FIRST LITHIUM LIMITED — Regulatory Filings 2021

Jul 12, 2021

Cameroon Mining Corporation SARL FINANCIAL REPORT 31 DECEMBER 2020 (R.C.C.M R.C/DLN/2017/B/1560)

CONTENTS

Corporate Directory
	2
Director's Report	3
Financial Report
Statement of Profit or Loss and Other Comprehensive Income	5
Statement of Financial Position	6
Statement of Changes in Equity	$\overline{7}$
Statement of Cash Flows	8
×, Notes to the Financial Statements	9
Director's Declaration	15
Independent Auditor's Report
	16

$\mathbb{R}^{\mathbb{Z}}$

CORPORATE DIRECTORY

Director Christopher Acha Morfaw Amingwa

Address of Headquarters Akwa BP 12209, Douala, Cameroon

Auditor Pitcher Partners BA&A Pty Ltd Level 11, 12-14 The Esplanade
Perth, WA 6000

DIRECTORS' REPORT

Your Director presents his report, together with the financial statements of Cameroon Mining Corporation SARL (the "Company") for the period ended 31 December 2020.

DIRECTORS

The names of Directors in office at any time during or since the end of the period to the date of this report are:

Name	Status	Appointed
Mr Christopher Acha Morfaw Amingwa	Director	23 April 2017

PRINCIPAL ACTIVITIY

Cameron Mining Corporation SARL (a company incorporated in Cameroon) is the registered holder of a nickel and cobalt exploration project located in the southeast of Cameroon (the "Messok East Project").

DIVIDENDS PAID OR RECOMMENDED

There were no dividends paid, recommended or declared during the current financial period ended 31 December 2020.

REVIEW OF OPERATIONS

Operation Review

The Company engaged in its principal activity during the financial period ended 31 December 2020.

Financial Review

The loss for the financial period ended 31 December 2020 was \$51,000 (2019: Nil)

SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS

There were no significant changes in the state of affairs for the financial period ended 31 December 2020.

EVENTS SUBSEQUENT TO REPORTING DATE

There have been no material events or circumstances that have arisen since the end of the financial period.

FUTURE DEVELOPMENTS, PROSPECTS AND BUSINESS STRATEGIES

The Company expects to increase operations at completion of a transaction that its parent Company Cameroon Cobalt Pty Ltd is proposing with Ookami Limited.

OPTIONS

At the date of this report, there were no un-issued shares under option for the Company.

ENVIRONMENTAL REGULATIONS

The Company aims to comply with the identified regulatory requirements in each jurisdiction in which it operates. There have been no known breaches of the environmental regulations.

NON-AUDIT SERVICES

There was no non-audit service provided during the financial period ended 31 December 2020.

PROCEEDINGS ON BEHALF OF THE COMPANY

No person has applied for leave of Court to bring proceedings on behalf of the Company or 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 any part of those proceedings. The Company was not a party to any such proceedings during the financial period.

DIRECTORS' REPORT

Signed in accordance with a resolution of the Director.

Christopher Acha Morfaw Amingwa $\textbf{Directory} \$ 14 April 2021

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2020

	Note	31-Dec-20	31-Dec-19
		AUD	AUD
Exploration expense		(51,000)
Loss before income tax		(51,000)
Income tax expense
Loss for the period after income tax		(51,000)
Other comprehensive (loss)/income		-
Total comprehensive loss for the period		(51,000)

The above Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes.

STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2020

	Note	31-Dec-20 AUD	31-Dec-19 AUD
CURRENT ASSETS
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS		-
CURRENT LIABLILITIES
Trade and other payables	4	51,000
TOTAL CURRENT LIABILITIES		51,000
TOTAL LIABILITIES		51,000
NET (LIABILITIES)		(51,000)
SHAREHOLDERS' EQUITY
Share capital	5	242	242
Accumulated gains/(losses)		(51, 242)	(242)
TOTAL SHAREHOLDERS' (DEFICIT)		(51,000)

The above Statement of Financial Position should be read in conjunction with the accompanying notes.

STATEMENT OF CHANGES IN EQUITY

AS AT 31 DECEMBER 2020

	Issued Capital AUD	Accumulated Losses AUD	Total AUD
Balance at 1 January 2019
Gain/(loss) for the period
Total comprehensive loss for the period
Transactions with owners, recognised directly in equity
Issue of share capital in the period
Balance at 31 December 2019	242	(242)
Balance at 1 January 2020	242	(242)
Loss for the period		(51,000)	(51,000)
Total comprehensive loss for the period		(51,000)	(51,000)
Transactions with owners, recognised directly in equity
Issue of share capital in the period
Balance at 31 December 2020	242	(51, 242)	(51,000)

The above Statements of Changes in Equity should be read in conjunction with the accompanying notes.

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2020

	Note	31-Dec-20 AUD	31-Dec-19 AUD
CASH FLOWS FROM OPERATING ACTIVITIES Payment for exploration expenditure Net cash used in operating activities
CASH FLOWS FROM INVESTING ACTIVITIES Payment for intangible expenditure Net cash used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from shareholders borrowings Proceeds from issue of share capital Net cash provided by financing activities
Net movement in cash and cash equivalents Cash and cash equivalents at the beginning of the financial period
Cash and cash equivalents at the end of the financial period

The above Statement of Cash Flows should be read in conjunction with the accompanying notes

FOR THE YEAR ENDED 31 DECEMBER 2020

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Cameroon Mining Corporation SARL is limited by shares, was formed on 23 April 2017 and is domiciled in Cameroon. Its registered office and principal place of business is Akwa BP 122209, Douala, Cameroon.

The financial statements for the period ended 31 December 2020 were approved and authorised for issue by the Director at the date of the Director's report.

These financial statements are general purpose financial statements which have been prepared in accordance with International Accounting Standards Board ("IASBs") (including International interpretations) adopted by the International Accounting Standard Board ("IASB").

The financial statements and notes of the Company comply with International Accounting Standards, which include International equivalents to International Financial Reporting Standards ("IFRS"). Compliance with IFRS ensures that the financial statements and notes comply with International Financial Reporting Standards.

The following specific accounting policies have been adopted in the preparation of the financial statements:

a) Basis of preparation of the financial report

Historical Cost Convention

The financial statements have been prepared under the historical cost convention. Monetary amounts are expressed in Australian Dollars ("AUD").

Critical accounting estimates

The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Company's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in note 1(j).

b) Going Concern

The financial report has been prepared on a going concern basis, which contemplates the continuity of normal business activity and the realization of assets and settlement of liabilities in the normal course of business.

The Statement of Financial Position shows that the Company had a cash and cash equivalents balance of \$nil and a net current liability position of \$51,000 as at 31 December 2020.

The financial statements have been prepared on a going concern basis. In arriving at this position the Director has had regard to the fact that based on the matters noted below the Company has, or in the Director's opinion, will have access to, sufficient cash to fund administrative and other committed expenditure for a period of at least 12 months from the date of signing this financial report. In forming this view the Director has taken into consideration the following:

The Company was acquired by Cameroon Cobalt Pty Ltd (the "Parent Company") during the year ended 31 December 2020 and as announced on the ASX platform on the 2 March 2021, the Parent Company is in the final stages of completing a transaction (Messok East Agreement) with Ookami Limited ("Ookami") to sell 100% of the issued share capital of the Company for 2.5 million fully paid ordinary shares in Ookami. As part of the Messok East Agreement, Ookami is required to complete a capital raise of approximately \$5,700,000 (the "Capital Raise"). The Company has received confirmation from Ookami that should the transaction with Ookami be completed and the Capital Raise be successful, Ookami will fund the Company's administrative and other committed expenditure for a period of at least 12 months from the date of signing this financial report. It should be noted that should the Capital Raise be unsuccessful, Ookami is currently unable to fund the Group's administrative and other committed expenditure for a period of at least 12 months from the date of signing this consolidated financial report.

In addition, subsequent to period ended 31 December 2018, the Parent Company successfully raised approximately \$70,000 in Cameroon Cobalt to various sophisticated and professional investors.

Should the Company not achieve the matters set out above there is a material uncertainty whether the Company will continue as a going concern and therefore whether it will realise its assets and extinguish its liabilities in the normal course of business and at the amounts stated in the financial statements. The financial statements do not include any adjustment relating to the recoverability or classification of recorded asset amounts or to the amounts or classification of liabilities that might be necessary should the Company not be able to continue as a going concern and meet its debts as and when they fall due.

Cameroon Mining Corporation SARL - Financial Report 31 December 2020

FOR THE YEAR ENDED 31 DECEMBER 2020

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Adoption of New and Amended Accounting Standards $c)$

The Company has adopted all of the new, revised or amending Accounting Standards and Interpretation issued by the IASB that are mandatory for the reporting period.

Any new, revised, or amending Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.

d) Revenue and Other Income

Revenue is measured at the fair value of the consideration received or receivable.

Interest revenue is brought to account on an accruals basis using the effective interest rate method and, if not received at the end of the reporting period, is reflected in the Statement of Financial Position as a receivable.

e) Cash and cash equivalents

Cash and cash equivalents include cash on hand, deposits available on demand with banks with original maturity of three months or less.

f) Exploration and Evaluation Expenditure

Recognition and measurement

Exploration and evaluation expenditure, including costs of acquiring licences, are capitalised as exploration and evaluation assets on an area of interest basis. Cost incurred before the Company obtained the legal rights to explore an area are recognised in profit and loss.

Exploration and evaluation expenditure are recognised as an asset if the right of the area of interest are current and either:

• The expenditures are expected to be recouped through successful development and exploitation of the areas of $\bullet$ interest: or
• Activities in the area of interest have not at the reporting date, reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves and active and significant operations in, or in relation to, the area of interest are continuing.

Subsequent measurement

Exploration and evaluation assets are assessed for impairment if:

• Sufficient data exists to determine technical feasibility and commercial viability; and
• Facts and circumstances suggest that the carrying amount exceeds the recoverable amount.

For the purpose of the impairment testing, exploration and evaluation assets are allocated to cash-generating units to which the exploration activity relates. The cash-generating unit shall not be larger than the area of interest.

Once the technical feasibility and commercial viability of the extraction of mineral resources in an area of interest are demonstrable, exploration and evaluation assets attributable to that area of interest are first tested for impairment and then reclassified from exploration and evaluation assets to mine properties within property, plant and equipment.

The value of the Company's interest in exploration and evaluation expenditure is dependent upon:

• The continuance of the Company's right to tenure of the areas of interest;
• The result of future exploration; and
• The recoupment of costs through successful development and exploitation of the areas of interest, or alternatively, by

g) Equity

Share capital represents the fair value of shares that have been issued. Any transaction costs associated with the issuing of shares are deducted from share capital, net of any related income tax benefits. The option reserve records the value of share-based payments.

FOR THE YEAR ENDED 31 DECEMBER 2020

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

h) Foreign currency translations and balances

Functional and presentation of currency

The functional currency of the Company is measured using the currency of the primary economic environment in which entity operates. The financial statements presentation currency is in AUD.

Foreign currency transactions and balances

Foreign currency translations are translated into presentation currency using the exchange rate prevailing at the date of the transaction. Foreign currency monetary items are translated at the period-end exchange rate. Non-monetary items measured at historical cost continue to be carried at the exchange rate at the date of transaction. Non-monetary items measured at fair value are reported at the exchange rate at the date when the fair values were determined.

Exchange differences arising on the translation of monetary items are recognised in profit or loss.

Exchange differences arising on the translation of non-monetary items are recognised directly in other comprehensive income to the extent that the underlying gain or loss is recognised in other comprehensive income, otherwise the exchange difference is recognised in profit or loss.

Financial instruments $i)$

Initial recognition and measurement

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of 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 (i.e. trade date accounting is adopted).

Financial instruments are initially measured at fair value adjusted for transaction costs, except where the instrument is classified as fair value through profit or loss, in which case transaction costs are immediately recognised as expenses in profit or loss.

Classification of financial assets

Financial assets recognised by the Company are subsequently measured in their entirety at either amortised cost or fair value. The Company currently has no financial assets other than cash and cash equivalents.

Classification of financial liabilities

Financial liabilities classified as held for trading, contingent consideration payable by the Company for the acquisition of a business, and financial liabilities designated at Fair value through profit or loss, are subsequently measured at fair value.

All other financial liabilities recognised by the Company are subsequently measured at amortised cost. Financial liabilities are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting period. The Company's financial liabilities include trade and other payables and borrowings.

FOR THE YEAR ENDED 31 DECEMBER 2020

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

j) Critical Accounting Estimates and Judgements

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

Key Judgement

Exploration and evaluation expenditure

Key judgements are applied in considering exploration and evaluation expenditure to be capitalised which includes determining expenditures directly related to these activities and allocating overheads between those that are expensed and capitalised. In addition, costs are only capitalised that are expected to be recovered either through successful development or sale of the relevant mining interest. Factors that could impact the future commercial production at the mine include the level of reserves and resources, future technology changes, which could impact the cost of mining, future legal changes and changes in commodity prices. To the extent that capitalised costs are determined not to be recoverable in the future, they will be written off in the period in which this determination is made.

Coronavirus (COVID-19) pandemic

Judgement has been exercised in considering the impacts that the Coronavirus (COVID-19) pandemic has had, or may have, on the Company based on known information. This consideration extends to the nature of the supply chain, staffing and geographic regions in which the Company operates. There were no significant impact upon the financial statements or any significant uncertainties with respect to events or conditions which may have impact the Company unfavourably as at the reporting date or subsequently as a result of the Coronavirus (COVID-19) pandemic.

NOTE 2: KEY MANAGEMENT PERSONNEL ("KMP") AND RELATED PARTY TRANSACTIONS

There have been no payments made to the Director and KMP of the Company for the financial period ended 31 December 2020 (2019: NIL).

Loans from/to KMP and their related parties

There have been no loans from or to KMP and their related Partis.

Other transactions and balances with KMP and their related parties

Accrual of \$51,000 AUD to Director Mr Christopher Acha Morfaw Amingwa for services rendered in relation to managing the mining permit and Company, there were no other transactions and balances with KMP and their related parties during the financial period.

NOTE 3: AUDITOR'S REMUNERATION	31 December 2020	31 December 2019
	AUD	AUD
During the period the following fees were paid or payable for services provided by the auditor of the Company

Remuneration of the auditor of the Company

Audit of the financial reports

FOR THE YEAR ENDED 31 DECEMBER 2020

NOTE 4: TRADE AND OTHER PAYABLES	31 December 2020 AUD	31 December 2019 AUD
CURRENT
Trade payables	٠
Accrual	51,000	۰
	51,000	-

All amounts are short-term. The carrying values of trade payables and other payables are considered to be a reasonable approximation of fair value.

NOTE 5: ISSUED CAPITAL

There were nil movements in issued capital as at 31 December 2020 (2019: nil).

NOTE 6: FINANCIAL INSTRUMENTS

Financial Risk Management Policies

The Company's financial instruments consist of trade payables.

Specific Financial Risk Exposures and Management

The main risk the Company is exposed to through its financial instruments is liquidity 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's approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company's reputation.

The following are the contractual maturities of financial liabilities based on the actual rates at the reporting date excluding interest payments :

2020	Interest rate	Less than 6 months	$6 - 12$ mont hs	$1 - 2$ years	$2 - 5$ years	Over 5 years	Total contractual cash flows	Carrying amount assets/ (liabilities)
		AUD	AUD	AUD	AUD	AUD	AUD	AUD
Financial liabilities at amortised cost
Trade and other payables		51,000	$\overline{\phantom{a}}$	$\overline{a}$	$\qquad \qquad \blacksquare$	$\overline{\phantom{a}}$	$\overline{\phantom{a}}$	51,000
		51,000	$\overline{\phantom{a}}$		۰	$\blacksquare$	$\frac{1}{2}$	51,000

There were no financial liabilities as at 31 December 2019.

(d) Net fair Value of financial assets and liabilities

Fair value estimation

Due to the short-term nature of the financial liabilities the carrying value is considered to approximate fair value.

Cameroon Mining Corporation SARL - Financial Report 31 December 2020

FOR THE YEAR ENDED 31 DECEMBER 2020

NOTE 7: COMMITMENTS

The Company has a commitment to incur expenditure of CFA 600,000,000 (circa AUD \$1,437,000) during the life of the Messok East Project. Minimal expenditure has been incurred as at the date of this report.

NOTE 8: CONTINGENT LIABILITIES

The are no known contingent liabilities at the end of the period.

NOTE 9: EVENTS SUBSEQUENT TO REPORTING DATE

There have been no material events or circumstances that have arisen since the end of the financial period.

DIRECTORS' DECLARATION

FOR THE YEAR ENDED 31 DECEMBER 2020

In Director's opinion:

• a) The financial statements and notes are in accordance with International Accounting Standards, including: (a) complying with International Accounting Standards as detailed in Note 1 to the financial statements; and
• (b) presenting fairly, in all material respects, the financial position of the Company as at 31 December 2020 and its procession, the west of the year ended on that date in accordance with the accounting policies described in Note 1 to the financial statements.
• b) There are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

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

Christopher Acha Morfaw Amingwa Director 14 April 2021