FireFly Metals Ltd. - Annual Report 2016

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Monax Mining Limited

ABN 96 110 336 733

Consolidated Financial Statements for the year ended 30 June 2016

CORPORATE DIRECTORY

Monax Mining Limited Share Registrar Auditor ACN 110 336 733 Computershare Investor Services Pty Ltd Grant Thornton ABN 96 110 336 733 Level 5, 115 Grenfell Street Chartered Accountants Incorporated in SA ADELAIDE SA 5000 67 Greenhill Road Telephone: 1300 556 161 Wayville SA 5034 Registered Office (For overseas shareholders 61 3 9415 5000) 139 Greenhill Road Facsimile: (08) 8236 2305 UNLEY SA 5061 Email: [email protected] Telephone: (08) 8373 5912

Email: [email protected]

The information in the Financial Report that relates to Exploration results, Mineral Resources, Ore Reserves or targets is based on information compiled by Mr G M Ferris, who is a Member of the Australian Institute of Mining and Metallurgy. Mr Ferris is engaged under a contract to provide services as Managing Director and, has a minimum of five years relevant experience in the style of mineralisation and type of deposit under consideration and qualifies as a Competent Person as defined in the 2012 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Ferris consents to the inclusion of the information in this report in the form and context in which it appears.

Monax Mining Limited and Controlled Entities

Directors’ Report

The Directors present their report together with the financial report of Monax Mining Limited for the year ended 30 June 2016 and the auditor’s report thereon.

Directors

The Directors of Monax Mining Limited (‘the Company’) at any time during or since the end of the financial year are as set out below. Details of Directors’ qualifications, experience and special responsibilities are as follows:

Mr Robert Michael Kennedy KSJ, ASAIT, Grad Dip (Systems Analysis), Dip Financial Planning, Dip Financial Services, FCA, AGIA, Life Member AIM, FAICD, FTI

Independent Non-executive Chairman

Experience and expertise

Mr Kennedy, a Chartered Accountant, has been a non-executive chairman of Monax Mining Limited since 2004.

Mr Kennedy brings to the Board his expertise and extensive experience as Chairman and non-executive director of a range of listed public companies in the resources sector.

Apart from his attendance at Board and Committee meetings, Mr Kennedy leads the development of strategies for the development and future growth of the Company. Mr Kennedy leads the Board’s external engagement of the Company meeting with Government, investors and is engaged with the media. He is a regular attendee of Audit Committee functions of the major accounting firms. He conducts the review of the Board including the Managing Director in his executive role.

Other current directorships in the last 3 years

Mr Kennedy is a director of ASX listed companies, Flinders Mines Limited (since December 2001), Ramelius Resources Limited (since listing in March 2003), Maximus Resources Limited (since December 2004), and Tychean Resources Ltd (since 2006).

Former directorships in the last 3 years

Formerly he was a director of Crestal Petroleum Limited (formerly Tellus Resources Ltd from 2013 to 2015) and Marmota Energy Limited (from April 2006 to April 2015).

Special Responsibilities

Chairman of the Board.

Member of the Audit and Risk Committee and Nomination and Remuneration Committee.

Interest in Shares and Options – 14,000,000 ordinary shares in Monax Mining Limited.

Mr Glenn Stuart Davis LLB, BEc , FAICD

Non-executive Director

Experience and expertise

Board member since 3 August 2004. Mr Davis is a solicitor and partner of DMAW Lawyers, a firm he founded. Mr Davis brings to the Board his expertise in the execution of large legal and commercial transactions and his expertise and experience in corporate activity regulated by the Corporations Act and ASX Ltd. He also has specialist skills and knowledge about the resources industry.

Other current directorships

Chairman of Beach Energy Limited (since November 2012) (a Director since July 2007).

Former directorships in the last 3 years

Director of Marmota Energy Limited (since 2007 until June 2015).

Responsibilities

Special responsibilities include membership of the Audit, Governance and Remuneration Committee. Interest in Shares and Options – 3,275,455 ordinary shares of Monax Mining Limited.

Monax Mining Limited and Controlled Entities

Directors’ Report (continued)

Mr Gary Michael Ferris BSc (Hons), AusIMM.,GAICD

Managing Director

Experience and expertise

Board member since 1 September 2009. Mr Ferris is a geologist with more than 20 years’ experience in exploration and management and holds an Honours Degree in Geology from the University of Adelaide and a Masters Degree from the Centre for Ore Deposits and Exploration Studies, University of Tasmania.

Mr Ferris brings extensive experience in adding to the value of Monax’s asset base and the execution of effective exploration programs.

Interest in Shares and Options –1,920,100 ordinary shares of Monax Mining Limited.

Mr Ian Roy Witton ASAIT, FCPA, FAICD

Alternate Director for Glenn Stuart Davis (appointed 28 January 2011; previously appointed 13 March 2009 ceased 24 June 2010) resigned 4 November 2015

Experience and expertise

Mr Witton is an independent non-executive director and has been a director for 25 years. Originally trained as an auditor, he was subsequently CEO and later Managing Director for 27 years of a licensed investment dealer developing and managing investment funds, savings, loans and a retirement village. He is also a director of a pharmacy and optical company and a public charitable trust fund. His principal experience is in funds and investment management, strategic development, risk management and corporate governance.

Former directorships in the last 3 years

Mr Witton was previously an Alternate Director of ERO Mining Limited.

Monax Mining Limited and Controlled Entities

Directors’ Report (continued)

Directors’ meetings

The Company held 14 meetings of Directors (including committees of Directors) during the financial year. The number of Directors’ meetings and number of meetings attended by each of the Directors of the Company (including committees of Directors) during the financial year were as follows:

Director Robert Michael Kennedy Glenn Stuart Davis Gary Michael Ferris Ian Roy Witton_resigned as a_ Director on 1 November 2015	Directors’ meetings Number eligible to attend Number attended 11 11 11 11 11 11 1 1	Audit, governance and remuneration committee meetings
		Number eligible to attend Number attended 3 3 3 3 - - - -

Messrs Kennedy and Davis are members of the Audit, Governance and Remuneration Committee.

Mr Witton was present in meetings in the capacity of Alternate Director.

Company Secretary

The following person held the position of Company Secretary at the end of the financial year.

Virginia Katherine Suttell – B.Comm.,ACA.,GAICD.,GradDipACG. Appointed Company Secretary and Chief Financial Officer on 21 November 2007. She is a Chartered Accountant with over 20 years’ experience working in public practice and commerce. Mrs Suttell resigned as Company Secretary on 20 January 2016.

Kaitlin Louise Smith – B.Com (Acc), CA. Ms Smith was appointed Company Secretary on 20 January 2016. Ms Smith provides the Company Secretarial and Accounting role to various public and proprietary companies. She holds a Bachelor of Commerce (Accounting) and is a Chartered Accountant.

Principal activities

The company’s principal activity is mineral exploration.

The Adelaide based mineral explorer has been successful in diversifying its portfolio, by shifting its strategic focus to gold and lithium exploration with the addition of new projects in the Northern Territory and Queensland. Monax increased its interest in the Punt Hill Copper-Gold project in South Australia, whereby during the September quarter, Monax issued 21,385,924 shares to a wholly owned subsidiary of Chilean copper producer, Antofagasta, securing 100% ownership of the Project. Monax secured $75,000 in PACE funding to pursue further drilling at Punthill, however a review of all data associated with the project is being undertaken prior to commencement.

A farm-in and JV agreement was signed with Illuka Resources during the June ‘15 quarter for the Phar-Lap project. Gravity processing and modelling was completed on the three targets surveyed in the September quarter, with a three hole diamond drill program being completed by Illuka in December.

Western Areas completed an extensive 65 hole drill program at the Western Gawler Craton Project during the September quarter, totalling 5,789m. They proceeded to undertake further exploration, exceeding the minimum expenditure required to complete stage 2 of the earn-in, hence earning them a 90% interest in the project. December saw 105 drill holes completed for 9,193m, confirming a widespread presence of mafic/ultramafic intrusive rocks throughout the tenure. Upon completion of the program, Monax negotiated a cash sale of $30,000 with WSA for their remaining interest, and withdrew from the JV.

Monax Mining Limited and Controlled Entities

Directors’ Report (continued)

Furthermore, Monax confirmed an exciting new gold project, namely Mt. Ringwood, located in the highly prospective Pine Creek area, NT. Monax undertook sampling in the area, which highlighted the prospectivity of the Great Northern and Great Western mining leases as well as the Star of the North region along the project’s western side. Over 30% of initial rock chip samples reported gold over 1g/t.

A maiden drilling program was completed in June, with 9 drill holes totalling 564m, with all 6 holes at Great Northern intersecting narrow zones of quartz. The best results came from the Great Northern area, with gold up to 8.6g/t reported over 1m. Monax plans to undertake an induced polarisation (IP) survey, to assist in defining zulphide zones along this contact zone.

Monax was granted its first Croydon tenement during the fourth quarter of FY16. The company undertook reconnaissance rock chip sampling, reporting highly encouraging results in the Vanderbilt area, with gold samples ranging from 0.43 g/t to 87.8 g/t. Additionally, gold up top 21 g/t recorded in the Lost Chance area. The company intends to complete a more detailed sampling and has a view to undertake drilling late 2016.

2016 saw Monax sign its first Lithium term sheet, which contained a reported occurrence of lithium bearing lepidolite pegmatite; with laboratory assay results confirmed 3.55% Li2O in the sample.

Operating results and financial position

During the year, the Company continued exploration activities at its tenements. Total cash expenditure on exploration and evaluation activities totalled $393,999.

The loss of the Company after providing for income tax amounted to $624,209 (2015: loss $7,136,516).

The net assets of the Group have been decreased by $75,867 during the financial year from $834,062 at 30 June 2015 to $758,194 at 30 June 2016.

Dividends

No dividends have been paid or provided by the Company since the end of the previous financial year (2015: nil).

Significant change of affairs

There have been no significant changes in the state of affairs of the Company during the year.

Matters subsequent to the end of the financial year

During July 2016, the Company completed a 1 for 2 non-renounceable rights issue to Australian and New Zealand shareholders for project exploration and working capital purposes. The issue raised $1.5M before costs.

In July 2016, the Company and Groundhog Services Partnership received re-assessments for Payroll Tax totalling $195,512 for the periods 1 July 2010 to 30 June 2015 inclusive. The Company has re-submitted an exclusion from grouping application. This amount is recorded in the notes of the financial statements as a contingent liability.

Apart from the above, there has not arisen in the interval between 30 June 2016 and the date of this report any item, transaction or event of a material and unusual nature likely, in the opinion of the Directors of the Company, to affect significantly the operations of the Company, the results of those operations, or the state of affairs of the Company, in future years.

Future developments, prospects and business strategy

The Group’s strategy is to explore for copper, gold and lithium across its portfolio of projects in South Australia, Northern Territory and Queensland.

The Board of Monax Mining Limited considers that, in the current environment of constrained capital, the best interests of shareholders in the Company will be served through a balanced approach of direct exploration by Monax and by seeking strategic alliances/joint ventures with other parties.

Monax Mining Limited and Controlled Entities

Directors’ Report (continued)

Monax is currently seeking new opportunities through the acquisition of projects which are suitable to joint venture to major companies. Monax currently has one project fully funded by a major mineral company and the company believes this is the responsible approach to assist with exploration success. Monax still retains an active interest in the Punt Hill copper-gold and will undertake suitable exploration when funding is available.

Environmental regulation and performance statement

The Company’s operations are subject to significant environmental regulations under both Commonwealth and South Australian legislation in relation to discharge of hazardous waste and materials arising from any mining activities and development conducted by the Company on any of its tenements. To date the Company has only carried out exploration activities and there have been no known breaches of any environmental obligations.

Indemnification and insurance of officers

Indemnification

The Company is required to indemnify the Directors and other officers of the company against any liabilities incurred by the Directors and officers that may arise from their position as Directors and officers of the Company. No costs were incurred during the year pursuant to this indemnity.

The Company has entered into deeds of indemnity with each Director whereby, to the extent permitted by the Corporations Act 2001, the Company agreed to indemnify each Director against all loss and liability incurred as an officer of the Company, including all liability in defending any relevant proceedings.

Insurance premiums

Since the end of the previous year the Company has paid insurance premiums in respect of Directors’ and officers’ liability and legal expenses insurance contracts.

The terms of the policies prohibit disclosure of details of the amount of the insurance cover, the nature thereof and the premium paid.

Options

At the date of this report unissued ordinary shares of Monax Mining Limited under option are:

Expiry date*	Exercise price	Number of	Vested	Unvested	Amount
		options			paid/payable by
					recipient ($)
28/07/2016**	$0.051	225,000	225,000	-	-
23/07/2017	$0.053	325,000	325,000	-	-
12/05/2020	$0.026	1,200,000	1,200,000	-	-

All options may be exercised at any time before expiry. Option holders will receive one ordinary share in the capital of the Company for each option exercised.
** Options expired on 28/07/2016.

These options do not entitle the holder to participate in any share issue of the Company or any other body corporate. There were no amounts unpaid on shares issued.

Proceedings on behalf of the Company

No person has applied to the Court 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. The Company was not a party to any such proceedings during the year.

Non-audit services

There were no non-audit services provided by the external auditors of the parent or its related entities during the year ended 30 June 2016.

Auditor of the Company

The auditor of the Company for the financial year was Grant Thornton Audit Pty Ltd.

Monax Mining Limited and Controlled Entities

Directors’ Report (continued)

Auditor’s Independence Declaration

The auditor’s independence declaration as required by section 307C of the Corporations Act 2001 for the year ended 30 June 2016 is set out immediately following the end of the Directors’ report.

Monax Mining Limited and Controlled Entities

Directors’ Report (continued)

Remuneration Report – audited

Remuneration policy

The remuneration policy of Monax Mining Limited has been designed to align key management personnel objectives with shareholder and business objectives by providing a fixed remuneration component and offering other incentives based on performance in achieving key objectives as approved by the Board. The Board of Monax Mining Limited believes the remuneration policy to be appropriate and effective in its ability to attract and retain the best key management personnel to run and manage the Company, as well as create goal congruence between directors, executives and shareholders.

The Company’s policy for determining the nature and amounts of emoluments of board members and other key management personnel of the Company is as follows.

Remuneration and Nomination

The Audit, Governance and Remuneration Committee oversees remuneration matters and makes recommendations to the Board on remuneration policy, fees and remuneration packages for non-executive directors and senior executives. Details of the committee’s members and its responsibilities are set out in the Corporate Governance Statement.

Non-executive Remuneration Policies

The Company’s Constitution specifies that the total amount of remuneration of Non-executive Directors shall be fixed from time to time by a general meeting. The current maximum aggregate remuneration of Non-executive Directors of Monax Mining Limited has been set at $300,000 per annum. Directors may apportion any amount up to this maximum amount amongst the Non-executive Directors as they determine. Directors are also entitled to be paid reasonable travelling, accommodation and other expenses incurred in performing their duties as Directors. The fees paid to NonExecutive Directors are not incentive or performance based but are fixed amounts that are determined by reference to the nature of the role, responsibility and time commitment required for the performance of the role including membership of board committees. The fees are set by the Audit, Governance and Remuneration Committee which consults independent advice from time to time.

Non-Executive Director remuneration is by way of fees and statutory superannuation contributions. Non-Executive Directors do not participate in schemes designed for remuneration of executives nor do they receive options or bonus payments and are not provided with retirement benefits other than salary sacrifice and statutory superannuation.

Executive Remuneration Policies

The remuneration of the Managing Director is determined by the Non-executive Directors on the Audit, Governance and Remuneration Committee and approved by the Board as part of the terms and conditions of his employment which are subject to review from time to time. The remuneration of other executive officers and employees is determined by the Managing Director subject to the approval of the Board. During the year the Board did not engage external remuneration consultants.

The Company’s remuneration structure is based on a number of factors including the particular experience and performance of the individual in meeting key objectives of the Company. The Audit, Governance and Remuneration Committee is responsible for assessing relevant employment market conditions and achieving the overall, long term objective of maximising shareholder benefits, through the retention of high quality personnel. The remuneration structure and packages offered to executives are summarised below:

Fixed remuneration
Short term incentive (STI) – The Company does not presently emphasise payment for results through the provision of cash bonus schemes or other incentive payments based on key performance indicators of Monax given the nature of the Company’s business as a mineral exploration entity and the current status of its activities. However the Board may approve the payment of cash bonuses from time to time in order to reward individual executive performance in achieving key objectives as considered appropriate by the Board.
Long term incentive (LTI) – equity grants, which may be granted annually at the discretion of the Board. From time to time, the Company may grant retention rights as considered appropriate by the Audit, Governance and Remuneration Committee and the Board, as a long term incentive for key management personnel. These rights are subject to shareholder approval at the Annual General Meeting in the year of grant. The intention of this remuneration is to facilitate the retention of key management personnel in order that the goals of the business and shareholders can be met. Under the terms of the issue of the retention rights, the rights will vest over a period of time, with a proportion of the rights vesting each year.
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Monax Mining Limited and Controlled Entities

Directors’ Report (continued)

Remuneration Report – audited

Executive Remuneration Policies(continued)

Long term incentive (LTI) (continued) - The Company also has an Employee Share Option Plan approved by shareholders that enables the Board to offer eligible employees options to acquire ordinary fully paid shares in the Company. Under the terms of the Plan, options to acquire ordinary fully paid shares may be offered to the Company’s eligible employees at no cost unless otherwise determined by the Board in accordance with the terms and conditions of the Plan. The objective of the Plan is to align the interests of employees and shareholders by providing employees of the Company with the opportunity to participate in the equity of the Company as an incentive to achieve greater success and profitability for the Company and to maximise the long term performance of the Company.

At this time, there is no relationship between remuneration of Key Management Personnel and the Company’s performance over the last five years. During the period no Key Management Personnel were offered a STI or LTI.

Service Agreements

Mr Ferris was appointed 1 September 2009 and his employment conditions included a three month notice period. The Managing Director’s contract may be terminated at any time by mutual agreement. The Company may terminate the contract without notice in instances of serious misconduct. The Managing Director was given 3 months’ notice of termination of employment as per the terms of his contract.

Effective 9 March 2016, the Company, executed an agreement with GMF Consulting Pty Ltd, of which Mr Ferris is a Director, to provide services as Managing Director as required.

Shares issued on exercise of remuneration options

No shares were issued to Directors as a result of the exercise of remuneration options during the financial year.

Remuneration of Directors and key management personnel

This report details the nature and amount of remuneration for each key management person of the entity and for the executives receiving the highest remuneration.

(a) Directors and key management personnel

The names and positions held by Directors and key management personnel of the entity during the financial year are:

Directors	Position
Mr RM Kennedy	Chairman – Non-executive
Mr GS Davis	Director – Non-executive
Mr GM Ferris *	ManagingDirector – Executive
Mr IR Witton_resigned as a Director_ on 1 November 2015	Alternate Director
Ms VK Suttell_resigned as Company_ Secretary on 20January 2016	Company Secretary

*Mr Ferris was appointed Managing Director of Monax Mining Limited on 1 September 2009. Pursuant to his service agreement, Mr Ferris is paid a total package of $259,560 per annum inclusive of superannuation guarantee contributions on an ongoing employment basis with a three month notice period. There were neither post-employment retirement benefits previously approved by members of the Company in a general meeting nor any paid to Directors of the Company.

Monax Mining Limited and Controlled Entities

Directors’ Report (continued)

Remuneration Report – audited

(b) Directors’ remuneration

	Short term employee benefits Long term employee benefits Share- based payments
2016 primary benefits	Directors’ fees $ Salary, fees and leave $ Super contributions $ Options/ rights $ Total $ Proportion of remuneration relating to performance
Directors Mr RM Kennedy Mr GS Davis1 Mr GM Ferris Mr IR Witton2 2015 primary benefits	38,356 - 3,644 - 42,000 - 24,000 - - - 24,000 - - 239,714 15,920 - 255,634 - - - - - - -
	62,356 239,714 19,564 - 321,634 -
	Directors’ fees $ Salary, fees and leave $ Super contributions $ Options/ rights $ Total $ Proportion of remuneration relating to performance
Directors Mr RM Kennedy Mr GS Davis1 Mr GM Ferris Mr IR Witton2	76,712 - 7,288 - 84,000 - 48,038 - - - 48,038 - - 240,777 18,783 - 259,560 - 1,826 - 174 - 2,000 -
	126,576 240,777 26,245 - 393,598 -

There were no cash bonuses paid or non-cash items in 2015 or 2016.

Director’s fees for Mr Davis are paid to a related entity of the Director.
Mr Witton received remuneration for his services as an alternate director.
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Monax Mining Limited and Controlled Entities

Directors’ Report (continued)

Remuneration Report – audited

(c) Key management personnel remuneration

	Short term	Long term	Share-based	Termination
	employee	employee	payments	Payments
	benefits	benefits
2016 primary	Fixed					Proportion of
benefits	Remuneration	Super	Options/	Termination		remuneration
	$	contributions	rights	payments	Total	relating to
		$	$		$	performance
Key management	personnel
excluding Directors
Ms VK Suttell**	73,800	-	-	-	73,800	-
	73,800	-	-	-	73,800	-
2015 primary	Fixed	Super	Options/	Termination		Proportion of
benefits	Remuneration	contributions	rights	payments	Total	remuneration
	$	$	$		$	relating to
						performance
Key management	personnel
excluding Directors
Ms VK Suttell**	110,744	10,945	1,600	29,653	152,942	-
	110,744	10,945	1,600	29,653	152,942	-

There were no cash bonuses paid in 2016 or 2015.

** Ms Suttell was appointed as a Company Secretary and Chief Financial Officer on 21 November 2007. Ms Suttell was employed by the Groundhog Services Partnership until 30 June 2015. From 1 July 2015, Ms Suttell was engaged under a service contract with C-Suite Services Pty Ltd to act as Company Secretary and Chief Financial Officer. Ms Suttell resigned on 20 January 2016 and Ms Kaitlin Smith was appointed as Company Secretary. Ms Smith is engaged under a service contract with AE Administrative Services Pty Ltd.

(d) Post-employment/retirement benefits

There were no post employment retirement benefits other than superannuation at the statutory amount paid or payable to directors and key management personnel.

(e) Share and Option holdings

(i) Share holdings

The number of shares in the company held during the financial year by each director of Monax Mining Limited and other key management personnel of the Company, including their personal related parties, are set out below. There were no shares granted during the year as remuneration.

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Monax Mining Limited and Controlled Entities

Directors’ Report (continued)

Remuneration Report – audited

Shares in Monax Mining Limited	Balance	Received	Options/	Net change	Balance	Total held in
	1/07/15	as	rights	other1	30/06/16	escrow
		remuneration	exercised			30/06/16
Held by Directors in own name
Mr RM Kennedy	-	-	-	-	-	-
Mr GS Davis	72,727	-	-	-	72,727	-
Mr GM Ferris	-	-	-	-	-	-
Mr IR Witton	-	-	-	-	-	-
	72,727	-	-	-	72,727	-
Held by Directors’ personally related
Entities
Mr RM Kennedy	6,250,001	-	-	1,500,000	7,750,001	-
Mr GS Davis	2,702,728	-	-	-	2,702,728	-
Mr GM Ferris	1,920,100	-	-	-	1,920,100	-
Mr IR Witton	248,205	-	-	(248,205)	-	-
Total held by Directors	11,193,761	-	-	1,251,795	12,445,556	-
Key management personnel excluding
Directors
Ms VK Suttell	638,727	-	-	(638,727)	-	-
Total	11,832,488	-	-	613,068	12,445,556	-

(ii) Option holdings

The number of options over ordinary shares in the company held during the financial year by each director of Monax Mining Limited and any other key management personnel of the Company, including their personal related parties are set out below.

Options in Monax	Option	Balance	Received	Options		Net change	Balance	Total	Total
Mining Limited	class	1/07/15	as	exercised		other1	30/06/16	vested	exercisable
			remun-					30/06/16	30/06/16
			eration
Held by Directors in own	name
Mr RM Kennedy		-	-		-	-	-	-	-
Mr GS Davis		-	-		-	-	-	-	-
Mr GM Ferris		-	-		-	-	-	-	-
Mr IR Witton		-	-		-	-	-	-	-
		-	-		-	-	-	-	-
Directors’ personally related entities
Mr RM Kennedy	(a)	625,001	-		-	(625,001)	-	-	-
Mr GS Davis		-	-		-	-	-	-	-
Mr GM Ferris		-	-		-	-	-	-	-
Mr IR Witton	(a)	24,821	-		-	(24,821)	-	-	-
Total held by Directors		649,822	-		-	(649,822)	-	-	-
Key management personnel
excluding Directors
Ms VK Suttell	(b)	400,000	-		-	(400,000)	-	-	-
Total		1,049,822	-		-	(1,049,822)	-	-	-

(a) Listed options expired on 29/07/2015

(b) Unlisted options exercisable at $0.026 by 12/05/2020. Refer note 18 for valuation methodology.

Net change other refers to shares/options purchased and/or sold/exercised during the financial year and shares no longer held by Directors or their related entities.
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Monax Mining Limited and Controlled Entities

Directors’ Report (continued)

Remuneration Report – audited

(f) Related Party Disclosures

During the financial year ended 30 June 2016, Monax used the legal services of DMAW Lawyers, a legal firm of which Mr Davis is a Principal. Monax paid $18,715 during the financial year (2015: $30,683) to DMAW Lawyers for legal and advisory services. As at 30 June 2016, all invoices received had been paid in full. (2015: $4,939)

During the financial year ended 30 June 2016, Monax used the consulting services of GMF Consulting Pty Ltd, a consulting firm of which Mr Ferris is a director. Monax paid $49,000 during the financial year (2015: nil) to GMF Consulting Pty Ltd for consulting services. As at 30 June 2016, all invoices received had been paid in full (2015: nil).

End of Remuneration Report

The Report of Directors, incorporating the Remuneration Report, is signed in accordance with a resolution of the Board of Directors:

Robert Michael Kennedy Director

Dated at Adelaide this 22nd day of September 2016.

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Level 1, 67 Greenhill Rd Wayville SA 5034

Correspondence to: GPO Box 1270 Adelaide SA 5001

T 61 8 8372 6666 F 61 8 8372 6677 E [email protected] W www.grantthornton.com.au

AUDITOR’S INDEPENDENCE DECLARATION TO THE DIRECTORS OF MONAX MINING LIMITED

In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the audit of Monax Mining Limited for the year ended 30 June 2016, 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.

GRANT THORNTON AUDIT PTY LTD Chartered Accountants

S K Edwards

Partner – Audit & Assurance

Adelaide, 22 September 2016

Grant Thornton Audit Pty Ltd ACN 130 913 594

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. Liability is limited in those States where a current scheme applies.

Monax Mining Limited and Controlled Entities

Consolidated Statement of Profit or Loss and Other Comprehensive Income

For the year ended 30 June 2016

	Consolidated
Note	2016 $ 2015 $
Revenue 2 Total revenue Administration expenses 3 Consulting expenses 3 Depreciation expense 3 Employment expenses 3 Occupancy expenses Service fees Impairment of assets 3 Impairment of available for sale asset Debt forgiveness Loss on disposal of available for sale asset (Loss) /profit before income tax expense Income tax (expense)/benefit 4 (Loss)/profit after income tax expense (Loss)/profit attributed to members of the parent entity Other comprehensive income Items that may be classified to profit or loss Change in fair value of available for sale assets Total other comprehensive income Total comprehensive income for the year Basic earnings per share (cents) 6 Diluted earnings per share (cents) 6	49,132 200,421
	49,132 200,421 144,214 144,422 184,030 56,181 6,051 19,764 109,518 225,208 42,064 4,004 - 153,186 169,093 6,533,494 - 161,095 - 6,447 - 2,180
	(605,838) (7,105,560) (18,371) (30,956)
	(624,209) (7,136,516)
	(624,209) (7,136,516) - 132,802
	132,802

	(624,209) (7,003,714)
	(0.025) (3.39) (0.025) (3.39)

The accompanying notes form part of these financial statements.

15 -

Monax Mining Limited and Consolidated Entities

Consolidated Statement of Financial Position

As at 30 June 2016

	Consolidated
Note	2016 $ 2015 $
Current assets Cash and cash equivalents 7 Trade and other receivables 8 Other current assets 9 Total current assets Non-current assets Plant and equipment 10 Exploration and evaluation assets 14 Investments accounted for using the equity method 11 Total non-current assets Total assets Current liabilities Trade and other payables 15 Short term provisions 16 Total current liabilities Non-current liabilities Long term provisions 16 Total non-current liabilities Total liabilities Net assets Equity Issued capital 17 Reserves 25 Retained losses Total Equity	151,368 1,071,929 36,965 55,361 7,096 13,276
	195,429 1,140,566
	24,079 46,383 701,577 180,697 - 1
	725,656 227,081
	921,085 1,367,647
	162,891 423,164 - 83,756
	162,891 506,920
	- 26,665
	- 26,665
	162,891 533,585
	758,194 834,062
	21,582,504 21,034,163 785,080 785,080 (21,609,390) (20,985,181)
	758,194 834,062

The accompanying notes form part of these financial statements.

16 -

Monax Mining Limited and Controlled Entities

Consolidated Statement of Changes in Equity

For the year ended 30 June 2016

Consolidated	Issued capital (Note 17) $ Reserves (Note 25) $ Retained losses $ Total $
Balance at 1 July 2014 Transactions with owners in their capacity as owners: Proceeds from the issue of shares during the year Fair value of options issued to employees Costs associated with the issue of shares during the year Loss attributable to members of the parent entity Other comprehensive income Total comprehensive income Balance at 30 June 2015 Transactions with owners in their capacity as owners: Proceeds from the issue of shares during the year Share Based Payments Fair value of options issued to employees Costs associated with the issue of shares during the year Loss attributable to members of the parent entity Other comprehensive income Total comprehensive income Balance at 30 June 2016	20,200,206 647,478 (13,848,665) 6,999,019
	899,152 - - 899,152 - 4,800 - 4,800 (65,195) - - (65,195)
	21,034,163 652,278 (13,848,665) 7,837,776 - - (7,136,516) (7,136,516) - 132,802 - 132,802
	- 132,802 (7,136,516) (7,003,715)
	21,034,163 785,080 (20,985,181) 834,062
	343,507 - - 343,507 247,701 247,701 - - - - (42,867) - - (42,867)
	21,582,504 785,080 (20,985,181) 1,382,403 - - (624,209) (624,209) - - - -
	- - (624,209) (624,209)
	21,582,504 785,080 (21,609,390) 758,194

The accompanying notes form part of these financial statements.

17 -

Monax Mining Limited and Controlled Entities

Consolidated Statement of Cash Flows

For the year ended 30 June 2016

	Consolidated
Note	2016 $ 2015 $
Cash flows from operating activities Cash receipts in the course of operations Cash payments in the course of operations Interest received Net cash (used in) operating activities 21(b) Cash flows from investing activities Payments for plant and equipment Payments for exploration and evaluation assets Cash call joint venture activities Proceeds from sale of plant and equipment Proceeds from sale of investments Proceeds from sale of mining tenements Loans to related entities Net cash (used in) investing activities Cash flows from financing activities Proceeds from issue of shares Payments associated with issue of shares Net cash provided by financing activities Net (decrease) in cash held Cash at the beginning of the financial year Cash at the end of the financial year 21(a)	42,035 154,168 (609,566) (629,268) 9,100 46,508
	(558,431) (428,592)
	- - (357,524) (2,468,858) (312,202) 1,526,765 7,343 - - 61,480 - 290,000 - 4,174
	(662,383) (586,439)
	343,507 899,152 (43,254) (93,135)
	300,253 806,017
	(920,561) (209,014) 1,071,929 1,280,943
	151,368 1,071,929

The accompanying notes form part of these financial statements.

18 -

Monax Mining Limited and Controlled Entities Notes to the financial statements

For the year ended 30 June 2016

1 Statement of significant accounting policies

The financial report includes the financial statements and notes of Monax Mining Limited and Consolidated Entity (‘Group’).

(a) Basis of preparation

This general purpose financial report has been prepared in accordance with Australian Accounting Standards, Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board (AASB) and the Corporation Act 2001. The Company is a for-profit entity for the purpose of preparing financial statements.

The following report covers Monax Mining Limited, a listed public company, incorporated and domiciled in Australia.

Australian Accounting Standards set out accounting policies that the AASB has concluded would result in a financial report containing relevant and reliable information about transactions, events and conditions. Compliance with Australian Accounting Standards ensures that the financial statements and notes also comply with International Financial Reporting Standards. Material accounting policies adopted in the preparation of this financial report are presented below and have been consistently applied unless otherwise stated.

The financial report has been prepared on an accruals basis and is based on historical costs, modified where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities.

(b) Principles of consolidation

The Group financial statements consolidate those of the Parent and all of its subsidiaries as of 30 June 2016. The Parent controls a subsidiary if it is exposed, or has rights, to variable returns from its involvement with the subsidiary and has the ability to affect those returns through its power over the subsidiary. All transactions and balances between Group companies are eliminated on consolidation, including unrealised gains and losses on transactions between Group companies. Where unrealised losses on intra-group asset sales are reversed on consolidation, the underlying asset is also tested for impairment from a group perspective. Amounts reported in the financial statements of subsidiaries have been adjusted where necessary to ensure consistency with the accounting policies adopted by the Group.

Profit or loss and other comprehensive income of subsidiaries acquired or disposed of during the year are recognised from the effective date of acquisition, or up to the effective date of disposal, as applicable.

(c) Income tax

The income tax expense/(benefit) for the year comprises current income tax expense/(income) and deferred income tax expense/(income).

Current income tax expense charged to the profit or loss is the tax payable on taxable income calculated using applicable income tax rates enacted at reporting date.

Deferred income tax expense reflects movements in deferred tax asset and deferred tax liability balances during the year as well as unused tax losses.

Current and deferred income tax (expense)/benefit is charged or credited directly to equity instead of the profit or loss when the tax relates to items that are credited or charged directly to equity.

19 -

Monax Mining Limited and Controlled Entities

Notes to the financial statements

For the year ended 30 June 2016

(c) Income tax (continued)

Deferred tax assets and liabilities are ascertained based on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets also result where amounts have been fully expensed but future tax deductions are available. No deferred income tax will be recognised from the initial recognition of an asset or liability, excluding a business combination, where there is no effect on accounting or taxable profit or loss.

Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or liability is settled. Deferred tax is credited in the Statement of Profit or Loss and Other Comprehensive Income except where it relates to items that may be credited directly to equity, in which case the deferred tax is adjusted directly against equity.

Deferred income tax assets are recognised to the extent that it is probable that future tax profits will be available against which deductible temporary differences can be utilised.

The amount of benefits brought to account or which may be realised in the future is based on the assumption that no adverse change will occur in income taxation legislation and the anticipation that the Company will derive sufficient future assessable income to enable the benefit to be realised and comply with the conditions of deductibility imposed by the law.

(d) Plant and equipment

Each class of plant and equipment is carried at cost or fair value less, where applicable, any accumulated depreciation and impairment losses.

Plant and equipment

Plant and equipment are measured on the cost basis less depreciation and impairment losses.

The carrying amount of plant and equipment is reviewed annually by Directors to ensure it is not in excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flows that will be received from the assets’ employment and subsequent disposal. The expected net cash flows have been discounted to their present values in determining recoverable amounts.

Depreciation

All fixed assets are depreciated on a straight line basis over their useful lives to the economic entity commencing from the time the asset is held ready for use.

The depreciation rates used for each class of depreciable assets are:

Class of fixed asset Depreciation rate Plant and equipment 5% – 33%

The asset’s residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting date.

An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are included in the Statement of Profit or Loss and Other Comprehensive Income.

(e) Exploration and evaluation expenditure

Exploration and evaluation expenditure incurred is accumulated in respect of each identifiable area of interest. These costs are only carried forward to the extent that they are 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 reserves.

Accumulated costs in relation to an abandoned area are written off in full against profit in the year in which the decision to abandon the area is made.

When production commences, the accumulated costs for the relevant area of interest are amortised over the life of the area according to the rate of depletion of the economically recoverable reserves.

20 -

Monax Mining Limited and Controlled Entities

Notes to the financial statements

For the year ended 30 June 2016

(e) Exploration and evaluation expenditure (continued)

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.

Costs of site restoration are provided over the life of the facility from when exploration commences and are included in the costs of that stage. Site restoration costs include the dismantling and removal of mining plant, equipment and building structures, waste removal and rehabilitation of the site in accordance with clauses of the mining permits. Such costs are determined using estimates of future costs, current legal requirements and technology on an undiscounted basis.

Any changes in the estimates for the costs are accounted on a prospective basis. In determining the costs of site restoration, there is uncertainty regarding the nature and extent of the restoration due to community expectations and future legislation. Accordingly, the costs are determined on the basis that the restoration will be completed within one year of abandoning the site.

(f) Leases

Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are charged as expenses in the periods in which they are incurred.

(g) Financial instruments

Initial recognition and measurement

Financial assets and financial liabilities are recognised when the entity becomes a party to the provisions to the instrument. For financial assets this is equivalent to the date that the Company commits itself to either the purchase or sale of the asset.

Financial instruments are initially measured at fair value plus transaction costs, except where the instrument is classified ‘at fair value through the profit or loss’, in which case the costs are expensed to the Statement of Profit or Loss and Other Comprehensive Income immediately.

Classification and subsequent measurement

Financial instruments are subsequently measured at either of fair value, amortised cost using the interest rate method or cost. Where available, quoted prices, in an active market are used to determine fair value.

The Company does not designate any interests in subsidiaries, associates or joint venture entities as being subject to the requirements of accounting standards specifically applicable to financial instruments:

(i) Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are subsequently measured at amortised cost. Loans and receivables are included in current assets except for those not expected to mature within 12 months after the end of the reporting period.

(ii) Financial liabilities

Non-derivative financial liabilities are subsequently measured at amortised cost.

(iii) Available for sale financial assets

Available for sale financial assets are non derivative financial assets that are either not suitable to be classified into other categories of financial assets due to their nature, or they are designated as such by management. They comprise the investments in the equity of other entities where there is neither a fixed maturity nor determinable payments.

Impairment

At each reporting date, the Group assesses whether there is objective evidence that a financial instrument has been impaired.

(h) Impairment of non-financial assets

At each reporting date, the Company reviews the carrying values of its tangible and intangible assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use, is compared to the asset’s carrying value. Any excess of the asset’s carrying value over its recoverable amount is expensed to the Statement of Profit or Loss and Other Comprehensive Income.

21 -

Monax Mining Limited and Controlled Entities

Notes to the financial statements

For the year ended 30 June 2016

(i) Employee benefits

Provision is made for the Company’s liability for employee benefits arising from services rendered by employees to reporting date. Employee benefits that are expected to be wholly settled within one year are measured at the amounts expected to be paid when the liability is settled, plus related on-costs. Employee benefits payable later than one year are measured at the present value of the estimated future cash outflows to be made for those benefits. Those cash flows are discounted using market yields on national government bonds with terms to maturity that match the expected timing of cash flows.

In determining the liability, consideration is given to employee wage increases and the probability that the employee may satisfy vesting requirements. Those cash flows are discounted using market yields on national government bonds with terms to maturity that match the expected timing of cash flows.

Equity settled compensation

The Company operates equity settled share-based payment employee share option schemes. The fair value of options is ascertained using the Black-Scholes pricing model which incorporates all market vesting conditions. The fair value of retention rights is ascertained using the binomial valuation model.

(j) Provisions

Provisions are recognised when the Company has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured.

(k) Cash and cash equivalents

Cash and cash equivalents includes cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less.

(l) Revenue

Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets.

All revenue is stated net of goods and services tax (GST).

(m) Goods and services tax

Revenues, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the amount of GST incurred is not recoverable from the Australian Tax Office (ATO). In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of the expense.

Receivables and payables are stated in the Statement of Financial Position inclusive of GST.

The net amount of GST recoverable from, or payable to, the ATO is included as a current asset or liability in the Statement of Financial Position.

Cash flows are included in the Statement of Cash Flows on a gross basis. The GST components of cash flows arising from investing and financing activities which are recoverable from, or payable to, the ATO are classified as operating cash flows.

(n) Interests in joint operations

A joint venture is an arrangement that the Group controls jointly with one or more other investors, and over which the Group has rights to a share of the arrangement’s net assets rather than direct rights to underlying assets and obligations for underlying liabilities. A joint arrangement in which the Group has direct rights to underlying assets and obligations for underlying liabilities is classified as a joint operation. Details of the Company’s interests are shown at Note 12.

(o) Investments in associates

Associate companies are companies in which the Company has significant influence through holding, directly or indirectly, 20% or more of the voting power of the company. Investments in associate companies are recognised in the financial statements by applying the equity method of accounting. The equity method of accounting recognises the initial investment at cost and adjusted thereafter for the Company’s share of post-acquisition reserves and profits/(losses) of its associates.

22 -

Monax Mining Limited and Controlled Entities Notes to the financial statements

For the year ended 30 June 2016

(p) Trade and other payables

Trade and other payables represent the liability outstanding at the end of the reporting period for goods and services received by the Company during the period which remains unpaid. The balance is recognised as a current liability with the amount being normally paid within 30 days or recognition of the liability.

(q) Earnings per share

(i) Basic earnings per share Basic earnings per share is calculated by dividing the profit 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.

(ii) Diluted earnings per share Diluted earnings 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.

(r) Comparative figures

When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year.

(s) Critical accounting estimates and judgements

The Directors evaluate estimates and judgements incorporated into the financial report based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends of economic data, obtained both externally and within the Company.

Key estimates – impairment

The Company assesses impairment at each reporting date by evaluating conditions specific to the Company that may lead to impairment of assets. Where an impairment trigger exists, the recoverable amount of the asset is determined.

The Company capitalises expenditure relating to exploration and evaluation where it is considered likely to be recoverable or where the activities have not reached a stage which permits a reasonable assessment of the existence of reserves. While there are certain areas of interest from which no reserves have been extracted, the directors are of the continued belief that such expenditure should not be written off since feasibility studies in such areas have not yet concluded.

Key judgements- exploration and evaluation expenditure

The entity capitalises expenditure relating to exploration and evaluation where it is considered likely to be recoverable or where the activities have not reached a stage which permits a reasonable assessment of the existence of reserves. While there are certain areas of interest from which no reserves have been extracted, the directors are of the continued belief that such expenditure should not be written off since feasibility studies in such areas have not yet concluded.

(t) New Accounting Standards and Interpretations

A number of new and revised standards became effective for the first time to annual periods beginning on or after 1 July 2015. Information on the more significant standard(s) is presented below.

AASB 2015-4 Amendments to Australian Accounting Standards – Financial Reporting Requirements for Australian Groups with a Foreign Parent

AASB 2015-4 amends AASB 128 Investments in Associates and Joint Ventures to ensure that its reporting requirements on Australian groups with a foreign parent align with those currently available in AASB 10 Consolidated Financial Statements for such groups. AASB 128 will now only require the ultimate Australian entity to apply the equity method in accounting for interests in associates and joint ventures, if either the entity or the group is a reporting entity, or both the entity and group are reporting entities.

AASB 2015-4 is applicable to annual reporting periods beginning on or after 1 July 2015.

The adoption of this amendment has not had a material impact on the Group.

23 -

Monax Mining Limited and Controlled Entities Notes to the financial statements

For the year ended 30 June 2016

Summary of Significant Accounting Policies

*New / revised* *pronouncement*	*Superseded*	*Nature of change*	*Effective*	*Likely impact on initial*
	*pronouncement*		*date(annual*	*application*
			*reporting periods*
			*beginning on or*
			*after...)*
AASB 9 Financial Instruments (December 2014) [Also refer to AASB 2013-9 and AASB 2014-1 below]	AASB 139 Financial Instruments: Recognition and Measurement	a Allows an irrevocable election on initial recognition to present gains and losses on investments in equity instruments that are not held for trading in other comprehensive income (instead of in profit or loss). Dividends in respect of these investments that are a return on investment can be recognised in profit or loss and there is no impairment or recycling on disposal of the instrument. b Introduces a ‘fair value through other comprehensive income’ measurement category for particular simple debt instruments. c Financial assets can be designated and measured at fair value through profit or loss at initial recognition if doing so eliminates or significantly reduces a measurement or recognition inconsistency that would arise from measuring assets or liabilities, or recognising the gains and losses on them, on different bases. d Where the fair value option is used for financial liabilities the change in fair value is to be accounted for as follows:  the change attributable to changes in credit risk are presented in Other Comprehensive Income (OCI)  the remaining change is presented in profit or loss If this approach creates or enlarges an accounting mismatch in the profit or loss, the effect of the changes in credit risk are also presented in profit or loss. Otherwise, the following requirements have generally been carried forward unchanged from AASB 139 into AASB 9:  classification and measurement of financial liabilities; and  derecognition requirements for financial assets and liabilities AASB 9 requirements regarding hedge accounting represent a substantial overhaul of hedge accounting that enable entities to better reflect their risk management activities in the financial statements.  Furthermore, AASB 9 introduces a new impairment model based on expected credit losses. This model makes use of more forward-looking information and applies to all financial instruments that are subject to impairment accounting.	1 January 2018	The entity is yet to undertake a detailed assessment of the impact of AASB 9. However, based on the entity’s preliminary assessment, the Standard is not expected to have a material impact on the transactions and balances recognised in the financial statements when it is first adopted for the year ending 30 June 2019.
AASB 1057 Application of Australian	None	In May 2015, the AASB decided to revise Australian Accounting Standards that incorporate IFRSs to minimise Australian-specific wordingeven further.	1 January 2016	When this Standard is first adopted for the year ending30June 2017, there

24 -

Monax Mining Limited and Controlled Entities

Notes to the financial statements

For the year ended 30 June 2016

Summary of Significant Accounting Policies

*New / revised* *pronouncement*	*Superseded*	*Nature of change*	*Effective*	*Likely impact on initial*
	*pronouncement*		*date(annual*	*application*
			*reporting periods*
			*beginning on or*
			*after...)*
Accounting Standards		The AASB noted that IFRSs do not contain application paragraphs that identify the entities and financial reports to which the Standards (and Interpretations) apply. As a result, the AASB decided to move the application paragraphs previously contained in each Australian Accounting Standard (or Interpretation), unchanged, into a new Standard AASB 1057 Application of Australian Accounting Standards.		will be no impact on the financial statements.
AASB 16 Leases	AASB 117 Leases Int. 4 Determining whether an Arrangement contains a Lease Int. 115 Operating Leases—Lease Incentives Int. 127 Evaluating the Substance of Transactions Involving the Legal Form of a Lease	AASB 16:  replaces AASB 117 Leases and some lease-related Interpretations  requires all leases to be accounted for ‘on-balance sheet’ by lessees, other than short-term and low value asset leases  provides new guidance on the application of the definition of lease and on sale and lease back accounting  largely retains the existing lessor accounting requirements in AASB 117  requires new and different disclosures about leases	1 January 2019	The entity is yet to undertake a detailed assessment of the impact of AASB 16. However, based on the entity’s preliminary assessment, the Standard is not expected to have a material impact on the transactions and balances recognised in the financial statements when it is first adopted for the year ending 30 June 2020.
AASB 2014-1 Amendments to Australian Accounting Standards (Part D: Consequential Amendments arising from AASB 14)	None	Part D of AASB 2014-1 makes consequential amendments arising from the issuance of AASB 14.	1 January 2016	When these amendments become effective for the first time for the year ending 30 June 2017, they will not have any impact on the entity.

25 -

Monax Mining Limited and Controlled Entities

Notes to the financial statements

For the year ended 30 June 2016

Summary of Significant Accounting Policies

*New / revised* *pronouncement*	*Superseded*	*Nature of change*	*Effective*	*Likely impact on initial*
	*pronouncement*		*date(annual*	*application*
			*reporting periods*
			*beginning on or*
			*after...)*
AASB 2014-3 Amendments to Australian Accounting Standards – Accounting for Acquisitions of Interests in Joint Operations	None	The amendments to AASB 11 state that an acquirer of an interest in a joint operation in which the activity of the joint operation constitutes a ‘business’, as defined in AASB 3 Business Combinations, should: 1 Apply all of the principles on business combinations accounting in AASB 3 and other Australian Accounting Standards except principles that conflict with the guidance of AASB 11. This requirement also applies to the acquisition of additional interests in an existing joint operation that results in the acquirer retaining joint control of the joint operation (note that this requirement applies to the additional interest only, i.e. the existing interest is not re- measured) and to the formation of a joint operation when an existing business is contributed to the joint operation by one of the parties that participate in the joint operation; and 2 Provide disclosures for business combinations as required by AASB 3 and other Australian AccountingStandards.	1 January 2016	When these amendments are first adopted for the year ending 30 June 2017, there will be no material impact on the transactions and balances recognised in the financial statements.
AASB 2014-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2014)	None	AASB 2014-7 incorporates the consequential amendments arising from the issuance of AASB 9.	1 January 2018	Refer to the section on AASB 9 above.
AASB 2014-9 Amendments to Australian Accounting Standards – Equity Method in Separate Financial Statements	None	The amendments introduce the equity method of accounting as one of the options to account for an entity’s investments in subsidiaries, joint ventures and associates in the entity’s separate financial statements.	1 January 2016	When these amendments are first adopted for the year ending 30 June 2017, there will be no material impact on the financial statements.

26 -

Monax Mining Limited and Controlled Entities

Notes to the financial statements

For the year ended 30 June 2016

Summary of Significant Accounting Policies

*New / revised* *pronouncement*	*Superseded*	*Nature of change*	*Effective*	*Likely impact on initial*
	*pronouncement*		*date(annual*	*application*
			*reporting periods*
			*beginning on or*
			*after...)*
AASB 2014-10 Amendments to Australian Accounting Standards – Sale or Contribution of Assets between an Investor and its Associate or Joint Venture	None	The amendments address a current inconsistency between AASB 10 Consolidated Financial Statements and AASB 128 Investments in Associates and Joint Ventures. The amendments clarify that, on a sale or contribution of assets to a joint venture or associate or on a loss of control when joint control or significant influence is retained in a transaction involving an associate or a joint venture, any gain or loss recognised will depend on whether the assets or subsidiary constitute a business, as defined in AASB 3 Business Combinations. Full gain or loss is recognised when the assets or subsidiary constitute a business, whereas gain or loss attributable to other investors’ interests is recognised when the assets or subsidiary do not constitute a business. This amendment effectively introduces an exception to the general requirement in AASB 10 to recognise full gain or loss on the loss of control over a subsidiary. The exception only applies to the loss of control over a subsidiary that does not contain a business, if the loss of control is the result of a transaction involving an associate or a joint venture that is accounted for using the equity method. Corresponding amendments have also been made to AASB 128. AASB 2015-10 Amendments to Australian Accounting Standards – Effective Date of Amendments to AASB 10 and AASB 128 deferred the mandatory application date of AASB 2014-10 from 1 January 2016 to 1 January 2018. Refer to the section on AASB 2015-10 below for further information.	1 January 2018	When these amendments are first adopted for the year ending 30 June 2019, there will be no material impact on the financial statements.
AASB 2015-1 Amendments to Australian Accounting Standards – Annual Improvements to Australian Accounting Standards 2012- 2014 Cycle	None	These amendments arise from the issuance of Annual Improvements to IFRSs 2012-2014 Cycle in September 2014 by the IASB. Among other improvements, the amendments clarify that when an entity reclassifies an asset (or disposal group) directly from being held for sale to being held for distribution (or vice-versa), the accounting guidance in paragraphs 27-29 of AASB 5 Non-current Assets Held for Sale and Discontinued Operations does not apply. The amendments also state that when an entity determines that the asset (or disposal group) is no longer available for immediate distribution or that the distribution is no longer highly probable, it should cease held-for-distribution accounting and apply the guidance in paragraphs 27-29 of AASB 5.	1 January 2016	When these amendments are first adopted for the year ending 30 June 2017, there will be no material impact on the financial statements.

27 -

Monax Mining Limited and Controlled Entities

Notes to the financial statements

For the year ended 30 June 2016

Summary of Significant Accounting Policies

*New / revised* *pronouncement*	*Superseded*	*Nature of change*	*Effective*	*Likely impact on initial*
	*pronouncement*		*date(annual*	*application*
			*reporting periods*
			*beginning on or*
			*after...)*
AASB 2015-2 Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB 101	None	The Standard makes amendments to AASB 101 Presentation of Financial Statements arising from the IASB’s Disclosure Initiative project. The amendments:  clarify the materiality requirements in AASB 101, including an emphasis on the potentially detrimental effect of obscuring useful information with immaterial information  clarify that AASB 101’s specified line items in the statement(s) of profit or loss and other comprehensive income and the statement of financial position can be disaggregated  add requirements for how an entity should present subtotals in the statement(s) of profit and loss and other comprehensive income and the statement of financial position  clarify that entities have flexibility as to the order in which they present the notes, but also emphasise that understandability and comparability should be considered by an entity when deciding that order  remove potentially unhelpful guidance in AASB 101 for identifying a significant accounting policy	1 January 2016	When these amendments are first adopted for the year ending 30 June 2017, there will be no material impact on the financial statements.
AASB 2015-9 Amendments to Australian Accounting Standards – Scope and Application Paragraphs	None	AASB 2015-9 inserts scope paragraphs into AASB 8 Operating Segments and AASB 133 Earnings per Share in place of application paragraph text in AASB 1057. In July and August 2015, the AASB reissued AASB 8, AASB 133 and most of the Australian Accounting Standards that incorporate IFRSs to make editorial changes. The application paragraphs in the previous versions of AASB 8 and AASB 133 covered scope paragraphs that appear separately in the corresponding IFRS 8 and IAS 33. In moving those application paragraphs to AASB 1057 when AASB 8 and AASB 133 were reissued in August, the AASB inadvertently deleted the scope details from AASB 8 and AASB 133. This amending Standard puts the scope details into those Standards, and removes the related text from AASB 1057. There is no change to the requirements or the applicability of AASB 8 and AASB 133.	1 January 2016	When this Standard is first adopted for the year ending 30 June 2017, there will be no impact on the financial statements.
AASB 2015-10 Amendments to Australian Accounting Standards – Effective Date of Amendments to AASB 10 and AASB 128	None	This Standard defers the mandatory application date of amendments to AASB 10 Consolidated Financial Statements and AASB 128 Investments in Associates and Joint Ventures that were originally made in AASB 2014-10 Amendments to Australian Accounting Standards – Sale or Contribution of Assets between an Investor and its Associate or Joint Venture so that the amendments are required to be applied for annual reporting periods beginning on or after 1 January 2018 instead of 1 January 2016.	1 January 2016	Refer to the section on AASB 2014-10 above.

28 -

Monax Mining Limited and Controlled Entities Notes to the financial statements

For the year ended 30 June 2016

Summary of Significant Accounting Policies

*New / revised* *pronouncement*	*Superseded*	*Nature of change*	*Effective*	*Likely impact on initial*
	*pronouncement*		*date(annual*	*application*
			*reporting periods*
			*beginning on or*
			*after...)*
		The amendments have been deferred as the IASB is planning to address them as part of its longer term Equity Accounting project. However, early application of the amendments is still permitted.
AASB 2016-2 Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB 107	None	AASB 2016-2 amends AASB 107 Statement of Cash Flows to require entities preparing financial statements in accordance with Tier 1 reporting requirements to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes.	1 January 2017	When these amendments are first adopted for the year ending 30 June 2018, there will be no material impact on the financial statements.

(u) Parent entity financial information

The financial information for the parent entity, Monax Mining Limited, disclosed in Note 26 has been prepared on the same basis as the consolidated financial statements, other than investments in subsidiaries and associates, which have been recorded at cost less any impairments.

(v) Authorisation for issue of financial statements

The financial statements were authorised for issue by the Board of Directors on 22[nd] September 2016.

29 -

Monax Mining Limited and Controlled Entities

Notes to the financial statements

For the year ended 30 June 2016

			Consolidated	Consolidated
			2016	2015
			$	$
2	Revenue
	Other revenues:
	From operating activities
	Interest received from other parties		7,753	48,080
	Other revenue		41,379	152,341
	Total revenue		49,132	200,421
3	Loss before income tax has been determined after
	Expenses
	Administration expenses
	ASX fees		19,250	16,515
	Share registry fees		29,333	23,844
	Insurance		27,167	19,610
	Audit and other services		27,500	26,000
	Other		40,964	58,453
			144,214	144,422
	Consulting expenses
	Legal fees		3,705	12,385
	Corporate consulting		145,649	38,346
	Accounting and secretarial services		34,675	5,450
			184,029	56,181
	Depreciation expenses
	Plant and equipment		6,051	19,764
	Employment expenses
	Salaries and wages		133,276	546,640
	Directors’ fees		62,356	134,038
	Superannuation		20,999	58,720
	Provisions		-	17,355
	Share-based payments		-	4,800
	Other		1,629	7,279
	Reallocation to exploration costs		(108,742)	(543,624)
			109,518	225,208
	Impairment of assets
	Exploration	14	169,093	6,533,494
			169,093	6,533,494

30 -

Monax Mining Limited and Controlled Entities

Notes to the financial statements

For the year ended 30 June 2016

	Consolidated 2016 $ 2015 $ - (3,015) - - (18,371) (27,941)

4 Income tax benefit/(expense) The components of tax expense comprise: Current income tax Deferred income tax Tax portion of capital raising costs Income tax benefit/(expense) reported in the statement of profit or loss and other comprehensive income The prima facie income tax on profit before income tax is reconciled to the income tax as follows: Prima facie income tax benefit/(expense) calculated at 30% on loss (2015: 30%) Tax losses utilised Tax portion of capital raising costs Unrealised gains Non-deductible impairment expense Income tax benefit/(expense) attributable to loss
	(18,371) (30,956)
	181,451 2,131,670 (92,981) (126,308) (18,371) (27,941) - - (50,728) (2,008,377)
	(18,371) (30,956)

Income tax losses
Deferred tax asset arising from carried forward tax losses
not recognised at reporting date as the asset is not regarded
as meeting the probable criteria
- tax losses at 30%	(6,365,554)	(5,735,333)
Temporary differences	(32,001)	(5,728)

31 -

Monax Mining Limited and Controlled Entities

Notes to the financial statements

For the year ended 30 June 2016

	Consolidated
	2016 $ 2015 $
5 Auditors’ remuneration Audit services: Auditors of the Company – Grant Thornton Audit and review of the financial reports	27,500 26,000
	27,500 26,000

6 Earnings per share

(a) Classification of securities

All ordinary shares have been included in basic earnings per share.

(b) Classification of securities as potential ordinary shares

225,000 unlisted options exercisable at $0.051 by 28/07/2016 325,000 unlisted options exercisable at $0.053 by 23/07/2017 1,200,000 unlisted options exercisable at $0.026 by 12/05/2020

Options granted to employees under the Monax Mining Limited Employee Share Option Plan are considered to be potential ordinary shares and have been included in the determination of diluted earnings per share to the extent to which they are dilutive.

		Consolidated	Consolidated
		2016	2015
		$	$
(c)	Earnings used in the calculation of earnings per share
	(Loss)/profit after income tax expense	(624,709)	(7,136,516)

(d) Weighted average number of shares outstanding during the year used in calculating earnings per share

Number for basic and diluted earnings per share Ordinary shares 246,546,897 210,390,263

	Consolidated
	2016 $ 2015 $
7 Cash and cash equivalents Cash at bank Deposits at call	136,368 1,056,929 15,000 15,000
	151,368 1,071,929

32 -

Monax Mining Limited and Controlled Entities

Notes to the financial statements

For the year ended 30 June 2016

8 9 10 11
	Name Principal activities Country of incorporation Shares Ownership interest Carrying amount of investment
	Unlisted 2016 2015 2016 2015
	Groundhog Services Pty Ltd Administration services Australia Ord - 50% nil 1 Groundhog Partnership Administration services n/a n/a 50% 50% - - Groundhog Services Pty Ltd was deregistered on 6 December 2015.

33 -

Monax Mining Limited and Controlled Entities Notes to the financial statements

For the year ended 30 June 2016

12 Interests in unincorporated joint operation

Monax Mining Limited has the following interests in unincorporated joint operations

No	State	Agreement Name	Parties	Summary
1	SA	Melton Joint Venture	Monax Mining Limited	MEU will have the right to explore for all minerals in the
			(MOX) and Marmota	area covered by Exploration Licences EL 5209 and EL 5122.
			Energy Limited (MEU)	MOX and MEU operate a 25:75 joint venture
2	SA	Western Areas	Monax Mining Limited	MOX gives WSA the right to explore for all minerals in the
		Limited Farm-in and	(MOX) and Western	area covered by Exploration Licences EL 5077, EL 5199 and
		Joint Venture	Areas Limited (WSA)	EL 5200. WSA has the right to earn an initial 75% interest by
		Agreement		spending $800,000 within the first year and a further 15%
				interest by expending $400,000 within 1.5 years. Upon
				reaching 90%, MOX and WSA form a joint venture with
				exploration funded pro rata (10:90)
3	SA	Iluka Resources	Monax Mining Limited	MOX gives ILU the right to explore for all minerals in the
		Limited Farm-in and	(MOX) and Iluka	area covered by Exploration Licence EL 5123. ILU has the
		Joint Venture	Resources Limited (ILU)	right to earn an initial 80% of the project by funding $2
		Agreement		million of exploration over four years with $400,000 being
				expended in the first 2 years after which ILU can withdraw at
				any time.
4	NT	Mount Ringwood	Monax Mining Limited	MOX will have the right to explore for all minerals in the
		Binding Option	(MOX) and CR & E Pty	area covered by Mining Lease ML29978. The option to
		Agreement	Ltd (CR&E)	purchase agreements allows MOX to explore the tenement
				for two years and if MOX elects to purchase the tenement
				outright, MOX will pay CR&E an agreed cash settlement.
5	NT	Mount Ringwood	Monax Mining Limited	MOX will have the right to explore for all minerals in the
		Binding Option	(MOX) and Glen Teece	area covered by Mining Leases MLN894 and MLN893. The
		Agreement	(GT)	option to purchase agreements allows MOX to explore the
				tenement for two years and if MOX elects to purchase the
				tenements outright, MOX will pay GT an agreed cash
				settlement.
6	NT	Mount Ringwood	Monax Mining Limited	MOX will have the right to explore for all minerals in the
		Binding Option	(MOX) and Wladmir	area covered by Mining Lease ML30232. The option to
		Agreement	Falko (WF)	purchase agreements allows MOX to explore the tenement
				for two years and if MOX elects to purchase the tenement
				outright, MOX will pay WF an agreed cash settlement.
7	NT	Mount Ringwood	Monax Mining Limited	MOX will have the right to explore for all minerals in the
		Binding Option	(MOX) and NT Gold	area covered by Mining Lease ML30232. The option to
		Agreement	Pty Ltd (NT)	purchase agreements allows MOX to explore the tenement
				for two years and if MOX elects to purchase the tenement
				outright, MOX will pay NT an agreed cash settlement.
8	NT	Mount Ringwood	Monax Mining Limited	MOX will have the right to explore for all minerals in the
		Farm-in Agreement	(MOX) and North	area covered by Exploration Licences EL29966 & EL29976.
			Queensland Mining	Under the farm-in deal, MOX is required to spend $200,000
			(NQM)	over 4 years to earn a 90% interest in the Exploration
				Licences. If MOX hold a 90% interest in the Exploration
				Licences, NQM can elect to contribute to future spending
				based on a 10% interest or convert its interest to a 1% NSR.
9	NT	Mount Ringwood	Monax Mining Limited	MOX will have the right to explore for all minerals in the
		Purchase Agreement	(MOX) and Newmarket	area covered by Mining Leases MLN872, MLN873,
			Gold NT Holdings Pty	MLN874, MLN875, MLN876, MLN877, MLN877,
			Ltd (NEW)	MLN878, MLN879, MLN880, MLN881, MLN882 and
				MLN883. MOX will also have to pay $100,000 cash to NEW
				upon a Decision to Mine and grant NEW a 1% NSR on any
				gold produced from the Mining Leases.

34 -

Monax Mining Limited and Controlled Entities

Notes to the financial statements

For the year ended 30 June 2016

13 Controlled entities

(a) Controlled entities consolidated

The consolidated financial statements incorporate the assets, liabilities and results of the following controlled entity in accordance with the accounting policy described in Note 1(b):

	Country of	Percentage	owned (%)
	incorporation
		2016	2015
Subsidiaries of Monax Mining Limited:
Monax Alliance Pty Ltd	Australia	100	100

14 Exploration and evaluation assets

Movement: Carrying amount at beginning of year Additional costs capitalised during the year Sale of interest Impairment of exploration asset1 Carrying amount at end of year Closing balance comprises: Exploration and evaluation - 100% owned Exploration and evaluation phase - Joint Venture	Consolidated 2016 $ 2015 $ 180,697 5,796,162 689,973 918,029 - - (169,093) (6,533,494)
	701,577 180,697
	281,371 - 420,206 180,697
	701,577 180,697

The ultimate recoupment of costs carried forward for exploration phase is dependent on the successful development and commercial exploitation or sale of the respective areas.

1 The impairment of the exploration asset in 2016 relates predominantly to the impairment within the Gawler Craton Area of Interest. The asset was impaired based on what the company believes it is readily able to explore or obtain interest in from a third party. Other areas of interest including Kangaroo Island, Bullock Creek, Oodnadatta and North Queensland due the relinquishment of tenements and suspension of future exploration.

15 Trade and other payables

Trade payables Other payables and accruals Amounts payable to Director related entities*	71,211 50,540 61,679 367,685 30,001 4,939
	162,891 423,164

Details of amounts payable to Director related entities are detailed in Note 22.
35 -

Monax Mining Limited and Controlled Entities

Notes to the financial statements

For the year ended 30 June 2016

16 Provisions

Current Employee benefits Non-current Employee benefits Provisions Opening balance at beginning of year Additional provisions Balance at end of year 17 Issued capital Issued and paid-up share capital 303,610,625 (2015: 214,073,318) ordinary shares, fully paid (a) Ordinary shares Balance at the beginning of year: Shares issued during the year: 21,385,924 Shares issued to Antofagasta for 100% interest of Punt Hill tenement 14,000,000 Share issued pursuant to resolution for cquisitiopn of option agreement to explore NT mining leases 14,550,000 shares issued under share purchase plan 39,601,386 shares issued under placement 28,158,294 (June 2015) shares issued under a non-renounceable rights issue 14,656,421 (June 2015) shares issued under placement 997 shares issued on exercise of options Less transaction costs arising from the issue of shares net of tax Balance at end of year	- 83,756
	- 26,665
	110,421 129,355 (110,421) (18,934)
	- 110,421
	Consolidated
	2016 $ 2015 $
	21,582,504 21,034,163
	21,034,163 20,200,206 149,701 98,000 145,500 198,007 - 591,324 307,786 - 42 (42,867) (65,195)
	21,582,504 21,034,163

Holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at shareholders’ meetings.

Ordinary shares have no par value and the Company does not have a limited amount of authorised capital.

In the event of winding up of the Company ordinary shareholders rank after all creditors and are fully entitled to any proceeds of liquidation.

36 -

Monax Mining Limited and Controlled Entities

Notes to the financial statements

For the year ended 30 June 2016

17 Issued capital (continued)

(b) Options/rights

For information relating to the Monax Mining Limited Employee Share Option Plan including details of any options issued, exercised and lapsed during the financial year, refer to Note 18.

No share options or share rights were issued to executive Directors during the financial year.

At 30 June 2016, there were 1,750,000 (30 June 2015: 23,156,397) unissued shares for which the following options/rights were outstanding.

225,000 unlisted options exercisable at $0.051 by 28/07/2016

325,000 unlisted options exercisable at $0.053 by 23/07/2017

1,200,000 unlisted options exercisable at $0.026 by 12/05/2020

(c) Capital Management

Management effectively manages the company’s capital by assessing the Company’s financial risks and adjusting its capital structure accordingly. These responses include share issues. There have been no changes in the strategy adopted by management to control the capital of the Company since the prior year. Capital is shown as issued capital in the Statement of Financial Position.

37 -

Monax Mining Limited and Controlled Entities

Notes to the financial statements

For the year ended 30 June 2016

18 Share-based payments

Share-based payment arrangements are in line with the Monax Mining Limited Employee Share Option plan and retention rights scheme, details of which are outlined in the directors’ report.

(i) Options

Listed below are summaries of options granted:

	2016	2015
Monax Mining Limited	Number of options Weighted average exercise price $ Weighted average remaining contractual life	Number of options Weighted average exercise price $ Weighted average remaining contractual life
Outstanding at the beginning of the year Granted Exercised Expired Lapsed Outstanding at year-end Exercisable at year-end	1,750,000 0.0342 - - - - 1,750,000 0.0342 1,044 days 1,750,000	975,000 0.0694 1,200,000 0.026 - - (425,000) 1,750,000 0.0342 1,406 days 1,750,000

On 5 March 2010, 425,000 share options were granted to employees under the Monax Mining Limited Employee Share Option Plan to take up ordinary shares at an exercise price of $0.0917 each. These options expired during the period.

On 28 July 2011, 225,000 share options were granted to employees under the Monax Mining Limited Employee Share Option Plan to take up ordinary shares at an exercise price of $0.051 each. These options are exercisable on or before 28 July 2016.

On 23 July 2012, 325,000 share options were granted to employees under the Monax Mining Limited Employee Share Option Plan to take up ordinary shares at an exercise price of $0.053 each. These options are exercisable on or before 23 July 2017.

On 12 May 2015, 1,200,000 share options were granted to employees under the Monax Mining Limited Employee Share Option Plan to take up ordinary shares at an exercise price of $0.026 each. These options are exercisable on or before 12 May 2020.

The options are non-transferable except as allowed under the Monax Mining Limited Employee Share Option Plan and are not quoted securities. At reporting date, no share options had been exercised.

All options granted to executive directors and key management personnel are over ordinary shares in Monax Mining Limited which confer a right of one ordinary share for every option held. The life of the options is based on the days remaining until expiry.

The options hold no voting or dividends rights and are unlisted. The options lapse six months subsequent to the cessation of employment with the Company. There are no vesting conditions attached to the options.

38 -

Monax Mining Limited and Controlled Entities

Notes to the financial statements

For the year ended 30 June 2016

18 Share-based payments (continued)

The fair value of the options granted was calculated by using the Black-Scholes option pricing model applying the following inputs.

	May	July	July	March
	2015	2012	2011	2010
Weighted average fair value (Black-	$0.004	$0.055	$0.05	$0.085
Scholes)
Weighted average exercise price	$0.026	$0.053	$0.051	$0.0917
Weighted average life of the option	1,826 days	1,826 days	1,826 days	1,825 days
Underlying share price	$0.01	$0.06	$0.06	$0.10
Expected share price volatility	78%	152%	113%	122%
Risk free interest rate	2.0%	2.27%	4.25%	4.00%

The life of the options is based on the days remaining until expiry. Volatility is based on historical share prices.

Expenses arising from share-based payment transactions

Total expenses arising from share-based payment transactions recognised during the period as part of employee benefits expense were as follows:

	Consolidated
	2016 $ 2015 $
Options issued under employee option plan	- 4,800

39 -

Monax Mining Limited and Controlled Entities

Notes to the financial statements

For the year ended 30 June 2016

19 Financial risk management

The Company’s financial instruments consist mainly of deposits with banks, accounts receivable and payable.

The totals for each category of financial instruments, measured in accordance with AASB 139 as detailed in the accounting policies to these financial statements, are as follows:

policies to these financial statements, are as follows:
	Consolidated
	2016 $ 2015 $
Financial assets Cash and cash equivalents Loans and receivables Available for sale investments Financial liabilities Trade and other payables	151,368 1,071,929 36,965 55,361 - -
	188,333 1,127,290
	162,891 423,164
	162,891 423,164

Financial risk management policies

The Board of Directors are responsible for monitoring and managing financial risk exposures of the Company.

Specific financial risk exposures and management

The main risks the Company is exposed to includes liquidity risk, credit risk and interest rate risk.

(a)

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 the 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.

(b) Credit risk exposures

Credit risk represents the loss that would be recognised if counterparties failed to perform as contracted.

The maximum exposure to credit risk on financial assets, excluding investments, of the entity which have been recognised in the Statement of Financial Position, is the carrying amount, net of any provision for doubtful debts.

No receivables are considered past due or impaired at reporting date.

(c)

Interest rate risk

Exposure to interest rate risk arises on financial assets and liabilities recognised at reporting date whereby a future change in interest rates will affect future cash flows or the fair value of fixed rate financial instruments .

The company has no long term financial liabilities upon which it pays interest. Cash is held in an interest yielding cheque account and on short term call deposit where the interest rate is both fixed and variable according to the financial asset.

Interest rate risk is managed with a mixture of fixed and floating rate cash deposits. At 30 June 2016 approximately 9.9% of Company deposits are fixed.

40 -

Monax Mining Limited and Controlled Entities

Notes to the financial statements

For the year ended 30 June 2016

19 Financial risk management (continued)

(c) Interest rate risk (continued)

Interest rate

The Company has performed a sensitivity analysis relating to its exposure to interest rate risk at reporting date. This sensitivity analysis demonstrates the effect on the current year results and equity which could result from a change in these risks. It should be noted that the company does not have borrowings and any impacts would be in relation to deposit yields on cash investments.

Interest rate sensitivity analysis

At reporting date, the effect on loss and equity as a result of changes in the interest rate, with all other variables remaining constant would be as follows:

constant would be as follows:
	Consolidated
	2016 $ 2015 $
Change in loss Increase in interest rates by 2% Decrease in interest rates by 2% Change in equity Increase in interest rates by 2% Decrease in interest rates by 2%	3,027 21,439 (3,027) (21,439) 3,027 21,439 (3,027) (21,439)

20 Commitments and contingent liabilities

(a) Exploration expenditure commitments

In order to maintain current rights of tenure to exploration tenements, the entity will be required to outlay in the year ending 30 June 2017 amounts of approximately $572,500 (2016: $1,132,500) to meet minimum expenditure requirements pursuant to various joint venture requirements and those specified by the State Government of South Australia. These obligations are subject to renegotiation when application for a mining lease is made and at other times. The Company will continue to review its tenement holdings and make the appropriate elections regarding maintaining the tenure of tenements through financial commitment during the licence period. These obligations are not provided for in the financial report.

(b) Operating lease commitments

In July 2013, Monax Mining Limited entered into a non-cancellable operating lease for a two year period for office and warehouse accommodation.

	Minimum leasepayments due
	Within 1 year 1 to 5 years After 5 years Total $ $ $ $
June 2016 June 2015	- - - - 15,045 - - 15,045

(c) Contingent liabilities

As at 30 June 2016, there was a contingent liability totalling $195,512 being a re-assessment for Payroll Tax under the Payroll Tax Act 1971 from 1 July 2010 to 30 June 2015. The liability is contingent on a determination from Revenue SA for a resubmission of an exclusion from grouping provisions application.

(a) Bank Guarantees

The Group has negotiated a bank guarantee in favour of a service provider. The total nominal amount of this guarantee at the reporting date is $15,000 (2015: $15,000). This bank guarantee is fully secured by cash on term deposit.

41 -

Monax Mining Limited and Controlled Entities

Notes to the financial statements

For the year ended 30 June 2016

21 Notes to the statement of cash flows

Note	Consolidated
	2016 $ 2015 $
(a) Cash at the end of the financial year consists of the following: Cash at bank and at call 7 151,368 1,071,929 151,368 1,071,929 (b) Reconciliation of profit after income tax to net cash outflow from operating activities Loss after income tax (624,709) (7,136,516) Add/(less) non cash items Depreciation 6,051 19,764 Share-based payments 4,800 Impairment of available for sale asset - 161,095 Impairment of exploration asset 169,093 6,533,494 Loss/(Gain) on disposal of available for sale asset - 2,180 Tax effect of capital raising costs 18,871 27,941 Changes in operating assets and liabilities (Increase)/decrease in other assets 6,180 4,885 (Increase)/decrease in trade and other receivables 18,396 297,846 (Decrease)/increase in trade and other payables (41,891) (325,147) (Decrease)/increase in provisions (110,421) (18,934) Net cash (used in) operating activities (558,430) (428,592)	151,368 1,071,929
	151,368 1,071,929

22 Related parties

Directors’ transactions with the Company

A number of Directors of the Company, or their Director related entities, held positions in other entities during the financial year that result in them having control or significant influence over the financial or operating policies of those entities.

The terms and conditions of the transactions with Directors and their Director related entities were no more favourable to the Directors and their Director related entities than those available, or which might reasonably be expected to be available, on similar transactions to Non-director related entities on an arm’s length basis.

42 -

Monax Mining Limited and Controlled Entities

Notes to the financial statements

For the year ended 30 June 2016

22 Related parties (continued)

The aggregate amounts recognised during the year (excluding re-imbursement of expenses incurred on behalf of the Company) relating to Directors and their Director related entities were as follows:

			Consolidated	Consolidated
Director	Transaction	Note	2016	2015
			$	$
GS Davis	Payments to an entity of which
	the Director is a partner in
	respect of legal fees		18,715	30,683
RM Kennedy and	Payments to a Director related	(i)
GS Davis	entity for exploration and joint
	logistics.		-	14,159
GM Ferris	Payments to a Director related	(ii)
	entity for administration
	services.		-	185,176
GM Ferris	Payments to a Director related	(iii)
	entity for administration
	services.		49,000	-

(i) This amount relates to the exploration undertaken on behalf of Monax Mining Limited by Marmota Energy Limited for access and participation in projects in South Australia.

(ii) This amount relates to the provision of administration and logistical services by Groundhog Services Pty Ltd and Groundhog Services Partnership.

(iii) This amount relates to the provision of services to act as Managing Director by GMF Consulting Pty Ltd.

Amounts receivable from and payable to Directors and their Director related entities at reporting date arising from these transactions were as follows:

Amounts receivable from and payable to Directors and transactions were as follows:	their Director related entitie
	Consolidated
Current payables Amounts payable to related parties*	2016 $ 2015 $ 30,001 4,939
	30,001 4,939

Amounts payable to associates represents amounts payable to DMAW Lawyers. Amounts payable to associates represents amounts payable to GMF Consulting Pty Ltd.

Refer to the Remuneration Report contained in the Directors’ Report for details of the remuneration paid or payable to each member of the Company’s key management personnel for the year ended 30 June 2016. The totals of remuneration paid to key management personnel during the year are as follows:

	Consolidated
	2016	2015
	$	$
Short term employee benefits	375,870	479,697
Post employment benefits	19,564	37,190
Other long term benefits	-	-
Termination benefits	-	29,653
Share-based payments	-	-
	395,434	546,540

43 -

Monax Mining Limited and Controlled Entities

Notes to the financial statements

For the year ended 30 June 2016

23 Operating segments

Segment information

Description of segments

AASB 8 requires operating segments to be identified on the basis of internal reports about components of the entity that are regularly reviewed by the chief operating decision maker in order to allocate resources to the segment and to assess its performance. The entity has identified its operating segments to be Gawler Craton, Kangaroo Island, North Queensland, Bullock Creek and Oodnadatta based on different geological regions and the similarity of assets within those regions. This is the basis on which internal reports are provided to the Board of Directors for assessing performance and determining the allocation of resources within the entity.

The entity operates primarily in one business, namely the exploration of minerals.

Basis of accounting for purposes of reporting by operating segment

Accounting policies adopted

Unless stated otherwise, all amounts reported to the Board of Directors, being the chief operating decision maker with respect to operating segments, are determined in accordance with accounting policies that are consistent to those adopted in the annual financial statements of the Company.

Details of the performance of each of these operating segments for the financial years ended 30 June 2016 and 30 June 2015 are set out below:

44 -

Monax Mining Limited and Controlled Entities

Notes to the financial statements

For the year ended 30 June 2016

23 Operating segments (continued)

(i) Segment performance

Segment revenue Segment results Gross segment result before depreciation, amortisation and impairment Depreciation and amortisation Loss on disposal of tenement Impairment Interest income Other income Gain on disposal of available for sale asset Impairment of available for sale asset Other expenses Loss before tax Income tax benefit/(expense) Loss after tax	Gawler Craton Kangaroo Island North Queensland Bullock Creek Oodnadatta Total 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 2016 2015 $ $ $ $ $ $ $ $ $ $ $ $ 41,379 148,392 - - - - - - - - 41,379 148,392 41,379 148,392 - - - - 41,379 148,392 - - - - - - - - - - - - - - - - (110,370) (5,633,826) (23,726) (876,373) (8,944) (23,296) (24,457) - (1,596) - (169,093) (6,533,495)
	(68,991) (5,188,342) (23,726) (876,373) (8,944) (23,296) (24,457) - (1,596) - (127,714) (6,385,103) - - - - - - 7,753 48,080 - - - - - - - 3,949 - - - - - - - (2,180) - - - - - - - (161,095) - - - - - - (485,876) (609,211)
	(68,991) (5,188,342) (23,726) (876,373) (8,944) (23,296) (24,457) - (1,596) - (605,837) (7,105,560) - - - - - - (18,871) (30,956)
	(68,991) (5,188,342) (23,726) (876,373) (8,944) (23,296) (24,457) - (1,596) - (624,708) (7,136,516)

45 -

Monax Mining Limited and Controlled Entities

Notes to the financial statements

For the year ended 30 June 2016

23 Operating segments (continued)

(ii) Segment assets	(ii) Segment assets
	Gawler	Craton	Kangaroo Island		North Queensland		Bullock	Creek	Oodnadatta		Mt Litchfield		Croydon		Mount		Total
															Ringwood
	2016	2015	2016	2015	2016	2015	2016	2015	2016	2015	2016	2015	2016	2015	2016	2015	2016	2015
	$	$	$	$	$	$	$	$	$	$	$	$	$	$	$	$	$	$
Segment assets	416,619	180,697	-	-	3,588	-	-	-	-	-	6,050	-	18,550	-	256,770	-	701,577	180,697
Segment asset
increases for the
year:
Capital
expenditure
	346,292	445,484	23,726	451,554	12,532	20,991	24,457	-	1,596	-	6,050	-	18,550	-	256,770	-	689,973	918,029
Sale of tenement	-	-	-	-	-	-											-	-
	-		-	-	-	-											-	-
Impairment	(110,370)	(5,633,826)	(23,726)	(876,373)	(8,944)	(23,296)	(24,457)	-	(1,596)	-	-	-	-	-	-	-	(169,093)	(6,533,495)
	235,922	(5,188,342)	-	(424,819)	3,588	(2,305)	-	-	-	-	6,050	-	18,550	-	256,770	-	520,880	(5,615,466)
Reconciliation of
segment assets to
company assets
Cash and cash	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	151,368	1,071,929
equivalents
Trade and other	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	20,490	55,361
receivables
Other current		-
assets	-		-	-	-	-	-	-	-	-	-	-	-	-	-	-	7,096	13,276
Plant and		-
equipment	-		-	-	-	-	-	-	-	-	-	-	-	-	-	-	24,079	46,383
Investment in	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	1	1
associates
Total assets	416,619	180,697	-	-	3,588	-	-	-	-	-	6,050	-	18,550	-	256,770	-	904,611	1,367,647

46 -

Monax Mining Limited and Controlled Entities

Notes to the financial statements

For the year ended 30 June 2016

23 Operating segments (continued)

(iii) Segment liabilities	(iii) Segment liabilities
	Gawler Craton		Kangaroo	Island	North	Queensland	Bullock	Creek	Mt Litchfield		Croydon		Mount			Total
													Ringwood
	2016	2015	2016	2015	2016	2015	2016	2015	2016	2015	2016	2015	2016	2015	2016		2015
	$	$	$	$	$	$	$	$	$	$	$	$	$	$	$		$
Segment	-	24,819	-	234	-	156	4,023	-	6,105	-	7,334	-	33,545	-	51,007		25,209
liabilities
Reconciliation of
segment liabilities
to company
liabilities
Trade and other
payables
	-	-	-	-	-	-	-	-	-	-	-	-	-	-	95,409		397,956
Short term	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-		83,756
provisions
Long term	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-		26,665
provisions
Total liabilities	-	24,819	-	234	-	156	4,023	-	6,105	-	7,334	-	33,545	-	146,416		533,586

47 -

Monax Mining Limited and Controlled Entities

Notes to the financial statements

For the year ended 30 June 2016

24 Events subsequent to reporting date

Other than the matters noted above, there has not arisen in the interval any matters or circumstances, since the end of the financial year which significantly affected or could affect the operations of the Company, the results of those operations, or the state of the Company in future years.

25 Reserves

Share options reserve - recording items recognised as expenses on valuation of employee share options and share rights, and the revaluation of associate entity fair value.

Available for sale reserves – comprises gains and losses relating to these types of financial instruments.

	Consolidated
	2016 $ 2015 $
Reserves Share option reserve Opening balance at beginning of year Fair value of options issued under the employee share option plan Balance at end of year Available for sale reserve Opening balance at beginning of year Revaluation of available for sale asset Sale of available for sale asset Balance at end of year Total Reserves	785,080 780,280 - 4,800
	785,080 785,080
	- (132,802) - - - 132,802 - -

	785,080 785,080

48 -

Monax Mining Limited and Controlled Entities

27 Fair value measurement of assets and liabilities

Notes to the financial statements

For the year ended 30 June 2016

26 Monax Mining Limited company information

Parent entity Assets Current assets Non-current assets Total assets Liabilities Current liabilities Non-current liabilities Total liabilities Equity Issued capital Retained losses Available for sale reserve Share-based payments reserve Total equity Financial performance Loss for the year Other comprehensive income Total comprehensive income Guarantees in relation to the debts of subsidiaries Contingent liabilities Contractual commitments	2016 2015 $ $ 177,126 915,703 725,656 227,080
	902,782 1,142,783
	135,543 282,376 56,838 26,665
	192,381 309,041
	21,582,504 21,034,163 (21,657,183) (20,985,501) - - 785,080 785,080
	710,401 833,742
	(671,682) (7,134,989) - 132,802
	(671,682) (7,002,187)
	- - 195,512 - - 15,045

Fair value hierarchy

AASB 13 requires disclosure of fair value measurements by level of the following fair value hierarchy:

(a) Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1)
(b) Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly (level 2), and
(c) Inputs for the asset or liability that are not based on observable market data (unobservable inputs) (level 3)

All financial instruments were valued using level 1 valuation techniques. There were no changes in valuation techniques for financial instruments in the period. Available for sale financial assets are measured at fair value using the closing price on the reporting dates as listed on the Australian Securities Exchange limited (ASX). The carrying value of trade receivables and payables are assumed to approximate their fair values due to their short term nature. All assets subject to Fair Value measurement were sold during the year.

49 -

Monax Mining Limited and Controlled Entities

Notes to the financial statements

For the year ended 30 June 2016

28 Company details

The registered office of the Company is:

139 Greenhill Road UNLEY SA 5061

The principal place of business is

Level 3, 100 Pirie Street ADELAIDE SA 5000

50 -

Monax Mining Limited

Directors’ declaration

For the year ended 30 June 2016

Directors’ declaration

1 The Directors of Monax Mining Limited declare that:
(a) the financial statements and notes, as set out on pages 14 to 50, are in accordance with the Corporations Act 2001, and:
- (i) give a true and fair view of the financial position as at 30 June 2016 and of the performance for the year ended on that date of the entity; and
- (ii) comply with Accounting Standards; and
- (iii) Monax Mining Limited complies with International Financial Reporting Standards as described in Note 1.
(b) The Chief Executive Officer and Chief Financial Officer have declared that:
- (i) The financial records of the Company for the financial year have been properly maintained in accordance with s286 of the Corporations Act 2001;
- (ii) The financial statements and notes for the financial year comply with the accounting standards; and
- (iii) The financial statement and notes for the financial year give a true and fair view;
(c) In the directors’ opinion, there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

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

Dated at Adelaide this 22nd day of September 2016.

Robert Michael Kennedy Director

51 -

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Level 1, 67 Greenhill Rd Wayville SA 5034 Correspondence to: GPO Box 1270 Adelaide SA 5001 T 61 8 8372 6666 F 61 8 8372 6677 E [email protected] W www.grantthornton.com.au

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF MONAX MINING LIMITED

Report on the Financial Report

We have audited the accompanying financial report of Monax Mining Limited (the “Company”), which comprises the consolidated statement of financial position as at 30 June 2016, the consolidated statement of profit or loss and other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information and the directors’ declaration of the consolidated entity comprising the Company and the entities it controlled at the year’s end or from time to time during the financial year.

Directors’ Responsibility 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. The Directors’ responsibility also includes 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. The Directors also state, in the notes to the financial report, in accordance with Accounting Standard AASB 101 Presentation of Financial Statements, the financial statements comply with International Financial Reporting Standards.

Auditor’s Responsibility

Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. Those standards require us to comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement.

Grant Thornton Audit Pty Ltd ACN 130 913 594

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. Liability is limited in those States where a current scheme applies.

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An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error.

In making those risk assessments, the auditor considers internal control relevant to the Company’s preparation of the financial report that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Directors, as well as evaluating the overall presentation of the financial report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Independence

In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001.

Auditor’s Opinion

In our opinion:

a the financial report of Monax Mining Limited is in accordance with the Corporations Act 2001, including:
i giving a true and fair view of the consolidated entity’s financial position as at 30 June 2016 and of its performance for the year ended on that date; and
ii complying with Australian Accounting Standards and the Corporations Regulations 2001; and
b the financial report also complies with International Financial Reporting Standards as disclosed in the notes to the financial statements.

Report on the Remuneration Report

We have audited the remuneration report included in the directors’ report for the year ended 30 June 2016. 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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Auditor’s Opinion on the Remuneration Report

In our opinion, the remuneration report of Monax Mining Limited for the year ended 30 June 2016, complies with section 300A of the Corporations Act 2001.

GRANT THORNTON AUDIT PTY LTD Chartered Accountants

S K Edwards Partner – Audit & Assurance

Adelaide, 22 September 2016

AI assistant

FireFly Metals Ltd. — Annual Report 2016

48548_rns_2016-09-25_d491e389-ccd5-450b-96d6-0cb58103f58e.pdf

Monax Mining Limited

ABN 96 110 336 733

CORPORATE DIRECTORY

Monax Mining Limited and Controlled Entities

Directors’ Report

Directors

Mr Robert Michael Kennedy KSJ, ASAIT, Grad Dip (Systems Analysis), Dip Financial Planning, Dip Financial Services, FCA, AGIA, Life Member AIM, FAICD, FTI

Experience and expertise

Other current directorships in the last 3 years

Former directorships in the last 3 years

Special Responsibilities

Mr Glenn Stuart Davis LLB, BEc , FAICD

Experience and expertise

Other current directorships

Former directorships in the last 3 years

Responsibilities

Monax Mining Limited and Controlled Entities

Directors’ Report (continued)

Mr Gary Michael Ferris BSc (Hons), AusIMM.,GAICD

Experience and expertise

Mr Ian Roy Witton ASAIT, FCPA, FAICD

Experience and expertise

Former directorships in the last 3 years

Monax Mining Limited and Controlled Entities

Directors’ Report (continued)

Directors’ meetings

Company Secretary

Principal activities

Monax Mining Limited and Controlled Entities

Directors’ Report (continued)

Operating results and financial position

Dividends

Significant change of affairs

Matters subsequent to the end of the financial year

Future developments, prospects and business strategy

Monax Mining Limited and Controlled Entities

Directors’ Report (continued)

Environmental regulation and performance statement

Indemnification and insurance of officers

Indemnification

Insurance premiums

Options

Proceedings on behalf of the Company

Non-audit services

Auditor of the Company

Monax Mining Limited and Controlled Entities

Directors’ Report (continued)

Auditor’s Independence Declaration

Monax Mining Limited and Controlled Entities

Directors’ Report (continued)

Remuneration Report – audited

Remuneration policy

Remuneration and Nomination

Non-executive Remuneration Policies

Executive Remuneration Policies

Monax Mining Limited and Controlled Entities

Directors’ Report (continued)

Remuneration Report – audited

Executive Remuneration Policies(continued)

Service Agreements

Shares issued on exercise of remuneration options

Remuneration of Directors and key management personnel

(a) Directors and key management personnel

Monax Mining Limited and Controlled Entities

Directors’ Report (continued)

Remuneration Report – audited

(b) Directors’ remuneration

Monax Mining Limited and Controlled Entities

Directors’ Report (continued)

Remuneration Report – audited

(c) Key management personnel remuneration

(d) Post-employment/retirement benefits

(e) Share and Option holdings

Monax Mining Limited and Controlled Entities

Directors’ Report (continued)

Remuneration Report – audited

(ii) Option holdings

FireFly Metals Ltd. Annual Report 2016