FireFly Metals Ltd. — Regulatory Filings 2016

Oct 13, 2016

Exploration Office Level 3, 100 Pirie Street Adelaide SA 5000 info@monaxmining.com.au

Tel: +61 8 8232 8320 Fax: +61 8 8232 8811 www.monaxmining.com.au

ASX RELEASE

For Immediate Release 14 October 2016

2016 Annual Report, Notice of Annual General Meeting and Proxy Form

Attached are electronic copies of the Monax Mining Limited 2016 Annual Report, Notice of Annual General Meeting and Proxy Form which have been mailed to shareholders.

Yours faithfully

Kaitlin Smith Company Secretary

2016 Annual Report

ABN: 96 110 336 733

Annual General Meeting

The 2016 Annual General Meeting will be held at DMAW Lawyers, Level 6, 80 King William Street Adelaide, South Australia On 16th November 2016 commencing at 11:00am.

A formal notice is mailed to shareholders with the distribution of this report.

Corporate Governance Statement

Under ASX Listing Rule 4.10.3 the Company's Corporate Governance Statement can be located at the URL on the Company's website: http://www.monaxmining.com.au/site/corporate/governance.html

Chairman's Report	2
Review of Operations	3
Introduction	3
Project Highlights	3
Mt Ringwood	4
Croydon	6
Bullock Creek	7
Phar Lap	8
2016 Financial Report	9
Directors' Report	10
Auditor's Independence Declaration	22
Consolidated Statement of Profit or Loss
and Other Comprehensive Income	23
Consolidated Statement of
Financial Position	24
Consolidated Statement of
Changes in Equity	25
Consolidated Statement of Cash Flows	26
Notes to the Financial Statements	27
Directors' Declaration	59
Independent Auditor's Report	60
Shareholder Information	63
Tenement Status	65
Corporate Directory	66

Dear Fellow Shareholders

It gives me great pleasure to present to you the twelfth annual report for your Company's 2015-2016 financial year.

In the past year, Monax has shifted its strategic focus to gold and lithium exploration, revitalising its exploration portfolio through the addition of new projects in the Northern Territory and Queensland. The Company reviewed numerous opportunities with a view to finding suitable projects to take the Company forward and have since settled on the Mt Ringwood, Croydon and Litchfield Projects, which have become the Company's major focus.

The survival of any junior exploration company is centered upon its Shareholders and Monax would like to extend a thank you to all those who participated in the recent July 2016 equity-raising. The Company raised approximately \$1.5 million, giving Monax the ability to fully fund ongoing exploration activities at these priority projects.

The Mt Ringwood Gold Project was the result of a culmination of significant efforts in bringing together a number of tenements held by private interests, into what Monax now views as a significant gold project. The project is located in the Pine Creek area which is renowned for hosting shallow, high grade gold mineralisation, with mining in the area having taken place more or less continuously since the 'gold rush' during the 1870's.

Initial reconnaissance surface sampling at Mt Ringwood provided highly encouraging results with visible gold and bonanza rock chip results reported from the Great Northern Mining Leases. Monax successfully completed its maiden drilling program in June 2016 and is currently reviewing these results with a view to undertake an IP survey to assist in outlining zones of sulphide along the quartz-dolerite contact at the Great Northern. Additional regional exploration has also provided encouraging results along the western side of the project area however these are yet to be followed up.

During the year, Monax was successful in acquiring two tenements in the North Queensland Croydon area, which highlight the Company's continual focus on historical goldfields. Significant mesothermal gold deposits are located within the Croydon goldfields with historic production of ~60,000 kg Au bullion recorded in the area.

Monax's Croydon tenements contain a number of historical prospects and previous rock chip sampling and drilling highlight the area's potential. Reconnaissance rock chip sampling by Monax at the Vanderbilt and Lost Chance prospects provided

significant results which the Company will follow up during the coming year.

The strong demand for lithium during the past year was highly notable and Monax joined the quest, signing deals for projects in Northern Queensland (Bullock Creek) and in the Northern Territory (Litchfield).

The Bullock Creek project is centered on the discovery of a lepidolite pegmatite at Gingerella, which assayed 3.55% Li2O. Monax was effective in negotiating a farm-in deal covering this discovery. In July 2016, Monax further strengthened its lithium focus with the signing of a binding term sheet for the Litchfield Lithium Project, whereby reconnaissance rock chip sampling by Monax reported lithium up to 7.55% Li2O.

Monax currently has one active joint venture project fully funded by its partner Iluka Resources ("Iluka") for the Phar Lap iron-oxide copper-gold (IOCG) Project on EL 5123. As per the agreement, Iluka can earn an 80% interest in EL 5123 by spending \$2 million over 4 years. Iluka completed a three diamond hole drilling program on the project in December 2015, with a view for follow-up exploration.

In the interests of realigning the Company's corporate strategy, Monax decided to sell its interest in the Western Gawler Craton Project in South Australia to Western Areas Limited.

I take this opportunity to thank my fellow Directors, for their commitment to the Company during this past period, whom have had the courage to allow management to change the strategic focus of Monax's portfolio, providing stability in these everchanging market conditions.

Finally, I would like to thank all of our shareholders for your continued support. Your board and management will continue to work hard to capitalise on existing and prospective opportunities in a bid to generate future shareholder value in the upcoming financial year.

Robert M Kennedy CHAIRMAN

Chairman's Report

Operations Report

Introduction

During the 2016 financial year, Monax Mining Limited ("Monax") 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 respectively. Whilst Monax continues to hold an interest in the Punt Hill copper-gold project in South Australia, the addition of new gold and lithium projects have collectively strengthened the Company's portfolio, with many encouraging results being reported.

Highlights

Mt Ringwood Gold Project

• -Acquisition of multiple mining and exploration leases in the Pine Creek gold camp
• -Visible gold plus four samples reporting >1000g/t gold from Great Northern Mining Leases
• -Gold up to 100 g/t reported from rock chip sampling at Great Western Mining Leases
• -Gold up to 150 g/t reported from rock chip samples from Star of the North Mining Leases
• -High-grade gold up to 81 g/t recorded from sampling south of abandoned Goodall Gold Mine
• -Completion of maiden drilling program at Mt Ringwood with gold up to 8.6 g/t over 1 metre reported

Croydon Gold Project

• -Acquisition of two tenements in the Croydon area
• -Completion of preliminary reconnaissance rock chip sampling
• -High grade gold up to 87.8 g/t reported at Vanderbilt prospect
• -Samples from Lost Chance prospect report gold up to 21.2 g/t

Bullock Creek Lithium Project

• -Binding term sheet signed for prospective lithium tenement near Gingerella in Northern Queensland
• -Rock chip sample reports 3.55% Li2O from lepidolite pegmatite
• -Application for adjoining tenements

Phar Lap Copper-Gold Project

-Iluka Resources completes three diamond drill holes on Phar Lap Project

Review of Operations

Mt Ringwood Gold Project

In October 2015, Monax signed agreements covering sixteen mining leases and two exploration licences in the Mt Ringwood area in the Northern Territory. The leases and tenements are located within the prospective Pine Creek area, which has a long history of gold exploration and production (see Plate 2).

Monax commenced a campaign of surface sampling across the area. Visible gold and bonanza rock chip results were reported from the Great Northern Mining Leases including four samples reporting >1000 g/t gold, with the highest assay showing 3090 g/t gold.

Highly encouraging rock chip results were also reported from the Great Western Mining Leases (maximum 100 g/t gold), Star of the North Leases (maximum 150 g/t gold) including the area south of the Star of the North Leases (maximum 40 g/t gold) and south of the abandoned Goodall Gold Mine (maximum 81 g/t gold – see Figure 2).

Based on these highly encouraging rock chip results, Monax completed nine reverse circulation holes totalling 564 metres. Six holes were completed at the Great Northern area, two holes at the Great Western prospect and one hole at the Star of the North area. The most encouraging results came from the Great Northern area with gold up to 8.6 g/t reported over 1 metre whilst anomalous gold (>0.5 g/t) was reported from most other drill-holes.

The six holes at the Great Northern area all intersected narrow zones of quartz hosted within greywackes and siltstones with all holes ending in dolerite (see Plate 1). The best interval of 8.6 g/t gold from hole MRRC1602 came from just above the quartz-dolerite contact.

A summary of the best intersections is presented below:

Prospect	Drill hole	From (m)	To (m)	Interval
Great Northern	MRRC1601	13	16	3m @ 0.29 g/t
Great Northern	MRRC1602	14	16	2m @ 2.34 g/t
		20	24	4m @ 0.31 g/t
		50	51	1m @ 8.6 g/t
Great Northern	MRRC1603	20	21	1m @ 4.25 g/t
		27	30	3m @ 0.31 g/t
Great Northern	MRRC1604	29	43	14m @ 0.29 g/t
		52	56	4m @ 1.04 g/t
Great Northern	MRRC1605	44	48	4m @ 0.36 g/t
Great Northern	MRRC1606	22	32	10m @ 0.48 g/t
				Including 3m @ 1.08 g/t (29-32m)
Great Western	MRRC1607			NSI
Great Western	MRRC1608	2	18	16m @ 0.37 g/t
		34	37	3m @ 0.30 g/t
Star of the North	MRRC1609			NSI

Summary of best drill hole intersections – Mt Ringwood drilling program

Overall, results from the maiden drilling program at Mt Ringwood are encouraging. Monax is planning to undertake an IP survey to assist in outlining zones of sulphide along the quartz-dolerite contact at the Great Northern. Monax also intends to undertake a costeaning program at the Star of the North prospect, to fully assess the vein uncovered on the drill pad.

Review of Operations

Plate 1: Samples of visible gold from Great Northern Mining Leases

Plate 2: Historical mining equipment – Great Northern Leases

Figure 2. Location of Monax's Mt Ringwood Project showing rock chip results and location of drill holes completed by Monax.

Croydon Gold Project

Monax holds two tenements located approximately 20km north-east of Croydon, in the north-west of Queensland (see Figure 3). The geology of the Croydon Goldfields consists of mid Proterozoic Esmeralda Granite and co-magmatic Croydon Volcanics, while the gold mineralisation is young at 300Ma (similar in age to the Mt Leyshon or Kidston gold deposits). Approximately 80% of past production in the area originates from granite-hosted veins known as granite lodes which are up to 9m thick and controlled by shallow north-east dipping reverse faults.

Monax completed a reconnaissance surface sampling program in June 2016, whereby sampling at the Vanderbilt area (see Figure 3) provided highly encouraging results with gold samples ranging from 0.43 g/t to 87.8 g/t (see Plate 3). The old workings at the Vanderbilt area are scattered over approximately 300 metres with several other prospects located along strike to the south-west. An extensive search of historical exploration data indicates an absence of any drill holes at these prospects.

The Lost Chance prospect also provided strong sampling results with gold up to 21.2 g/t recorded. A brief inspection was also undertaken at the Gilded Rose and Jumbo prospects located on EPM Application 26203, but no samples were collected. These prospects contain highly anomalous sampling results with positive drilling results previously reported.

Plate 3. Selected rock chip samples – Croydon project.

Figure 3. Location of sample sites – Croydon Gold Project. Black stars gold prospects from QLD Mines Department website/database. Red dots = Monax rock chip samples

Bullock Creek Project – Lithium

In May 2016 Monax Mining Limited signed a binding term sheet with the owner of EPM 26053 which contained a reported occurrence of lithium bearing lepidolite pegmatite. Laboratory assay results of a lepidolite-rich sample taken from the tenement reported 3.55% Li2O (see Plate 4).

Additionally, Monax has applied for three tenements which adjoin EPM 26053 on the basis that it contains the prospective Blackman Gap Complex, a geological unit which hosts lepidolite pegmatite (see Figure 4).

Plate 4: Sample of lepidolite pegmatite which assayed 3.55% Li2O.

Figure 4. Location of Bullock Creek Project.

Phar Lap Project – Copper-Gold (Monax 100%; Iluka earning 80%)

In May 2015, Monax announced it had signed a Farm-in and Exploration Joint Venture Agreement with Iluka for the Phar Lap Project. Iluka completed a three diamond hole drilling program in December 2015. These drill holes each tested one of three gravity anomalies believed to be consistent with IOCG mineralisation (see Figure 5).

A 1m half core sample was taken every 10m within the basement sequence for multi-element analyses, in order to document lithology and alteration. In addition, specific density measurements were carried out to constrain the remodelling of the gravity anomalies.

Hole PHL0001DD and PHL0002DD intersected zones of less than 1% disseminated pyrite with traces of chalcopyrite and bornite. A total of 90 samples were taken in hole PHL0001DD and 87 samples in hole PHL0002DD, excluding standards and blanks.

Assay data from PHL0001DD and PHL0002DD demonstrate very weak localised enrichment of Cu to a maximum value of 449ppm, consistent with traces of chalcopyrite and bornite noted in the drill core. No significant results were reported for hole PHL0003DD.

Figure 5. Locations of 2015 diamond drill hole collars over residual gravity image.

2016 Financial Report Monax Mining Limited

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.

Directors' Report

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.

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:

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

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.

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 options	Vested	Unvested	Amount 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.

Directors' Report

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 Non-Executive 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.

Directors' Report Remuneration Report – Audited

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 *	Managing Director – Executive
Mr IR Witton resigned as a Director	Alternate Director
on 1 November 2015
Ms VK Suttell resigned as Company	Company Secretary
Secretary on 20 January 2016

*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.

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	38,356	-	3,644	-	42,000	-
Mr GS Davis1	24,000	-	-	-	24,000	-
Mr GM Ferris	-	239,714	15,920	-	255,634	-
Mr IR Witton2	-	-	-	-	-	-
	62,356	239,714	19,564	-	321,634	-
2015 primary benefits	Directors' fees	Salary, fees and leave	Super contributions	Options/ rights	Total	Proportion of remuneration relating to
	\$	\$	\$	\$	\$	performance
Directors
Mr RM Kennedy	76,712	-	7,288	-	84,000	-
Mr GS Davis1	48,038	-	-	-	48,038	-
Mr GM Ferris	-	240,777	18,783	-	259,560	-
Mr IR Witton2	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.

1. Director's fees for Mr Davis are paid to a related entity of the Director.

2. Mr Witton received remuneration for his services as an alternate director.

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.

Directors' Report (continued)

Remuneration Report – audited

Shares in Monax Mining Limited	Balance 1/07/15	Received as remuneration	Options/ rights exercised	Net change other1	Balance 30/06/16	Total held in escrow 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 Mining Limited	Option class	Balance 1/07/15	Received as remun eration	Options exercised	Net change other1	Balance 30/06/16	Total vested 30/06/16	Total exercisable 30/06/16
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.

1. 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.

Directors' Report Remuneration Report - Audited

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.

Consolidated Statement of Profit or Loss and Other Comprehensive Income

For the year ended 30 June 2016

			Consolidated
	Note	2016	2015
		\$	\$
Revenue	2	49,132	200,421
Total revenue		49,132	200,421
Administration expenses	3	144,214	144,422
Consulting expenses	3	184,030	56,181
Depreciation expense	3	6,051	19,764
Employment expenses	3	109,518	225,208
Occupancy expenses		42,064	4,004
Service fees		-	153,186
Impairment of assets	3	169,093	6,533,494
Impairment of available for sale asset		-	161,095
Debt forgiveness		-	6,447
Loss on disposal of available for sale asset		-	2,180
(Loss) /profit before income tax expense		(605,838)	(7,105,560)
Income tax (expense)/benefit	4	(18,371)	(30,956)
(Loss)/profit after income tax expense		(624,209)	(7,136,516)
(Loss)/profit attributed to members of the parent entity		(624,209)	(7,136,516)
Other comprehensive income
Items that may be classified to profit or loss Change in fair value of available for sale assets		-	132,802
Total other comprehensive income			132,802
Total comprehensive income for the year		(624,209)	(7,003,714)
Basic earnings per share (cents)	6	(0.025)	(3.39)
Diluted earnings per share (cents)	6	(0.025)	(3.39)

The accompanying notes form part of these financial statements.

Consolidated Statement of Profit or Loss and Other Comprehensive Income

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

The accompanying notes form part of these financial statements.

Monax Mining Limited and Controlled Entities Consolidated Statement of Changes in Equity For the year ended 30 June 2016

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

The accompanying notes form part of these financial statements.

Consolidated Statement of Changes in Equity

Consolidated Statement of Cash Flows

For the year ended 30 June 2016

		Consolidated
Note	2016	2015
	\$	\$
		154,168
		(629,268)
		46,508
		(428,592)
		-
Payments for exploration and evaluation assets		(2,468,858)
		1,526,765
		-
		61,480
		290,000
		4,174
	(662,383)	(586,439)
		899,152
		(93,135)
		806,017
	(920,561)	(209,014)
	1,071,929	1,280,943
		1,071,929
	21(b) 21(a)	42,035 (609,566) 9,100 (558,431) - (357,524) (312,202) 7,343 - - - 343,507 (43,254) 300,253 151,368

The accompanying notes form part of these financial statements.

Consolidated Statement of Cash Flows

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.

Notes to the financial statements for the year ended 30 June 2016

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.

Notes to the financial statements for the year ended 30 June 2016

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.

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.

Notes to the financial statements for the year ended 30 June 2016

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.

Notes to the financial statements For the year ended 30 June 2016

Summary of Significant Accounting Policies

New / revised pronouncement	Superseded pronouncement	Nature of change	Effective date (annual reporting periods beginning on or after)	Likely impact on initial application
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 Accounting	None	In May 2015, the AASB decided to revise Australian Accounting Standards that incorporate IFRSs to minimise Australian-specific wording even further. The AASB noted that IFRSs do not contain application	1 January 2016	When this Standard is first adopted for the year ending 30 June 2017, there will be no impact on the

Notes to the financial statements for the year ended 30 June 2016

Notes to the financial statements For the year ended 30 June 2016

Summary of Significant Accounting Policies

New / revised pronouncement	Superseded pronouncement	Nature of change	Effective date (annual reporting periods beginning on or after)	Likely impact on initial application
Standards		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.		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.

Notes to the financial statements For the year ended 30 June 2016

Summary of Significant Accounting Policies

New / revised pronouncement	Superseded pronouncement	Nature of change	Effective date (annual reporting periods beginning on or after)	Likely impact on initial application
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 Accounting Standards.	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.

Notes to the financial statements for the year ended 30 June 2016

Notes to the financial statements For the year ended 30 June 2016

Summary of Significant Accounting Policies

New / revised pronouncement	Superseded pronouncement	Nature of change	Effective date (annual reporting periods beginning on or after)	Likely impact on initial application
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.

Notes to the financial statements For the year ended 30 June 2016

Summary of Significant Accounting Policies

New / revised pronouncement	Superseded pronouncement	Nature of change	Effective date (annual reporting periods beginning on or after)	Likely impact on initial application
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. The amendments have been deferred as the IASB is	1 January 2016	Refer to the section on AASB 2014-10 above.

Notes to the financial statements for the year ended 30 June 2016

Notes to the financial statements For the year ended 30 June 2016

Summary of Significant Accounting Policies

New / revised pronouncement	Superseded pronouncement	Nature of change	Effective date (annual reporting periods beginning on or after)	Likely impact on initial application
		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 22nd September 2016.

Notes to the financial statements

For the year ended 30 June 2016

		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

Notes to the financial statements for the year ended 30 June 2016

Notes to the financial statements For the year ended 30 June 2016

		Consolidated
		2016	2015
		\$	\$
4	Income tax benefit/(expense)
	The components of tax expense comprise:
	Current income tax	-	(3,015)
	Deferred income tax	-	-
	Tax portion of capital raising costs	(18,371)	(27,941)
	Income tax benefit/(expense) reported in the statement of
	profit or loss and other comprehensive income	(18,371)	(30,956)
	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%)	181,451	2,131,670
	Tax losses utilised	(92,981)	(126,308)
	Tax portion of capital raising costs Unrealised gains	(18,371) -	(27,941) -
	Non-deductible impairment expense	(50,728)	(2,008,377)
	Income tax benefit/(expense) attributable to loss	(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)

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
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	136,368	1,056,929
	Deposits at call	15,000	15,000
		151,368	1,071,929

Notes to the financial statements for the year ended 30 June 2016

Notes to the financial statements

For the year ended 30 June 2016

	Consolidated
	2016	2015
	\$	\$
Trade and other receivables
Current
Trade receivables	36,965	55,361
Loan to related party	-	-
	36,965	55,361
Receivables are not considered past due and/or impaired (2015: nil).
Other current assets
Prepayments	7,096	13,276
Plant and equipment
Plant and equipment
At cost	261,624	301,554
Accumulated depreciation	(237,545)	(255,171)
Net book value	24,079	46,383
Reconciliations
Reconciliations of the carrying amounts for each class
of plant and equipment are set out below:
Plant and equipment
Carrying amount at beginning of year	46,383	82,369
Additions	362	-
Disposals	(9,345)	-
Depreciation	(13,321)	(35,986)
Carrying amount at end of year	24,079	46,383

11 Investments in associates

Interests are held in the following associated companies.

Name	Principal activities	Country of	Shares		Ownership	Carrying amount of
		incorporation			interest	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.

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 Limited Farm-in and	Monax Mining Limited (MOX) and Iluka	MOX gives ILU the right to explore for all minerals in the 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 Agreement	(MOX) and Glen Teece (GT)	area covered by Mining Leases MLN894 and MLN893. The 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 Ltd (NEW)	MLN874, MLN875, MLN876, MLN877, MLN877, 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.

Notes to the financial statements for the year ended 30 June 2016

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

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.

701,577 180,697

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

• Joint Venture 420,206 180,697

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

Notes to the financial statements For the year ended 30 June 2016

16 Provisions

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

Notes to the financial statements for the year ended 30 June 2016

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.

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	1,750,000	0.0342		975,000	0.0694
Granted	-			1,200,000	0.026
Exercised	-			-
Expired	-			-
Lapsed	-			(425,000)
Outstanding at year-end	1,750,000	0.0342	1,044 days	1,750,000	0.0342	1,406 days
Exercisable at year-end	1,750,000			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.

Notes to the financial statements for the year ended 30 June 2016

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 2015	July 2012	July 2011	March 2010
Weighted average fair value (Black Scholes)	\$0.004	\$0.055	\$0.05	\$0.085
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

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:

		Consolidated
	2016	2015
	\$	\$
Financial assets
Cash and cash equivalents	151,368	1,071,929
Loans and receivables	36,965	55,361
Available for sale investments	-	-
	188,333	1,127,290
Financial liabilities
Trade and other payables	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.

Notes to the financial statements for the year ended 30 June 2016

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:

	Consolidated
	2016	2015
	\$	\$
Change in loss
Increase in interest rates by 2%	3,027	21,439
Decrease in interest rates by 2%	(3,027)	(21,439)
Change in equity
Increase in interest rates by 2%	3,027	21,439
Decrease in interest rates by 2%	(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 lease payments 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.

(d) 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.

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)

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.

Notes to the financial statements for the year ended 30 June 2016

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
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:

	Consolidated
	2016	2015
	\$	\$
Current payables
Amounts payable to related parties*	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

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:

Notes to the financial statements For the year ended 30 June 2016

23 Operating segments (continued)

(i) Segment performance

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

Notes to the financial statements For the year ended 30 June 2016

23 Operating segments (continued)

	(ii) Segment assets
		Gawler Craton		Kangaroo Island		North Queensland	Bullock Creek		Oodnadatta		Mt Litchfield			Croydon	Mount Ringwood			Total
	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

Notes to the financial statements For the year ended 30 June 2016

23 Operating segments (continued)

	(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

Notes to the financial statements For the year ended 30 June 2016

24 Events subsequent to reporting date

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.

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

Notes to the financial statements for the year ended 30 June 2016

Notes to the financial statements For the year ended 30 June 2016

26 Monax Mining Limited company information

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

²⁷ Fair value measurement of assets and liabilities

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.

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

Notes to the financial statements for the year ended 30 June 2016

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 23 to 58, 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

2

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.

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

Monax Mining Limited

Shareholder Information as at 23 September 2016

Additional information required by the Australian Stock Exchange Limited Listing Rules and not disclosed elsewhere in this report is set out below.

The information is current at 23 September 2016

Distribution of Equity Securities

Ordinary Share Capital Fully paid ordinary shares are held by 2,117 individual shareholders.

Options

Options are held by 4 individual option holders.

Substantial shareholders

The number of shares held by substantial shareholders and their associates as disclosed in substantial holding notices given to the Company are set out below.

Substantial Shareholder	Number of fully paid ordinary shares held
Antofagasta Investment Company Limited	38,496,270

Voting rights

Fully paid ordinary shares

Subject to any rights or restrictions attached to any class of shares, at a meeting of members, on a show of hands, each member present (in person, by proxy, attorney or representative) has one vote and on a poll, each member present (in person, by proxy, attorney or representative) has one vote for each fully paid share they hold.

Distribution of equity security holders

Category	Holders of Ordinary shares	Holders 23/07/2017 \$0.053 Options	Holders 12/05/2020 \$0.026 Options
1 – 1,000	280	-	-
1,001 – 5,000	241	-	-
5,001 – 10,000	185	-	-
10,001 – 100,000	794	-	-
100,001 and over	617	3	4
Total Number of security
holders	2,117	3	4

The number of shareholders holding less than a marketable parcel of ordinary shares is 1,116.

On market buy-back

There is no current on-market buy-back.

Monax Mining Limited

Shareholder Information as at 23 September 2016

Twenty largest shareholders

The names of the 20 largest holders of fully paid ordinary shares constituting a class of quoted equity securities on the Australian Stock Exchange Limited including the number and percentage held by those holders at 23 September 2016 are as follows.

Percentage

Name Number of

	fully paid	held
	ordinary	%
	shares held
Citicorp Nominees Pty Limited	41,143,122	9.06
Contango Nominees Pty Ltd	18,182,891	4.01
Unique Asset Pty Ltd	11,526,753	2.54
Mr Vincenzo & Mrs Rita Lucia Brizzi	7,500,000	1.65
Mr David Ian & Mrs Cheryl Dorothea Kerr	6,414,490	1.41
Mr Stuart Valentine & Mrs Mayra Eugenia Foster	5,700,000	1.26
RMK Super Pty Ltd	5,119,904	1.13
Alexandra Resources Pty Ltd	4,933,333	1.09
Havilah Resources NL	4,916,667	1.08
RMK Super Pty Ltd	4,880,096	1.08
Mr Ziyin Fang	4,000,000	0.88
Mr Mark Andrew Tkocz	4,000,000	0.88
Triple Eight Gold Pty Ltd	4,000,000	0.88
Mr Lee & Mrs Kerry Aitchison	3,550,426	0.78
Mr Meng Zhai	3,513,058	0.77
Mr Neil Henry Scriven & Ms Robyn Julie Mc Donald	3,341,534	0.74
Aloren (No 148) Pty Ltd	3,202,728	0.71
ARCO Four Investments Pty Ltd	3,034,375	0.67
N & B New Horizons Pty Ltd	3,022,727	0.67
Estate Late Colin Hough	3,000,153	0.66
	144,982,257	31.94

Unquoted equity securities

Options

Details of options on issue which are unquoted are as follows.

Expiry date	Exercise price	Number of Options	Number Unquoted	Number of holders
23/07/2017	\$0.053	325,000	325,000	3
12/05/2020	\$0.026	1,200,000	1,200,000	4

Tenement Status

South Australia

Project	Tenement	No.	Status	Area (km2 )	Details	Tenure holder
	Punt Hill	EL 5774	Granted	594		Monax Mining
Punt Hill	Bowilia Hill	EL5669	Granted	106		Monax Mining
	Yeltacowie	EL 5729	Granted	391		Monax Mining
	Melton	EL 5122	Granted	28	JV with Marmota Energy	Marmosa Pty Ltd
Yorke Peninsula	North Melton	EL 5209	Granted	137	JV with Marmota Energy	Marmota Energy
Phar Lap	Phar Lap	EL 5123	Granted	283	Farm-In with Iluka Resources	Monax Mining
	Nullarbor	EL 5077	Granted	388	JV with Western Areas	Monax Mining
	North Yalata EL 5199 Granted 754 JV with Western Areas Monax Mining
Western Gawler	East Yalata	EL 5200	Granted	904	JV with Western Areas	Monax Mining
Craton	Shoulder Hill	ELA 2014/00194	Application	336		Monax Mining

Queensland

Project	Tenement	No.	Status	Area (sub blocks)	Details	Tenure holder
	Croydon #1	EPM 26038	Granted	41		Monax Mining
Croydon	Croydon #2	EPM 26203	Application	2		Monax Mining
	Percyville #1	EPM 25370	Granted	14	Term sheet signed	Allyn John Zabel
Percyville	Percyville #2	ML 30216	Granted	49.9452 Hectares	Term sheet signed	Allyn John Zabel

Northern Territory

Project	Tenement	No.	Status	Area (sub blocks)	Details	Tenure holder
	NQM	EL 29976	Granted	2	Binding Option Agreement	North Queensland Mining Pty Ltd
	CR & E Pty Ltd	ML 29978	Application	18 Hectares	Binding Option Agreement	CR & E Pty Ltd
	NT Gold Pty					Wladimir Falko (50%) , NT Gold Pty Ltd
	Ltd/Wladimir Falko	ML 30232	Granted	62 Hectares	Binding Option Agreement	(50%) North Queensland Mining Pty Ltd Glen Teece Glen Teece Newmarket Gold NT Holdings Pty Ltd Newmarket Gold NT Holdings Pty Ltd Newmarket Gold NT Holdings Pty Ltd Newmarket Gold NT Holdings Pty Ltd Newmarket Gold NT Holdings Pty Ltd Newmarket Gold NT Holdings Pty Ltd Newmarket Gold NT Holdings Pty Ltd Newmarket Gold NT Holdings Pty Ltd Newmarket Gold NT Holdings Pty Ltd Newmarket Gold NT Holdings Pty Ltd Newmarket Gold NT Holdings Pty Ltd Newmarket Gold NT Holdings Pty Ltd North Queensland Mining Pty Ltd May Drilling Pty Ltd May Drilling Pty Ltd May Drilling Pty Ltd
	NQM	EL 29966	Granted	34	Binding Option Agreement
	Glen Teece	MLN 893	Granted	9 Hectares	Binding Option Agreement
	Glen Teece	MLN 894	Granted	9 Hectares	Binding Option Agreement
	Crocodile Gold	MLN 872	Granted	7.8 Hectares	Binding Option Agreement
	Crocodile Gold	MLN 873	Granted	8 Hectares	Binding Option Agreement
Mt Ringwood	Crocodile Gold	MLN 874	Granted	8 Hectares	Binding Option Agreement
	Crocodile Gold	MLN 875	Granted	7.9 Hectares	Binding Option Agreement
	Crocodile Gold	MLN 876	Granted	7.9 Hectares	Binding Option Agreement
	Crocodile Gold	MLN 877	Granted	7.9 Hectares	Binding Option Agreement
	Crocodile Gold	MLN 878	Granted	7.8 Hectares	Binding Option Agreement
	Crocodile Gold	MLN 879	Granted	7.8 Hectares	Binding Option Agreement
	Crocodile Gold	MLN 880	Granted	7.96 Hectares	Binding Option Agreement
	Crocodile Gold	MLN 881	Granted	7.78 Hectares	Binding Option Agreement
	Crocodile Gold	MLN 882	Granted	7.78 Hectares	Binding Option Agreement
	Crocodile Gold	MLN 883	Granted	7.9 Hectares	Binding Option Agreement
	NQM	EL 31026	Granted	1	Binding Option Agreement
	Litchfield #1	EL28462	Granted	112	Term Sheet Signed
Mt Litchfield	Litchfield #2	EL29731	Granted	16	Term Sheet Signed
	Litchfield #3	EL30521	Granted	49	Term Sheet Signed

Monax Alliance Pty Ltd

Project	Tenement	No.	Status	Area	Details	Tenure holder
	Kulitjara	ELA 2013/00168	Application	1122		Monax Alliance P/L
Musgrave	Anmuryinna	ELA 2013/00169	Application	1039		Monax Alliance P/L
	Poole Hill	ELA 2013/00170	Application	1235		Monax Alliance P/L

Monax Mining Limited

Corporate Directory

PRINCIPAL REGISTERED OFFICE

Monax Mining Limited 139 Greenhill Road UNLEY SA 5061

Email: info@monaxmining.com.au Website: www.monaxmining.com.au

EXPLORATION OFFICE

Level 3, 100 Pirie Street ADELAIDE SA 5000 Telephone: (08) 8232 8320 Facsimile: (08) 8232 8811

POSTAL ADDRESS

Level 3, 100 Pirie Street ADELAIDE SA 5000

DIRECTORS AND SENIOR MANAGEMENT

ROBERT MICHAEL KENNEDY ASAIT, Grad. Dip. (Systems Analysis) FCA, ACIS, FAIM, FAlCD Non-executive Chairman

GARY MICHAEL FERRIS BSc (Hons), MSc, AusIMM Managing Director

GLENN STUART DAVIS LLB, Bec, FAICD Non-executive Director

KAITLIN LOUISE SMITH BComm (Acc), CA Company Secretary

STOCK EXCHANGE CODE

Shares: MOX Listed on Australian Stock Exchange Limited Home Exchange: Adelaide Level 19, 91 King William Street Adelaide SA 5000

SHARE REGISTRAR

Location of Share Register Computershare Investor Services Pty Limited Level 5, 115 Grenfell Street ADELAIDE SA 5000 Telephone: 1300 556 161 (within Australia) +61 3 9415 4000 (outside Australia) Facsimile: +61 8 8236 2305 Email: info@computershare.com.au

AUDITORS

Grant Thornton Chartered Accountants 67 Greenhill Road WAYVILLE SA 5034

LAWYERS

DMAW Lawyers Level 3, 80 King William Street ADELAIDE SA 5000

Corporate Directory

Notes

Notes

Notice of Annual General Meeting 2016

Notice is hereby given that the Annual General Meeting of Monax Mining Limited (Company) will be held at Level 6, 80 King William Street, Adelaide South Australia on Wednesday, 16 November 2016 at 11.00 am (Adelaide time).

AGENDA

ORDINARY BUSINESS

1. Financial Report

To receive and consider the financial report and the reports of the Directors and Auditor for the year ended 30 June 2016.

The Annual Financial Report is available at the website of the Company (www.monaxmining.com.au), under "Investors", "Corporate Reports", "Annual Reports".

2. Adoption of Remuneration Report

To consider, and if thought fit, pass the following resolution as an ordinary resolution:

'That the Remuneration Report for the financial year ended 30 June 2016 be adopted.'

Note: The vote on this resolution is advisory only and does not bind the Directors of the Company.

Voting exclusion statement

In accordance with the Corporations Act, a vote must not be cast on this resolution in any capacity (and will be taken not to have been cast if cast contrary to this restriction) by or on behalf of a member of the key management personnel, details of whose remuneration are included in the Remuneration Report, and any closely related party of such a member. However, such a member or any closely related party of such a member may cast a vote as a proxy if the vote is not cast on behalf of a person described above and either:

• the person does so as a proxy appointed by writing that specifies how the proxy is to vote on the resolution;
• the person is the Chair of the Meeting at which the resolution is voted on and the appointment of the Chair as proxy does not specify the way the proxy is to vote on the resolution and expressly authorises the Chair to exercise the proxy even if the resolution is connected directly or indirectly with the remuneration of a member of the key management personnel.

3. Re-election of Mr GS Davis as a Director

To consider, and if thought fit, pass the following resolution as an ordinary resolution:

'That Mr GS Davis, being a Director of the Company who retires by rotation in accordance with clause 47.1 of the Company's constitution, and being eligible, is re-elected as a Director of the Company.'

OTHER BUSINESS

4. Ratification of previous issue of shares

To consider, and if thought fit, pass the following resolution as an ordinary resolution:

"That approval be given for the purpose of ASX Listing Rule 7.4 and for all other purposes, for the issue of 12,000,000 fully paid ordinary shares at \$0.005 per fully paid ordinary share on 23 February 2016."

Voting exclusion statement

The Company will disregard any votes cast in relation to this resolution by or on behalf of a person who participated in the issue and any associate of those persons. However, in respect of this resolution, the Company need not disregard a vote if:

• it is cast by a person as proxy for a person who is entitled to vote, in accordance with the directions on the proxy form; or
• it is cast by the chairman of the meeting as proxy for a person who is entitled to vote, in accordance with a direction on the proxy form to vote as the proxy decides.

5. Ratification of previous issue of shares

To consider, and if thought fit, pass the following resolution as an ordinary resolution:

"That approval be given for the purpose of ASX Listing Rule 7.4 and for all other purposes, for the issue of 27,601,386 fully paid ordinary shares at \$0.005 per fully paid ordinary share on 2 March 2016."

Voting exclusion statement

The Company will disregard any votes cast in relation to this resolution by or on behalf of a person who participated in the issue and any associate of those persons. However, in respect of this resolution, the Company need not disregard a vote if:

• it is cast by a person as proxy for a person who is entitled to vote, in accordance with the directions on the proxy form; or
• it is cast by the chairman of the meeting as proxy for a person who is entitled to vote, in accordance with a direction on the proxy form to vote as the proxy decides.

6. Approval to issue an additional 10% of issued ordinary securities over a 12 month period

To consider, and if thought fit, pass the following resolution as a special resolution:

'That for the purposes of ASX Listing Rule 7.1A and for all other purposes, approval be given to issue equity securities (as defined in the ASX Listing Rules) equivalent to an additional 10% of the number of ordinary securities on issue calculated in accordance with the formula in listing rule 7.1A.2 and on terms described in the explanatory memorandum'.

Voting exclusion statement

The Company will disregard any votes cast on this resolution by a person (and any associates of such a person) who may participate in the proposed issue and a person who might obtain a benefit, except a benefit solely in the capacity of a holder of ordinary securities, if this resolution is passed.

However, the Company need not disregard a vote if:

• it is cast by a person as proxy for a person who is entitled to vote, in accordance with the directions on the proxy form; or
• it is cast by the chairman of the meeting as proxy for a person who is entitled to vote, in accordance with a direction on the proxy form to vote as the proxy decides.

7. To transact any further business that may be lawfully brought forward

Further information regarding the business to be transacted at the Annual General Meeting is set out in the explanatory memorandum accompanying the notice convening this meeting. This notice should be read in conjunction with the accompanying explanatory memorandum which forms part of this notice.

By order of the Board

Kaitlin Smith Company Secretary

Date: 6 October 2016

VOTING INFORMATION AND NOTES

1. Voting exclusions

Resolution 2 – Adoption of Remuneration Report

The Corporations Act 2001(Cth) (Corporations Act) prohibits Directors and other key management personnel (KMP) of the Company and their closely related parties voting in any capacity (including as a shareholder, proxy or personal representative) on resolution 2. The prohibition does not apply if the person has been appointed as a proxy by writing that specifies how the proxy is to vote on resolution 2, provided that the person who appointed the proxy is not themselves a person subject to the prohibition.

Accordingly, the Company will disregard any votes cast on resolution 2 (in any capacity) by or on behalf of Directors and other KMP of the Company and their closely related parties, unless the vote is cast by a person as proxy for a person entitled to vote in accordance with a direction in the proxy form.

In addition, the Chairman of the meeting can vote undirected proxies on resolution 2 where the shareholder provides the Chairman with express authorisation to do so, even if the resolution is connected directly or indirectly with the remuneration of a member of the KMP for the Company.

Therefore, when completing the proxy form, if you appoint the Chairman of the meeting as your proxy, or if the Chairman of the meeting is appointed as your proxy by default, then unless you mark one of the voting instruction boxes for resolution 2, you will be taken to have given your express authority to the Chairman to cast any undirected proxy votes on resolution 2.

2. Voting entitlement on a poll

On a poll, each shareholder present (in person, by proxy, attorney or representative) has one vote for each fully paid share they hold.

3. Proxies

A shareholder entitled to attend and vote at this meeting is entitled to appoint a proxy to attend and vote on the shareholder's behalf. If the shareholder is entitled to cast two or more votes at the meeting, the shareholder may appoint up to two proxies to attend and vote on the shareholder's behalf.

If a shareholder appoints two proxies, each proxy must be appointed to represent a specified proportion or number of the shareholder's votes. Absent this specification, each proxy will need to exercise half the votes.

A proxy need not be a shareholder of the Company.

To appoint a proxy, a proxy form must be signed by the shareholder or the shareholder's attorney duly authorised in writing. If the shareholder is a corporation, the proxy form must be signed in accordance with section 127 of the Corporations Act. To be effective, a proxy form (and, if it is signed by an attorney, the authority under which it is signed or a certified copy of the authority) must be received by the Company not later than 48 hours prior to the commencement of the meeting. Proxy forms and authorities may be sent to Computershare Investor Services Pty Ltd, GPO Box 242, Melbourne VIC 3001, or in person to Computershare at Level 5, 115 Grenfell Street, Adelaide SA 5000, or by facsimile to

Computershare on (within Australia) 1800 783 447 (outside Australia) +61 3 9473 2555 or the Company on +61 8 8375 3999.

Shareholders who forward their proxy forms by fax must make available the original executed form of the proxy for production at the meeting, if called upon to do so.

Undirected proxies

If shareholders appoint the person chairing the meeting as their proxy and do not specify how the Chairman is to vote on a resolution, except as directed, the Chairman advises that he intends to vote each such proxy, as proxy for those shareholders, in favour of each resolution on a poll. Therefore, the Company recommends that shareholders who submit proxies should consider giving "how to vote" directions to their proxy holder (including the Chairman) on each resolution. Please read the directions on the proxy form carefully, especially if you intend to appoint the Chairman of the meeting as your proxy.

If shareholders complete a proxy form that authorises the person chairing the meeting to vote on their behalf as proxy holder, and do not mark any of the boxes so as to give the Chairman directions about how their vote should be cast, then the Chairman may vote as they choose. If shareholders wish to appoint the person chairing the meeting as their proxy holder but do not want to put the Chairman in the position to cast their vote as they choose in relation to a resolution, shareholders should complete the appropriate box on the proxy form, directing the Chairman to vote for, against or abstain from voting on that resolution.

If the chairperson is appointed as a proxy, they are not permitted to vote undirected proxies on various matters, including some remuneration matters and related party matters unless express authority to do so is given by the appointing shareholder.

4. Custodian voting

For Intermediary Online subscribers only (custodians), please visit www.intermediaryonline.com to submit your voting intentions.

5. Entitlement to vote at the meeting

For the purpose of the meeting, shares in the Company will be taken to be held by those persons who are registered holders at 11.00 am (Adelaide time) on Monday, 14 November 2016. Accordingly, transactions registered after that time will be disregarded in determining entitlements to attend and vote at the meeting.

6. Quorum

The Constitution of the Company provides that 10 shareholders present in person, by proxy, attorney or body corporate representative shall be a quorum for the general meeting of the Company.

7. Appointing a corporate representative

Corporate representatives are requested to bring appropriate evidence of appointments as a representative. Proof of identity will be required for corporate representatives.

8. Appointment of an attorney

Attorneys are requested to bring a power of attorney pursuant to which they are appointed. Proof of identity will also be required for attorneys.

Explanatory Memorandum

Accompanying the Notice of Annual General Meeting to be held on 16 November 2016.

1. Financial Report

The Financial Report and the reports of the Directors and Auditor will be laid before the meeting in accordance with section 317 of the Corporations Act 2001 (Cth) (Corporations Act).

Shareholders will be given a reasonable opportunity to ask questions or make comments about the management of the Company and may also ask a representative of the Company's auditor questions relevant to the conduct of the audit and the accounting policies adopted by the Company.

2. Remuneration Report

The Company has included in the 2016 Annual Report a detailed Remuneration Report which provides prescribed information relating to remuneration.

As required by the Corporations Act, the Remuneration Report is submitted for adoption by a nonbinding vote.

The Remuneration Report is set out on pages 16 to 21 of the 2016 Annual Report and is available from the Company's website www.monaxmining.com.au .

A reasonable opportunity for discussion of the Remuneration Report will be provided at the meeting.

The Directors recommend shareholders vote in favour of the non-binding ordinary resolution.

3. Re-election of Mr G S Davis as a Director

Mr Davis retires under the compulsory retirement provisions of clause 47 of the Company's constitution and, being eligible, has offered himself for re-election as a director.

Mr Glenn Stuart Davis LLB, Bec, FAICD

Mr Davis has been an independent non-executive Director of Monax Mining Limited since 3 August 2004. Mr Davis is a solicitor and principal of DMAW Lawyers Pty Ltd, 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 resource industry.

Special responsibilities include membership of the Audit and Corporate Governance Committee. Other listed company directorships are: Chairman of Beach Energy Limited (since November 2012 and a director since July 2007). Former director of Marmota Energy Limited (since 2007 until June 2015).

The Directors (with Mr Davis abstaining) recommend shareholders vote in favour of the resolution.

4. Ratification of issue of shares on 23 February 2016

ASX Listing Rule 7.1 provides that (subject to certain exceptions) prior approval of shareholders is required for an issue of securities if the securities will, when aggregated with the securities issued by the Company during the previous 12 months, exceed 15% of the number of shares on issue at the commencement of that 12 month period.

The issue of the shares detailed in Resolution 4 did not exceed the 15% limit referred to above.

ASX Listing Rule 7.4 provides that where a company ratifies an issue of securities, the issue will be treated as having been made with approval for the purpose of ASX Listing Rule 7.1, thereby refreshing the Company's 15% capacity and enabling it to issue further securities up to that limit.

Resolution 4 proposes the ratification and approval of the allotment and issue of shares for the purpose of satisfying the requirements of ASX Listing Rule 7.4.

In accordance with ASX Listing Rule 7.5, the following information is provided to shareholders:

• 12,000,000 ordinary fully paid shares were issued on 23 February 2016 without shareholder approval;
• the shares were issued to sophisticated and professional investors at \$0.005 per fully paid ordinary share to commence a maiden drilling program at Mount Ringwood and for working capital purposes. The closing market price at the time of issue was \$0.007 per share.
• the shares rank equally in all respects with the Company's existing ordinary shares on issue; and

The Directors recommend shareholders vote in favour of the resolution.

5. Ratification of issue of shares on 2 March 2016

ASX Listing Rule 7.1 provides that (subject to certain exceptions) prior approval of shareholders is required for an issue of securities if the securities will, when aggregated with the securities issued by the Company during the previous 12 months, exceed 15% of the number of shares on issue at the commencement of that 12 month period.

The issue of the shares detailed in Resolution 5 did not exceed the 15% limit referred to above.

ASX Listing Rule 7.4 provides that where a company ratifies an issue of securities, the issue will be treated as having been made with approval for the purpose of ASX Listing Rule 7.1, thereby refreshing the Company's 15% capacity and enabling it to issue further securities up to that limit.

Resolution 5 proposes the ratification and approval of the allotment and issue of shares for the purpose of satisfying the requirements of ASX Listing Rule 7.4.

In accordance with ASX Listing Rule 7.5, the following information is provided to shareholders:

• 27,601,386 ordinary fully paid shares were issued on 2 March 2016 2016 without shareholder approval;
• the shares were issued to sophisticated and professional investors at \$0.005 per fully paid ordinary share to commence a maiden drilling program at Mount Ringwood and working capital purposes. The closing market price at the time of issue was \$0.007 per share.
• the shares rank equally in all respects with the Company's existing ordinary shares on issue; and

The Directors recommend shareholders vote in favour of the resolution.

6. Approval to issue an additional 10% of issued ordinary securities over a 12 month period.

Listing rule 7.1A permits eligible entities that have obtained shareholder approval by special resolution at an annual general meeting ("AGM") to issue an additional 10% of the entity's issued ordinary securities (calculated using the formula set out below). The ability to issue securities under listing rule 7.1A is in addition to the Company's ability to issue 15% of its fully paid ordinary securities without security holder approval in a 12 month period, under listing rule 7.1.

A listed entity must satisfy both of the following criteria at the time of its AGM in order to be eligible to seek approval under listing rule 7.1A:

• It must have a market capitalisation of \$300 million or less; and
• It must not be included in the S&P/ASX 300 Index.

At the date of the Notice, the Company satisfied both of those criteria.

The number of equity securities that the Company may issue with approval under listing rule 7.1A.2 is calculated using the following formula:

(A x D) - E

• A = The number of fully paid ordinary shares on issue 12 months before the issue date or date of agreement to issue:
• o plus the number of fully paid ordinary securities issued in the 12 months under an exception in rule 7.2;
• o plus the number of partly paid ordinary securities that became fully paid in the 12 months;
• o plus the number of fully paid ordinary securities issued in the 12 months with approval of shareholders under rule 7.1 or 7.4;
• o less the number of fully paid ordinary securities cancelled in the 12 months.

D = 10%

E = The number of equity securities issued or agreed to be issued under rule 7.1A.2 in the 12 months before the issue date or date of agreement to issue that are not issued with the approval of shareholders under rule 7.1 or 7.4.

A resolution under listing rule 7.1A can only be proposed as a special resolution at an eligible entity's AGM. A special resolution is a resolution that has been passed by at least 75% of the votes cast by members entitled to vote on the resolution.

Securities issued with approval under listing rule 7.1A must belong to a class of equity securities already quoted. Listing rule 7.1A cannot be used for placements of securities in a class that have not yet been quoted.

The Directors recommend shareholders vote in favour of resolution 6. The chairman intends to vote undirected proxies in favour of resolution 6.

Information required by listing rule 7.3A

Listing rule 7.3A prescribes the information that must be included in the Notice in relation to a resolution under listing rule 7.1A. This information is as follows:

• 1. The issue price of securities issued under listing rule 7.1A must be no lower than 75% of the volume weighted average market price for securities in the relevant quoted class calculated over the 15 trading days on which trades in that class were conducted immediately before either:
• 1.1 the date on which the price at which the securities are to be issued is agreed; or
• 1.2 if the securities are not issued within 5 trading days of the date in paragraph 1.1 above, the date on which the securities are issued.
• 1. If resolution 6 is approved by shareholders and the Company issues additional equity securities there is a risk of economic and voting dilution of the existing shareholders including the risk that:
• 2.1 the market price for the Company's ordinary securities may be significantly lower on the issue date than on the date of the approval under listing rule 7.1A; and
• 2.2 the ordinary securities may be issued at a price that is at a discount to the market price for those ordinary securities on the issue date.

The table below provides details of the quoted and unquoted classes of equity securities the Company has on issue at the date of the Notice.

Equity Security	Number on issue
Quoted fully paid ordinary shares	453,960,718
Unquoted 5.3 cent options expiring 23 July 2017	325,000
Unquoted 2.6 cent options expiring 12 May 2020	1,200,000

The following table illustrates the potential dilution of existing shareholders on the basis of the number of ordinary securities for variable 'A' as at the date of this notice ("current variable A") and where variable "A" is 1.5 times and twice the current variable A:

	Current variable "A"	50% increase in current variable "A"	100% increase in current variable "A"
	453,960,718	680,941,077	907,921,436
10 % voting dilution	45,396,072	68,094,108	90,792,144
Total shares on issue following rule 7.1A placements	499,356,790	749,035,185	998,713,580

Assumptions relevant to the table describing the potential dilution of existing shareholders:

• (i) An additional 10% of the Company's ordinary shares are issued under rule 7.1A;
• (ii) No options are exercised before the date of the issue under rule 7.1A;
• (iii) The issue under rule 7.1A consists only of shares.

The following table illustrates the funds raised from the issue of an additional 10% of ordinary securities under rule 7.1A, based on:

• o The current variable "A" and where variable "A" has increased by 50% and 100%; and
• o The share price as at the date of this notice and where the share price has fallen by 50% and increased by 100%.

Rule 7.1A placement details	\$0.007	\$0.014	\$0.028
	(50% decrease in share price)	(share price as at the date of this notice)	(100% increase in share price)
45,396,072 (10% voting
dilution based on current variable "A")	\$317,773	\$635,545	\$1,271,090
68,094,108 (10% voting
dilution based on a 50% increase in current variable "A")	\$476,659	\$953,318	\$1,906,635
90,792,144 (10% voting dilution based on a 100% increase in current variable "A")	\$635,545	\$1,271,090	\$2,542,180

• 1. The Company will only issue equity securities during the 12 month period after the date of the AGM on 16 November 2016. The approval under resolution 6 for the issue of equity securities will cease to be valid in the event that shareholders approve a transaction under listing rule 11.1.2 (a significant change to the nature or scale of activities) or listing rule 11.2 (the disposal of the Company's main undertaking).
• 1. The Company may issue the equity securities for the following purposes:
• 4.1 non-cash consideration for the acquisition of new resources, assets and investments. In such circumstances the Company will provide a valuation of the non-cash consideration as required by Listing Rule 7.1A.3.
• 4.2 cash consideration. In such circumstances, the Company intends to use the funds raised towards an acquisition of new assets or investments (including expenses associated with such acquisitions or investments), continued exploration and development expenditure on the Company's current assets and/or general working capital.
• 1. The Company's allocation policy is dependent on the prevailing market conditions at the time of any proposed issues. The identity of the allottees of equity securities will be determined on a case-by-case basis and in regard to factors including but not limited to the following:
• 5.1 the methods of raising funds that are available to the Company, including but not limited to, rights issue or other issue in which existing security holders can participate;
• 5.2 the effect of the issue of the equity securities on the control of the Company;
• 5.3 the financial situation and solvency of the Company; and
• 5.4 advice from corporate, financial and broking advisors (if applicable).

The allottees pursuant to this resolution have not been determined as at the date of this Notice

but may include existing substantial shareholders and/or new shareholders who are not related parties or associates of a related party of the Company.

Further, if the Company acquires new assets, it is likely that the allottees pursuant to this resolution will be the vendors of the new assets. If this resolution is approved by shareholders, the Company may issue equity securities during the 12 month period after the date of the AGM as and when the circumstances of the Company require.

• 1. The Company obtained approval under ASX Listing Rule 7.1A at last year's Annual General Meeting held on 17 November 2015 but has not issued any shares under ASX Listing Rule 7.1A.
• 1. As the Company has previously obtained shareholder approval under Listing Rule 7.1A, and is now seeking shareholder approval to renew its capacity to issue an additional 10% of its issued ordinary securities under Listing Rule 7.1A, it is required to provide details of all issues of Equity Securities in the 12 months preceding the date of the meeting.
• 1. The total number of Equity Securities issued preceding the date of the meeting and the percentage they represent of the Company's Equity Securities on issue at the commencement of that 12 month period are presented in the table below:

Total number of Equity Securities issued in last 12 months
Number of Equity Securities issued	218,501,479
Percentage of Equity Securities issued	92.8%

• 1. As required by the ASX Listing Rules, the details of all issue of securities by the Company during the 12 months preceding the date of the meeting are detailed below:
• 9.1 on 17 November 2015, 14,000,000 ordinary fully paid shares were issued to Glen Teece, NT Gold Pty Ltd, Wladimir Falko and CR&E Pty Ltd at a notional issue price of \$0.007 per share to settle the acquisition of an option agreement to explore mining leases in the Northern Territory. The issue was for non-cash consideration. The closing market price on the date of issue was \$0.011. The issue price represented a 36.4% discount to the closing market price of the Company's shares on the date of issue;
• 9.2 on 17 November 2015, 14,550,000 ordinary fully paid shares were issued under a share purchase plan at an issue price of \$0.01 per share. The issue price represented a 9.1% discount to the closing market price of the Company's shares on the date of issue. The SPP was open to all shareholders of the Company on the record date, being 18 November 2015. The SPP raised \$145,500. The proceeds from the SPP have and will continue to be used for general working capital requirements and for exploration programs on the Company's tenements;
• 9.3 on 23 February 2016, 12,000,000 ordinary fully paid shares were issued to sophisticated investors raising \$60,000. The issue price was \$0.005 per share which represented a 28.6% discount to the closing market price to the Company's shares on the date of issue. The proceeds from the placement have and will continue to be used to fund the maiden Mt Ringwood drilling program;
• 9.4 on 2 March 2016, 27,601,386 ordinary fully paid shares were issued to sophisticated professional investors raising \$138,000. The issue price was \$0.005 per share which represented a 28.6% discount to the closing market price of the Company's shares on the date of issue. The proceeds from the placement have and will continue to be used to fund the maiden Mt Ringwood drilling program;

• 9.5 on 15 July 2016, 53,819,173 ordinary fully paid shares were issued pursuant to a nonrenounceable entitlement issue (Entitlement Offer or Offer) raising \$538,192. The issue price was \$0.01 per share which represented a 9.1% discount to the closing market price of the Company's shares on the date of issue. Recipients of the shares were those shareholders who subscribed under the Offer, being shareholders of the Company on the record date of 3 June 2016. The proceeds from the Offer have and will continue to be used for general working capital requirements and for exploration programs on the Company's tenements;
• 9.6 on 22 July 2016, 5,119,904 ordinary fully paid shares were issued to the underwriter with respect to the Entitlement Offer raising \$51,199. The issue price was \$0.01 per share which represented a 41.2% discount to the closing market price of the Company's share on the date of issue. The proceeds from the underwriting have and will continue to be used for general working capital requirements and or exploration programs on the Company's tenements;
• 9.7 on 22 July 2016, 91,411,016 ordinary fully paid shares were issued to sophisticated investors comprising the shortfall under the Entitlement Offer, raising \$914,110. The issue price of \$0.01 per share represented a 41.2% discount to the closing market price of the Company's shares on the date of issue. The proceeds from the Entitlement Offer have and will continue to be used for general working capital requirements for exploration programs on the Company's tenements.
• 1. A voting exclusion statement is included in the Notice. At the date of the Notice the proposed allottees of the securities are not known and identified. Therefore no existing shareholder's votes will be excluded under the voting exclusion in this Notice.

Definitions

Closely related parties of the Company's KMP include certain family members, dependants and companies they control.

Equity securities has the same meaning as in the Listing Rules.

Key management personnel (KMP) of the Company are, as adopted from the Australian Accounting Standards Board, those persons having authority and responsibility for planning, directing and controlling the activities of the Company, directly or indirectly (whether executive or otherwise) of the Company.

Lodge your vote:

By Mail:

Computershare Investor Services Pty Limited GPO Box 242 Melbourne Victoria 3001 Australia

Alternatively you can fax your form to (within Australia) 1800 783 447 (outside Australia) +61 3 9473 2555

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Proxy Form

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For your vote to be effective it must be received by 11:00am (Adelaide time) Monday 14 November 2016

How to Vote on Items of Business

All your securities will be voted in accordance with your directions.

Appointment of Proxy

Voting 100% of your holding: Direct your proxy how to vote by marking one of the boxes opposite each item of business. If you do not mark a box your proxy may vote or abstain as they choose (to the extent permitted by law). If you mark more than one box on an item your vote will be invalid on that item.

Voting a portion of your holding: Indicate a portion of your voting rights by inserting the percentage or number of securities you wish to vote in the For, Against or Abstain box or boxes. The sum of the votes cast must not exceed your voting entitlement or 100%.

Appointing a second proxy: You are entitled to appoint up to two proxies to attend the meeting and vote on a poll. If you appoint two proxies you must specify the percentage of votes or number of securities for each proxy, otherwise each proxy may exercise half of the votes. When appointing a second proxy write both names and the percentage of votes or number of securities for each in Step 1 overleaf.

A proxy need not be a securityholder of the Company.

Signing Instructions

Individual: Where the holding is in one name, the securityholder must sign.

Joint Holding: Where the holding is in more than one name, all of the securityholders should sign.

Power of Attorney: If you have not already lodged the Power of Attorney with the registry, please attach a certified photocopy of the Power of Attorney to this form when you return it.

SAMPLE Companies: Where the company has a Sole Director who is also the Sole Company Secretary, this form must be signed by that person. If the company (pursuant to section 204A of the Corporations Act 2001) does not have a Company Secretary, a Sole Director can also sign alone. Otherwise this form must be signed by a Director jointly with either another Director or a Company Secretary. Please sign in the appropriate place to indicate the office held. Delete titles as applicable.

Attending the Meeting

Bring this form to assist registration. If a representative of a corporate securityholder or proxy is to attend the meeting you will need to provide the appropriate "Certificate of Appointment of Corporate Representative" prior to admission. A form of the certificate may be obtained from Computershare or online at www.investorcentre.com under the help tab, "Printable Forms".

Comments & Questions: If you have any comments or questions for the company, please write them on a separate sheet of paper and return with this form.

Turn over to complete the form

www.investorcentre.com View your securityholder information, 24 hours a day, 7 days a week: Review your securityholding Update your securityholding Your secure access information is: PLEASE NOTE: For security reasons it is important that you keep your SRN/HIN confidential.

Change of address. If incorrect, mark this box and make the correction in the space to the left. Securityholders sponsored by a broker (reference number commences with 'X') should advise your broker of any changes.

Proxy Form Please mark to indicate your directions

Appoint a Proxy to Vote on Your Behalf STEP 1

I/We being a member/s of Monax Mining Limited hereby appoint

or failing the individual or body corporate named, or if no individual or body corporate is named, the Chairman of the Meeting, as my/our proxy to act generally at the Meeting on my/our behalf and to vote in accordance with the following directions (or if no directions have been given, and to the extent permitted by law, as the proxy sees fit) at the Annual General Meeting of Monax Mining Limited to be held at Level 6, 80 King William Street, Adelaide South Australia on Wednesday, 16 November 2016 at 11:00am (Adelaide time) and at any adjournment or postponement of that Meeting.

Chairman authorised to exercise undirected proxies on remuneration related resolutions: Where I/we have appointed the Chairman of the Meeting as my/our proxy (or the Chairman becomes my/our proxy by default), I/we expressly authorise the Chairman to exercise my/our proxy on Item 2 (except where I/we have indicated a different voting intention below) even though Item 2 is connected directly or indirectly with the remuneration of a member of key management personnel, which includes the Chairman.

the remuneration of a member of key management personnel, which includes the Chairman.	the Meeting as my/our proxy (or the Chairman becomes my/our proxy by default), I/we expressly authorise the Chairman to exercise my/our proxy on Item 2 (except where I/we have indicated a different voting intention below) even though Item 2 is connected directly or indirectly with
voting on Item 2 by marking the appropriate box in step 2 below.	E Important Note: If the Chairman of the Meeting is (or becomes) your proxy you can direct the Chairman to vote for or against or abstain from
STEP 2 Items of Business	L  PLEASE NOTE: If you mark the Abstain box for an item, you are directing your proxy not to vote on your behalf on a show of hands or a poll and your votes will not be counted in computing the required majority.
ORDINARY BUSINESS		Against Abstain For
2 Adoption of Remuneration Report	P
3 Re-election of Mr GS Davis as a Director	M
OTHER BUSINESS
4 Ratification of previous issue of shares on 23 February 2016	A
5 Ratification of previous issue of shares on 2 March 2016
6	S Approval to issue an additional 10% of issued ordinary securities over a 12 month period

The Chairman of the Meeting intends to vote undirected proxies in favour of each item of business. In exceptional circumstances, the Chairman of the Meeting may change his/her voting intention on any resolution, in which case an ASX announcement will be made.

Individual or Securityholder 1	Securityholder 2		Securityholder 3
Sole Director and Sole Company Secretary	Director		Director/Company Secretary
Contact Name		Contact Daytime Telephone	Date	/	/

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