FireFly Metals Ltd. — Interim / Quarterly Report 2022

Mar 13, 2022

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INTERIM FINANCIAL REPORT

FOR THE HALF YEAR ENDED 31 DECEMBER 2021

INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2021

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CORPORATE DIRECTORY

Auteco Minerals Ltd

ACN 110 336 733 ABN 96 110 336 733

Securities Exchange Listing

ASX Code: AUT

Share Registry

Executive Chairman

Ray Shorrocks

Non-Executive Directors

Stephen Parsons Michael Naylor

Chief Operating Officer

Darren Cooke

Company Secretary

Nicholas Katris

Computershare Investor Services Pty Limited Level 11, 172 St Georges Terrace Perth, WA 6000

T: 1300 850 505 T: +61 3 9415 4000 (International) W: www.computershare.com.au Investor Centre: www.investorcentre.com

Legal Adviser

Hamilton Locke Australia Square Level 42, 264 George Street Sydney NSW 2000

Registered and Principal Office

Ground Floor, 24 Outram Street West Perth, Western Australia 6005 T: +61 8 9220 9030 E: info@autecominerals.com

W: www.autecominerals.com

Auditor

Ernst & Young 11 Mounts Bay Road Perth, WA 6000

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INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2021

CONTENTS

DIRECTORS' REPORT ....................................................................................... 3 BOARD OF DIRECTORS ............................................................................... 3 PRINCIPAL ACTIVITIES ................................................................................ 3 REVIEW OF OPERATIONS ........................................................................... 3 CORPORATE ................................................................................................. 7 EVENTS AFTER THE REPORTING DATE ................................................... 8 AUDITOR’S INDEPENDENCE DECLARATION ............................................ 8 AUDITOR'S INDEPENDENCE DECLARATION .............................................. 10 INTERIM FINANCIAL STATEMENTS .............................................................. 11 INTERIM CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME ................................................ 12 INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION ...... 13 INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY ...... 14 INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS ................... 15 NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS 16 DIRECTORS' DECLARATION ......................................................................... 22 INDEPENDENT AUDITOR'S REVIEW REPORT ............................................. 23

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INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2021

DIRECTORS' REPORT

The directors' of AuTECO Minerals Ltd ("Auteco" or "the Company") and its controlled entities (collectively, the Group) present their half year report together with the interim financial statements of the Group for the half year period ended 31 December 2021.

BOARD OF DIRECTORS

The Directors of the Company in office during the half year and until the date of this report are set out below. Directors were in office for the entire period unless otherwise stated.

Ray Shorrocks

(Executive Chairman)

Stephen Parsons

(Non-executive Director)

Michael Naylor

(Non-executive Director)

PRINCIPAL ACTIVITIES

The principal activities of the Company during the period consisted of mineral exploration and evaluation at the Pickle Crow Gold Project in Ontario, Canada.

REVIEW OF OPERATIONS

PICKLE CROW PROJECT

Auteco's Pickle Crow Gold Project is located in the world-class tier 1 mining jurisdiction of Ontario, Canada.

Geologically, the project is set within the Uchi sub-province of the Archean Superior Craton. The Uchi subprovince has an endowment exceeding 40Moz of gold, hosting significant deposits including Red Lake (Evolution Mining), Madsen (Pure Gold), Springpole (First Mining) and the emerging Dixie discovery (Great Bear).

The Auteco land holding encompasses the high-grade Pickle Crow gold mine that produced 1.5Moz of gold at grade of 16.1g/t between 1935 and 1966, making it one of Canada's highest-grade historical gold mines.

Following the recent consolidation of tenure, Auteco has embarked on the first systematic camp-scale exploration program undertaken in the northern Pickle Crow district.

STRATEGIC WORK PLAN

Based on the outstanding results achieved in the mid-year 2021 Resource update, the board of Auteco approved an additional 50,000 metres of drilling that commenced in June 2021. The key strategic objectives of the drill program (Figure 1) demonstrate Auteco's continued commitment to the dual pathways of driving near-mine Resource growth combined with early-stage exploration and discovery drilling on the 500 square kilometres of regional tenure.

To date ~42,000 metres of the current program has been drilled, with the final 8,000 metres of the program forecast to be completed in March 2022. There are currently 5 diamond drill rigs on site taking advantage of favourable drill access conditions over the Canadian winter.

The initial focus of program was on near mine discovery, extension and infill drilling that was used to calculate the Resource estimate as at 31 December 2021.

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INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2021

Focus has now shifted to the regional targeting, with three of the five active drill rigs testing targets outside of the Resource area. Results from the regional campaign are expected in the June quarter.

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Figure 1: Current Auteco strategic work plan and key objectives from July 2021 until the release of the year end Resource update in February 2022. Please note that time frames are indicative.

MINERAL RESOURCE UPDATE

A Mineral Resource update was released in February 2022. Since September 2020, Auteco has added 1.2Moz of inferred resource at a discovery cost of A$17.58 per resource ounce, upgrading the project significantly. The Inferred Resource has increased by 514,000oz to 2.23Moz at 7.8 g/t gold[1] resulting in a 30% increase in just 6 months. This comprises of both a high-grade quartz vein component that has increased to 1.92Moz at 9.3 g/t and a broader near-surface alteration / banded iron hosted mineralisation style that contains 304,000oz at a grade of 3.8 g/t.

Table 1: Auteco Inferred Mineral Resource Estimate as at 31 December 2021. Note that all numbers are rounded.

Table 1:AutecoInferred Miner	al Resource Es	timate as at 3	1 December 2021.	Note that all num	bers are rounded.
Mineralisation Domain	Lower Cut-off	Tonnes (Mt)	Gold Grade (g/t)	Gold (Million oz)	Variance to 30 June 2021 Resource
Quartz Lodes	3.5g/t	6.4	9.3	1.92	+0.45Moz
Alteration Hosted (BIF)	2.0g/t	2.5	3.8	0.30	+0.06Moz
TOTAL		8.9	7.8	2.23	+0.51Moz (+30%)

1 As announced on 15 February 2022, Resource Grows to 2,230,000oz at 7.8 g/t gold. Gold at Pickle Crow. Auteco confirms that it is not aware of any new information or data that materially affects the information included in the original announcement and that all material assumptions and technical parameters underpinning the estimates in the announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Persons’ findings are presented have not been materially modified from the original market announcement.

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INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2021

KEY DRILLING RESULTS – PROGRAM OVERVIEW

The December 2021 Resource update was the culmination of the highly successful drill campaign undertaken by Auteco in the near-mine area at Pickle Crow. At the time of the Resource data cut-off in early December 2021, a total of 29,883 metres of drilling had been completed and utilised to inform the revised Resource estimate.

Results of the drilling have been regularly released to keep the market fully informed of progress (see ASX Releases dated 15 July 2021, 2 August 2021, 5 October 2021, 2 December 2021 and 18 January 2022).

During the current campaign, exceptional progress has been made in the discovery and extension of highgrade quartz vein lodes. Historical production at Pickle Crow from the quartz vein style of mineralisation totalled 1.5Moz at 16.1 g/t gold. Highlights reported during the current 50,000 metre campaign include, but are not limited to:

• 1.8m @ 21.2 g/t gold from 838m in hole AUDD0166W1 (15 July 2021)

• 3.3m @ 15.9 g/t gold from 31.8m in hole PG-G03A (2 August 2021)

• 2.8m @ 17.9 g/t gold from 578.3m in hole AUDD0173 (5 October 2021)

• 1.0m @ 30.1 g/t gold from 546m in hole AUDD0152 (5 October 2021)

• 2.0m @ 68.3 g/t gold from 470.7m in hole AUDD0200 (2 December 2021)

• 2.1m @ 31.8 g/t gold from 246.4m in hole AUDD0229 (2 December 2021)

• 4.1m @ 11.2 g/t gold from 423.8m in hole AUDD0200 (2 December 2021)

• 7.3m @ 33.3 g/t gold from 9.4m in AUDD0246 (18 January 2022)

• 1.5m @ 35.2 g/t gold from 541.5m in AUDD0227 (18 January 2022)

• 4.0m @ 11.0 g/t gold from 205.8m in AUDD0240 (18 January 2022)

Auteco has recognised the significance of alteration hosted mineralisation in the Pickle Crow district that is typically expressed as broad zones of sulphides within reactive host rocks (typically Banded Iron Formation and lesser Porphyry). This style of mineralisation is potentially amenable to bulk mining methods including open pit extraction and bulk stoping from underground. Key results reported during the current campaign include, but are not limited to:

• 10.5m @ 3.6 g/t gold from 126m in hole AUDD0140 (2 August 2021)

• 19.5m @ 3.3 g/t gold from 340.7m in hole AUDD0220 (2 December 2021)

• 25.2m @ 1.3 g/t gold from 166m in hole AUDD0228 (18 January 2022)

The strong investment in drilling since Auteco assumed management control of the project in March 2020 (Figure 2) has resulted in rapid and sustained low-cost Resource growth (Figure 3).

In the 16 months between September 2020 and December 2021, a total of 1.23Moz of gold was added to the inferred Resource at a total average cost of A$17.58 (US$12.59) per ounce.

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INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2021

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Figure 2: Cumulative drill metres in the Pickle Crow dataset. This demonstrates the significant investment in targeted drilling made by Auteco that has enabled the rapid increase in Resource since assuming project management in 2020. *Note: to date ~92,000m has been completed, and this number is a forecast based on the anticipated completion of the current 50,000m drill program in March 2022.

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Figure 3 : Graph demonstrating the rapid and sustained Resource growth achieved by Auteco since assuming management control of the project in March 2020.

FUTURE WORK PLANS

For the remainder of 2022, Auteco intends to continue with a dual-tracked approach to drilling over this time, with a combination of extensional in-mine Resource growth and regional exploration.

Resource Growth

Extend and increase the Resource with emphasis on both open pit and underground growth potential.

Key Objectives

• Continue to grow the Inferred Resource

• Identify areas for conversion to Indicated

• Re-model the Resource at a 0.5g/t COG to assess bulk mining potential (Open Pit & Under Ground)

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INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2021

Exploration & Drilling

Continue the dual strategy of Near Mine Resource growth and Regional Discovery focused exploration.

Key Objectives

• Complete the 50,000m drill campaign

• Continue with BIF exploration to define size

• Continue vein exploration

• Test >5 regional targets outside of mine area

Pathway to Production

Activities will focus on detailed assessment of the near surface potential for open pit mining. The Resource zones will be re-modelled at an 0.5g/t cut-off grade and reblocked at selective mining unit's suitable for open pit assessment. Expressions of interests have been forwarded to numerous engineering firms for high level assessment of options to re-establish access to underground for infill drilling of the Inferred Resource.

Key Objectives

• Continue permitting to Advanced Exploration

• Option study to access Underground for infill drilling

• Conduct Whittle optimisations to assess pit potential

Covid-19 Impact

The management of the health and safety of our employees and contractors during the COVID-19 pandemic is of high importance for the Company. Whilst exploration activities in Canada have been able to continue, the impact of the pandemic is ongoing.

The Company remains vigilant and will continue social distancing and hygiene practices and other additional control measures as appropriate to protect our workforce from the spread of COVID-19, in line with the Western Australian and Canadian Government advice and guidelines.

CORPORATE

PERFORMANCE AND POSITION

Cash and cash equivalents as at 31 December 2021 was $10,537,355 (30 June 2021: $21,787,312).

The loss after income tax incurred by the Group for the six months ended 31 December 2021 was $1,422,824 (2020: $1,899,870).

The loss included the following items:

Corporate costs of $0.43 million (2020: $0.97 million);

Employee benefit expenses $0.64 million (2020: $0.75 million); and

Share-based payment expenses of $0.39 million (2020: $0.25 million)

At 31 December 2021 the Group’s total assets were $61,438,338 (30 June 2021: $61,900,853)

The Directors' view is that the Company and the Group are operating as a going concern.

PICKLE CROW EARN-IN

In August 2021, the Company completed the stage 2 earn-in requirements with respect to the Pickle Crow Gold project increasing its ownership from 51% to 70%. As per the earn-in agreement with First Mining Gold Corp (First Mining), the Company has granted First Mining a 2-per-cent net smelter return royalty on Pickle Crow, of which 1 per cent can be bought back by Auteco for US$2.5-million.

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INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2021

At any time, Auteco has a right to acquire a further 10% interest in PC Gold Inc. by paying First Mining C$3 million in cash to increase its total interest to 80% in PC Gold Inc., the Company which owns the Pickle Crow Gold Project.

LIMESTONE WELL PROJECT

During the period the Company executed a binding term sheet with Mithril Resources (ASX:MTH) (Mithril) for the acquisition of the Limestone Well Vanadium-Titanium Project, located 90km southeast of Meekatharra, Western Australia, for a cash consideration of A$500,000 with Mithril retaining a 10% free carried interest in the project's tenements. Auteco will retain the sole, exclusive and irrevocable option to purchase all of Mithril's rights and interests in the tenements (being 10% interest) for consideration of A$10m.

The existing joint venture (refer ASX 17 August 2018), in which Auteco was obligated to spend A$2.5m to earn 80% of the project, will be dissolved on completion of the binding term sheet.

ANNUAL GENERAL MEETING

Auteco held its Annual General Meeting on 26 November 2021, with all resolutions being passed on a poll.

EVENTS AFTER THE REPORTING DATE

RESOURCE INCREASE AT PICKLE CROW

On 15 February 2022, the Company announced it had successfully increased the inferred JORC 2012 mineral Resource for the Pickle Grow Gold Project in Canada by 500,000 ounces to 2.23 million ounces at 7.8 g/t, an over 30% increase since the last resource update in September 2021.

PLACEMENT

Auteco completed a placement to raise approximately $20 million (before costs) via the issue of approximately 250 million new fully paid ordinary shares in the Company and proceeds of the placement are funding ongoing exploration at Auteco's flagship Pickle Crow Gold Project, as well as working capital requirements.

There are no other matters or circumstances which have arisen since the end of the half year which significantly affected or may significantly affect the operations of the Group, the results of those operations, or the state of affairs of the Group in subsequent financial periods.

AUDITOR’S INDEPENDENCE DECLARATION

A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 10, and forms part of this report.

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

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Ray Shorrocks Executive Chairman Dated on 14 March 2022

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INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2021

JORC Compliance Statement

This report contains references to Mineral Resources estimate which have been extracted from the Company’s Announcements. For full details of Exploration Results in this half year report that have been previously announced, refer to the Company's said announcement or release on the said date. The Company confirms that it is not aware of any new information or data that materially affects the information included in the said announcements, and in the case of estimates of Mineral Resources, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcements continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Persons' findings are presented have not materially modified from the original market announcements.

Disclaimer

This report has been prepared by the Company based on information from its own and third-party sources and is not a disclosure document. No party other than the Company has authorised or caused the issue, lodgement, submission, despatch or provision of this half year report, or takes any responsibility for, or makes or purports to make any statements, representations or undertakings in this half year report. Except for any liability that cannot be excluded by law, the Company and its related bodies corporate, directors, employees, servants, advisers and agents disclaim and accept no responsibility or liability for any expenses, losses, damages or costs incurred by you relating in any way to this half year report including, without limitation, the information contained in or provided in connection with it, any errors or omissions from it however caused, lack of accuracy, completeness, currency or reliability or you or any other person placing any reliance on this half year report, its accuracy, completeness, currency or reliability. This half year report is not a prospectus, disclosure document or other offering document under Australian law or under any other law. It is provided for information purposes and is not an invitation nor offer of shares or recommendation for subscription, purchase or sale in any jurisdiction. This half year report does not purport to contain all the information that a prospective investor may require in connection with any potential investment in the Company. Each recipient must make its own independent assessment of the Company before acquiring any shares in the Company.

Forward Looking Statements

Various statements in this document constitute statements relating to intentions, future acts and events. Such statements are generally classified as "forward looking statements" and involve known and unknown risks,uncertainties and other important factors that could cause those future acts, events and circumstances to differ materially from what is presented or implicitly portrayed in this half year report. The Company gives no assurances that the anticipated results, performance or achievements expressed or implied in these forward-looking statements will be achieved.

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INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2021

AUDITOR'S INDEPENDENCE DECLARATION

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Ernst & Young Tel: +61 8 9429 2222 11 Mounts Bay Road Fax: +61 8 9429 2436 Perth WA 6000 Australia ey.com/au GPO Box M939 Perth WA 6843

Auditor’s independence declaration to the Directors of Auteco Minerals Ltd

As lead auditor for the review of the interim financial report of Auteco Minerals Ltd for the half-year ended 31 December 2021, I declare 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 review;

• b. No contraventions of any applicable code of professional conduct in relation to the review; and

• c. No non-audit services provided that contravene any applicable code of professional conduct in relation to the review.

This declaration is in respect of Auteco Minerals Ltd and the entities it controlled during the half-year period ended 31 December 2021.

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Ernst & Young

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R J Curtin Partner 1 4 March 2022

A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation

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INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2021

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INTERIM FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2021

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INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2021

FINANCIAL STATEMENTS

INTERIM CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the half year ended 31 December 2021

NOTE	31 DEC 2021 31 DEC 2020
	$ $
OTHER INCOME	27,500 22,840
Expenses
Accounting,audit and taxation services	(74,290) (33,355)
Consultants and contractors	(125,435) (691,356)
Depreciation and amortisation	(18,936) (913)
Employee benefits	(636,332) (747,221)
Share-basedpayments	(392,874) (245,975)
Exploration and evaluation written off	(6,529) (15,633)
Insurance	(27,051) (21,902)
Listingand compliance	(52,528) (68,063)
Office rental & outgoings	(35,385) (5,052)
Other costs	(40,081) (27,895)
Travel and accommodation	(32,847) (2,814)
Unrealised foreign exchange differences	(14,939) (107,229)
	(1,457,227) (1,967,408)
Loss before income tax and finance income for the period	(1,429,727) (1,944,568)
Finance income	6,903 44,698
Loss before tax for theperiod	(1,422,824) (1,899,870)
Income tax expense	- -
Loss after income tax for theperiod	(1,422,824) (1,899,870)
Add: Net loss attributable to non-controllinginterest	3,263 -
Loss attributable to Equity Holders of the Company for theperiod	(1,419,561) (1,899,870)
Loss after income tax for theperiod	(1,422,824) (1,899,870)
Other comprehensive loss
Items that may be reclassified to profit or loss in subsequentperiods
Exchange differences on translation of foreign operations	332,736 (171,476)
Total comprehensive loss	(1,090,088) (2,071,346)
Total comprehensive loss for theperiod attributable to:
Non-controllinginterest	60,844 -
Equityholders of the Company	(1,150,932) (2,071,346)
Total comprehensive loss for theperiod, net of tax	(1,090,088) (2,071,346)
Basic and diluted loss per share (cents per share)	(0.09) (0.12)

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

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INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2021

FINANCIAL STATEMENTS

INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION

For the half year ended 31 December 2021

NOTE	31 DEC 2021 30 JUN 2021
	$ $
ASSETS
Current assets
Cash and cash equivalents	10,537,355 21,787,312
Other receivables	940,006 553,680
Other assets	255,931 265,405
Total current assets	11,733,292 22,606,397
Non-current assets
Plant and equipment	563,218 236,237
Right-of-use asset 7	303,221 338,552
Exploration and evaluation assets 8	48,838,607 38,719,667
Total non-current assets	49,705,046 39,294,456
Total assets	61,438,338 61,900,853
LIABILITIES
Current liabilities
Trade and otherpayables 6	4,237,988 2,530,027
Lease liabilities 7	169,020 196,946
Provisions	63,051 61,623
Total current liabilities	4,470,059 2,788,596
Non-current liabilities
Lease liabilities 7	- 67,948
Environmental reclamationprovision 9	3,928,085 3,897,312
Total non-current liabilities	3,928,085 3,965,260
Total liabilities	8,398,144 6,753,856
Net assets	53,040,194 55,146,997
EQUITY
Share capital 10	70,016,191 69,837,891
Reserves	9,700,245 4,397,888
Accumulated losses	(36,571,944) (35,152,383)
Total equity attributable to equity owners of Auteco Minerals Ltd	43,144,492 39,083,396
Non-controllinginterest 11	9,895,702 16,063,601
Total equity	53,040,194 55,146,997

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

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INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2021

FINANCIAL STATEMENTS

INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the half year ended 31 December 2021

				FOREIGN	NON-			NON-
	NOTES	CONTRIBUTED EQUITY $	SHARE BASED PAYMENT RESERVES $	CURRENCY TRANSLATION RESERVE $	CONTROLLING INTEREST RESERVE $	ACCUMULAT ED LOSSES $	TOTAL $	CONTROL LING INTEREST $	TOTAL EQUITY $
Balance at 1 July 2020		31,628,171	6,696,324	-	-	(32,351,162)	5,973,333	-	5,973,333
Loss for the period		-	-	-	-	(1,899,870)	(1,899,870)	-	(1,899,870)
Other comprehensive loss		-	-	(171,476)	-	-	(171,476)	-	(171,476)
Total comprehensive loss for the period		-	-	(171,476)	-	(1,899,870)	(2,071,346)	-	(2,071,346)
Transactions with owners					-
Shares issued during the period		30,600,000	-	-	-	-	30,600,000	-	30,600,000
Transaction costs arising from share issue		(1,634,267)	-	-	-	-	(1,634,267)	-	(1,634,267)
Transfer into reserve upon cash received for		-	1,000	-	-	-	1,000	-	1,000
options issued
Share-basedpayments		-	245,974	-	-	-	245,974	-	245,974
Balance at 31 December 2020		60,593,904	6,943,298	(171,476)	-	(34,251,032)	33,114,694	-	33,114,694
Balance at 1 July 2021		69,837,891	6,741,517	331,642	(2,675,271)	(35,152,383)	39,083,396	16,063,601	55,146,997
Loss for theperiod		-	-	-	-	(1,419,561)	(1,419,561)	(3,263)	(1,422,824)
Other comprehensivegain		-	-	268,629	-	-	268,629	64,107	332,736
Total comprehensive loss for theperiod		-	-	268,629	-	(1,419,561)	(1,150,932)	60,844	(1,090,088)
Transactions with owners
Shares issued duringtheperiod		180,000	-	-	-	-	180,000	-	180,000
Transaction costs arisingfrom share issue		(1,700)	-	-	-	-	(1,700)	-	(1,700)
Acquisition of non-controllinginterest	11	-	-	-	4,640,854	-	4,640,854	(6,228,743)	(1,587,889)
Share-basedpayments		-	392,874	-	-	-	392,874	-	392,874
Balance at 31 December 2021		70,016,191	7,134,391	600,271	1,965,583	(36,571,944)	43,144,492	9,895,702	53,040,194

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

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INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2021

FINANCIAL STATEMENTS

INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS

For the half year ended 31 December 2021

	31 DEC 2021 $ 31 DEC 2020 $ (1,363,260) (1,336,871) (6,529) (19,354) 6,903 44,698 27,500 22,960 (1,335,386) (1,288,567) (374,619) (32,836) (8,098,510) (2,737,267) (8,473,129) (2,770,103) 180,000 30,600,000 - 1,000 (1,700) (1,659,268) (97,966) (29,450) (5,874) (3,143) (1,587,889) - (1,513,429) 28,909,139 (11,321,944) 24,850,469 21,787,312 4,846,429 71,987 (115,933) 10,537,355 29,580,965
OPERATING ACTIVITIES
Payments to suppliers and employees
Payments for exploration and evaluation expensed
Interest received
Other income
Net cash used in operating activities
INVESTING ACTIVITIES
Payments for plant and equipment
Payments for exploration and evaluation capitalised
Net cash used in investing activities
FINANCING ACTIVITIES
Proceeds from issue of shares
Proceeds from option issuances
Capital raising costs for issue of shares
Principal elements of lease payments
Interest payments
Payments to acquire non-controlling interest	(1,587,889) -
Net cash (used in)/provided by financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Effect of movements in exchange rates on cash held
Cash and cash equivalents at the end of the period

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

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INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2021

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS

For the half year ended 31 December 2021

1. CORPORATE INFORMATION

The Interim consolidated financial statements of Auteco Minerals Ltd and its subsidiaries (collectively, the "Group") for the half year ended 31 December 2021 were authorised for issue in accordance with a resolution of the directors on 14 March 2022.

Auteco Minerals Ltd ("the Company") is a for profit company, limited by shares, incorporated and domiciled in Australia whose shares are publicly traded on the Australian Securities Exchange. The Group's principal activity for the six months ended 31 December 2021 consisted of exploration and evaluation in Canada.

The nature of operations & principal activities of the Group are further described in the Directors' report.

2. BASIS OF PREPARATION AND ACCOUNTING POLICIES

a) Statement of compliance

The interim consolidated financial statements for the six months ended 31 December 2021 have been prepared in accordance with AASB 134 Interim Financial Reporting.

The interim consolidated financial statements do not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Group's annual consolidated financial statements as at 30 June 2021.

b) Significant accounting policies

The accounting policies applied in these financial statements are consistent with those applied by the Group in the 30 June 2021 consolidated financial statements, except as disclosed in note 2(c).

Certain new accounting standards and interpretations have been published that are not mandatory for the 31 December 2021 interim reporting period and have not been applied in these financial statements.

c) New and amended standards adopted by the Group

The Group has adopted all of the new, revised or amending Accounting Standards and Interpretations issued by the Australian Accounting Standards Board that are mandatory for the current reporting period and were relevant to the Group. The adoption of the new and amended accounting standards and interpretations had no material impact on the Group. Any new, revised or amending Accounting Standards of Interpretations that are not yet mandatory have not been adopted early.

d) Changes in presentation of comparative expense information

Comparative expense information in the consolidated statement of profit or loss and other comprehensive income has been restated to provide a more detailed and relevant breakdown of expenditures.

3. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

When preparing the Interim Financial Statements, management undertakes a number of judgements, estimates and assumptions about recognition and measurement of assets, liabilities, income and expenses. The actual results may differ from the judgements, estimates and assumptions made by management, and will seldom equal the estimated results. The judgements, estimates and assumptions applied in the Interim Financial Statements, including the key sources of estimation uncertainty, were the same as those applied in the Group's last annual financial statements for the year ended 30 June 2021.

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INTERIM FINANCIAL REPORT for the half year ended 31 DECEMBER 2021

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS

4. CONTINGENT LIABILITIES

There have been no material changes to contingent liabilities disclosed in the 30 June 2021 annual report.

5. COMMITMENTS

There have been no material changes to commitments disclosed in the 30 June 2021 annual report.

6. TRADE AND OTHER PAYABLES

6. TRADE AND OTHER PAYABLES
	31 DEC 2021 30 JUN 2021
	$ $
Trade payables	3,077,879 1,997,523
Other payables	32,588 33,352
Accrued expenses	1,127,521 499,152
	4,237,988 2,530,027

7. LEASES

The Group has lease contracts for a 6-unit drill camp and generator in its operations. The lease term is two years. Set out below are the carrying amounts of right-of-use assets recognised and the movements during the period:

the period:
	BUILDINGS AND CAMP
	31 DEC 2021 30 JUN 2021
	$ $
Opening carrying amount	338,552 -
Additions	- 390,637
Depreciation	(31,854) (52,085)
Foreign exchange translation	(3,477) -
Closing carrying amount	303,221 338,552

Set out below are the carrying amounts of right-of-use liabilities recognised and the movements during the period:

	31 DEC 2021 30 JUNE 2021
	$ $
Opening carrying amount	264,894 -
Additions	- 390,637
Accretion of interest	5,874 11,625
Payments	(103,840) (137,368)
Foreign exchange translation	2,092 -
Closing carrying amount	169,020 264,894
Current	169,020 196,946
Non-current	- 67,948

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INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2021

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS

The following are the amounts capitalized to exploration and evaluation assets:

	31 DEC 2021 30 JUNE 2021
	$ $
Depreciation expense for right-of-use assets	31,854 52,085
Interest expense on lease liabilities	5,874 11,625
Total amount capitalised in exploration and evaluation assets	37,728 63,710

8. EXPLORATION AND EVALUATION ASSETS

	31 DEC 2021 30 JUNE 2021
	$ $
Carrying amount at the beginning of the period	38,719,667 1,599,194
Earn-in expenditure stage 1 Pickle Crow	- 4,431,739
Consideration shares to complete stage 1	- 9,250,000
Assets assumed on acquisition of PC Gold Inc.	- 17,134,173
Earn-in expenditure stage 2 Pickle Crow	- 6,287,568
Acquisition of Limestone Well	500,000 -
Capitalised expenditure at cost	9,308,395 290,672
Exploration and evaluation expenditure written off	(6,529) (290,672)
Foreign currency translation	317,074 16,993
Carrying amount at the end of period	48,838,607 38,719,667

9. ENVIRONMENTAL RECLAMATION PROVISION

The Company has an obligation to undertake decommissioning, restoration, rehabilitation, and environmental work when the environmental disturbance is caused by exploring and developing a mineral property.

As at 31 December 2021, the Company estimates that the fair value of the environmental reclamation provision for the Pickle Crow Gold Project, is $3,928,085 (30 June 2021 - $3,897,312) of which Auteco is liable for our percentage of ownership of the Pickle Crow Gold Project which is currently 70%.

The liability was estimated based on management's interpretation of current regulatory requirements and is recognized at the present value of such costs.

18

INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2021

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS

10. SHARE CAPITAL

31 DEC 2021 30 JUNE 2021	31 DEC 2021 30 JUNE 2021
# OF SHARES # OF SHARES	$ $
Fully paid ordinary Shares 1,688,178,936 1,667,178,936	70,016,191 69,837,891
	# OF SHARES $
Balance at 30 June 2020	1,335,750,364 31,628,171
Share placement	231,428,572 30,600,000
Shares issued and part of the acquisition of PC Gold	100,000,000 9,250,000
Options exercised	- -
Transaction costs	- (1,640,280)
At 30 June 2021	1,667,178,936 69,837,891
Options exercised	21,000,000 180,000
Less: cost of shares issued	- (1,700)
At 31 December 2021	1,688,178,936 70,016,191

11. NON-CONTROLLING INTEREST

On 26 August 2021, the Company acquired an additional 19% in PC Gold Inc. (which owns the Pickle Crow project), changing the Company’s shareholding from 51% to 70%. In completing the transaction, the Company paid $1,587,889 in cash direct to the non-controlling party. Consequently, the non-controlling interest was reduced by 19% of the net assets in PC Gold Inc. The Company has treated this transaction in Equity as follows:

Equity as follows:
Cash paid to non-controlling party to increase shareholding	$1,587,889
Carrying value of 19% of net assets in PC Gold Inc.	$6,228,743
Excess of payment over carrying value of NCI acquired	$4,640,854

The $6,228,743 has been removed from Non-Controlling Interest and $4,640,854 has increased Equity attributable to equity owners of the Company by increasing the Non-Controlling Interest Reserve.

Details to the financial position and ending non-controlling interest of the Company’s 70%-owned and controlled subsidiary are as follows:

PC Gold Inc. Condensed Statement of Financial Position

PC Gold Inc. Condensed Statement of Financial Position
	31 DEC 2021 30 JUNE 2021
	$ $
Current assets	- -
Current liabilities	(9,894,529) -
Current net assets	(9,894,529) -
Non-current assets	46,859,393 36,675,270
Non-current liabilities	(3,928,086) (3,892,410)
Non-current net assets	42,931,307 32,782,860
Total net assets	33,036,778 32,782,860
Non-controlling interest	9,895,702 16,063,601

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INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2021

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS

12. SEGMENT INFORMATION

The Group has identified its operating segments based on the internal reports that are reviewed and used by the Directors (chief operating decision makers) in assessing performance and determining the allocation of resources.

The Group reports two segments for the period ended 31 December 2021:

Exploration and evaluation

Pickle Crow Gold Project – Gold in Ontario, Canada

Limestone Well Project –Vanadium in Western Australia

	AUSTRALIA	CANADA	TOTAL
	$	$	$
Six months ended 31 December 2021
Segment results	(6,529)	(128,842)	(135,371)
Unallocated losses after income tax			(1,287,453)
Loss after income tax			(1,422,824)
Six months ended 31 December 2020
Segment results	(15,633)	(36,856)	(52,489)
Unallocated losses after income tax			(1,847,381)
Loss after income tax			(1,899,870)
31 December 2021
Segment assets	500,000	48,220,113	48,720,113
Unallocated assets			12,718,225
Total assets			61,438,338
Segment liabilities	500,000	7,660,236	8,160,236
Unallocated liabilities			237,908
Total liabilities			8,398,144
30 June 2021
Segment assets	-	38,715,709	38,715,709
Unallocated assets			23,185,144
Total assets			61,900,853
Segment liabilities	-	6,452,516	6,452,516
Unallocated liabilities			301,340
Total liabilities			6,753,856

20

INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2021

NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS

13. EVENTS AFTER THE REPORTING DATE

RESOURCE INCREASE AT PICKLE CROW

On 15 February 2022, the Company announced it had successfully increased the inferred JORC 2012 mineral Resource for the Pickle Grow Gold Project in Canada by 500,000 ounces to 2.23 million ounces at 7.8 g/t, an over 30% increase since the last resource update in September 2021.

PLACEMENT

Auteco completed a placement to raise approximately $20 million (before costs) via the issue of approximately 250 million new fully paid ordinary shares in the Company; and

Proceeds of the Placement are funding ongoing exploration at Auteco's flagship Pickle Crow Gold Project, as well as working capital requirements.

Other than above, there are no matters or circumstances which have arisen since the end of the half year which significantly affected or may significantly affect the operations of the Group, the results of those operations, or the state of affairs of the Group in subsequent financial periods.

21

INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2021

DIRECTORS' DECLARATION

For the half year ended 31 December 2021

In accordance with a resolution of the directors of Auteco Minerals Ltd, I state that in the opinion of the directors:

• a. the interim financial statements and notes of the Company and its subsidiaries (collectively the Group) are in accordance with the Corporations Act 2001, including:

• i. giving a true and fair view of the Group's financial position as at 31 December 2021 and of its performance for the half year ended on that date; and

• ii. complying with Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001; and

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

On behalf of the board

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Raymond Shorrocks Executive Chairman Dated on 14 March 2022

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INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2021

INDEPENDENT AUDITOR'S REVIEW

REPORT

For the half year ended 31 December 2021

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Ernst & Young 11 Mounts Bay Road Perth WA 6000 Australia GPO Box M939 Perth WA 6843

Tel: +61 8 9429 2222 Fax: +61 8 9429 2436 ey.com/au

Independent auditor’s review report to the members of Auteco Minerals Ltd

Conclusion

We have reviewed the accompanying interim financial report of Auteco Minerals Ltd (the Company) and its subsidiaries (collectively the Group), which comprises the interim consolidated statement of financial position as at 31 December 2021, the interim consolidated statement of profit or loss and other comprehensive income, interim consolidated statement of changes in equity and interim consolidated statement of cash flows for the half-year ended on that date, notes comprising a summary of significant accounting policies and other explanatory information, and the directors’ declaration.

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the interim financial report of the Group does not comply with the Corporations Act 2001 , including:

• a. Giving a true and fair view of the consolidated financial position of the Group as at 31 December 2021 and of its consolidated financial performance for the half-year ended on that date; and

• b. Complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 .

Basis for conclusion

We conducted our review in accordance with ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity (ASRE 2410). Our responsibilities are further described in the Auditor’s responsibilities for the review of the half-year financial report section of our report. We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants ( including Independence Standards) (the Code) that are relevant to our audit of the annual financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

Directors’ responsibilities for the interim financial report

The directors of the Company are responsible for the preparation of the interim financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the interim financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

Auditor’s responsibilities for the review of the half-year financial report

Our responsibility is to express a conclusion on the interim financial report based on our review. ASRE 2410 requires us to conclude whether we have become aware of any matter that makes us believe that the interim financial report is not in accordance with the Corporations Act 2001 including giving a true and fair view of the Group’s financial position as at 31 December 2021 and its

A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation

23

INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2021

2

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performance for the half-year ended on that date, and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 .

A review of an interim financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

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Ernst & Young

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R J Curtin Partner Perth 14 March 2022

A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation

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INTERIM FINANCIAL REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2021