GOLDEN CROSS RESOURCES LTD - Annual Report 2020

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2020

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Chairman’s letter’ to Shareholders ----------------------------------------------------------------------------------------------------- 1 Review of Operations----------------------------------------------------------------------------------------------------------------------- 2 Royalties --------------------------------------------------------------------------------------------------------------------------------------- 17 Directors’ Report ---------------------------------------------------------------------------------------------------------------------------- 18 Corporate Governance Statement ------------------------------------------------------------------------------------------------------ 23 Consolidated Statement of Financial Position------------------------------------------------------------------------------------- 26 Consolidated Cash Flow Statement----------------------------------------------------------------------------------------------------- 27 Consolidated Statement of Changes in Equity --------------------------------------------------------------------------------------- 28 Notes to the Financial Statements ------------------------------------------------------------------------------------------------------ 29 Directors’ Declaration ---------------------------------------------------------------------------------------------------------------------- 50 Independent Audit Report to the Members ----------------------------------------------------------------------------------------- 51 Interests in Mining Tenements ---------------------------------------------------------------------------------------------------------- 55 Shareholder Information ----------------------------------------------------------------------------------------------------------------- 56

COMPANY PARTICULARS

DIRECTORS

Jordon Li (appointed 15 January 2020) MBA, FAusIMM, MAICD Chairman

Ken Hellsten (resigned 14 August 2019) BSc (Hons), MAICD, FAusIMM Chairman

Xiaoming Li, BA(Comm), MBA Non-Executive Director (resigned 11 March 2020)

Yuanheng Wang Non-Executive Director

Yan Li, MBA Non-Executive Director (appointed 11 March 2020)

ACTING CEO

Bret Ferris

PRINCIPAL AND REGISTERED OFFICE

304/66 Berry Street North Sydney NSW 2060 Australia Ph +61 2 9922 1266 Fax +61 2 9922 1288 Email [email protected] Web www.goldencross.com.au ABN 65 063 075 178

STOCK EXCHANGE LISTING

Golden Cross Resources Ltd securities are listed for quotation on the Australian Securities Exchange (Listing Code GCR)

AUDITORS

Rothsay Audit & Assurance Pty Level 1/12 O’Connell Street Sydney NSW 2000

SHARE REGISTER

COMPANY SECRETARY

Carl Hoyer (resigned 13 July 2020) Carolyn Jacobs (appointed 13 July 2020)

Automic Group Level 5, 126 Phillip Street Sydney NSW 2000 Ph +61 2 8072 1400

EXPLORATION MANAGER

Bret Ferris BAppSc, GradDipCompSt, MAIG

Dear Shareholders,

2020 has been a year with challenges. It has been probably reshaping the world around us including the business environment.

The coronavirus pandemic demonstrates the level of connected business relations among global markets and the vulnerability of any established systems. Governments and every one of us have been painfully dealing with the consequences with caution and hope. During these difficult times, prudence and resilience are the critical decision-making principles of your Company, Golden Cross Resources (GCR).

The Board and management have continued to maintain our quality mineral projects especially the Copper Hill project in the highly sought-after geological locations in Molong Volcanic Belt. GCR has also been taking the full social and commercial responsibilities looking after our team and the shareholders’ interest.

In mid-January 2020, the Company appointed me as the non-executive director and chairman, and we are working towards appointing the second Australian resident non-executive director. In February, GCR entered a new lease of the Coppervale property, which has been important to the Company as a stable field base and the main access route to the Copper Hill Project. GCR has also secured a first right of refusal to purchase this property in the event of sale by the new owner. In March, the long-serving non-executive director Mr Xiaoming Li voluntarily resigned, and his alternate Mr Yang Li was appointed as a director. The generous support given by Mr Xiaoming Li in the past and the continuous support from our largest shareholder HQ Mining are gratefully acknowledged and appreciated.

For the last twelve months, your Company has been operating with funding support from HQ Mining, directors, and the management. We have also been in communication with potential investors, corporate advisors and other parties who are interested in GCR assets.

As you would see at the Annual General Meeting, the Company is working on critical corporate and capital raising plans, once properly implemented, would enable your Company to re-start on a promising track moving forward.

Recent work activities by other companies in the Molong Volcanic Belt of the Macquarie Arc have further demonstrated the fact that we are at very popular locations, with ready and available funding in the market supporting projects with promising exploration and announced resources.

The Board and the management are confident that our Copper Hill Project is a key copper and gold porphyry resource in the excellent Lachlan Fold Belt in New South Wales. We are all committed to getting GCR shares trading again and bringing back more funding and activities to unlock the value in the project for all shareholders.

Thank you all for the confidence in GCR’s projects and the continuous support of the Company.

Yours sincerely,

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Jordan G LI Chairman and Non-executive Director

Golden Cross Resources Ltd Annual Report 2020

Review of Operations

Golden Cross projects are diversified across a range of commodities and regions with demonstrated potential for long life resource developments (Figure 1) . During the year to 30 June 2020, progress across all projects was impacted by limited access to funding with the Company’s operations being supported by loans from its major shareholder HQ Mining Resources Holding Pty Ltd (HQM).

Further loan instalments totalling $750,000 were received from HQM during the financial year, and the maturity date for all loans was reset to 31 July 2021. Since 30 June further loan instalments totalling $120,000 have been received from HQM and GCR management.

In addition, state border and travel restrictions imposed from March 2020 as a response to COVID-19 outbreaks led to a general impediment to the implementation of field programs. Several states granted commitment and rental fee concessions in recognition of the impact on exploration activity.

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Figure 1: Golden Cross Project Locations & Status

The flagship project, Copper Hill, is located in Central Tablelands of NSW near Molong, 35 kilometres north of the regional city of Orange.

Golden Cross Resources Ltd Annual Report 2020

Copper Hill is hosted by the Ordovician-aged Macquarie Arc (Figure 2) which consists of several volcanic belts that contain the world-class porphyry copper-gold deposits currently developed at Cadia (Newcrest), Northparkes (China Molybdenum) and Cowal (Evolution Mining).

Copper Hill has been independently valued by GEOS Mining Consultants at $14.4 million using metal prices at 31 August 2017 for copper US$3.07/lb and gold US$1308/oz.(refer ASX announcement dated 21 September 2017). Gold prices have risen substantially since then while copper has risen back to similar levels.

The Molong Volcanic Belt (MVB) hosts significant porphyry gold-copper deposits at Cadia-Ridgeway, Cargo and Copper Hill, and skarn gold-copper deposits at Browns Creek and Junction Reefs. Copper-gold deposits in the Copper Hill area occur close to the corridor formed by the interpreted WNW trending Lachlan Transverse Zone (LTZ).

Prospectivity of the MVB was boosted from September 2019 by drill results from the Boda Prospect 60 kilometres north of Copper Hill (refer Alkane Resources Ltd ASX announcement 9 September 2019). Since then exploration and tenement activity in the MVB has continued at an elevated level with several new entrants.

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Molong Volcanic Belt
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Figure 2: Regional setting of Copper Hill

Golden Cross Resources Ltd Annual Report 2020

Molong Project - Copper Hill (100% GCR: Copper-Gold-Molybdenum)

Porphyry copper-gold mineralisation at Copper Hill is hosted by Ordovician aged rocks formed in an island arc setting known as the Macquarie Arc, which is a similar geological setting to younger porphyry copper-gold deposits of the Western Pacific. The Copper Hill Intrusive Complex consists of diorite porphyry, multiphase tonalite porphyry intrusions and associated andesitic Fairbridge Volcanics (Figure 3) .

Younger Silurian to Early Devonian sedimentary rocks (sandstone and limestone) occur west of Copper Hill; while on the eastern side, the prospective intrusives and volcanics are partly overlain by flat-lying Tertiary Basalt, which infilled palaeo-valleys. Copper Hill lies in a 5 kilometre long northwest trending corridor extending from Little Copper Hill in the north to Vale Head in the southeast. Limited previous drilling at other prospects within the trend suggests potential for discovery of further economic mineralisation.

Understanding of the internal architecture of the mineralised zones at Copper Hill was substantially improved by high quality structural data from oriented core drilled in 2014 and 2017. The structural data from both surface mapping and drilling support a strong northwest (local grid CHG) internal orientation of the mineralised zones within an overall CHG local grid north-south trend. The interaction of these structures is shown in Figure 3 .

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Little
Copper Hill
Copper Hill Grid
Vale Head
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Figure 3: Copper Hill: Local Geology showing identified key structural orientations [Note: Structural directions in the text refer to local Copper Hill Grid (CHG) directions unless otherwise noted. Inset above shows relationship of the CHG Local Grid North orientation which is rotated 50 degrees west of the regional MGA Map Grid north]

Following the 2014 drilling program, the previous 2011 resource estimates were updated at a range of copper cut-off grades by independent resource consultant James Ridley (Table 1). The new estimation was announced to ASX on 24 March 2015.

Golden Cross Resources Ltd Annual Report 2020

Table 1: Mineral Resources at Copper Hill – March 2015

Resource Category	Cutoff (Cu%)	Volume (Mm3)	Tonnes (Mt)	Density (t/m3)	Grades	Grades	Metal	Metal
					Cu %	Au(g/t)	Cu(t)	Au(oz)
Indicated	0.20 0.30	18 10	47 27	2.6 2.6	0.40 0.52	0.39 0.52	190,000 140,000	590,000 460,000
	0.40	7.2	19	2.6	0.59	0.62	110,000	380,000
	0.50	4.4	11	2.6	0.68	0.74	78,000	270,000
Inferred	0.20 0.30	15 6.1	39 16	2.6 2.6	0.32 0.44	0.24 0.30	130,000 71,000	300,000 150,000
	0.40	3.5	9.2	2.6	0.51	0.35	47,000	100,000
	0.50	1.5	4.0	2.6	0.59	0.37	24,000	48,000
Indicated + Inferred	0.20 0.30	33 17	87 44	2.6 2.6	0.36 0.49	0.32 0.44	310,000 210,000	890,000 610,000
	0.40	11	28	2.6	0.56	0.53	160,000	480,000
	0.50	5.9	15	2.6	0.66	0.64	100,000	320,000

Extracted from 2015 updated resource estimate reported to ASX on 24 March 2015 Note: all volume, tonnage, density, grade and metal figures are rounded to 2 significant figures

A revised Copper Hill Scoping Study was completed in 2015 (refer ASX announcement dated 15 April 2015)., based on the higher grade Central Area resources totaling 28Mt at 0.56% copper and 0.53 g/t gold defined by 0.4% copper cut-off. The Scoping Study assessed the viability of a 2-3Mtpa mining and processing operation at Copper Hill treating the higher grade mineralisation which gave better metallurgical outcomes.

Cautionary Notes

It should be noted that the production target of 2-3Mtpa was based on Indicated Mineral Resources (67%) and Inferred Mineral Resources (33%), and there is a low level of geological confidence associated with Inferred Mineral Resources. The assumptions underlying the production target are detailed in the announcement to ASX dated 15 April 2015.

The Production Target and the Mineral Resources on which it is based are extracted from reports released to the ASX by GCR on 24 March 2015 and 15 April 2015. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements and that all material assumptions and technical parameters underpinning the production target in the report dated 15 April 2015 and the resource estimate in the relevant market announcements continue to apply and have not materially changed. The Mineral Resources Statement is reviewed annually (Section 15 of the 2012 JORC Code) and the nominated annual review date is 30 June 2020. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcements.

The 2015 Scoping Study recommended further Pre-Feasibility Studies, which would

include the following components:-

Drilling to infill and extend high grade zones, provide density data, twin RC holes, clarify structural geometry controlling mineralisation, provide resource definition data and fresh material for metallurgical testing
Resource updates utilising additional data from drilling
Metallurgical testwork to refine optimal conditions for metal recoveries and assess pre-concentration opportunities
Mining and engineering studies and costing updates
Environmental studies and baseline data
Water supply sources and usage
Land tenure and ownership
Permitting at state and local government levels
Revised capital and operating cost estimates
Updated financial modelling
Product marketing studies

Golden Cross Resources Ltd Annual Report 2020

During the year to 30 June 2020, research studies into geochemical characteristics of the Copper Hill mineralisation were continued in collaboration with the University of New South Wales, though field work was disrupted by COVID-19 travel restrictions.

Three themes were explored:-

Relationship between carbonate depletion and soil pH value above buried mineralisation (co-ordinated by Neil Rutherford, Rutherford Mineral Resource Consultants) . This work may lead to the development of a surface technique for identifying mineral targets under soil cover.
Biogeochemical pumping of metals to surface, using cypress pine as a sampling medium following on from similar ongoing studies at Golden Cross’ Canbelego project and other areas in the Cobar Region. [ supervised by Professor David Cohen, University of NSW ]
Quantitative mineralogy study to identify the complete mineralogical suite in a selection of samples from GCHD470. This data will be useful for mineral zonation work and future metallurgical evaluations. [ supervised by Dr Ian Graham, University of NSW ].

Results of field work undertaken during the year are being collated for evaluation.

Mineralisation

Mineralisation at Copper Hill is typical of many global porphyry systems, being associated with multiple mineralising events which overlap in time and space.

The key features of the mineralised systems at Copper Hill are:

Multiple intrusive phases: at least six separate intrusive events have been interpreted at Copper Hill, with mineralisation attributed to later phases;
A strong regional grid east-west structural orientation, within the overall northwest-southeast trending mineralised corridor, and a more subtle, north trending fracture set (Figure 3) ;
Structures are generally defined by quartz-pyrite dominated veins and fractures. Copper and gold mineralisation generally occurs as later stage chalcopyritepyrite veins with rare bornite, and significant disseminated-style mineralisation also present in tonalite porphyry wall-rock;
Higher grade mineralised zones are focused in the areas of greatest fracture intensity and veining, especially at the intersection of north-south and northwest trending structures to form plunging rod like zones. Lower grade ore is generally typified by weaker veined and/or disseminated-style mineralisation;
Higher gold to copper numerical ratios within the central high grade zone; Au:Cu generally around 3:1 (i.e. 3g/t Au : 1% Cu) compared with an overall deposit ratio of 1:1 (eg.0.3 g/t Au : 0.3% Cu);

Golden Cross Resources Ltd Annual Report 2020

A close association between a strongly quartz veined microtonalite porphyry intrusive phase intruding the wall-rock crowded tonalite porphyry is evident in several of the holes;
A sub-horizontal 10-20 metres thick zone of higher grades centred in the (subsupergene) zone transitional to fresh rock 25-70 metres below surface;
A thin oxide zone reflecting variable depths of weathering from a few metres to approximately 25 metres in places.

Copper Hill is sparsely drilled below 350 metres vertically and there is good potential for depth extensions that may be vectored by mineral alteration studies. Occurrences of mineralisation along strike from Copper Hill in a 5 kilometre long corridor provide scope for further resources in satellite deposits.

Exploration Potential – Copper Hill

The March 2015 resource of copper-gold mineralisation at Copper Hill at a 0.2% copper cut-off encloses 310,000t of contained copper and 890,000oz of contained gold ( Table 1 ) hosted in a tonalite porphyry complex. Two main styles of mineralisation are recognised, associated with multiple porphyry intrusive phases at depth:

1 An earlier mineralised phase related to sericite-pyrite-quartz “phyllic” alteration hosting chalcopyrite mineralisation with a molybdenum-rhenium-zinc association;
2 A later stage overprinting mineralisation with distinctive and intense quartzmagnetite “potassic” alteration and sheeted veins, hosting chalcopyrite-bornite mineralisation with high gold.

Observations of magnetite veins cutting earlier veins suggest the porphyry intrusive responsible for the later stage high-grade “potassic” wall-rock gold-copper mineralisation is younger and deeper and yet to be intersected in drill holes. This interpretation supports potential for discovery of further mineralisation at depth below Copper Hill and Wattle Hill where structural controls coalesce to form plunging pipe shaped high grade zones.

Drilling on section 6150N below Buckleys Hill confirms the presence of an early phase wall-rock porphyry style copper-gold mineralised system. A nearby drill hole (GCHR190) on section 5900N also intersected copper-gold mineralisation associated with porphyry-style stockwork quartz-magnetite veins with chalcopyrite. Discovery potential for high-grade gold-copper porphyry mineralisation similar to that intersected in GCHD470 exists at depth between 5900-6150N and extends south to below Copper Hill (Figure 4) . (Refer ASX announcement 24 August 2014 for more detail on GCHD470 which returned a 0.3% copper cutoff intercept of 102 metres grading 1.28% copper and 3.72 grams per tonne gold from 2 to 104 metres downhole.)

This drilling and the more recent drilling indicate potential for further resource discovery and tonnage increases in the immediate central area, and in peripheral zones along strike and at depth. Further drilling to test these locations as part of the recommended Pre-Feasibility work, may lead to improvements in the resource estimate by infilling gaps and verifying extensions to mineralisation.

Golden Cross Resources Ltd Annual Report 2020

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Wattle Hill
Copper Hill
Buckleys Hill
CH Grid North
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Figure 4: Copper Hill: Block distribution showing Central Zone and extension potential

Golden Cross Resources Ltd Report 2020

OTHER PROJECTS

South Australia – Gawler Craton IOCG

(100% GCR: Copper-Gold-Rare Earths)

GCR retains two exploration licences covering 426 km[2] within the northern Gawler Craton of South Australia near Coober Pedy (Figure 5) . The tenements contain coincident gravity-magnetic anomalies potentially reflecting the presence of Iron Oxide Copper Gold (IOCG) deposits under sedimentary cover, that have similarities with Prominent Hill / Carrapateena. Accordingly, the exploration target is an IOCG deposit up to 150 million tonnes with grades up to 1.5% copper and/or 1.5g/t gold, based on similar geophysical signatures.

Gawler Craton IOCG deposits are characterised by extensive hematite-magnetite (iron) alteration and brecciation, and typically comprise disseminated to massive chalcopyrite, chalcocite and bornite copper mineralisation with associated gold and rare earths.

Carrapateena and Prominent Hill were discovered by drilling semi-coincident magnetic and gravity anomalies comparable with those defined by GCR. Ongoing field work by GCR and advanced geophysical modelling utilising new and infill gravity survey data has defined high quality anomalies and provided data for improved drill targeting.

Three of the anomalies were targeted by a first pass program of three drill holes in 2013. Encouraging results came from hole SRE001 at the SR11 anomaly in the Coober Pedy Rise Domain. Basement was intersected at the relatively shallow depth of 75 metres. SRE001 returned two zones of elevated copper, peaking at 1,320 ppm and 1,710 ppm copper, with extensive chlorite-sericite alteration.

The presence of magnetite-biotite and hematite-sericite alteration suggests the influence of the Hiltaba-Gawler Range Volcanics magmatic event. The region is the subject of several government research initiatives which promise to advance knowledge of the subsurface geology.

Other anomalies developed by GCR have been ranked by our geophysicist and cleared by Native Title Heritage Surveys for drilling. In particular, the anomalies at Oolgelima Hill are regionally close to historic drilling that returned significant intervals up to 76m of elevated trace element geochemistry (copper, lead, zinc, lanthanum, cerium) that is sometimes associated with other IOCG deposits in the region.

The prospectivity profile of the Gawler Craton was raised by discovery of deep highgrade copper mineralisation at Oak Dam (BHP announcements to ASX 27 November 2018 and 17 October 2019).

An Exploration Program for Environmental Protection & Rehabilitation (PEPR) was approved on 22 August 2017 for three drill sites in EL5594 Oolgelima where native title heritage clearance surveys have also been completed. On 11 May 2018, the Australian Government announced a Review of the Woomera Prohibited Area Coexistence Framework and a final report by Dr Gordon de Brouwer PSM was released on 29 March 2019.

Access permit restrictions to the Woomera Area have delayed implementation of the approved drilling program.

Golden Cross Resources Ltd Annual Report 2020

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Oak Dam
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Figure 5: South Australia tenements and targets

Golden Cross Resources Ltd Annual Report 2020

Cobar Region Projects New South Wales

(100% GCR: Copper-Gold-Lead-Zinc)

Prospectivity of the region is underlined by long-life mining operations centred on Cobar, Girilambone and Nymagee. Discovery of the Mallee Bull deposit in May 2012 (Figure 6 ) and recent new resource estimates by Peel Mining Ltd at Wagga Tank / Southern Nights, and by Aurelia Metals Ltd at Federation, continue to demonstrate mineral development potential of the Gilgunnia region.

Extensive areas of airborne electro-magnetic survey (EM) have been flown by all explorers including GCR, and the technique is credited with initial discovery of Mallee Bull. However, surficial effects mask conductivity responses from much of the bedrock mineralisation, and surface geophysics coupled with drilling below the ~90m deep zone of geochemical depletion is generally required to test targets. In May 2020, the Geological Survey of NSW and Geoscience Australia released results of a large regional Airborne Electromagnetic (AEM) survey over the region. Explorers had been invited to participate by infilling the wide-spaced regional flight lines and GCR subscribed for coverage over parts of the Kilparney Extended tenement. Results are being reviewed.

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Manuka
Federation
Wagga Tank
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Figure 6: Cobar Region tenements

Golden Cross Resources Ltd Annual Report 2020

EL7389, five kilometres south of the Mt Boppy Gold Deposit, at Canbelego, covers three prospects, Burra Copper Mine, Block 51 and B51SE, which have known base metal mineralisation coincident with magnetic and EM anomalies and elevated copperin-soil geochemistry. Copper and lead-zinc mineralisation with gold/silver credits have been intersected in most of the reverse circulation (RC) percussion and core holes drilled to date. Copper intercepts were summarised in previous annual reports and show potential for a small resource with more drilling that may also provide vectors to mineralisation deeper than current 200 metres depth extent of drilling.

Following the August 2017 EM survey over the southern end of the Geweroo Trend, approximately 800m of Geweroo strike remain to be explored; inconclusive results from the EM dictate a return to IP surveys to verify and extend historical IP anomalies.

During 2019 a research program to follow-up encouraging geobotanical sampling results from a trial survey in 2010, led to 72 pine needle samples being collected over four areas (Figure 7) . Results have been received and are being interpreted in conjunction with sampling over the wider regional area.

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Mt Boppy Gold Mine 5km to north
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Figure 7: Burra EL7389 Exploration Activity

Golden Cross Resources Ltd Annual Report 2020

Quidong Base Metal Project

(Copper-Gold-Zinc-Lead 100% GCR)

The south-eastern NSW region has a strong zinc and gold association at Quidong and in the surrounding region in a tectonic belt that contains the Woodlawn, Captain’s Flat, Jerangle, Peak View and Benambra volcanic-hosted massive sulphide occurrences. Intrusive related gold deposit potential of the region is demonstrated by Dargues Reef and Bendoc deposits (Figure 8) .

At Quidong, mineralisation occurs in structurally controlled skarn and pyritic sedimenthosted occurrences in a carbonate dominated basin sequence. Analogues have been proposed with volcanic hosted massive sulphide deposits (VHMS), Irish-type carbonate-hosted lead-zinc deposits and Carlin and Sepon-style gold deposits.

Occurrences of zinc-lead-silver-barite, copper and gold are widespread and evidenced by strong surface geochemical anomalism and numerous economic and sub-economic drill intersections located around the edges of the basin. The basin has been targeted by modern exploration since the 1950s; however, large areas of the central basin, where the host stratigraphic horizons can be expected to occur at moderate depths, remain under-explored.

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Figure 8: Quidong Location, showing regional VHMS (red) and IRG (blue) occurrences

Golden Cross Resources Ltd Annual Report 2020

Early 1970s era exploration at Quidong established widespread elevated geochemical values over an area of 5 kilometres by 5 kilometres. Drilling by subsequent explorers returned intercepts of sub-economic tenor, peaking with a thin (0.34 metre) massive sulphide interval at 228 metres downhole in Avon Resources’ MQD-03, grading 22.87% zinc, 4.59% lead and 98.9 ppm silver. (Avon ASX . MQD-03 was located 70 metres south of the section in Figure 9 .)

Three sites have been pegged and assessed for drilling and government approvals received for proposed core drilling. Commencement pending land access and drill rig availability in the region.

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Figure 9 Typical Section: historical drilling at Clarke’s Reef, southeast Quidong Basi

Isa Phosphate

GCR subsidiary, King Eagle Resources Pty Ltd (King Eagle), holds 100% of three deposits: Highland Plains East, Lily Sherrin Creek and Quita Creek ( Figure 10 ) which account for a third of the historical 1960s phosphate resources of the province.

The Highland Plains East phosphate deposit extends updip westwards into the Northern Territory where the western part is held by Gibb River Diamonds Ltd (formerly POZ Minerals Ltd). A maiden JORC 2004 resource for the western part of Highland Plains was announced by POZ on 31 March 2009 (56 MT grading 16% P2O5 at a 10% P2O5 cutoff).

The Quita Creek deposit is 25 km southwest of the Ardmore Phosphate Project which is being developed by Centrex Metals Ltd.

Consultants Orewin Pty Ltd have reviewed the King Eagle database for each of the three locations and recommended action to upgrade the data sufficiently to convert the historical resources to comply with JORC reporting standards and criteria.

Initial discussions were held with Centrex Metals to ascertain the suitability of Quita Creek phosphorites for treatment at the Ardmore Plant.

Golden Cross Resources Ltd Annual Report 2020

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Figure 10: Isa Phosphate Projects

[based on map by Roger & Keevers, 1976 “Lady Annie-Lady Jane Phosphate Deposits, Georgina Basin, Queensland” In Economic Geology of Australia & Papua New Guinea, AusIMM Monograph 4]

Golden Cross Resources Ltd Annual Report 2020

Joint Ventures

West Wyalong Copper-Gold Joint Venture with Argent Minerals Limited (GCR 20%)

Argent Minerals continues to explore the West Wyalong copper-gold project under a long running joint venture.

Following a 2,200 station detailed gravity survey on 100m spacing, which generated six new targets (refer Argent ASX announcement 26 August 2019), Argent has proposed 4,500m of drilling aided by a $200,000 subsidy under the NSW Government New Frontiers Co-operative Drilling Grants program Round 3. A new land access agreement has been obtained following a change in ownership, and drilling is expected to commence in January 2021 (refer Argent ASX announcement 24 September 2020).

*GCR has elected to dilute its interest in West Wyalong JV to 20.36% to preserve funds for other projects.

Sunny Corner Joint Venture

The Joint Venture with Argent Minerals Ltd ceased when EL5964 was divested to Argent and another company. Transfer to Sunny Silver Pty Ltd was approved on 20 December 2019, and registered on 20 January 2020.

Previously Released Technical Information

This Annual Report contains information extracted from the following previously released reports which are available for viewing on the Company’s website, www.goldencross.com.au:

25 August 2014 – “Copper Hill Drilling Update – GCHD470 – Complete Assays””
24 March 2015 - “Copper Hill Resource Estimate”
15 April 2015 - “Scoping Study”
21 September 2017 – “Valuation Update – Copper Hill”

The Company confirms that it is not aware of any new information or data that materially affects the information included in the original ASX announcements, and in the case of estimates of Mineral Resources, that all material assumptions and technical parameters underpinning the estimates in the relevant ASX announcements continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcements.

Golden Cross Resources Ltd Annual Report 2020

ROYALTIES

The Company holds the royalties listed below.

No payments are expected from these royalties in the coming financial year.

LOCATION	TENEMENT	TENEMENT	HOLDER	ROYALTY TYPE
	NAME
Adelong (NSW)	Adelong Gold	ML 1435, EL 5728, & EL	CML	1% gross up to
	Project	6372		2,500 oz
Broken Hill (NSW)	Yellowstone	EL7390	IPT	1% gross
BrightStar Alpha	Merolia	Former E 38/970, incl M	SHK	2% gross
(WA)		38/968
Mt Weld Area (WA)	Mt Weld	Former E 39/636	SHK	2% gross

CML Challenger Mines Pty Limited, a subsidiary of Macquarie Gold Ltd, a subsidiary of International Base Metals Limited.

GCO Golden Cross Operations Pty Ltd, a wholly owned subsidiary of GCR
SHK Stone Resources Australia Limited (ASX: SHK), (formerly A1 Minerals Limited)
IPT Impact Minerals Limited (ASX:IPT)

Adelong, NSW

The Company holds a 1% gold production royalty, capped at 2,500 oz, over the Adelong Gold Project in NSW.

In 2007 the Company sold Challenger Mines Pty Limited, which held the project, to Tasman Goldfields Limited. In 2010 Tasman Goldfields sold Challenger Mines to Macquarie Gold Limited and the royalty vested in Challenger Mines Pty Limited. On 15 January 2018 International Base Metals Limited completed acquisition of Macquarie Gold Ltd. On 31 January 2020, 3D Resources Ltd announced an option to acquire Adelong from Macquarie Gold Ltd (Receiver and Manager Appointed) and Challenger Mines Pty Ltd (Receiver and Manager Appointed) including 100% of the shares in CML.

On 18 May 2020 3D Resources Ltd announced completion of acquisition of the Adelong Gold Project.

Broken Hill, NSW

The Company holds a royalty 0 1% of all products produced by IPT and its associates within E7390. IPT has an option to buy-out the royalty for $1.5million.

BrightStar Alpha, WA

The Company holds a 2% gross royalty over former E38/970 near Laverton. The area contains the southeastern part of the 2 km long BrightStar Alpha Area under exploration by A1 Minerals Limited. The area of former E38/970 includes M 38/968.

Mt Weld Area, WA

This 2% gross royalty relates to the former E39/636 near Laverton and was provided for in the same deed and on the same terms as the BrightStar Royalty.

Recent investigations concluded the BrightStar Alpha and Mt Weld Area Royalties had lapsed.

Golden Cross Resources Ltd Annual Report 2020

DIRECTORS’ REPORT

The Directors present their report on the consolidated entity consisting of Golden Cross Resources Limited (“GCR”) and the entities it controlled at the end of, or during, the year ended 30 June 2020.

DIRECTORS AND COMPANY SECRETARIES

The qualifications, experience, and special responsibilities of the Company’s directors and the qualifications and experience of each company secretary in office during the financial year and until the date of this report, unless noted otherwise, are as follows:

Director	Qualifications and Experience	Special Responsibilities
Jordan G Li	Chairman and Director since 15 January 2020. Jordan has extensive work experience in Australia, Asia-
	Pacific including China and Africa as Managing Director, Director, Chief Executive Officer, Strategy	Appointed as Director and
	Manager and Commercial General Manager at a number of public and private companies including	Chairman 15 January 2020.
	Aurizon Group, International Base Metals Limited (IBML), Macquarie Gold Limited (MGL), Zamia	Member of the Remuneration
	Metals Limited (ZGM), Zamia Resources, and Fairfax Media. He held senior policy officer and steering	Committee, member of the
	committee officer positions at both Australian state government and Chinese central government	Nomination and Audit
	departments. His 27 years’ management experience and connections span across exploration and	Committee
	mine planning, feasibility studies, mergers & acquisitions, gold & copper mine operation, metals
	market analysis, commodity trading, corporate finance, etc.
	Jordan is a Fellow Member of The Australasian Institute of Mining and Metallurgy (FAusIMM), a
	Member of the Australian Institute of Company Directors (MAICD) and the Chairman of the Australia
	China Chamber of Mines and Minerals (ACCOMM) in Sydney. He holds an MBA degree from AGSM,
	the joint business school of the University of NSW and the University of Sydney, and he has acquired
	online education certificates from AusIMM and Harvard Business school. Jordan resides in Sydney.
Xiaoming Li	Ex-Non-executive Director since 13 January 2009. Over 25 years of experience in mining investment	Resigned 12 March 2020
	and operation.
Yuanheng Wang	Non-executive Director since 28 November 2014. LLB and postgraduate certificate in laws. Solicitor of
	Hong Kong since 1993. Currently, consultant solicitor of Messrs. W.H. Chik & Co., Solicitors, Hong Kong.	Appointed 28 November 2014
	His area of legal work is mainly corporate and commercial, including corporate finance, merger and	Member of the Remuneration,
	acquisitions, project finance, corporate governance, compliance and general commercial and	and Nomination and Audit
	company matters.	Committee
Yan Li	Non-executive Director, previously alternate Director to Xiaoming Li since 5 July 2010. Executive MBA
	from the People’s University of China. Director of Beijing Shiji Qinlong Hi-Tech Co. Ltd and Beijing	Appointed 12 March 2020
	Badaling Wild Animal Co. Ltd. Yan Li has over 15 years of senior managerial experience.
Carolyn Jacobs	Company Secretary,Carolyn has been with GCR for more than 10 years and oversees the	Appointed 13 July 2020
	Company’s administrative functions, operation of shareholder meetings, and maintenance of
	the share registry.
Ken Hellsten	Ex-Chairman and Ex-Director since 22 July 2016. Ken has held broad-ranging senior executive positions	Resigned 14 August 2019
	in the resources companies including BHP Billiton, Centaur Mining and Northam Iron Pty Ltd.
Carl Hoyer	Ex-Company Secretary since 10 August 2015. Over 30 years’ accounting experience, he stays on as the	Resigned 13 July 2020
	Company Accountant notwithstanding his resignation from Company Secretary.

PRINCIPAL ACTIVITIES

The principal activities of the consolidated entity during the year consisted of mineral exploration and development, with a focus on exploration for gold and base metals, principally copper.

OBJECTIVES

The Company’s long-term objective is to participate in the discovery of one or more world-class mineral deposits. The short-term objective is to add value through exploration and development of mineral properties . Value may be added through identifying and acquiring mineral properties in prospective locations, generating drill targets through sampling and geological modelling, delineating resources, entering into beneficial farm-in arrangements with other companies, or developing projects through to production to provide cash flow.

The Company is assessing and progressing its Copper Hill Project, while carrying its exploration expenditure either directly or through farm-out agreements and joint ventures elsewhere in Australia.

Golden Cross Resources Ltd Annual Report 2020

DIVIDENDS

During the year ended 30 June 2019, no dividends were declared or paid. The Directors do not recommend the payment of a dividend in respect of the financial year.

OPERATING AND FINANCIAL REVIEW

The most significant developments in the Company’s operations and financing activities were:

Two active farm-ins and joint ventures on GCR properties were in place at year-end, as follows:
West Wyalong – copper-gold, with Argent Minerals Limited.
Sunny Corner – base metals with Argent Minerals Limited.

Further details are set out in the Review of Operations in the Annual Report.

SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS

The management and Board of GCR are in negotiations with a third party for future funding and for the re-quotation of GCR shares on the ASX.

SIGNIFICANT EVENTS AFTER THE BALANCE DATE

At the date of this report there are no matters that have arisen since 30 June 2020 that have significantly affected or may significantly affect the operations of the consolidated entity in future financial years, the results of operations in future financial years, or the state of affairs in future financial years of the consolidated entity, except as follows;

HQ Mining Resources Holding Pty Ltd and the Company entered into a 3rd Global Loan Agreement on 20 July 2020 consolidating all outstanding loans into one loan with a common repayment date of 31 July 2021.
The management and Board of GCR are in negotiations with a third party for future funding and for the re-quotation of GCR shares on the ASX.

LIKELY DEVELOPMENTS AND EXPECTED RESULTS

Although GCR has been limited to modest programs on its wholly owned projects, it expects to be remain active on its major properties. Its farm-in and joint venture partners are exploring under the various farm-in and joint venture arrangements.

ENVIRONMENTAL REGULATION AND PERFORMANCE

The consolidated entity is subject to significant environmental regulation in respect to its exploration activities. The Company meets the standards set by the Australian Minerals Industry Code for Environmental Management.

The Company has developed criteria to determine areas of ‘particular’ or ‘significant’ importance, with regard to environmental performance.

These are graded 1 to	4 in terms of priority.
Level 1 incident	major non-compliance with regulatory requirement resulting in potential public outcry and significant environmental damage
	both long and short-term nature.
Level 2 incident	significant non-compliance resulting in regulatory action, however environmental damage is only of a short-term nature.
Level 3 incident	minor non-compliance – no fine is imposed, however regulatory authority is notified.
Level 4 incident	non-compliance with internal policies and procedures. The incident is contained on-site.

No reportable incidents occurred during the year.

INDEMNIFICATION OF AUDITORS

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

REMUNERATION REPORT – AUDITED

This Remuneration Report outlines the director and executive remuneration arrangements of the Company and the Group. For the purposes of this report Key Management Personnel ( KMP ) of the group are those persons responsible for the strategic direction and operational management of the Company.

REMUNERATION PHILOSOPHY

The Company’s aim is to remunerate at a level that will attract and retain high-calibre directors and employees. Company officers and directors are remunerated to a level consistent with the size of the Company. The Company maintains an Employee Option Plan.

NON-EXECUTIVE DIRECTORS’ FEES

The base fee for Jordan Li, Chairman, was $50,000 The base fee for Yuanheng Wang, Non-executive Director, was $50,000, which was set on 23[rd] October 2015. Xiaoming Li and Yan Li did not and do not receive compensation or fees. All fees are exclusive of statutory superannuation.

EXECUTIVE REMUNERATION

Executive management is remunerated at a level appropriate to an exploration company the size of GCR. Remuneration is set having regard to performance and relevant comparative information. In addition to a base salary, remuneration packages include superannuation, termination entitlements, fringe benefits and Employee Options pursuant to the Employee Option Plan. Employee Options are issued, following a recommendation to the Board by the Remuneration and Nomination Committee, in consideration of an employee’s efforts undertaken on behalf of the Company, and assist with the motivation and retention of employees. The issue of options to Directors requires shareholder approval.

Golden Cross Resources Ltd Annual Report 2020

REMUNERATION REPORT – AUDITED

SERVICE AGREEMENTS

Bret Ferris, Acting CEO, is employed under an employment contract with GCR. Scope of role and responsibilities as are customary for a Chief Executive Officer.

Base remuneration of $8,400 per month (excl GST) based on minimum time commitment of 10 days per month.
Termination provisions for Acting CEO role include a one week notice period.

Carl Hoyer, Company Accountant since 12 December 2018 is employed under an employment contract with GCR. Scope of role and responsibilities as are customary for a Company Secretary and Accountant.

Base remuneration of $4,800 per month (excl GST) based on maximum time commitment of 8 days per month.
Termination provisions include a one week notice period.

There are no service agreements in place for the Non-executive Directors.

DETAILS OF KEY MANAGEMENT PERSONNEL

DIRECTORS AND COMPANY SECRETARY

Jordan G Li Chairman (appointed 15 January 2020) Xiaoming Li Director (non-executive) (resigned 12 March 2020) Yan Li Director (non-executive) (appointed 12 March 2020) (Previously alternate director for Xiaoming Li) Yuanheng Wang Director (non-executive) Ken Hellsten Chairman (resigned 14 August 2019) Carolyn Jacobs Company Secretary (appointed 13 July 2020) Carl Hoyer Company Secretary (resigned 13 July 2020) EXECUTIVES Bret Ferris Acting CEO appointed 5 April 2017/Exploration Manager appointed 12 February 2009.

Remuneration of Key Management Personnel for year ended 30 June 2020

	Short	Term Benefits	Term Benefits		Post	Share-based payment	Share-based payment
					Employment
					Benefits
Name	Short	Non-	Termination	Super	Long	Options	% of	Total
	Term:	monetar	payment	$	Service	$	remuneration in
	Salary/	y	$		Leave $		options	$
	Fee	benefits
	$	S
Jordan Li (i)	23,118	-	-	-	-	-	-	23,118
Bret Ferris (ii)	152,670	-	-	-	-	-	-	152,670
Carl Hoyer (iii)	57,675	-	-	-	-	-	-	57,675
Xiaoming Li (iv)	-	-	-	-	-	-	-	-
Yuanheng Wang (v)	50,000	-	-	-	-	-	-	50,000
Yan Li	-	-	-	-	-	-	-	-
Kenneth John Hellsten	9,073	-	-	862	-	-	-	9,935
Total	292,536			862	-	-	-	293,398

None of the Key Management Personnel’s remuneration is performance related.

(i) Jordan Li is a director of Aurizon Group Pty Ltd, through which he has been remunerated.

(iii) Bret Ferris is the sole owner of Ferris Metals Pty Limited, through which he has been remunerated.

(iii) Carl Hoyer is the sole owner of Reyoh Enterprises, through which he has been remunerated.

(iv) Xiaoming Li is a majority shareholder of HQ Mining Resources Holdings Pty Ltd, a majority shareholder of Golden Cross, and does not receive remuneration from Golden Cross. Yan Li is a director of HQ Mining Resources Holdings Pty Ltd.

(v) Since 10[th] February 2020 Yuanheng Wang, through his company Vision Vale Holdings Pty Ltd, is the owner of the property known as Coppervale which is leased to Golden Cross for $36,000 per year for 1 year commencing 10[th] February 2020. As part of the transaction the Company has secured the first right of refusal and option to purchase for $330,000 after year 1 with 10% increments per year for each year the lease is extended.

Golden Cross Resources Ltd Annual Report 2020

Shareholdings of Key Management Personnel for year ended 30 June 2020

Name	Balance	Received as	Options	Acquisition/(Disposal)	Balance
	01.07.19	remuneration	exercised	of shares	30.06.20
	(number)	(number)	(number)	(number)	(number)
Carl Hoyer	25,000	-	-	-	25,000
Xiaoming Li	72,567,067	-	-	-	72,567,067
Total	72,567,067	-	-	-	72,592,067

Remuneration of Key Management Personnel for year ended 30 June 2019

	Short	Term Benefits	Term Benefits			Post	Share-based payment	Share-based payment
						Employment
						Benefits
Name	Short	Non-	Termination	Super		Long	Options	% of	Total
	Term:	monetar	payment	$		Service	$	remuneration in
	Salary/	y	$			Leave $		options	$
	Fee	benefits
	$	S
Neil Fearis (till 21 Jan 2019)	27,867	-	-	2,648		-	-	-	30,525
Kenneth John Hellsten (i)	75,000	-	-	7,125	-		-	-	82,125
Carl Hoyer (ii)	76,716	-	-	3,104		16,425	-	-	96,245
Xiaoming Li (iii)	-	-	-	-		-	-	-	-
Yuanheng Wang	50,000	-	-	-		-	-	-	50,000
Bret Ferris (iv)	163,800	-	-	-		-	-	-	163,800
Total	393,393	-	-	12,877		16,425	-	-	422,695

None of the Key Management Personnel’s remuneration is performance related.

(i)On 29 September 2016 the Company entered into a sale agreement with Hellsten SF Pty Ltd atf KH & TH Superannuation Fund for the sale and lease back of the Coppervale property for $368,000 with including 3 years rental pre-paid ($90,000) as part of the sale. As part of the transaction the Company has secured the first right of refusal and option to purchase for the greater of $400,000 or market value for a period of 3 years. During the year to 30 June the amount of $22,500 was amortised against the rental prepayment.

(ii) Carl Hoyer is the sole owner of Reyoh Enterprises, through which he has been remunerated.

(iii) Xiaoming Li is a majority shareholder of HQ Mining Resources Holdings Pty Ltd, a majority shareholder of Golden Cross, and does not receive remuneration from Golden Cross.

(iv) Bret Ferris the sole owner of Ferris Metals Pty Limited, through which he has been remunerated

Shareholdings of Key Management Personnel for year ended 30 June 2019

Name	Balance	Received as	Options		Acquisition/(Disposal)	Balance
	01.07.18	remuneration	exercised		of shares	30.06.19
	(number)	(number)	(number)		(number)	(number)
Carl Hoyer	-	-		-	25,000	25,000
Xiaoming Li	72,567,067	-		-	-	72,567,067
Total	72,567,067	-		-	25,000	72,592,067

Option Holdings of Key Management Personnel

As at 30 June 2020 there were no options held by Key Management Personnel.

IMPACT OF CORONAVIRUS (COVID 19)

The impact of the Coronavirus (COVID-19) pandemic is ongoing and while it has not had a material impact on the business up to 30 June 2020, it is not practicable to estimate the potential impact, positive or negative, after the reporting date. The situation is rapidly developing and is dependent on measures imposed by the Australian Government and other countries, such as maintaining social distancing requirements, quarantine, travel restrictions and any economic stimulus that may be provided.

Golden Cross Resources Ltd Annual Report 2020

ANNUAL GENERAL MEETING

The Company’s 2020 Annual General Meeting is scheduled to be held at the Office of Golden Cross Resources Ltd, 304/66 Berry Street, North Sydney on 25 November 2020.

ROUNDING

The Company is of a kind referred to in ASIC Corporations instrument 2016/191 issued by the Australian Securities and Investments Commission, relating to the ‘rounding off’ of amounts in the directors’ report and financial report. Amounts in the directors’ report and financial report have been rounded off to the nearest thousand dollars, or in certain cases, to the nearest dollar, in accordance with that Class Order.

AUDITOR INDEPENDENCE

A copy of the auditor's independence declaration as required under section 207C of the Act is provided on page X

MEETINGS OF DIRECTORS

The number of meetings of the Company’s Directors (including meetings of committees of Directors) held during the year ended 30 June 2020, and the numbers of meetings attended by each Director were:

Name	Full Board	Full Board	Audit Committee	Audit Committee	Remuneration	Remuneration
	Meetings	Meetings	Meetings Held	Meetings Attended	and Nomination	and Nomination
	Held While	Attended	While a Member		Committee	Committee
	a Director				Meetings Held	Meetings
					While a Member	Attended
Xiaoming Li	18	-	-	-	-	-
Jordan Li	13	13	1	1	-	-
Yuanheng Wang	18	18	2	2	-	-
Yan Li	18	18	-	-	-	-
Ken Hellsten	-	-	-	-	-	-

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

==> picture [122 x 32] intentionally omitted <==

Jordan Li

Chairman 29 September 2020

Golden Cross Resources Ltd Annual Report 2020

CORPORATE GOVERNANCE STATEMENT

The Company’s main corporate governance practices are set out below. These practices are generally in line with the ASX Good Corporate Governance and Best Practice Recommendations (“Recommendations”).

THE BOARD OF DIRECTORS

The Board takes ultimate responsibility for corporate governance and operates in accordance with the following principles:

the Board comprises a minimum of three Directors;
at least one half of the Board should be Non-executive Directors;
the Chairman should be an independent Non-executive Director elected by the full Board; and
the Board should comprise Directors at least some of whom have a broad range of skills and experience relevant to the business of the Company.

The Board Charter is available on the Company’s website: www.goldencross.com.au

Relevant skills and experience of Directors are set out in the Directors’ Report and in the Corporate section of the Company’s website

AUDIT COMMITTEE

As at 30 June 2020 the Audit Committee consisted of three persons - two directors, Yan Li and Yuanheng Wang, and a management representative, Bret Ferris who was appointed in 19 September 2019. Mr Wang is currently Chairman of the Committee. Committee meeting attendances are disclosed in the Directors Report.

The purpose of the Audit Committee, as set out in the Charter posted on the website, is to:

review and report to the Board on the Company’s annual report and financial statements
provide assurance to the Board that it is receiving adequate, up to date, reliable information and
assist the Board in reviewing the effectiveness of the Company’s internal control environment covering:
effectiveness and efficiency of operations
reliability of financial reporting, and
compliance with applicable laws and regulations

The Audit Committee is also charged with the responsibility of recommending to the Board the appointment, removal and remuneration of the auditors, and reviewing the terms of their engagement, and the scope and quality of the audit. Details of the procedures for the selection and appointment of the auditors, and for the rotation of the audit engagement partners, are posted on the website.

In fulfilling its responsibilities, the Committee meets with the auditors at least twice each year and receives reports from management and the auditors. The auditors may communicate directly with the Chairman of the Audit Committee and Board. The auditor attends annual general meetings of the Company to answer questions about the audit.

The Audit Committee has authority, within the scope of its responsibilities, to seek any information it requires from any employee or external party, and to obtain external legal or other independent professional advice. The Committee also requires the CEO and Company Secretary/Accountant to sign off on the Company’s financial reports and the soundness of the Company’s risk management and internal compliance and control systems.

The Committee reports to the full Board after each Committee meeting. Audit Committee minutes are provided to all Directors.

Golden Cross Resources Ltd Annual Report 2020

REMUNERATION AND NOMINATION COMMITTEE

The Remuneration and Nomination Committee has comprised Jordan Li and Yuanheng Wang.

The Remuneration Committee Charter is available on the Company’s website. The Committee reports to the full Board after each Committee meeting and Remuneration Committee minutes were provided to all Directors.

NOMINATION POLICY

The Company is compliant with Recommendation 2.4 of its Constitution. The Board’s Nomination Policy is posted on the Company’s website.

GENDER DIVERSITY

The Company is not yet compliant with Recommendation 3 of its Constitution. The board comprises three male directors. At this time, primarily because of the Company’s size and emphasis on selecting employees solely on merit, the Company's formal policy with respect to diversity is to, as a minimum, comply with Australian legislation.

RISK MANAGEMENT

The Company has established a Risk Management Policy, which is posted on the Company’s website. Management reports regularly to the Board on its management of material business risks.

The Board has received assurance from the CEO and Company Secretary that the declaration for the financial report, provided in accordance with section 295A of the Corporations Act, is founded on a sound system of risk management and internal control and that the system is operating effectively in all material respects in relation to financial reporting risks.

CONTINUOUS DISCLOSURE POLICY

The Company has written policies and procedures on information disclosure that focus on continuous disclosure of any information concerning the Company and its controlled entities that a reasonable person would expect to have a material effect on the price of the Company’s securities. The Company’s Continuous Disclosure Policy is posted on the website.

All information disclosed to ASX is immediately posted on the website. When analysts are briefed on aspects of the Company’s operations, the material to be used in the presentation is released to ASX and posted on the Company’s website.

COMMUNICATIONS POLICY

The Company’s Communications Policy is posted on the Company’s website.

SECURITIES TRANSACTION RULES

The Company has in place written Securities Transaction Rules. They bind Directors, officers and employees of the Company and prohibit trading in the Company’s securities of anyone in possession of price-sensitive information. They may only trade in the Company’s securities or securities of the Company’s joint venture partners after notifying the Chairman, CEO, or Company Secretary respectively of their intentions to trade. The Securities Transaction Rules have been notified to the ASX and are posted on the Company’s website.

INDEPENDENT PROFESSIONAL ADVICE

Directors have the right, in connection with their duties and responsibilities as Directors, to seek independent professional advice at the Company’s expense. The Company will only meet that expense if they obtain the advice after obtaining the Chairman’s prior written approval, which will not be unreasonably withheld

Golden Cross Resources Ltd Annual Report 2020

Consolidated Statement of Comprehensive Income

For the year ended 30 June 2020

Basic loss per share (cents) 8 Diluted loss per share (cents) 8 Notes Other income 5 Exploration expense 6(a) General and administrative expenses 6(b) Loss before tax and finance costs Finance costs Loss before income tax Income tax benefit 7 Loss after income tax Net loss after tax attributable to members of Golden Cross Resources Limited Other comprehensive income to be reclassified to profit and loss in future periods (unrealised gain/ (loss) on investments) Total comprehensive loss attributable to the members of Golden Cross Resources Limited	2020 $’000 2019 $’000 62 143 (172) (214) (563) (547)
	(673) (618)
	(316) (247)
	(989) (865) - -
	(989) (865)
	(989) (865)

	(989) (865)
	(0.97) (0.85) (0.97) (0.85)

Golden Cross Resources Ltd Annual Report 2020

Consolidated Statement of Financial Position

As at 30 June 2020

Notes ASSETS Current Assets Cash and cash equivalents 9 Other receivables 10(a) Prepayments 11(a) Right of Use – Office Lease Total Current Assets Non-Current Assets Property, plant and equipment 12(b) Exploration and evaluation 12(a) Non-Current Receivable Total Non-Current Assets Total Assets LIABILITIES Current Liabilities Loans from directors/related parties 13(a) Payables 13(b) Provisions 14 Right of Use – Office Lease Total Liabilities Net Assets EQUITY Issued capital 15 Reserves 16(a) Accumulated losses TOTAL EQUITY	2020 $’000 2019 $’000 68 97 107 101 22 28 20 -
	217 226
	1 3 12,286 12,067 40 -
	12,327 12,070
	12,544 12,296
	4,441 3,249 89 60 56 61 21 -
	4,607 3,370
	7,937 8,926
	58,247 58,247 922 922 (51,232) (50,243)
	7,937 8,926

Golden Cross Resources Ltd Annual Report 2020

Consolidated Statement of Cash Flows

For the year ended 30 June 2020

Notes CASH FLOWS FROM OPERATING ACTIVITIES Payments to suppliers and employees Interest received Receipts from ATO Job Booster Receipts from employee contracting Net cash outflow used in operating activities 17 CASH FLOWS FROM INVESTING ACTIVITIES Payments for property, plant and equipment Payments for exploration and evaluation Proceeds from sale of interest in Sunny Corner Tomingley Royalty Proceeds from sale of Tomingley Royalty Tenement Deposits paid Tenement Deposits refunded Office Security Deposit Net cash outflow used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from borrowings Repayment of borrowings Net cash inflow from financing activities NET INCREASE/(DECREASE) IN CASH HELD Cash at beginning of the reporting period CASH AT END OF THE REPORTING PERIOD 9	2020 $’000 2019 $’000 (536) (529) - 4 17 2 - 5
	(517) (520)
	(40) (2) (390) 39 - - - (461) - 8 130 (80) 1 210 (2) -
	(392) (195)
	880 - 600 -
	880 600
	(30) (115) 97 212
	68 97

Golden Cross Resources Ltd Annual Report 2020

Consolidated Statement of Changes in Equity

For the year ended 30 June 2020

As at 1 July 2018 Loss for the period Total comprehensive income/(loss) for period As at 30 June 2019 As at 1 July 2019 Loss for the period Total comprehensive income/(loss) for period As at 30 June 2020	Issued Capital Share-based Compensation Reserve AFS Revaluation Reserve Accumulated Losses Total $’000 $’000 $’000 $’000 $’000 58,247 922 - (49,378) 9,791 - - - (865) (865)
	- - - (865) (865)
	58,247 922 - (50,243) 8,926
	58,247 922 - (50,243) 8,926 - - - (989) (989)
	- - - (989) (989)
	58,247 922 - (51,232) 7,937

Golden Cross Resources Ltd Annual Report 2020

Notes to the Financial Statements

For the year ended 30 June 2020

1. CORPORATE INFORMATION

Golden Cross Resources Limited is a for profit entity.

The financial report of Golden Cross Resources Limited (the “Company”) for the year ended 30 June 2020 was authorised for issue in accordance with a resolution of the directors on 28 September 2020.

Golden Cross Resources Limited (the “Parent”) is a company limited by shares incorporated and domiciled in Australia whose shares are publicly traded on the Australian Stock Exchange.

The consolidated financial statements comprise the financial statements of the Company and its subsidiaries (collectively, the “Group”) as at 30 June each year.

The nature of the operations and principal activities of the Group are described in the Directors’ Report.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of preparation

The financial report is a general-purpose financial report, which has been prepared in accordance with the requirements of the Corporations Act 2001 and Australian Accounting Standards. It has been prepared on an historical cost basis except for investments in listed shares, which are measured at fair value. The financial report is presented in Australian dollars and all values are rounded to the nearest thousand dollars ($’000) unless otherwise stated, as the entity is an entity to which ASIC Corporations instrument 2016/191 applies.

Going concern

The Group is involved in the exploration and evaluation of mineral tenements. Further expenditure will be required upon these tenements to ascertain whether they contain economically recoverable reserves.

For the full year ended 30 June 2020, the Group reported a net loss of $989,000 (2019: $865,000) and net operating cash outflows of $517,000 (2019 $520,000). The operating cash outflows and investment activities have been funded by cash reserves. As at 30 June 2020, the Group had net current liability of $4,390,000 including cash reserves of $68,000 (30 June 2019: Net current liability $3,144,000 including cash reserves of $97,000).

The balance of these cash reserves may not be sufficient to meet the Group’s expenditure, including exploration activities, and operating and administrative expenditure, for the next 12 months. The Group has exploration commitments over the next 12 months from July 1 totalling $720,000 and additional required expenditure.

Notwithstanding the above, the financial statements have been prepared on a going concern basis which contemplates the continuity of normal business activities and the realisation of assets and settlement of liabilities in the ordinary course of business. To continue as a going concern, the Group requires additional funding to be secured from sources including but not limited to:

a further equity capital raising;
the continued support of the major shareholder;
the ability to successfully develop and extract value from its projects;
• the sale of its interest in exploration projects.

Having carefully assessed the uncertainties relating to the likelihood of securing additional funding, the Group’s ability to effectively manage their expenditures and cash flows from operations and the opportunity to sell or farm out interests in existing permits, the Directors believe that the Group will continue to operate as a going concern for the foreseeable future. Therefore, the Directors consider it appropriate to prepare the financial statements on a going concern basis.

In the event that the assumptions underpinning the basis of preparation do not occur as anticipated, there is material uncertainty whether the Group will continue to operate as a going concern. If the Group is unable to continue as a going concern it may be required to realise its assets and extinguish its liabilities other than in the normal course of business and at amounts different to those stated in the financial statements.

No adjustments have been made to the financial report relating to the recoverability and classification of the asset carrying amounts or the classification of liabilities that might be necessary should the Group not continue as a going concern.

Golden Cross Resources Ltd Annual Report 2020

Notes to the Financial Statements

For the year ended 30 June 2020 (continued)

(b) Statement of compliance

The financial report complies with Australian Accounting Standards as issued by the Australian Accounting Standards Board and International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).

(c) (i) New accounting standards and interpretations

Changes in accounting policy and disclosures

The accounting policies adopted are consistent with those of the previous financial year.

AASB 2014-9 Amendments to Australian Accounting Standards – Equity Method in Separate Financial Statements

(c) (ii) Accounting standards and interpretation issued

The following new accounting standards and interpretations have been published that are now mandatory for the 30 June 2020 reporting period.

AASB 16 – Leases – Application date for Group 1 July 2019

Given the nature of the Group’s operations, it does not expect the other standards to have to have a material impact. Certain disclosures and presentation may change due to new and amended standards.

(d) Basis of consolidation

The financial statements of subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies.

All intercompany balances and transactions, income and expenses and profit and losses resulting from intra-group transactions have been eliminated in full.

Subsidiaries are fully consolidated from the date on which control is transferred to the Group and cease to be consolidated from the date on which control is transferred out of the Group.

(f) Cash and cash equivalents

Cash and short-term deposits in the balance sheet comprise cash at bank and short-term deposits with an original maturity of less than three months.

For the purposes of the Consolidated Statement of Cash Flows, cash and cash equivalents consist of cash and cash equivalents as defined above, net of outstanding bank overdrafts, if any.

(g) Trade and other receivables

Trade and other receivables, which generally have 5-30 day terms, are recognised and carried at original invoice amount less an allowance for any uncollectible amounts.

An estimate for doubtful debts is made when collection of the full amount is no longer probable. Bad debts are written off when identified.

(h) Exploration, evaluation, development and restoration costs

Exploration & Evaluation

Exploration and evaluation expenditure incurred by or on behalf of the Company is accumulated separately for each area of interest. Such expenditure comprises net direct costs and an appropriate portion of related overhead expenditure, but does not include general overheads or administrative expenditure not having a specific connection with a particular area of interest.

Exploration and evaluation costs in relation to separate areas of interest for which rights of tenure are current are brought to account in the year in which they are incurred and carried forward provided that:

such costs are expected to be recouped through successful development and exploitation of the area, or alternatively through its sale; or
exploration and/or evaluation activities in the area have not yet reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves.

Once a development decision has been taken, all past and future exploration and evaluation expenditure in respect of the area of interest is aggregated within costs of development.

Golden Cross Resources Ltd Annual Report 2020

Notes to the Financial Statements

For the year ended 30 June 2020 (continued)

Exploration & Evaluation – Impairment

The Group assesses at each reporting date whether there is an indication that an asset has been impaired and for exploration and evaluation cost whether the above carry forward criteria are met.

Accumulated costs in respect of areas of interest are written off or a provision made in the Income Statement when the above criteria do not apply or when the directors assess that the carrying value may exceed the recoverable amount. The costs of productive areas are amortised over the life of the area of interest to which such costs relate on the production output basis.

(i) Interest in jointly controlled operation

A joint arrangement is a contractual arrangement whereby two or more parties undertake an economic activity that is subject to joint control. A joint operation involves use of assets and other recourses of the ventures rather than establishment of a separate entity. The Group recognises its interest in the joint operation by recognising its interest in the assets and the liabilities of the joint operation. The Group also recognises the expenses that it incurs and its share of the income that it earns form the sale of goods or services by the joint operation.

(j) Plant and equipment

Plant and equipment is stated at cost less accumulated depreciation and any impairment in value.

Depreciation is calculated on a straight-line basis over the estimated useful life of the asset as follows:

plant and equipment - 4 years; and
motor vehicles - 5 years.

Impairment

The carrying values of plant and equipment are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable.

An item of plant and equipment is derecognised upon disposal.

Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the item) is included in the income statement in the period the item is derecognised.

(k) Leases

At the lease commencement, the Company recognises a right-of-use asset and associated lease liability for the lease term. The lease term includes extension periods where the Company believes it is reasonably certain that the option will be exercised.

The right-of-use asset is measured using the cost model where cost on initial recognition comprises of the lease liability, initial direct costs, prepaid lease payments, estimated cost of removal and restoration less any lease incentives received.

The right-of-use asset is depreciated over the lease term on a straight-line basis and assessed for impairment in accordance with the impairment of assets accounting policy.

The lease liability is initially measured at the present value of the remaining lease payments at the commencement of the lease. The discount rate is the rate implicit in the lease, however where this cannot be readily determined then the Company’s incremental borrowing rate is used.

Subsequent to initial recognition, the lease liability is measured at amortised cost using the effective interest rate method. The lease liability is remeasured whether there is a lease modification, change in estimate of the lease term or index upon which the lease payments are based (e.g. CPI) or a change in the Company's assessment of lease term.

Where the lease liability is remeasured, the right-of-use asset is adjusted to reflect the remeasurement or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

Exceptions to lease accounting

The Company has elected to apply the exceptions to lease accounting for both short-term leases (i.e. leases with a term of less than or equal to 12 months) and leases of low-value assets. The Company recognises the payments associated with these leases as an expense on a straight-line basis over the lease term.

Golden Cross Resources Ltd Annual Report 2020

Notes to the Financial Statements

For the year ended 30 June 2020 (continued)

(l) Pensions and other post-employment benefits

The Group contributes to defined contribution superannuation funds for employees. The cost of these contributions is expensed as incurred.

(m) Trade and other payables

Trade payables and other payables are carried at amortised cost. They represent liabilities for goods and services provided to the Group prior to the end of the financial year that are unpaid and arise when the Group becomes obliged to make future payments in respect of the purchase of these goods and services. The amounts are unsecured and are usually paid within 30 days of recognition.

(n) Provisions and employee leave benefits

Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

When the Group expects some or all of a provision to be reimbursed, for example under an insurance contract, the reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain. The expense relating to any provision is presented in the income statement net of any reimbursement.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects the risks specific to the liability

When discounting is used, the increase in the provision due to the passage of time is recognised as a borrowing cost.

Employee leave benefits

(i) Wages, salaries, annual leave and sick leave

Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating sick leave expected to be settled within 12 months of the reporting date are recognised in other payables in respect of employees’ services up to the reporting date. They are measured at the amounts expected to be paid when the liabilities are settled. Liabilities for nonaccumulating sick leave are recognised when the leave is taken and are measured at the rates paid or payable.

(ii) Long service leave

The liability for long service leave is recognised in the provision for employee benefits and measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures, and periods of service. Expected future payments are discounted using market yields at the reporting date on high quality corporate bonds with terms to maturity and currencies that match, as closely as possible, the estimated future cash outflows.

(o) Government Grants Accounting Policy

The Company receives government grants through Research and Development (R&D) Tax Incentives on certain exploration activities. Government grants are recognised where there is reasonable assurance that the grant will be received and all attached conditions will be complied with. When the grant relates to expenditure that has been expensed or written off it is recognised as income in the period received. When the grant relates to expenditure incurred that has been deferred it is recognised against the asset balance.

(p) Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. The following recognition criteria must be met before revenue is recognised.

Interest

Revenue is recognised as the interest accrues.

Royalties

Royalties are recognised in accordance with substance of the relevant agreements .

Contract exploration

Contract exploration revenue earned from third parties is recognised when rights to receive the revenue are assured.

Golden Cross Resources Ltd Annual Report 2020

Notes to the Financial Statements

For the year ended 30 June 2020 (continued)

(q) Income tax and other taxes

Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the balance sheet date.

Deferred income tax is provided on all temporary differences at the balance sheet date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.

Deferred income tax liabilities are recognised for all taxable temporary differences:

except where the deferred income tax liability arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and
in respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, except where the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.

Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax assets and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry-forward of unused tax assets and unused tax losses can be utilised:

except where the deferred income tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and
in respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, deferred tax assets are only recognised to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilised.

The carrying amount of deferred income tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised.

Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the balance sheet date.

Income taxes relating to items recognised directly in equity are recognised in equity and not in the income statement.

Other taxes

Revenues, expenses and assets are recognised net of the amount of GST except:

where the GST incurred on a purchase of goods and services is not recoverable from the taxation authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as part of the expense item as applicable; and
receivables and payables are stated with the amount of GST included.

The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the balance sheet.

Cash flows are included in the Cash Flow Statement on a gross basis and the GST component of cash flows arising from investing and financing activities, which is recoverable from, or payable to, the taxation authority are classified as operating cash flows.

Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the taxation authority.

(r) Currency

The functional and presentation currency for the Group is Australian dollars ($). Gains and losses due to movements in foreign exchange rates are recorded in the income statement.

Golden Cross Resources Ltd Annual Report 2020

Notes to the Financial Statements

For the year ended 30 June 2020 (continued)

(s) Impairment of assets

The Group assesses at each reporting date whether there is an indication that an asset may be impaired. If any such indication exists, or when annual impairment testing for an asset is required, the Group makes an estimate of the asset’s recoverable amount. An asset’s recoverable amount is the higher of its fair value less costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets and the asset’s value in use cannot be estimated to be close to its fair value. In such cases the asset is tested for impairment as part of the cash-generating unit to which it belongs.

When the carrying amount of an asset or cash-generating unit exceeds its recoverable amount, the asset or cash-generating unit is considered impaired and is written down to its recoverable amount.

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Impairment losses relating to continuing operations are recognised in those expense categories consistent with the function of the impaired asset unless the asset is carried at revalued amount (in which case the impairment loss is treated as a revaluation decrease).

An assessment is also made at each reporting date as to whether there is any indication that previously recognised impairment losses may no longer exist or may have decreased. If such indication exists, the recoverable amount is estimated.

A previously recognised impairment loss is reversed only if there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognised. If that is the case the carrying amount of the asset is increased to its recoverable amount The increased amount cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years. Such reversal is recognised in profit or loss unless the asset is carried at revalued amount, in which case the reversal is treated as a revaluation increase. After such a reversal the depreciation charge is adjusted in future periods to allocate the asset’s revised carrying amount, less any residual value, on a systematic basis over its remaining useful life.

(t) Contributed equity

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, from the proceeds.

(u) Segment reporting

(i) Identification of reportable segments. The Group has identified its operating segments based on the internal reports that are reviewed and used by the Managing Director and the Board of Directors (the Chief Operating Decision Makers) in assessing performance and determining the allocation of resources. The operating segments identified by management are each exploration tenement. The Group operates entirely in the industry of mineral exploration, evaluation and development for different metals and minerals, including copper, gold, silver, coal, and others.
(ii) Discrete pre-tax financial information, being expenditure incurred year to date and from the start date, about each of these segments is reported to the Chief Operating Decision Makers on a monthly basis.

Accounting policies, segment revenue, and expenses are those that are directly attributable to a segment and the relevant portion that can be allocated to the segment on a reasonable basis.

All expenses incurred for exploration and evaluation which qualify for capitalisation as described in note 2h are capitalised.

There are no intersegment transactions within the Group’s segment.

The segment results include the capitalised allocation of overhead that can be directly attributed to an individual business segment.

The following items and associated assets and liabilities are not allocated to segments as they are not considered part of the core operations of any segment:

gain and loss on investments held for trading or available for sale;
gains and losses on the sale of investments;
finance costs;
certain general and administration expenses;
impairment write offs for full value of tenements.

Golden Cross Resources Ltd Annual Report 2020

Notes to the Financial Statements

For the year ended 30 June 2020 (continued)

(v) Adoption of new and revised accounting standards

The Company has adopted all standards which became effective for the first time at 1 July 2019.

The Company has adopted AASB 16 Leases using the modified retrospective approach from 1 July 2019, but has not restated comparatives for the 2019 reporting period, as permitted under the specific transition provisions in the standard. The reclassifications and the adjustments arising from the new leasing rules are therefore recognised in the opening balance sheet on 1 July 2019. The new accounting policies are disclosed in note 2(k).

On adoption of AASB 16, the Company recognised lease liabilities in relation to leases which had previously been classified as ‘operating leases’ under the principles of AASB 117 Leases. These liabilities were measured at the present value of the remaining lease payments, discounted using the lessee’s incremental borrowing rate as of 1 July 2019.

The weighted average incremental borrowing rate applied to the lease liabilities on 1 July 2019 was 6%.

3. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company’s Risk Management Policy sets out the Company’s overall risk management framework and policies, including monthly review by the Board of the Company’s financial position and financial forecasts, and maintaining adequate insurances.

The Company’s cash reserves are held at call with Westpac Banking Corporation and BankWest, in accounts selected to maximise the return of interest.

AASB 7 (“Financial Instruments – Disclosures”) requires the disclosure of qualitative and quantitative information about exposure to risks arising from financial instruments, including specified minimum disclosures about credit risk, liquidity risk and market risk, including sensitivity analysis to market risk. The amendment to AASB 101 (“Presentation of Financial Statements”) introduces disclosures about the level of an entity’s capital and how it manages capital.

(a) Capital management

The Group considers its capital to comprise its ordinary share capital net of accumulated retained losses, $7,937,000 (2019: $8,926,000).

In managing its capital, the Group’s primary objective as an explorer is to maintain a sufficient funding base to enable the Group to meet its working capital and strategic investment needs. The Group has total debts of $4,607,852 (2019: $3,370,000) with a gearing ratio of 58% (2019: 38%).

In making decisions to adjust its capital structure to achieve these aims, either through altering its dividend policy, new share issues, or consideration of debt, the Group considers not only its short-term position but also its long-term operational and strategic objectives.

(b) Principal financial instruments

The principal financial instruments are as follows:

Cash
Trade and other receivables
Investments
Trade and other payables
Loans

The Group does not use derivative financial instruments, and has no off-balance sheet financial assets or liabilities at year-end.

(c) Financial instrument risk exposure and management

In common with all other businesses, the Group is exposed to risks that arise from its use of financial instruments. These main risks, arising from the group’s financial instruments are interest rate risk, liquidity risk, currency risk, share market risk and credit risk. This note describes the Group’s objectives, policies and processes for managing those risks and the methods used to measure them. Further quantitative information in respect of these risks is presented throughout these financial statements.

There have been no substantive changes in the Group’s exposure to financial instrument risks, its objectives, policies and processes for managing those risks or the methods used to measure them from previous periods unless otherwise stated in this note.

Golden Cross Resources Ltd Annual Report 2020

Notes to the Financial Statements

For the year ended 30 June 2020 (continued)

(d) General objectives, policies and processes

The Board has overall responsibility for the determination of the Group’s risk management objectives and policies and has the responsibility for designing and operating processes that ensure the effective implementation of the objectives and policies to the Group’s finance function. The Board receives monthly reports through which it reviews the effectiveness of the processes put in place and the appropriateness of the objectives and policies it sets. The overall objective of the Board is to set policies that seek to reduce risk as far as possible without unduly affecting the Group’s competitiveness and flexibility. Further details regarding these policies are set out below:

(i) Liquidity risk

Liquidity risk arises from the Group’s management of working capital. It is the risk that the Group will encounter difficulty in meeting its financial obligations as they fall due.

The Group’s policy is to ensure that it will always have sufficient cash to allow it to meet its liabilities when they become due. To achieve this aim, it seeks to maintain cash balances (or agreed facilities) to meet expected requirements for a period of at least 45 days.

The Board receives cash flow projections on a monthly basis as well as information regarding cash balances. At the balance sheet date, these projections indicated that the Group expected to have sufficient liquid resources to meet its obligations under all reasonably expected circumstances.

(ii) Interest rate risk

The Group’s exposure to interest rate risk and the effective weighted average interest rate for each class of financial asset and financial liability is set out in the following tables:

At balance date, the Group has no exposure to floating weighted average interest rates. (2019: Nil) The $80,000 in security deposits held with the NSW Department of Planning and Environment earning 0% interest. (2019: Nil). A further amount in loans totalling $3,520,000 have an attached interest rate of 9.75% per annum (2019: $2,820,000)

Year ended 30 June 2020 Notes Financial assets Cash 9 Receivables - Current 10 (a) Receivables - Non current 10 (b) Weighted average interest rate Financial liabilities Payables Loans from Directors/related parties 13 (b) 13 (a) Net financial assets Attached interest rate	Floating interest rate $’000 - -	Fixed interest maturing in: 1 year or less over 1 to 5 years more than 5 years Non- interest bearing Total $’000 $’000 $’000 $’000 $’000 - - - 68 68 - - - 107 107
	-	- - - 40 40
	-	- - - 215 215
	- -	- 4,441 - - - - 89 - 89 4,441
	-	4,441 - - 126 (4,315)
		9.75%

Golden Cross Resources Ltd Annual Report 2020

Notes to the Financial Statements

For the year ended 30 June 2020 (continued)

Year ended 30 June 2019 Notes Financial assets Cash 9 Receivables - Current 10 (a) Receivables - Non current 10 (b) Weighted average interest rate Financial liabilities Payables Loans from Directors/related parties 13 (b) 13 (a) Net financial assets Attached interest rate	Floating interest rate $’000 - -	Fixed interest maturing in: 1 year or less over 1 to 5 years more than 5 years Non- interest bearing Total $’000 $’000 $’000 $’000 $’000 - - - 97 97 - - - 101 101
	-	- - - - -
	-	- - - 198 198
	- -	- 3,249 - - - - 60 - 60 3,249
		3,249 138 (3,111)
		9.75%

(iii) Share market risk

The Company relies greatly on equity markets to raise capital for its exploration activities, and is thus exposed to equity market volatility. When markets conditions require for prudent capital management, generally in consultation with professional advisers, the Group looks to alternative sources of funding, including the sale of assets and royalties.

The capacity of the company to raise capital from time to time may be influenced by either or both market conditions and the price of the Company’s quoted shares at that time.

(iv) Credit risk

Credit risk arises principally from the Group’s trade receivables. It is the risk that the counterparty fails to discharge its obligation in respect of the instrument.

The Group’s exposure to credit risk arises from potential default of the counter party, with the maximum exposure equal to the carrying amount of these instruments.

The Group trade only with recognized, creditworthy third parties, and as such collateral is not requested nor is it the Group’s policy to securitize its trade and other receivables.

In addition, receivable balances are monitored on an ongoing basis with the result that the Group’s exposure to bad debts is not significant.

Other receivables

Other receivables comprise GST. Credit worthiness of debtors is undertaken when appropriate.

(e) Accounting policies

Accounting policies in relation to financial assets and liabilities and share capital are contained in note 2.

(f) Fair value of financial assets and liabilities.

The Company has available to it various methods in estimating the fair value of listed investments. The methods comprise:

Level 1 - The fair value is calculated using quoted prices in active markets.

Level 2 - The fair value is estimated using inputs other than quotes prices included in level 1 that are observable for the asset or liability, either directly (as prices) or indirectly (derived from prices).

Level 3 - The fair value is estimated using inputs for the asset or liability that are not based on observable market data.

The carrying values of trade receivables and trade payables are recorded in the financial statements approximates their respective net fair values, in accordance with the accounting policies outlined in note 2. The non-current other receivable was impaired at 30 June 2015 to an amount that approximates fair value, at 30 June 2020 there has been no significant change in the inputs that would indicate that the carrying value of the asset would not approximate the fair value.

Golden Cross Resources Ltd Annual Report 2020

Notes to the Financial Statements

For the year ended 30 June 2020 (continued)

The fair value of all monetary financial assets and financial liabilities of the Company approximate their carrying value.

There are no off-balance sheet financial assets or liabilities at year-end.

All financial assets and liabilities are denominated in Australian dollars.

4. SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

In applying the Group’s accounting policies, management continually evaluates judgements, estimates and assumptions based on experience and other factors, including expectations of future events that may have an impact on the Group. All judgements, estimates and assumptions made are believed to be reasonable, based on the most current set of circumstances available to management. Actual results may differ from the judgements, estimates and assumptions. Significant judgements, estimates and assumptions made by management in the preparation of these financial statements are outlined below:

Impairment of non-financial assets other than goodwill

The group assesses impairment of all assets (including capitalised exploration costs) at each reporting date by evaluating conditions specific to the Group and to the particular asset that may lead to impairment.

Carrying values of exploration assets

The Group applies judgments in determining the carrying value of exploration assets in particular in determining which exploration costs should be capitalised or expensed. The Group assesses impairment of such assets at each reporting date by evaluating conditions specific to the Group.

Argent Receivable

The Group applies judgements in assessing the key assumptions for determining the fair value of the receivable, including the estimated date for the decision to mine, and the probability of that decision occurring. Refer to note 10 (b) for further details.

5. OTHER INCOME

Other Income from non-operating activities Interest received Other Total other income	2020 $’000 2019 $’000 - 4 62 139
	62 143

6. GAINS & EXPENSES

(a) Exploration expense Capitalised expenditure written off (b) General & administrative expenses Employee entitlements Superannuation contributions ASIC Fees Audit fees Insurance Legal Operating lease - rental expense Share Registry Fees and Stock Exchange Fees Website and computer maintenance Other	2020 $’000 2019 $’000 172 214
	172 214
	261 280 9 19 4 8 28 31 24 20 12 9 104 60 28 31 12 13 81 76
	563 547

Golden Cross Resources Ltd Annual Report 2020

Notes to the Financial Statements

For the year ended 30 June 2020 (continued)

7. INCOME TAX

. INCOME TAX
(a) The components of income tax expense are: Current tax Deferred tax benefit Total tax benefit	2020 $’000 2019 $’000 - - - -
	- -

(i) The Golden Cross Resources Limited group of companies tax consolidated in Australia on 1 July 2007. There are presently no tax sharing or funding agreements in place.

(ii) The parent entity and each of the subsidiaries are in tax loss for the year and have substantial tax losses carried forward in Australia.

(iii) The Directors are of the view that there is insufficient probability that the parent entity and its subsidiaries will derive sufficient income in the foreseeable future to justify booking the tax losses and temporary differences as deferred tax assets.

(b) Numerical reconciliation of income tax expense to prima facie tax payable is as follows: Loss from operations before income tax expense Tax at statutory tax rate of 27.5% Tax effect of non-temporary differences Tax effect of tax losses and temporary differences not recognised Income tax expense	2020 $’000 2019 $’000 (989) (865) (272) (238) (20) - 292 238
	- -

(c) There is no amount of tax benefit recognised in equity, as the tax effect of temporary differences has not been booked.

Unclaimed value of share issue costs debited to equity Tax benefit of unclaimed residuals at 27.5% (2019: 27.5%) (d) Tax Losses – Revenue Unused tax losses for which no tax loss has been booked as a deferred tax asset Potential deferred tax benefit at 27.5% (2019: 27.5%) Net deferred tax liability Net deferred tax asset - not booked	2020 $’000 2020 $’000 - -
	- -
	2020 $’000 2019 $’000 45,464 44,590 12,506 12,262 (1,878) (1,576)
	10,628 10,686

The benefit of income tax losses will only be obtained if:

(i) the respective companies derive future assessable income of a nature and of an amount to enable the benefit from the deductions for the losses to be realised;

(ii) the respective companies continue to comply with the conditions for deductibility imposed by tax legislation; and

(iii) No changes in tax legislation adversely affect the respective companies in realising benefit from the deductions from the losses.

Golden Cross Resources Ltd Annual Report 2020

Notes to the Financial Statements

For the year ended 30 June 2020 (continued)

(e) Temporary tax differences Accelerated deductions for tax compared to book Other temporary tax differences Total at 100% Potential deferred tax liability @ 27.5%	2020 $’000 2019 $’000 (3,310) (1,879) (3,436) (1,576)
	(5,189) (5,012)
	(1,427) (1,378)

8. LOSS PER SHARE

. LOSS PER SHARE
	2020	2019
Basic loss per share (cents per share)		(0.85)
Weighted average number of ordinary shares during the year used in the	101,622,227	101,622,227
calculation of basic loss per share
Diluted loss per share (cents per share)	(0.97)	(0.85)
Weighted average number of ordinary shares during the year used in the	101,622,277	101,622,227
calculation of diluted loss per share
	2020	2019
	$’000	$’000
Loss used in calculating basic and diluted loss per share	(989)	(865)

Options

In addition to salaries, the Group has provided benefits to certain employees (including directors) of the Group in the form of the Golden Cross Resources Employee Option Plan re-approved by shareholders at the general meeting of shareholders held in March 2006. The number of employee options on issue at any time must not exceed 5% of the issued capital of the Company at that time. All employees (including directors and consultants) of Golden Cross and its controlled entity are eligible to participate in the plan.

The last options issued under the Employee Option Plan expired on 4 July 2013. None of the options issued under the Employee Option Plan were exercised.

Options granted to employees, including Key Management Personnel, described in the Remuneration Report, are considered to be potential ordinary shares and have been included in the determination of diluted earnings per share to the extent they are dilutive. These options have not been considered in the determination of basic earnings per share.

In 2020 the weighted average number of options that were not included in the calculation of loss per share as they are antidilutive is zero: (2019: zero)

9. CASH AND CASH EQUIVALENTS

Cash at bank and on hand 10. OTHER RECEIVABLES (a) Current other receivables Security deposits Other debtors	2020 $’000 68	2019 $’000 97
	68	97
	2020 $’000 106 1	2019 $,000 101 -
	107	101

Golden Cross Resources Ltd Annual Report 2020

Notes to the Financial Statements

For the year ended 30 June 2020 (continued)

Security deposits are required by government legislation as a prerequisite to exploration. The cash held in security deposits is not available until leases are relinquished or sold. Since August 2018 the deposits are held with the NSW Dept of Planning and Environment and are non-interest bearing (2018: between 1.88% and 2.35%).

Balances within trade and other receivables do not contain impaired assets and are not past due. It is expected that these balances will be received in full.

(b) Non-Current Other receivables Other Receivable 11. PREPAYMENTS (a) Current prepayments Prepaid expenses (b) Non Current prepayments Prepaid expenses	2020 $’000 40	2019 $’00 -
	40	-
	2020 $’000 22	2019 $’000 28
	22	28
	2020 $’000 -	2019 $’000 7
	-	7

12. EXPLORATION AND EVALUATION EXPENDITURE, MINE PROPERTY, PLANT AND EQUIPMENT

2. EXPLORATION AND EVALUATION EXPENDITURE, MINE PROPERTY	, PLANT AND EQUIPMENT
(a) Exploration and Evaluation Expenditure Exploration Assets Costs brought forward Expenditure incurred during the year Expenditure written off during the year (i) Costs carried forward Costs incurred on current areas of interest - Copper Hill - Burra - Codna Hill - Oolgelima Hill - Other properties	2020 $’000 2019 $’000 12,067 11,820 391 461 (172) (214)
	12,286 12,067
	218 247 24 38 3 21 16 21 130 96
	391 423

(i) Relates to impairment of capitalised exploration expenditure to tenements which are no longer viewed as being economically recoverable. In addition to this expenditure during the period on a collection of other tenements was expensed as the tenements had all previously been written down to nil in the prior period.

Details of the economic entity’s exploration tenements are disclosed at the back of the Annual Report.

(ii) During the period, no R & D refunds (2019: Nil) were received from the Australian Taxation Office.

(b) Property, Plant and Equipment

(b) Property, Plant and Equipment
Cost Accumulated depreciation Net book value at end of the period Net book value at beginning of year Additions Depreciation expense Net book value at 30 June	2020 $’000 2019 $’000 330 330 (329) (327)
	1 3
	3 4 - 2 (2) (3)
	1 3

Golden Cross Resources Ltd Annual Report 2020

Notes to the Financial Statements For the year ended 30 June 2020 (continued)

13. (a) CURRENT LIABILITIES – Loans from directors/related parties

3. (a) CURRENT LIABILITIES – Loans from directors/related part	ies
Loans from directors/related parties	2020 $’000 2019 $’000 4,441 3,249
	4,441 3,249

At 30 June 2020 the company has the following loan agreements with a related party.

1) HQ Mining Resources Holding Pty Ltd (HQM) and the company entered into a loan agreement on 22 September 2015 for the amount of $150,000 for a term of 12 months at 0% interest, repayable after the earlier of the company raising $500,000 through the issue of shares or at the first anniversary date of the loan. On 17 July 2020 this loan was extended for a further 12 months at an interest rate of 9.75%. Subsequent to the year end the repayment of the loan under the new Global Loan Agreement was deferred until 31 July 2021 at the same interest rate. The balance of the loan at 30 June 2020 includes $55,174 in capitalised interest.
2) HQM and the company entered into a loan agreement on 4 February 2017 for the amount of $320,000 deliverable in 3 tranches at 9.75% interest, repayable at the earlier of the company raising $1,500,000 through the issue of shares or at the first anniversary date of the loan. Subsequent to the year end the repayment of the loan under the new Global Loan Agreement was deferred until 31 July 2021 at the same interest rate. The balance of the loan at 30 June 2020 includes $131,770 in capitalised interest.
3) HQM and the company entered into a loan agreement on 17th August 2017 for the amount of $200,000 deliverable in 3 tranches at 9.75% interest, repayable after the earlier of the company raising $2,000,000 through the issue of shares or at the first anniversary date of the loan. Subsequent to the year end the repayment of the loan under the new Global Loan Agreement was deferred until 31 July 2021 at the same interest rate. The balance of the loan at 30 June 2020 includes $72,762 in capitalised interest.
4) HQM and the company entered into a loan agreement on 8[th] March 2017 for the amount of $400,000 deliverable in 5 tranches at 9.75% interest, repayable after the earlier of the company raising $2,000,000 through the issue of shares or at the first anniversary date of the loan. Subsequent to the year end the repayment of the loan under the new Global Loan Agreement was deferred until 31 July 2021 at the same interest rate. The balance of the loan at 30 June 2020 includes $122,503 in capitalised interest.
5) HQM and the company entered into a loan agreement on 14[th] July 2017 for the amount of $50,000 deliverable in 1 tranche at 9.75% interest, repayable after the earlier of the company raising $2,000,000 through the issue of shares or at the first anniversary date of the loan. Subsequent to the year end the repayment of the loan under the new Global Loan Agreement was deferred until 31 July 2021 at the same interest rate. The balance of the loan at 30 June 2020 includes $14,451 in capitalised interest.
6) HQM and the company entered into a loan agreement on 18[th] September 2017 for the amount of $800,000 deliverable in 5 tranches at 9.75% interest, repayable after the earlier of the company raising $2,000,000 through the issue of shares or at the first anniversary of the first tranche payment of the loan. Subsequent to the year end the repayment of the loan under the new Global Loan Agreement was deferred until 31 July 2021 at the same interest rate. The balance of the loan at 30 June 2020 includes $208,329 in capitalised interest.
7) HQM and the company entered into a loan agreement on 30[th] April 2018 for the amount of $800,000 deliverable in 4 tranches at 9.75% interest, repayable after the earlier of the company raising $3,000,000 through the issue of shares or at the first anniversary of the first tranche payment of the loan. Subsequent to the year end the repayment of the loan under the new Global Loan Agreement was deferred until 31 July 2021 at the same interest rate. The balance of the loan at 30 June 2020 includes interest of $140,405.
8) HQM and the company entered into a loan agreement on 16th July 2019 for the amount of $100,000 deliverable in 3 tranches at 9.75% interest, repayable after the earlier of the company raising $5,000,000 through the issue of shares or by 31 July 2021. The balance of the loan at 30 June 2020 includes interest of $10,599.
9) HQM and the company entered into a loan agreement on 24th July 2019 for the amount of $220,000 deliverable in 7 tranches at 9.75% interest, repayable after the earlier of the company raising $6,000,000 through the issue of shares or by 31 July 2021. The balance of the loan at 30 June 2020 includes interest of $17,387.

Golden Cross Resources Ltd Annual Report 2020

Notes to the Financial Statements

For the year ended 30 June 2020 (continued)

10) HQM and the company entered into a loan agreement on 14th November 2019 for the amount of $240,000 deliverable in 3 tranches at 9.75% interest, repayable after the earlier of the company raising $6,000,000 through the issue of shares or by 31 July 2021. The balance of the loan at 30 June 2020 includes interest of $12,544.
11) The Director Mr Yuanheng Wang entered into loan agreement on 22[nd] January 2020 in the amount of $100,000 at an interest of 12%. Interest incurred on this loan at 30 June amounted to $4,994. This loan is to be converted to Convertible Notes once ratified at the AGM.
12) HQM and the company entered into a loan agreement on 2[nd] March 2020 for the amount of $240,000 deliverable in 4 tranches at 9.75% interest, repayable after the earlier of the company raising $6,000,000 through the issue of shares or by 31 July 2021. The balance of the loan at 30 June 2020 includes interest of $4,919.
13) The Chairman and 2 KMPs entered into loan agreements on 18[th] June 2020 each in the amount of $10,000. (Total $30,000) at an interest of 12%. Interest incurred on these loans at 30 June amounted to $118. These loans are to be converted to Convertible Notes once ratified at the AGM.

13. (b) CURRENT LIABILITIES - Payables

Trade payables and other creditors	2020 $’000 2019 $’000 89 60
	89 60

Trade payables and other creditors are non-interest bearing and are normally settled on 30-day terms.

14. CURRENT LIABILITIES – Provisions

Provision for Annual Leave Provision for Long Service Leave Total Current Provisions	2020 $’000 2019 $’000 10 13 46 48
	56 61

15. CONTRIBUTED EQUITY

Issued and paid up: Ordinary shares *	2020 Shares ’000 2019 Shares ’000 2020 $’000 2019 $’000
	101,622 101,622 $58,247 58,247

Movements in the securities of the Company during the past six years were as follows:

DATE DETAILS 01.07.14 Closing Balance 28.08.14 1.12.14 30.4.15 3.06.15 3.06.15 16.01.16 30.06.20 1 for 20 Share Consolidation* Issue to Director and Ex directors Shareholder Purchase Plan Issue to employee Issue to employee Less transaction costs of share issue Issue to employee Closing Balance	NO. OF SHARES ISSUE PRICE CENTS 1,889,299,391 94,490,287 307,457 5,791,949 37,676 451,124 543,735 101,622,228 10.5 6 5.6 6.6 6.1	$’000 57,812 32 348 2 30 (10) 33
		58,247

* The 1 for 20 Share Consolidation was approved by shareholders at the EGM held on 28 August 2014.

Voting Rights

At a general meeting of the Company, every shareholder present in person or by an attorney, representative or proxy has one vote on a show of hands and one vote per ordinary share on a poll. Options do not carry voting rights.

Golden Cross Resources Ltd Annual Report 2020

Notes to the Financial Statements

For the year ended 30 June 2020 (continued)

16. RESERVES

(a) Share-based compensation reserve

Opening share-based compensation reserve Share based expense Closing share-based compensation reserve	2020 $’000 2019 $’000 922 922 - -
	922 922

Share-based compensation reserve

The share-based compensation reserve is used to record the value of share-based payments provided to employees as part of their remuneration.

(b) Recognised share-based payment expenses

The expenses recognised for employee services received during the year is shown in the table below:

Payments by way of options to directors and employees under Employee Option Plan	2020 $’000 2019 $’000 - -
	- -

Golden Cross Resources Employee Option Plan

The Golden Cross Resources Employee Option Plan was re-approved by shareholders at the general meeting of shareholders held on 28[th] November 2014. All employees (including directors and consultants) of Golden Cross Resources Limited and its controlled entity are eligible to participate in the plan. Employee options vest as follows: on date of grant, 10%; after 1 year, 30%; after 2 years, 60%; after 3 years, 100%. The number of employee options on issue at any time must not exceed 5% of the issued capital of the Company at that time.

There were no employee options issued during the current year.

17. STATEMENT OF CASH FLOWS RECONCILIATION

Operating loss Depreciation Exploration and evaluation expenditure written off Increase/(Decrease) in receivables and other assets Increase/ (Decrease) in creditors Increase/ (Decrease) in other provisions Net cash outflow from operating activities	2020 $’000 2019 $’000 (989) (865) 2 3 172 214 274 151 29 - (5) (23)
	(517) (520)

18. RELATED PARTY DISCLOSURES

Directors

Disclosures relating to Directors are set out in the Remuneration Report, included in the Directors’ Report. Refer to Note 13(a) for details in relation to the loan agreement entered into during the period with a director.

On 29 September 2016 the Company entered into a sale agreement with Hellsten SF Pty Ltd atf KH & TH Superannuation Fund for the sale and lease back of the Coppervale property for $368,000 including 3 years rental pre-paid ($90,000) as part of the sale. As part of the transaction the Company has secured the first right of refusal and option to purchase for the greater of $400,000 or market value for a period of 3 years. Subsequently on 22 January 2020 the Coppervale Property was sold to Vision Vale Holdings solely owned by director Yuanheng Wang for $415,000. GCR has leased the property for 12 months to 9 February 2021 for a rental of $3,000 per month. As part of this transaction the Company has secured the first right of refusal and option to purchase.

Golden Cross Resources Ltd Annual Report 2020

Notes to the Financial Statements

For the year ended 30 June 2020 (continued)

Wholly Owned Group

The wholly owned group consists of Golden Cross Resources Limited and its wholly-owned controlled entities, Golden Cross Operations Pty Ltd and King Eagle Resources Pty Ltd. Golden Cross Resources Limited is the ultimate parent entity.

Compensation of Key Management Personnel

ompensation of Key Management Personnel
Short-term employee benefits (Salary/fee) Post-employment benefits (Superannuation) Long Service Leave expense	2020 $ 2019 $ 292,536 393,392 862 - 12,877 16,425
	293,398 422,694

Loans to Key Management Personnel

There were no loans to key management personnel or their related entities during the financial year.

Other transactions and balances with Key Management Personnel and their related parties

There was $30k outstanding to key management personnel at 30 June 2020.

Amounts recognised as expenses

Director’s fees Superannuation Consulting Fees	2020 $’000 2019 $’000 18 - 12 9 1 -
	30 10

Aggregate amounts payable to Directors of the Company at 30 June 2020 relating to the above types of other transactions

Current liabilities	2020 $’000 2019 $’000
	30 10

Other transactions with related parties

Refer to Note 13(a) for details in relation to the loan agreements entered into during the period with a HQ Mining Pty Ltd, the majority shareholder of the company.

19. COMMITMENTS AND CONTINGENCIES

Commitments in relation to non-cancellable operating leases contracted for are payable as follows:

Operating Leases Commitments for minimum lease payments in relation to non-cancellable operating leases are payable as follows: Not later than 1 year Later than 1 year but not later than 5 years	2020 $’000 2019 $’000 - 20 - -
	- 20

Golden Cross Resources Ltd Annual Report 2020

Notes to the Financial Statements

For the year ended 30 June 2020 (continued)

Exploration Commitments

In order to maintain current rights of tenure to exploration tenements, the economic entity has the following discretionary exploration expenditure requirements up until expiry of the leases. These obligations, which are subject to renegotiation upon expiry of the leases, are not provided for in the financial statements and are payable.

Not later than one year Later than one year but not later than 5 years Later than 5 years	2020 $’000 471 2019 $’000 122 249 - 485 -
	720 607

If the economic entity decides to relinquish certain leases and/or does not meet these joint venture or annual exploration expenditure obligations, assets recognised in the balance sheet may require review to determine the appropriateness of carrying values. The sale, transfer or farm-out of exploration rights to third parties will reduce or extinguish these obligations.

20. LEASES

The following adjustments were recognised at 1 July 2019:

	2020
	$’000
Right of Use Asset	20
Lease Liability	(21)
Retained Earnings	-

Statements of Profit or Loss and Other Comprehensive Income

The amounts recognised in the statements of profit or loss and other comprehensive income relating to leases where the Company is a lessee are shown below:

nterest expense on lease liabilities epreciation of right-of-use assets Occupancy costs	2020 $’000 2019 $’000 1 - 3 - 48 89
	52 89

20. REMUNERATION OF AUDITORS

Remuneration for audit or review of the accounts and consolidated accounts of Golden Cross Resources Limited and its controlled entities	2020 $ 2019 $ 28,020 30,754
	28,020 30,754

Golden Cross Resources Ltd Annual Report 2020

Notes to the Financial Statements

For the year ended 30 June 2020 (continued)

21. PARENT ENTITY INFORMATION

Information relating to Golden Cross Resources Limited: Current assets Total assets Current liabilities Total liabilities Issued capital Accumulated losses Share-based compensation reserve Total shareholders’ equity Loss of the parent entity Total comprehensive profit (loss) of the parent entity Details of any guarantees entered into by the parent entity in relation to the debts of its subsidiaries. Details of any contingent liabilities of the parent entity. Details of any contractual commitments by the parent entity for the acquisition of property, plant or equipment. Golden Cross Resources Limited has 100% ownership of the entities Golden Cross Operations and King Eagle Resources Pty Ltd.	2020 $’000 2019 $’000 52 63 13,238 12,614 4,468 3,278 4,468 3,278
	58,247 (49,833) 922 58,247 (49,426) 922
	9,336 9,743 (566) (566) (406) (406) - - - - - -

Information relating to Golden Cross Resources Limited:
Current assets
Total assets
Current liabilities
Total liabilities
Issued capital
Accumulated losses
Share-based compensation reserve
Total shareholders’ equity
Loss of the parent entity
Total comprehensive profit (loss) of the parent entity
Details of any guarantees entered into by the parent entity in relation to the
debts of its subsidiaries.
Details of any contingent liabilities of the parent entity.
Details of any contractual commitments by the parent entity for the
acquisition of property, plant or equipment.
Golden Cross Resources Limited has 100% ownership of the entities Golden
Cross Operations and King Eagle Resources Pty Ltd.

2020
$’000
2019
$’000
52
63
13,238
12,614
4,468
3,278
4,468
3,278

58,247
(49,833)
922
58,247
(49,426)
922

9,336
9,743
(566)
(566)
(406)
(406)
-
-
-
-
-
-

22. SEGMENT REPORTING

The operating segments are reviewed and managed by Chief Operating Decision Makers based on the costs incurred for each exploration tenement throughout the reporting period, which are capitalised to operating segment assets. The operating segments identified by management are based on areas of interest. Expenditure incurred and capitalised for these tenements is disclosed in note 12.

Expenses included in the statement of comprehensive income which have not been capitalised to operating segment assets are unallocated as they are not considered part of the core operations of any segment.

2020: OPERATING SEGMENTS Reconciliation of segment net loss after tax to net loss before tax: Gain/(loss) on Sale of non-current assets Exploration and Evaluation Impairment Total segment net gain/(loss) after tax Interest Revenue Other Revenue Share Based Payments Depreciation Other Costs Net loss before tax per statement of Comprehensive Income	Copper Hill Rest of Australia	Total
	- - - (172)	- (172)
		(172)
		- 62 - (2) (961)
		(989)

Golden Cross Resources Ltd Annual Report 2020

Notes to the Financial Statements

For the year ended 30 June 2020 (continued)

2019: OPERATING SEGMENTS Reconciliation of segment net loss after tax to net loss before tax: Gain/(loss) on Sale of non-current assets Exploration and Evaluation Impairment Total segment net gain/(loss) after tax Interest Revenue Other Revenue Share Based Payments Depreciation Other Costs Net loss before tax per statement of Comprehensive Income 30 June 2020 Capitalised Expenditure Property Plant and Equipment Current and non-current prepayments Total 30 June 2019 Capitalised Expenditure Property Plant and Equipment Current and non-current receivables Total Reconciliation to total assets: Total assets by reportable assets Cash and cash equivalents Other receivables Prepayments Right of Use Office Lease Total assets per Statement of Financial Position GEOGRAPHICAL SEGMENTS Non-current assets by geographical location: Australia Total non-current assets as per Statement of Financial Position	Copper Hill Rest of Australia	Total
	- - - (215) Copper Hill Rest of Australia	- (215)
		(215)
		4 139 - (3) (790)

		(865)
		Total
	12,286 - 1 - - -	12,286 1 -
	12,287 -	12,287
	12,067 3 - - 28 -	12,067 3 28
	12,098 -	12,098
	2020 2019 $,000 $,000 12,359 12,070 68 97 75 101 22 28 20 -
	12,544 12,296

	2020 2019 $’000 $’000 12,327 12,070
	12,327 12,070

Golden Cross Resources Ltd Annual Report 2020

Notes to the Financial Statements

For the year ended 30 June 2020 (continued)

23. SUBSEQUENT EVENTS

HQ Mining Resources Holding Pty Ltd and the Company entered into a 3rd Global Loan Agreement on 20 July 2020 consolidating all outstanding loans into one loan with a common repayment date of 31 July 2021.

The management and Board of GCR are in negotiations with a third party for future funding and for the re-quotation of GCR shares on the ASX.

Golden Cross Resources Ltd Annual Report 2020

DIRECTORS’ DECLARATION

The Directors declare that:

In accordance with a resolution of the directors of Golden Cross Resources Limited, I state that:

In the opinion of the directors:

(a) the financial statements and notes of the consolidated entity are 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 2020 and of its performance for the year ended on that date; and

(ii) complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Regulations 2001 ;

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

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

(d) this declaration has been made after receiving the declarations required to be made to the Directors in accordance with section 295A of the Corporations Act 2001 for the financial year ended 30 June 2020.

On behalf of the Board

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Jordan Li Chairman Sydney, 29 September 2020

Golden Cross Resources Ltd Report 2020

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Golden Cross Resources Limited

INDEPENDENT AUDITOR’S REPORT

To the members of Golden Cross Resources Limited

Opinion

We have audited the financial report of Golden Cross Resources Limited (the “Company”) and its controlled entities (the “Group”), which comprises the consolidated statement of financial position as at 30 June 2020, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and the directors' declaration.

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

(a) giving a true and fair view of the Group’s consolidated financial position as at 30 June 2020 and of its consolidated financial performance for the year ended on that date; and
(b) complying with Australian Accounting Standards and the Corporations Regulations 2001 .

Basis for Opinion

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board's APES 110 Code of Ethics for Professional Accountants (“the Code”) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

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

Material Uncertainty Related to Going Concern

We draw attention to Note 2 in the financial report, which describes the conditions that raise doubts about the Group’s ability to continue as a going concern. The conditions along with other matters disclosed in Note 2 indicates that a material uncertainty exists that may cast significant doubt on the Company’s ability to continue as a going concern and therefore whether it will be able to realise its assets and extinguish its liabilities in the normal course of business. Our opinion is not modified in respect of this matter.

Key Audit Matters

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

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Golden Cross Resources Ltd Annual Report 2020

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INDEPENDENT AUDITOR’S REPORT (continued)

Key Audit Matter How our Audit Addressed the Key Audit Matter Carrying Value of capitalised exploration and evaluation expenditure Capitalised exploration and evaluation assets Our procedures to address the Group’s are the Group’s largest asset. The carrying assessment of the carrying value of exploration value of exploration and evaluation assets are and evaluation assets included: assessed for impairment by the Group when • consideration of the Company’s right to facts and circumstances indicate that the explore in the relevant exploration area which capitalised exploration and evaluation included obtaining and assessing relevant expenditure may exceed its recoverable documentation such as license agreements; amount. • consideration of the Group’s intention to The determination as to whether there are any carry out significant exploration and evaluation indicators to require an exploration and activity in the relevant exploration area which evaluation asset to be assessed for impairment, included assessment of the Group’s cash-flow involves a number of judgments including forecast models and discussions with senior whether the Group has title and tenure to the management and Directors as to the intentions licenses, will be able to perform ongoing and strategy of the Group; exploration and evaluation expenditure and • assessed recent exploration and evaluation whether there is sufficient information for a activity in the relevant licence area to decision to be made that the area of interest is determine if there are any negative indicators not commercially viable. During the year, the that would suggest a potential impairment of Group determined that there had been no the asset; and indicators of impairment. • ensured the disclosures in relation to this Due to the value of this asset and the asset were appropriate. subjectivity involved in determining the carrying value, this was a key audit matter.

Other Information

The directors are responsible for the other information. The other information comprises the information included in the Group's annual report for the year ended 30 June 2020, but does not include the financial report and our auditor's report thereon.

Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated.

Golden Cross Resources Ltd Annual Report 2020

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INDEPENDENT AUDITOR’S REPORT (continued)

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibility of Directors for the Financial Report

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

In preparing the financial report, the directors are responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so.

Auditor’s Responsibility for the Audit of the Financial Report

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

As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit 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 Group’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our

Golden Cross Resources Ltd Annual Report 2020



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INDEPENDENT AUDITOR’S REPORT (continued)

auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.

We communicate with the directors regarding, amongst other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with the directors, we determine those matters that were of most significance in the audit of the financial report of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on the Remuneration Report

We have audited the Remuneration Report included in pages 2 to 4 of the Directors’ Report for the year ended 30 June 2020. 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.

Opinion on the Remuneration Report

In our opinion, the Remuneration Report of Golden Cross Resources Limited, for the year ended 30 June 2020, complies with section 300A of the Corporations Act 2001 .

Rothsay Audit & Assurance Pty Ltd

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Frank Vrachas

Director

Sydney, 29 September 2020

Golden Cross Resources Ltd Annual Report 2020

INTERESTS IN MINERAL TENEMENTS (As at 30 June 2020)

LOCATION	TENEMENT NAME	TENEMENT	km2	HOLDER(2)	% HOLDING	JOINT VENTURER(NOTES)
NEW SOUTH WALES
Macquarie Arc	Copper Hill	EL 6391	95	GCO	100
	West Wyalong JV	EL 8430	111	GCO	20.36	ARD (1)
		EL 7389	15	GCO	100
Cobar Region	Burra
	Kilparney Extended	EL 8270	66	GCO	100
Lachlan Fold Belt	Quidong	EL 7989	98	GCO	100
	Sunny Corner JV	EL 5964	55	GCO	0	ARD (2)
QUEENSLAND
Mount Isa	Quita Creek	EPM 14905	150	KER	100
	Highland Plains	EPM 14906	193	KER	100
	Lily & Sherrin Creek	EPM 14912	143	KER	100
SOUTH AUSTRALIA
Coober Pedy	Oolgelima	EL 6500	237	GCR	100
	Stuart Range	EL 6089	189	GCR	100

Notes

E/EL/ELA = Exploration Permit/Licence/Application; EPM = Exploration Permit for Metals

Full names for abbreviations are as follows:

GCO Golden Cross Operations Pty Ltd, a wholly owned subsidiary of GCR KER King Eagle Resources Pty Limited, a wholly owned subsidiary of GCR ARD Argent Minerals Limited (ASX: ARD)
(1) Argent Minerals earned 51% in the West Wyalong Joint Venture by spending $750,000 by 1 June 2011 in Stage 1. ARD earned a further 19% to total 70% by additional expenditure of $600,000 (for a total expenditure of $1,350,000) by 30 June 2017. Since 30 June 2017 GCR has been diluting its interest as Argent advises expenditure according to a standard dilution formula.. Barrick Gold Corp holds a 2.5% net smelter return.
(2) Argent Minerals earned 51% in the Sunny Corner Joint Venture by spending $500,000 by 1 June 2011 in Stage 1. ARD earned 70% by additional expenditure of $186,000 (for a total expenditure of $686,000) by July 2013. During the September 2019 Quarter GCR divested its 30% interest in EL5964 to Argent Minerals.

Golden Cross Resources Ltd Annual Report 2020

SHAREHOLDER INFORMATION

The shareholder information set out below was correct at 14 October 2020

1. SUBSTANTIAL SHAREHOLDERS

Substantial shareholders are as follows:

. SUBSTANTIAL SHAREHOLDERS Substantial shareholders are as follows:
HQ Mining Resources Holding Pty Ltd	77,448,692 shares	76.21 %
(includes: shares held by Oceanic Universal Limited and 450,000 shares held by Business Universe		Limited)
BNP Paribas Noms Pty Ltd	1,136,405	1.12%
HSBC Custody Nominees (Australia Limited)	924,934	0.91%
RESTRICTED SECURITIES
The Company has no restricted securities on issue.

2. VOTING RIGHTS

One vote for each ordinary share held, in accordance with the Company’s constitution.

3. DISTRIBUTION OF SHARES as at 14 October 2020

. DISTRIBUTION OF SHARESas	at 14 October 2020
Holdings Range	Holders	Total Held	%
1-1,000	674	275,974	0.27
1,001-5,000	688	1,887,313	1.86
5,001-10,000	215	1,665,526	1.64
10,001-100,000	273	8,615,356	8.48
100,001-9,999,999,999	47	89,178,058	87.75
Totals	1,897	101,622,227	100.000

a) There were 1,077 holders of less than a marketable parcel of fully paid shares (10,000 shares), being less than $500 worth based on the closing price of $0.019 cents per share on 14 October 2020. Their holdings totalled 101,622,227 shares, or 3.9% of the total issued share capital of the Company.

b) The percentage holding of the twenty largest holders of shares was 84.23%.

4. TWENTY LARGEST SHAREHOLDERS

The names of the twenty largest registered holders of shares are listed below, as at 14 October 2020

	Name	No. Held	%
1	HQ MINING RESOURCES HOLDING PTY LTD	70,953,733	69.82%
2	OCEANIC UNIVERSAL LIMITED	6,044,959	5.95%
3	BNP PARIBAS NOMS PTY TLD	1,136,405	1.60%
4	HSBC CUSTODY NOMINEES (AUSTRALIA LIMITED)	924,934	1.12%
5	MR THANH PHUOC LU & MRS THI ANH TUYET LU	745,161	0.73%
6	HSBC CUSTODY NOMINEES (AUSTRALIA LIMITED)	700,593	0.69%
7	KANGSAV PTY LIMITED	493,706	0.49%
8	J P MORGAN NOMINEES AUSTRALIA PTY LIMITED	464,360	0.45%
9	M & M PRICE PTY LTD (PRICE SUPER FUND)	450,000	0.44%
10	TECHNICA PTY LTD	424,517	0.42%
11	NATIONAL NOMINEES LIMITED	398,520	0.39%
12	FWMI PTY LTD	322,602	0.32%
13	M R BRYANT INVESTMENTS PTY LTD	291,000	0.29%
14	CITICORP NOMINEES PTY LIMITED	284,197	0.28%
15	METALLIC RESOURCES PTY LTD	276,886	0.27%
16	MR JIN MING SHI	273,447	0.27%
17	MR RODNEY DAVID ELVISH	269,000	0.26%
18	MR GEOFFREY RAYMOND MARSHALL	261,667	0.26%
19	MRS JENNIFER ANNE TIMMS	250,000	0.25%
19	MISS QIAN WANG	250,000	0.25%
20	AURCAY HOLDINGS INC	230,000	0.23%
	Total	85,600,589	84.23%
	Total issued capital- selected security class(es)	101,622,227	100.00%

Golden Cross Resources Ltd Annual Report 2020

AI assistant

GOLDEN CROSS RESOURCES LTD — Annual Report 2020

64971_rns_2020-10-27_ff2b3c50-e5d4-43ea-a356-00b06b8345af.pdf

CONTENTS

COMPANY PARTICULARS

DIRECTORS

ACTING CEO

PRINCIPAL AND REGISTERED OFFICE

STOCK EXCHANGE LISTING

AUDITORS

SHARE REGISTER

COMPANY SECRETARY

EXPLORATION MANAGER

Review of Operations

Molong Project - Copper Hill (100% GCR: Copper-Gold-Molybdenum)

Cautionary Notes

Mineralisation

Exploration Potential – Copper Hill

OTHER PROJECTS

South Australia – Gawler Craton IOCG

(100% GCR: Copper-Gold-Rare Earths)

Cobar Region Projects New South Wales

(100% GCR: Copper-Gold-Lead-Zinc)

Quidong Base Metal Project

(Copper-Gold-Zinc-Lead 100% GCR)

Isa Phosphate

Joint Ventures

West Wyalong Copper-Gold Joint Venture with Argent Minerals Limited (GCR 20%)

Sunny Corner Joint Venture

Previously Released Technical Information

ROYALTIES

Adelong, NSW

Broken Hill, NSW

BrightStar Alpha, WA

Mt Weld Area, WA

DIRECTORS’ REPORT

DIRECTORS AND COMPANY SECRETARIES

PRINCIPAL ACTIVITIES

OBJECTIVES

OPERATING AND FINANCIAL REVIEW

SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS

SIGNIFICANT EVENTS AFTER THE BALANCE DATE

LIKELY DEVELOPMENTS AND EXPECTED RESULTS

ENVIRONMENTAL REGULATION AND PERFORMANCE

INDEMNIFICATION OF AUDITORS

REMUNERATION REPORT – AUDITED

REMUNERATION PHILOSOPHY

NON-EXECUTIVE DIRECTORS’ FEES

EXECUTIVE REMUNERATION

SERVICE AGREEMENTS

DETAILS OF KEY MANAGEMENT PERSONNEL

Remuneration of Key Management Personnel for year ended 30 June 2020

Shareholdings of Key Management Personnel for year ended 30 June 2020

Remuneration of Key Management Personnel for year ended 30 June 2019

Shareholdings of Key Management Personnel for year ended 30 June 2019

Option Holdings of Key Management Personnel

IMPACT OF CORONAVIRUS (COVID 19)

ANNUAL GENERAL MEETING

ROUNDING

AUDITOR INDEPENDENCE

MEETINGS OF DIRECTORS

CORPORATE GOVERNANCE STATEMENT

THE BOARD OF DIRECTORS

AUDIT COMMITTEE

REMUNERATION AND NOMINATION COMMITTEE

NOMINATION POLICY

GENDER DIVERSITY

RISK MANAGEMENT

CONTINUOUS DISCLOSURE POLICY

COMMUNICATIONS POLICY

SECURITIES TRANSACTION RULES

INDEPENDENT PROFESSIONAL ADVICE

Consolidated Statement of Comprehensive Income

Consolidated Statement of Financial Position

Consolidated Statement of Cash Flows

Consolidated Statement of Changes in Equity

1. CORPORATE INFORMATION

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of preparation

Going concern

GOLDEN CROSS RESOURCES LTD Annual Report 2020