GREENWING RESOURCES LTD — Annual Report 2017

Aug 30, 2017

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ABN 31 109 933 995

Australia’s only graphite producer

Appendix 4E- Preliminary Final Report For the year ended 30 June 2017

Bass Metals Limited and Controlled Entities Appendix 4E- Preliminary Final Report For the year ended 30 June 2017

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Table of Contents

Results for announcement to the market	3
Preliminary Consolidated Statement of Profit or Loss and Other Comprehensive Income	7
Preliminary Consolidated Statement of Financial Position	8
Preliminary Consolidated Statement of Changes in Equity	9
Preliminary Statement of Cash Flows	10
Preliminary selected Notes to the Financial Statements	11

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Bass Metals Limited and Controlled Entities Appendix 4E- Preliminary Final Report For the year ended 30 June 2017

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Name of entity

Bass Metals Limited

ABN

31 109 933 995

Results for announcement to the market

		$
Revenue from ordinary activities	Down 75% to	632,322
Loss from ordinary activities after tax attributable to members		9,903,757
Net loss for theperiod attributable to members		9,903,757

		Franked
	Amount per	amount per
Dividend information	security	security
	Nil	Nil
Record date for determiningentitlements to the dividend		Nil

Key ratios	2017	2016
Basic earningsper share(cents)	(0.85)	0.19
Net tangible assetsper share(cents)	0.2	1.1

Previous corresponding period

The previous corresponding period is the 12 months ended 30 June 2016

Audit

This report is based on the consolidated financial statements which are in the process of being audited.

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Bass Metals Limited and Controlled Entities Appendix 4E- Preliminary Final Report For the year ended 30 June 2017

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Highlights

• •The Company confirmed on 22 August 2016 that it had taken control of operations of the Graphite Producing Mine (“Graphmada”) in Madagascar. Subsequent to this announcement, the Company confirmed the final acquisition of Graphmada.

• •Since the acquisition of Graphmada, the Group has initiated significant positive changes to operations on site, including the substantial upgrade to operating plant (“Stage 1 Optimization and Refurbishment program”) which is designed to increase production capacity to 6,000 tonnes of concentrate pa. In June 2016 and subsequent to this date, the Group provided detail to the market regarding its ongoing work and success with the Optimization and Refurbishment program. The Group anticipates completing this program in late 2017.

• •The Group also initiated the Graphmada Care program designed to improve the lives and livelihood of the local population, many of which are directly and indirectly employed and engaged by our operations. As part of this program, the Group has invested in water improvement, schools, medical and education based personnel.

• •In April 2017, the Group informed the market it had entered an agreement to acquire a potentially highgrade Lithium Project in Madagascar. Further announcements were made outlining preliminary results taken from this tenement and the Group’s plan to explore this.

• •In June 2017, the Group announced the Maiden Resource for its Mahefedok deposit following an extensive drill program. The Mahefedok deposit is adjacent to the Lohrano Deposit and adds significant volume to the Group’s access to mineable Graphite.

• •The Group also announced in June 2017 the signing of a Sales and Purchase MOU for 50% of its forecast Stage 1 premium graphite concentrate production for 2018.

Operating results

The Group has recorded an Operating Loss of $ 9,903,757 for the year ended 30 June 2017. The Group’s Operating Loss was largely a result of the following factors:-

• •The Group commenced its Optimization and Refurbishment Program during the year and as a result sales of graphite concentrate were reduced in order to manage this program.

• •During April 2017 the Group announced the signing of a conditional Terms Sheet for the sale of its suite of Tasmanian Assets to the UK (AIM) Listed Company, NQ Minerals Plc. The sale of the Tasmanian Assets will see the Group derive a 1% Net Smelter Royalty from future operations. As a result of this, the Group has decided to impair the balance of $3,217,406 being the carrying value of its Tasmanian assets and recognise any future royalty stream when this income can be accurately measured with certainty.

• •The Group invested significant resources to the commencement of operations and management of its Graphmada Miner during the year, its drill program at Mahefedok and other initiatives all designed to add significant value to the Group.

Capital structure

As at 30 June 2017, the Company had 1,368,146,729 ordinary shares, 344,847,423 listed options and 126,384,220 issued unlisted options. In addition, the Company had granted at reporting date but issued subsequently to reporting date on 15 August 2017 54,000,000 unlisted options and 62,000,000 performance rights to Directors and key management personnel.

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Bass Metals Limited and Controlled Entities Appendix 4E- Preliminary Final Report For the year ended 30 June 2017

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Significant Change in State of Affairs

ACQUISITION OF THE GRAPHMADA LARGE FLAKE GRAPHITE MINE IN MADAGASCAR

During the year, on 22 August 2016, the Company became a 100% owner in the operating Graphmada graphite mine in Madagascar, refer note 2 Business Combination – acquisition.

ISSUE OF SHARE CAPITAL

• On 2 September 2016, the Company successfully completed a placement and rights issue to raise $7,020,338 that resulted in the issue of 585,028,181 ordinary shares at an issue process of $0.012c. A further 60,090,367 shares were issued to shareholders for funds previously loaned to the company. These shares were issued at a price of $0.01c. 13,000,000 shares were issued to consultants to the Company for services provided during 2016.

• •As part of the issue of shares on 2 September 2016 as referred to above, 344,847,424 listed options were issued to shareholders. These options have an expiry date of 31 December 2018 and an exercise price of $0.025.

• In December 2016, the Company successfully completed a capital raising for the amount of $2,275,000 (before costs) with the issue of 175,000,000 ordinary shares issued at an issue price of $0.013c.

ISSUE OF CONVERTIBLE NOTES

Subsequent to the Reporting Period, on the 15 August 2017, the Company issued 2,073,500 unsecured convertible notes to subscribers, who were predominantly existing major shareholders, Directors and management, with a face value of $1.00 raising $2,073,500 (including costs). Refer to Events arising since the end of the reporting period for details of the terms and conditions.

MAHEFEDOK JORC RESOURCE

In June 2017, the Group announced the Maiden Resource for its Mahefedok deposit following an extensive drill program. The Mahefedok deposit is adjacent to the Lohrano Deposit and adds significant volume to the Group’s access to mineable Graphite.

Outlook

The Group has spent considerable time and resources in planning and initiating its “Stage 1 Optimization and Refurbishment program” which is designed to increase production capacity to 6,000 tonnes of concentrate pa.

In June 2017 and subsequent to this date, the Group provided detail to the market regarding its ongoing work and success with the Optimization and Refurbishment program. The Group anticipates completing this program in late 2017.

The Group’s Board and Management expect production to recommence in the short term with the expectation that a production target can be achieved in the near future.

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Bass Metals Limited and Controlled Entities Appendix 4E- Preliminary Final Report For the year ended 30 June 2017

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PRELIMINARY CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2017

Note Sale of concentrate Cost of sales 5 Gross loss Other income 4 Impairment of Non-Current exploration and evaluation asset held for sale 8 Impairment of receivable Reversal of impairment of receivable Administration expenses 5 Finance costs (Loss)/profit before income tax from continuing operations Income tax (expense)/benefit (Loss)/profit for the year from continuing operations Loss after tax from discontinued operations 6 (Loss)/profit for the year Other comprehensive income Other comprehensive income to be reclassified to profit or loss in subsequent periods (net of tax): Exchange differences on translation of foreign controlled entities Net gain on available-for-sale (AFS) financial assets Total comprehensive (Loss)/profit for the period, net of tax (Loss)/profit attributed to: Continuing operations Discontinued operations Total comprehensive profit/(loss) attributed to: Equity holders of the parent entity Earnings per share Basic (loss)/earnings per share from operations (cents) 7	2017 $ 2016 $ 285,489 - (1,087,730) -
	(802,241) - 346,833 2,551,519 (3,217,406) - 1,000,000 (450,000) (1, 000,000) - (6,012,661) (1,023,517) (5,736) -
	(9,691,211) 1,078,002 - -
	(9,691,211) 1,078,002 (212,546) (282,987)
	(9,903,757) 795,015 135,123 - (84,850) 84,850
	(9,853,484) 879,865
	(9,640,938) 1,162,852 (212,546) (282,987)
	(9,853,484) 879,865
	(0.85) 0.19

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

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Bass Metals Limited and Controlled Entities Appendix 4E- Preliminary Final Report For the year ended 30 June 2017

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PRELIMINARY CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2017

Note CURRENT ASSETS Cash and cash equivalents Restricted cash Trade and other receivables Prepayments Inventories Financial assets held for sale Non-Current exploration and evaluation asset held for sale 8 Total Current Assets NON-CURRENT ASSETS Trade and other receivables Plant and equipment Exploration and evaluation assets Mine properties Financial assets Total Non-Current Assets TOTAL ASSETS CURRENT LIABILITIES Trade and other payables Borrowings Contingent consideration payable Liabilities included in disposal group held for sale Total Current Liabilities NON-CURRENT LIABILITIES Provisions Total Non-Current Liabilities TOTAL LIABILITIES NET ASSETS EQUITY Issued capital Reserves Retained profits TOTAL EQUITY	2017 $ 2016 $ 933,822 167,527 25,000 - 325,676 1,033,092 42,697 - 653,775 - - 494,961
	1,980,970 1,695,580 - 3,897,906
	1,980,970 5,593,486
	680,500 260,480 1,985,348 20,585 508,523 - 5,473,669 - - 1,060,825
	8,648,040 1,341,890
	10,629,010 6,935,376
	606,033 376,585 642,500 684,236 500,000 -
	1,748,533 1,060,821 - 694,242
	1,748,533 1,755,063
	1,097,892 -
	1,097,892 -
	2,846,425 1,755,063
	7,782,585 5,180,313
	74,219,238 62,913,634 1,285,275 84,850 (67,721,928) (57,818,171)
	7,782,585 5,180,313

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

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Bass Metals Limited and Controlled Entities Appendix 4E- Preliminary Final Report For the year ended 30 June 2017

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PRELIMINARY CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2017

			Issued	Share	AFS Financial	Foreign	Retained	Total
			Capital	Option	Asset Reserve	Currency	Profits/	Equity
				Reserve		Translation	(Accumulated
						Reserve	Losses)
			$	$	$	$	$	$
Balance at 1 July 2016			62,913,634	-	84,850	-	(57,818,171)	5,180,313
Comprehensive income
Loss for the period			-	-	-	-	(9,903,757)	(9,903,757)
Other comprehensive income			-	-	(84,850)	135,123	-	50,273
Total comprehensive loss for the year			-	-	(84,850)	135,123	(9,903,757)	(9,853,484)
Transactions with owners, recorded
directly in equity
Shares issued during the period			10,135,575	-	-	-	-	10,135,575
Share placement to acquisition of Graphmada	Stratmin	-	1,800,000	-	-	-	-	1,800,000
Options – value of options			-	746,638	-	-	-	746,638
Performance rights- value of rights			-	403,514	-	-	-	403,514
Cost of shares issued forplacement			(629,971)	-	-	-	-	(629,971)
Balance at 30 June 2017			74,219,238	1,150,152	-	135,123	(67,721,928)	7,782,585

	Issued Capital Share Option Reserve AFS Financial Asset Reserve Retained Profits/ (Accumulated losses) Total Equity $ $ $ $ $
Balance at 1 July 2015 Comprehensive income Profit for the period Other comprehensive income Total comprehensive loss for the year Transactions with owners, recorded directly in equity Shares issued during the period Transfer on expiry of options Cost of shares issued for placement Balance at 30 June 2016	62,032,248 78,750 - (58,691,936) 3,419,062 - - - 795,015 795,015 - - 84,850 84,850
	- - 84,850 795,015 879,865 929,000 - - - 929,000 - (78,750) - 78,750 - (47,614) - - - (47,614)
	62,913,634 - 84,850 (57,818,171) 5,180,313

The above preliminary Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.

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Bass Metals Limited and Controlled Entities Appendix 4E- Preliminary Final Report For the year ended 30 June 2017

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PRELIMINARY CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2017

Cash flows from operating activities Receipts from customers Payments to suppliers and employees Settlement Proceeds Received Other income Net cash used in operating activities Cash flows from investing activities Proceeds from sale of assets classified as held for sale Loan to related entity Purchase of property, plant and equipment Payments for capitalised evaluation & exploration costs Interest received Acquisition of subsidiaries, net of cash Net cash used in investing activities Cash flows from financing activities Proceeds from issue of shares Transaction costs on issue of shares Proceeds from loan funds Repayment of loan funds Interest paid Net cash from financing activities Net increase in cash and cash equivalents Cash and cash equivalents at the beginning of the period Cash acquired in a business combination Restricted cash Cash and cash equivalents at the end of the period	2017 $ 2016 $ 252,711 - (5,765,245) (909,327) 1,000,000 600,000 - 37,332
	(4,513,533) (271,995) 731,631 50,791 - (260,000) (899,238) - (450,981) - 20,275 26,489 (3,420,921) (1,060,825)
	(4,019,234) (1,243,545) 8,885,849 914,000 (220,481) (32,614) 1,556,020 684,236 (913,520) - (5,736) -
	9,302,132 1,565,622 769,365 50,082 167,527 117,445 21,930 - (25,000) -
	933,822 167,527

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

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Bass Metals Limited and Controlled Entities Appendix 4E- Preliminary Final Report For the year ended 30 June 2017

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1. Summary of significant accounting policies

These preliminary consolidated financial statements and notes represent those of Bass Metals Ltd (the “Company”) and it’s Controlled Entities (the “Group”). Bass Metals Ltd is the Group’s ultimate Parent Company (the “parent entity”) and is a public company incorporated and domiciled in Australia.

(a) Basis of Preparation

This preliminary financial report has been prepared in accordance with the Australian Securities Exchange Listing Rules as they relate to the Appendix 4E and in accordance with the recognition and measurement requirements of the Australian Accounting Standards, other authoritative pronouncements of the of the Australian Accounting Standards Board , Urgent Issues Group Interpretations and the Corporations Act 2001.

As such, this preliminary financial report does not include all the notes of the type included in the annual financial report and accordingly, should be read in conjunction with the annual report for the year ended 30 June 2017 and with any public announcements by Bass Metals Limited during the period in accordance with the continuous disclosure requirements of the Corporations Act 2001.

The principle accounting policies adopted in the preparation of the financial report are consistent with those of the previous financial year.

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Bass Metals Limited and Controlled Entities Appendix 4E- Preliminary Final Report For the year ended 30 June 2017

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2. Business Combination - acquisition

Acquisition of Graphmada

Bass Metals Ltd had previously made a strategic investment in December 2015 acquiring 6.25% of Graphmada Mauritius, a private company registered in Mauritius, and its subsidiary Graphmada SARL, a private company registered in Madagascar, (“Graphmada”) purchased from Stratmin Global Resources Plc (“Stratmin”) for $1,060,827 in December 2015. Graphmada is the owner and operator of an operating graphite mine in Madagascar with four large flake premium quality graphite deposits within its permits.

An offer to acquire the remaining equity instruments in Graphmada Mauritius was received by the Company during early 2016. On 4 April 2016, the Bass Metals Ltd announced it had successfully renegotiated the terms of agreement with Stratmin Global Resources Plc and executed a replacement Term Sheet to acquire the remaining 93.75% of Graphmada Mauritius.

On 22 August 2016, Bass Metals Ltd acquired the remaining equity instruments of Graphmada Mauritius, thereby obtaining 100% ownership.

Assets acquired and liabilities assumed

The fair value of the identifiable assets and liabilities of Graphmada as at the date of acquisition were:

Assets Cash and cash equivalents VAT receivable Prepayments Inventories Property, plant and equipment Mine properties Liabilities Trade and other payables Provision for rehabilitation Total of net identifiable net assets at fair value Goodwill arising on acquisition Purchase consideration transferred	Fair value recognised on acquisition $
	21,938 157,818 10,402 442,343 1,860,130 406,484
	2,899,115
	(520,903) (406,484)
	(927,387)
	1,971,728 5,070,019
	7,041,747

Identifiable net assets

The fair value of the VAT receivable acquired as part of the business combination amounted to $157,818. The net book value of VAT receivable in Graphmada at the date of acquisition was $548,431 (being a gross of $837,945 less a provision of $289,514). Whilst the Group expects to receive the book value, it cannot be certain therefore the Group has recognised the VAT receivable at the date of acquisition to be the amount of VAT refund that the Group has received since acquisition of $157,818.

Goodwill

Goodwill of $5,070,019 is primarily related to growth expectations, expected future profitability, the substantial skill and expertise of Graphmada’s workforce and expected cost synergies. Goodwill has been allocated to cash-generating units at 30 June 2017 and is classified as Mine Properties in the Statement of Financial Position. The goodwill that arose from this business combination is not expected to be deductible for tax purposes.

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Bass Metals Limited and Controlled Entities Appendix 4E- Preliminary Final Report For the year ended 30 June 2017

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2. Business Combination – acquisition (continued)

Purchase consideration Initial amount settled in cash Shares issued at fair value Deferred cash payment consideration Total consideration Analysis of cash flows on acquisition to date: Amount settled in cash for 6.25% previously invested Amount settled in cash for the remaining 93.75% (original Tranche 1) Deferred cash payment consideration instalments (under terms of the deed of amendment) Net cash acquired with the subsidiary (included in cash flows from investing activities) Net cash flow on acquisition to date Remaining cash (deferred) payment consideration payable: Due on 30 September 2017 Total cash flow on acquisition	$
	2,601,747 1,800,000 2,640,000
	7,041,747
	(1,060,825) (1,540,920) (2,140,000) 21,930
	(4,719,815)1 (500,000)
	(5,219,815)

Note 1: Includes cash payments in the previous reporting period (June 2016) of $1,320,825.

Consideration transferred

In addition to the cash payment of $1,060,825 for 6.25% of Graphmada paid to the previous owners during December 2015, the consideration payable for the remaining 93.75% that the Bass Metals Ltd does not already own for all of the Sale Assets was as follows:

• (a) Tranche 1:

• (i) Tranche 1 Cash Payment of A$1,540,920 – this payment was completed during 2016;

• (ii) 75,000,000 Bass Shares (Tranche 1 Shares) – these shares were issued in September 2016. The fair value as at the date of acquisition was A$1,800,000; and

• (iii) Net royalty of 2.5% of gross concentrate sales which terminates on 1 January 2029 or upon royalty payments reaching A$5 million, whichever occurs first.

In addition, Bass Metals Ltd agreed on three further cash payments to the previous owners which are detailed below.

Deferred cash payment consideration

The original Share Purchase Agreement (“SPA”) provided for an additional consideration (Tranche 2 and 3) of $8 million worth of Bass Metals Ltd shares payable to the previous owner only if production of graphite concentrate exceed a target level agreed by both parties. Under the terms of the deed of amendment to the SPA, announced to the ASX on 15 December 2016, Bass and Stratmin now have agreed that Bass’s obligation to issue $8 million worth of shares shall be waived upon the payment of A$2,640,000 to Stratmin over the following timeframe:

• A$955,000 on or before 19 December 2016 – this payment was completed on 19 December 2016;

• A$1,185,000 on or before 15 March 2017 – this payment was completed on 15 March 2017; and

• A final payment of A$500,000 on 30 September 2017.

Additionally Bass Metals Ltd has secured an option to buy back its up to A$5 million royalty obligation for the sum of A$500,000 with the option to be exercised by 31 December 2017, with no royalty payments to be made before this date.

Graphmada’s contribution to the group results

Graphmada incurred a loss of $3,554,126 for the ten (10) months from acquisition on the 22 August 2016 to the reporting date, due to being shut down for most of the period while the Group completes the plant optimization program.

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Bass Metals Limited and Controlled Entities Appendix 4E- Preliminary Final Report For the year ended 30 June 2017

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3. Segment Information

The Group has two operating segments: graphite mining and corporate segments. In identifying its operating segments, management generally follows the Group’s service lines, which represent the main products and services provided by the Group. All inter-segment transfers are carried out at arm’s length prices.

The measurement policies the Group uses for segment reporting under the Accounting Standards are the same as those used in its financial statements, except that expenses relating to discontinuing operations are not included in arriving at the operating loss of the operating segments. In addition, non-current exploration and evaluation asset held for sale, lithium mineralisation exploration and Mine properties – goodwill on acquisition are assets which are not directly attributable to the business activities of any operating segment and are not allocated to a segment.

There have been no other changes from prior periods in the measurement methods used to determine reported segment profit or loss.

The operating segments below are monitored by the Group’s chief operating decision maker and strategic decisions are made on the basis of adjusted segment operating results.

Segment information for the reporting year is as follows:

2017 Revenue External customers Interest income Other revenue1 Inter- segment Segment revenues Segment operating profit/(loss) Segment assets	Graphite Mining Corporate Total 2017 2017 2017 $ $ $
	285,489 285,489 - 20,275 20,275 1,239 325,319 326,558 295,001 (295,001) -
	296,240 336,082 632,322
	(3,554,126) (6,137,085) (9,691,211)
	3,863,690 1,682,070 5,545,760

Note 1: Corporate segment revenue consists of gain on the sale of listed shares of $321,520

No segment liabilities are disclosed because there is no measure of segment liabilities regularly reported to the chief operating decision maker.

Segment disclosure for the prior year

During the prior period, the Bass Metals Ltd operated in one segment being Exploration and Evaluation of Minerals in Tasmania, Australia. Thus, segmented disclosures are not required nor will any disaggregated level of revenue or expenditure be informative. In addition, no segment assets or liabilities are disclosed because there is no measure of segment liabilities regularly reported to the chief operating decision maker.

Bass Metals Ltd’s 6.25% investment in Graphmada did not give significant influence and therefore the investment was not accounted for using the equity method nor were separate financial reports from Graphmada reviewed by the Board of Directors during the period.

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Bass Metals Limited and Controlled Entities Appendix 4E- Preliminary Final Report For the year ended 30 June 2017

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3. Segment Information (continued)

Reconciliation to Financial Statements

The total presented for the Group’s operating segments reconcile to the key financial figures as presented in its financial statements as follows:

Loss Total reportable segment operating loss Discontinued operations Loss for the year Assets Total reportable segment assets Exploration and evaluation assets - Lithium mineralisation Mine properties – development asset Group assets	2017 $
	(9,691,211) (212,546)
	(9,903,757)
	5,545,760 13,231 5,070,019
	10,629,010

The Group’s revenues from external customers and its non-current assets are divided into the following geographical areas:

2017 Madagascar Mauritius Australia India USA Total	Revenue Non-current assets $ $
	- 2,081,205 - 794,594 - 688,991 20,403 265,086
	285,489 3,564,790

Revenues from external customers in the Group’s domicile, Australia, as well as its major markets have been identified on the basis of the customer’s geographical location. Non-current assets are allocated based on their physical location. The above table does not include mine properties – development asset of $5,070,019 and capitalised Lithium exploration costs of $13,231, both which can be attributed Madagascar.

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Bass Metals Limited and Controlled Entities Appendix 4E- Preliminary Final Report For the year ended 30 June 2017

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4. Other income Interest received Gain - Settlement proceeds Gain – Sale of listed shares Rent and access fees received Total other income 5. Loss for the period The loss for the period is stated after taking into account the following: (a) Cost of sales Direct mine operating expense Depreciation expense Inventory write down to net realisable value Total cost of sales (b) Administration expenses Mine administration expense Corporate administration: Employee benefits expense Contracting & consulting expenses Share based payment expense Bad debt expense Rental expenses Legal expenses Depreciation Director fees Travel expenses Share registry, ASX Other administration expenses Total administration expenses	2017 $ 2016 $ 20,275 26,489 - 2,500,000 321,520 10,902 5,038 14,128
	346,833 2,551,519
	764,340 - 222,905 - 100,485 -
	1,087,730 -
	2,757,565 - 513,624 114,581 478,114 221,922 1,150,152 - - 144,612 48,262 29,980 106,959 52,390 12,094 13,608 232,500 200,993 286,933 45,170 150,961 21,054 275,497 179,207
	6,012,661 1,023,517

6. Loss attributable to discontinued operations

During the prior year, the Group sought to realise the value of its Tasmanian capitalised exploration and expense through the sale of these assets and the total carrying value has been classified as a disposal group which have been recognised as Capitalised Exploration and Evaluation Assets Held for Sale in the Statement of Financial Position.

During the current year, care and maintenance expenses relating to this disposal group have been eliminated from profit or loss from the Group’s continuing operations and are shown as a single line item on the face of the statement of profit or loss and other comprehensive income (see loss after tax from discontinued operations ).

Expenses Contracting & consulting expenses Exploration expenditure expensed Hellyer operating infrastructure – care & maintenance	2017 $ 2016 $ - 107,304 52,039 22,752 160,507 152,931

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Bass Metals Limited and Controlled Entities Appendix 4E- Preliminary Final Report For the year ended 30 June 2017

Total expenses 212,546 282,987

7. Earnings Per Share

(Basic and diluted Earnings Per Share) (Loss)/profit for the period Weighted average number of ordinary shares used in the calculation of basic earnings per share Basic and diluted (loss)/profit per share (cents)	2017 $ 2016 $ (9,903,757) 795,015 1,158,460,304 421,691,643
	(0.85) 0.19

There is no dilutive potential for ordinary shares as the exercise of options to ordinary shares would have the effect of decreasing the loss per ordinary share and would therefore be non-dilutive.

8. Non-Current exploration and evaluation asset held for sale

The Group has sought to realise the value of its Tasmanian capitalised exploration and expense through the sale of these assets. During the previous period, the total carrying value of capitalised exploration as well as the related infrastructure guarantees and tenement security deposits were recognised as capitalised exploration and evaluation assets held for sale. Consequently, Australian Accounting Standards require that those amounts shall be classified in the Statement of Financial Position as a Current Asset.

Impairment:

As at reporting date, the Group is still seeking to sell these assets. However, as no sale agreement has been reached and it has been more than a year since seeking a buyer and, in addition, there exists material uncertainty regarding the full recovery of the capitalised value of exploration and evaluation assets held for sale, the Accounting Standards require the carrying value of the exploration assets to be fully impaired. Therefore the Group has recognised an impairment expense of $3,217,406.

Opening balance Reclassification of guarantees & deposits to non-current receivable2 Capitalised exploration and evaluation asset transferred from Capitalised exploration and evaluation expense Hellyer operating infrastructure guarantees transferred from non-current receivables1 Tenement security deposits transferred from non-current receivables1 Operating lease bonds transferred from non-current receivables1 Impairment expense	2017 $ 2016 $ 3,897,906 - (680,500) - - 3,217,406 - 500,000 - 170,500 - 10,000
	3,217,406 3,897,906 (3,217,406) -
	- 3,897,906

Note 1: Tenement security deposits and Hellyer operating infrastructure guarantees are held in fixed term deposits relating to the Tasmanian Que River project totalling $680,500.

Note 2: As the Tasmanian capitalised exploration assets were fully impaired during the current year, these security deposits and guarantees have been transferred to Non-Current Receivables.

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