are expected to be recouped through successful development and exploitation of the area of interest, or alternatively, by its sale; and

(ii) Exploration and evaluation activities in the area of interest have not at the reporting date reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves, and active and significant operations in, or in relation to, the area of interest are continuing.

Exploration is written off when it fails to meet at least one of the conditions outlined above or an area of interest is abandoned. Exploration and evaluation assets are assessed for impairment when facts and circumstances suggest that the carrying amount of an exploration and evaluation asset may exceed its recoverable amount. When facts and circumstances suggest that the carrying amount exceeds the recoverable amount the impairment loss will be measured and disclosed in accordance with AASB 6 Exploration for and Evaluation of Mineral Resources .

Annual Report - 30 June 2021

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Share options

(i) Volatility of share price and risk-free rate

For the purposes of the Black Scholes models used in Note 10, the Company has estimated the volatility of its share price based on other companies considered to be comparable, being junior exploration companies listed on the ASX. For 2021, the volatility was estimated to be 75% and the Company has estimated a risk-free rate based on the spot three-year bond rates of Australia 0.26%.

Performance rights

For performance rights, the Company makes a judgment around whether performance conditions, linked to exploration and evaluation activities, are more than probable to be met at which point the value of the rights are recognised either in full or over any service period. This judgment is made based on management’s knowledge of the performance condition and how the Company is tracking based on exploration and evaluation activities as at the report date and with reference to subsequent events.

Earning per share

Basic loss per share

Basic loss per share is calculated by dividing the loss attributable to equity holders of the Company, excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the year.

Diluted loss per share

Diluted loss per share adjusts the figures used in the determination of basic earnings per share to take into account the after income tax effect and other financing costs associated with dilutive potential ordinary shares and the weighted average number of additional ordinary shares that would have been outstanding assuming the conversion of all dilutive potential ordinary shares.

Capital management

When managing capital, management's objective is to ensure the Company continues as a going concern as well as to maintain optimal returns to shareholders and benefits for other stakeholders. Management also aims to maintain a capital structure that ensures the lowest cost of capital available to the Company. Management is constantly adjusting the capital structure to take advantage of favourable costs of capital or high returns on assets. As the market is constantly changing, management may change the amount of dividends to be paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

Management considers that the total equity of the Company (contributed equity, reserves and retained earnings) is what it manages as capital.

Operating segments

Identification of reportable operating segments

The Company does not have any reportable operating segments as it solely operates in one segment, being the exploration of resources within the Oceania region. The internal reports that are reviewed and used by the Board of Directors (who are identified as the Chief Operating Decision Makers ('CODM') in assessing performance and in determining allocation of resources are prepared on the Company as a whole.

Matters subsequent to the end of the financial year

Contingent liabilities

There are no contingent liabilities recognised at the date of this report.

Annual Report - 30 June 2021

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New Standards adopted as at 1 July 2020

Some accounting pronouncements which have become effective from 1 July 2020 and have therefore been adopted do not have a significant impact on the Company’s financial results or position.

Standards, amendments and Interpretations to existing Standards that are not yet effective and have not been adopted early by the Company

At the date of authorisation of these consolidated financial statements, several new, but not yet effective, Standards and amendments to existing Standards, and Interpretations have been published by the IASB. None of these Standards or amendments to existing Standards have been adopted early by the Company.

Management anticipates that all relevant pronouncements will be adopted for the first period beginning on or after the effective date of the pronouncement. New Standards, amendments and Interpretations not adopted in the current year have not been disclosed as they are not exp ected to have a material impact on the Company’s financial statements.

Annual Report - 30 June 2021

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In accordance with a resolution of the directors of Firebird Metals Ltd, I state that:

In the opinion of the directors:

(a) the financial statements and notes of Firebird Metals Ltd for the financial year ended 30 June 2021 are 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 2021 and of its performance for the year ended on that date; and
(ii) complying with Accounting Standards and the Corporations Regulations 2001;

(b) the financial statements and notes also comply with International Financial Reporting Standards as disclosed in Note 2; and

(c) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

This declaration has been made after receiving the declarations required to be made to the directors by the chief executive officer and chief financial officer in accordance with section 295A of the Corporations Act 2001 for the financial year ended 30 June 2021.

On behalf of the board

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_________ Peter Allen Managing director

29 September 2021

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Central Park, Level 43, 152-158 St Georges Terrace Perth WA 6000

Correspondence to: PO Box 7757 Cloisters Square Perth WA 6850

T +61 8 9480 2000 F +61 8 9322 7787 E [email protected] W www.grantthornton.com.au

Independent Auditor’s Report

To the Members of Firebird Metals Ltd

Report on the audit of the financial report

Opinion

We have audited the financial report of Firebird Metals Ltd (the Company), which comprises the statement of financial position as at 30 June 2021, the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and the D irectors’ declaration.

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

a giving a true and fair view of the Company ’s financial position as at 30 June 2021 and of its performance for the year ended on that date; and

b complying with Australian Accounting Standards and the Corporations Regulations 2001 .

Basis for opinion

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the 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 (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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389

www.grantthornton.com.au

‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to Grant Thornton Australia Limited.

Liability limited by a scheme approved under Professional Standards Legislation.

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Key audit matter	How our audit addressed the key audit matter	How our audit addressed the key audit matter
Exploration and Evaluation– Note 11
At 30 June 2021 the carrying value of Exploration and	Our procedures included, amongst others:
Evaluation Assets was, $1,174,680.
	�	obtaining management's reconciliation of capitalised
In accordance with AASB 6_Exploration for and Evaluation of_		exploration and evaluation expenditure and review
Mineral Resources, the Company is required to assess at		for unusual items and agree to the general ledger;
each reporting date if there are any triggers for impairment	�	conducting a review of Management's impairment
which may suggest the carrying value is in excess of the		assessment and potential trigger events prepared in
recoverable value.		accordance with AASB 6 including;
	�	tracing projects to statutory registers, exploration
The process undertaken by management to assess whether		licences and third-party confirmations to determine
there are any impairment triggers in each area of interest		whether a right of tenure existed;
involves an element of management judgement.	�	enquiring of management regarding their intentions
		to carry out exploration and evaluation activity in the
This area is a key audit matter due to the significant		relevant exploration area, including a review of
judgement involved in determining the existence of impairment		management’s budgeted expenditure;
triggers.	�	testing additions during the year on a statistical basis
		to supporting documentation;
	�	reviewing whether any data exists to suggest that the
		carrying value of these exploration and evaluation
		assets are unlikely to be recovered through
		development or sale; and
	�	reviewing the appropriateness of the related
		disclosures within the financial statements.

Share Based Payments– Note 10
During the period, the Company issued 18 million unlisted	Our procedures included, amongst others:
options and 3.3 million performance rights to directors,
employees and advisors. The performance rights were issued	�	reviewing the relevant agreements to obtain an
over three tranches and included both market and non-market		understanding of the contractual nature of the share-
based vesting criteria.		based payment arrangement:
	�	obtaining management's option valuations and
The share based payment expense recorded at 30 June 2021		associated share based payment support;
was $2.84 million.	�	reviewing the valuation performed by management’s
		expert by considering the appropriateness of the
In accordance with AASB 2_Share Based Payments_, the		valuation model used, re-performing and testing the
Group is required to value the options and rights issued.		inputs to supporting documentation;
	�	holding discussions with management to understand
Share based payments are considered a key audit matter due		the share-based payment arrangements in place
to the significant judgement and estimates involved in valuing		and, where applicable, evaluating management’s
the options and performance rights.		assessment of the likelihood of meeting the
		performance conditions attached to the share based
		payments; and
	�	assessing the adequacy of the disclosures in the
		financial report.

Information other than the financial report and auditor’s report t hereon

The Directors are responsible for the other information. The other information comprises the information included in the Company ’s annual report for the year ended 30 June 2021, 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 we do not express any form of assurance conclusion thereon.

��

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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 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 have no realistic alternative but to do so.

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

A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance Standards Board website at: https://www.auasb.gov.au/auditors_responsibilites/ar1_2020.pdf. This description forms part of our auditor’s report.

Report on the remuneration report

Opinion on the remuneration report

We have audited the Remuneration Report included in pages 11 to 17 of the D irectors’ report for the year ended 30 June 2021.

In our opinion, the Remuneration Report of Firebird Metals Ltd, for the year ended 30 June 2021 complies with section 300A of the Corporations Act 2001 .

Responsibilities

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

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GRANT THORNTON AUDIT PTY LTD Chartered Accountants

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L A Stella Partner – Audit & Assurance

Perth, 29 September 2021

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Annual Report - 30 June 2021

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The shareholder information set out below was applicable as at 25 September 2021.

Distribution of equitable securities

Analysis of number of equitable security holders by size of holding:

Holding Ranges	Holders	Total Units	% Issued Share Capital
above 0 up to and including 1,000	82	58,023	0.11%
above 1,000 up to and including 5,000	391	1,270,796	2.33%
above 5,000 up to and including 10,000	232	1,811,031	3.32%
above 10,000 up to and including 100,000	341	11,684,000	21.41%
above 100,000	85	39,751,150	72.84%
Totals	1,131	54,575,000	100.00%

Equity security holders

Twenty largest quoted equity security holders

The names of the twenty largest security holders of quoted equity securities are listed below:

Position	Holder Name	Holding	% IC
	KITARA INVESTMENTS PTY LTD
1		4,134,363	7.58%
	BNP PARIBAS NOMINEES PTY LTD
2		2,653,622	4.86%
3	KINGSLANE PTY LTD	2,387,532	4.37%
4	MINING EQUITIES PTY LTD	2,000,000	3.66%
	BNP PARIBAS NOMINEES PTY LTD HUB24 CUSTODIAL SERV LTD
5		1,755,291	3.22%
6	CITICORP NOMINEES PTY LIMITED	1,594,470	2.92%
7	MR ROBERT ANDREW JEWSON	1,465,455	2.69%
	BT PORTFOLIO SERVICES LIMITED
8		1,142,446	2.09%
9	TRISTAR NOMINEES PTY LTD	1,104,693	2.02%
10	BNP PARIBAS NOMINEES PTY LTD ACF CLEARSTREAM	1,078,654	1.98%
11	TISIA NOMINEES PTY LTD	847,659	1.55%
12	HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED	787,811	1.44%
13	DR SALIM CASSIM	782,693	1.43%
14	GREENSEA INVESTMENTS PTY LTD	750,000	1.37%
15	ZERO NOMINEES PTY LTD	650,000	1.19%
16	SISU INTERNATIONAL PTY LTD	582,035	1.07%
17	MR FARIS SALIM CASSIM	514,864	0.94%
18	ALEXANDER HOLDINGS (WA) PTY LTD	500,000	0.92%
	KONKERA PTY LTD
19		497,230	0.91%
20	DR SEOW FOONG LOH	496,626	0.91%
	Total	25,725,444	47.14%
	Total issued capital - selected security class(es)	54,575,000	100.00%

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Annual Report - 30 June 2021

Unquoted equity securities

		Number on issue
18-3-21	Director Performance Shares–Tranche 1	1,100,000
18-3-21	Director Performance Shares–Tranche 2	1,100,000
18-3-21	Director Performance Shares–Tranche 3	1,100,000
18-3-21	Broker options - 30 cents expiry 18-3-24	4,500,000
18-3-21	Director options–30 cents expiry 18-3-24	3,500,000

Substantial holders

Substantial holders in the Company are set out below:

Holder Name	Holding Balance	% IC
KITARA INVESTMENTS PTY LTD	4,134,363	7.58%
MINING EQUITIES PTY LTD	3,640,455	6.67%

Voting rights

The voting rights attached to ordinary shares are set out below:

Ordinary shares

On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share shall have one vote.

There are no other classes of equity securities.

Tenements

		Interest
Description	Tenement number	owned %
Exploration Licence–WA	E52/3577	100.00
Exploration Licence–WA	E52/3633	100.00

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AI assistant

FIREBIRD METALS LIMITED — Annual Report 2021

64941_rns_2021-09-28_913cb941-3515-4c72-9ae2-38cb54feafcd.pdf

ABN 24 610 035 535

Corporate Directory

Table of Contents

Competent Persons Statement

Forward Looking Statement

Director’s Report

Directors

Company Secretary

Principal activities

Dividends

Review of operations

Project Locations

Oakover Manganese Project

Disraeli Manganese Project

Hill 616 Manganese Project

Raggard Hills Manganese Project

Financial Results and Financial Position

Significant changes in the state of affairs

Matters subsequent to the end of the financial year

Likely developments and expected results of operations

Environmental regulation

Information on directors

Meetings of directors

Company Secretary

Remuneration report (audited)

Introduction

Remuneration Governance

Remuneration Framework

Executive Director Remuneration

Fixed Remuneration

Short Term Incentives

Long Term Incentives

Non-executive Remuneration

Use of remuneration advisors

Voting and comments made at the company’s last Annual General Meeting

Consequences of Performance on Shareholder Wealth

Company secretarial agreement

Statutory and Share-based Reporting

Director and KMP Remuneration

Director and KMP Remuneration Movements in Performance Rights

Shareholdings of KMP

Share-based compensation (non-cash)

Options

Performance rights

Loans to key management personnel

Other transactions and balances with KMP and their related parties

End of Remuneration Report

Shares under option

Performance Shares

Shares issued on the exercise of options

Indemnity and insurance of officers

Indemnity and insurance of auditor

Proceedings on behalf of the Company

Non-audit services

Auditor's independence declaration

Auditor

Auditor’s Independence Declaration

To the Directors of Firebird Metals Limited

Statement of profit or loss and other comprehensive income For the year ended 30 June 2021

Statement of financial position As at 30 June 2021

Statement of changes in equity As at 30 June 2021

Statement of cash flows For the year ended 30 June 2021

1. Corporate information

2. Basis of preparation and statement of compliance

3. Cash and cash equivalents

4. Reconciliation of net profit after tax to net cash flows from operations

5. Trade, other receivables and prepayments

6. Trade and other payables

7. Borrowings

8. Lease liabilities

Lease payments not recognised as a liability

9. Share capital

10. Reserves

10.1 Share-based payments

10.2 Share options and performance rights issued during the year

Share options

Performance rights

FIREBIRD METALS LIMITED Annual Report 2021