KILLI RESOURCES LIMITED — Interim / Quarterly Report 2024

Feb 29, 2024

==> picture [595 x 339] intentionally omitted <==

Interim Financial Report For the half year ended 31 December 2023

KILLI RESOURCES LIMITED AND ITS CONTROLLED ENTITIES

ABN 35 647 322 790

Address Level 5/191 St Georges Terrace, Perth Western Australia 6000 Telephone +61 2 9299 9690 | Email admin@killi.com.au | Website www.killi.com.au

CONTENTS

CONTENTS
Directors’ Report	3
Auditor’s Independence Declaration	20
Consolidated Statement of Profit or Loss and Other Comprehensive Income	21
Consolidated Statement of Financial Position	22
Consolidated Statement of Changes in Equity	23
Consolidated Statement of Cash Flows	24
Notes to the Consolidated Financial Statements	25
Director’s Declaration	31
Independent Auditor’s Review Report	32

KILLI RESOURCES LIMITED: INTERIM FINANCIAL REPORT − 31 DECEMBER 2023

2

DIRECTORS’ REPORT

Your Directors present their half-yearly report on the consolidated entity consisting of Killi Resources Limited (“Killi” or “the Company”) and the entities it controlled at the end of, or during, the period 1 July to 31 December 2023 (“Group”).

Directors

The persons who were Directors of Killi Resources Limited during the interim reporting period and up to the date of this report are:

Mr Richard Bevan Non-Executive Chairperson and Director Mr Gregory Miles Non-Executive Director Mr Phil Warren Non-Executive Director

Chief Executive Officer

Ms Kathryn Cutler

Company Secretary

Ms Emma Wates Mr Cameron O’Brien

Principal Activities

Killi is a gold, copper and rare earth element explorer with three wholly owned assets in Australia, based in Western Australia and Queensland. The Company focused exploration efforts at the Mt Rawdon West Project (Mt Perry district) during the reporting period, Figure 1.

Results

The Group’s operating loss for the period ended 31 December 2023 was $510,916 (31 December 2022: $2,721,606).

The Group’s cash at bank was $1,065,052 as at 31 December 2023 (30 June 2023: $1,777,706).

==> picture [466 x 240] intentionally omitted <==

Figure 1. Location of Killi Resources Limited gold and copper projects in Australia

KILLI RESOURCES LIMITED: INTERIM FINANCIAL REPORT − 31 DECEMBER 2023

DIRECTORS’ REPORT

Review of Operations

During the half year ended 31 December 2023 the Company’s exploration programs focused on the Baloo and Kaa prospects at the Mt Rawdon West Project with the following key programs completed:

Mt Rawdon West - Queensland

• Two surface geochemical programs were completed, and the results reported for 30 rock chips samples, which returned the best results of up to 7.2% Cu, 12.4g/t Au, 94.1g/t Ag, and 0.99% Mo.

• A soil sampling program was completed to extend the existing historical soil grid, and 249 soil samples collected and reported to the market. The highest values returned were 460ppb Au, 1,430ppb Ag, 781ppm Cu, 9.19ppm Mo, 62.2ppm Pb, 2.3ppm Sn, and 118ppm Zn.

During the period the Company received the full consideration value of the Balfour Project, where a further $300,000 worth of Black Canyon (ASX: BCA) shares were issued. All milestones have been reached in this deal and the full value of $500,000 in shares has been received.

Mt Rawdon West - Gold and Copper Project

Exploring for the next major copper/gold discovery in Queensland

The project is 100% owned, and consists of one granted tenement, which covers 309km[2] of prospective gold and copper ground between Evolution Mining’s Mt Rawdon Gold Mine and SolGold’s Mt Perry Project. The project is located 60km inland from Bundaberg in Queensland, surrounded by major gold and copper resources and deposits, Figure 2.

==> picture [502 x 380] intentionally omitted <==

Figure 2. Location of Mt Rawdon Project in relation to existing resources and deposits in the region, Queensland.

KILLI RESOURCES LIMITED: INTERIM FINANCIAL REPORT − 31 DECEMBER 2023

4

DIRECTORS’ REPORT

Rock Chip samples deliver 7.2% copper at surface

Historical exploration has identified copper, gold and molybdenum anomalism and evidence of historical mining on the project. The presence of old workings into a breccia pipe, approximately 150m in width, with minor copper and gold were produced from the old workings and small open pits.

The main mineralising corridor trends south-east to north-west through the tenement, with the main copper trend intersecting this corridor in the centre of the tenement, referred to as the Baloo prospect. Historical exploration work identified a geochemical soil anomaly of Cu-Au-Mo at surface, which coincides with the intersection of these structures, Figure 3.

==> picture [473 x 344] intentionally omitted <==

Figure 3 . Mt Rawdon West Project, with area of exploration geochemical program at Baloo prospect in black, with the Mt Rawdon Gold Mine1 located on the Mt Rawdon Fault, and the Mt Perry Copper-Gold Mine located on the Mt Perry Fault. The focus of exploration on the linking structure between the two major regional faults.

The field program commenced in early August, with the collection of 26 rock chip samples, focused on the main corridor between the two major faults of the region. Rock chip samples were taken from old workings, outcrop and subcrop locations on hills where bedrock/fresh rock was visible, within an area 5.5 km along strike north-east to south-west and 2.6 km across-strike north-south.

Assays from the rock chips dominated in anomalous copper gold and silver, with a few samples returning elevated lead of 1 %, molybdenum of 0.9 % and zinc of 0.3 %. The best rock chip copper sample returned 7.2 % Cu (MRRK020) attributed to the presence of bornite in quartz veins, Figure 4.

1 Historical production Mt Rawdon - Royle. M, 1980, Mt Rawdon - Fact Sheet, Evolution Mining https://evolutionmining.com.au/wpcontent/uploads/2021/04/Mt-Rawdon-fact-sheet-FY21.pdf

KILLI RESOURCES LIMITED: INTERIM FINANCIAL REPORT − 31 DECEMBER 2023

5

DIRECTORS’ REPORT

Bornite is of considerable interest as it is a copper sulphide mineral often used as an indicator for its proximity to porphyry copper systems.

The best gold result was returned from MRRK017, of 12.4g/t Au, located at the eastern-most end of the program, with no additional data pending further to the east. This result warrants further investigation to the north-east as it is currently open in all directions.

Of significant interest MRRK014 returned highly anomalous copper at 4.2%, as well as gold, silver, lead and zinc. The sample was taken from a small iron-rich outcrop, where quartz veins within a fine-medium grained felsic unit were observed, with minor copper staining in the form of malachite. The sample was taken during the soil program, where no previous exploration work has been completed, and is 500m along strike from any historic indications of mineralisation, Figure 5.

==> picture [482 x 242] intentionally omitted <==

----- Start of picture text -----

7.2% Cu and 27.2g/t Ag 4.2% Cu, 1.16g/t Au and
75.8g/t Ag
----- End of picture text -----

Figure 4. Rock chip sample MRRK020, bornite crystals, 1cm x 0.5cm in size, within quartz veins, at the contact between a mafic and a granite unit. MRRK014, iron rich quartz vein at surface.

KILLI RESOURCES LIMITED: INTERIM FINANCIAL REPORT − 31 DECEMBER 2023

6

DIRECTORS’ REPORT

==> picture [524 x 304] intentionally omitted <==

Figure 5. Assay results of rock chip samples at Baloo Prospect return copper values at surface up to 7.2% copper, with existing soils, Killi soil program, and major structures overlaying the regional Total Magnetic Intensity image.

Soil program delivers two significant copper-gold-molybdenum anomalies

The surface soil program focused on the main corridor between the two major faults of the region, referred to as the Baloo prospect previously. This corridor is interpreted as the linking structure between these two major fault systems, and parallel to the Nickos’s Reward gold prospect owned by Sol Gold plc.

A total of 249 soil samples were collected over the corridor, on a 400m x 100m spaced grid. The grid also extended to the north-east, including the area which returned 12.4g/t Au and up to 3.3% Cu in rock chip samples, referred to as the Kaa prospect. An additional four rock chip samples were collected during the collection of soils, from outcrops that that had not been visited previously. These samples returned up to 1.7% copper, infilling mineralisation along the copper gold anomaly.

The results of the soils highlighted two distinct target areas. Firstly, at the Baloo prospect the Cu-Au-Mo anomaly has been extended to a 4km x 1.5km anomaly , and secondly the Kaa prospect which has a 2km x 0.4km Cu-Au-Mo anomaly .

Soil anomalies were determined from assay values greater than 10 times the background for gold, copper and molybdenum. Peak soil assay values returned 460ppb Au, 1.43g/t Ag, 781ppm Cu, & 13.4ppm Mo.

The two prospects are transected by the Mt Rawdon Fault, which is a controlling mineralisation structure of the Mt Rawdon Gold Mine, 22km along strike to the south-east, Figure 7.

KILLI RESOURCES LIMITED: INTERIM FINANCIAL REPORT − 31 DECEMBER 2023

7

DIRECTORS’ REPORT

==> picture [511 x 331] intentionally omitted <==

Figure 6. Assay results of rock chip & soil samples at Baloo and Kaa. Soil assays have been contoured for copper, gold and molybdenum at >10 x background, overlaying the Total Magnetic Intensity image.

==> picture [441 x 322] intentionally omitted <==

Figure 7. Location of the two geochemical targets, Baloo and Kaa at the Mt Rawdon West Project.

KILLI RESOURCES LIMITED: INTERIM FINANCIAL REPORT − 31 DECEMBER 2023

DIRECTORS’ REPORT

A rich mining history with no drilling to date

The district has a rich mining history with significant gold, copper and molybdenum mines located on the tenement, which have laid dormant for the past 100 years. Eight historical mines were located over a 7km wide corridor across the tenement, with malachite, azurite and bornite (copper mineralisation) observed in outcrop/subcrop and within the wall of old workings and waste piles.

Bornite is of considerable interest as it is a copper sulphide mineral often used as an indicator for its proximity to porphyry copper systems.

The old copper workings at Kaa consist of three substantial adits that extend into a hill on the southern side, and two winzes’ (portals for hauling ore out of the mine to the surface), on the north-eastern side of the hill. The workings cover 370m of strike and 80m in elevation, Figure 8. Visible copper mineralisation was observed at entries to the adits as well as at the ore passes.

==> picture [513 x 410] intentionally omitted <==

----- Start of picture text -----

1
370m
2
----- End of picture text -----

Figure 8. Old Copper Workings, 1. Historical copper workings of the mine from the early 1900’s, includes three adits into the hill, and one winze for hauling copper ore out of the mine. 2. Photograph of the historical copper mine winze (1920’s), with view down to old adits which extend into the hill over a strike of 370m. This is just one of eight old mines identified. Rock chips samples were collected from old mine workings as well as veins in subcrop-outcrop, August 2023.

KILLI RESOURCES LIMITED: INTERIM FINANCIAL REPORT − 31 DECEMBER 2023

9

DIRECTORS’ REPORT

Granodiorite was identified as the host rock, with varying levels of K-feldspar alteration from weak to intense, mapped in outcrop surrounding the mine. Copper mineralisation appeared to be hosted within quartz veins in the form of 2-3 cm crystals of malachite, azurite and bornite, Figure 9.

During the soil program additional shafts were found, recorded and rock chip samples taken. Two shafts were found ~600m along strike from the known historical mines at the Baloo prospect, where the size of the shafts was considerable, to 60m depth. Minerals observed within the mullock pile indicate they mined a copperrich pipe 2m x 2m in diameter, Figure 10.

Geological observations suggest the region has been subject to multi-generational intrusion events that have deposited and remobilised specific economic minerals at different points, namely copper, gold, silver and molybdenum.

==> picture [519 x 399] intentionally omitted <==

----- Start of picture text -----

A B
Malachite
C
Azurite & Bornite
D
Malachite
----- End of picture text -----

Figure 9. Old Copper Workings, A. Mineralised copper vein within wall of old working with visible malachite, azurite and bornite. B. Altered limestone, pitted, sugary quartz dominant unit within the waste pile at the winze. C. Intense K-feldspar alteration of granodiorite. D. Weathered copper sample found at the winze.

KILLI RESOURCES LIMITED: INTERIM FINANCIAL REPORT − 31 DECEMBER 2023

10

DIRECTORS’ REPORT

==> picture [339 x 448] intentionally omitted <==

----- Start of picture text -----

Malachite
(copper)
----- End of picture text -----

Figure 10. New shaft Identified 620m south-east of the old workings. Visible malachite in the wall of the shaft, with vertical depth of shaft estimated at 60m.

Boots on ground field mapping at Baloo and Kaa

The area is generally dominated by granitoid rocks, and in particular granodiorite. Multiple occurrences of visible copper mineralisation were noted across the Baloo corridor, with the copper minerals seen in both the granodiorites and the intermediate dykes in the form of malachite, azurite, chalcocite and bornite.

The granodiorites at Kaa which host a Cu-Au-Mo anomaly are from the Triassic and are strongly magnetic. Intruding these granodiorites are a series of dykes of intermediate composition, with specimen samples containing fine disseminated malachite, and others containing chalcocite and malachite blebs, Figure 11.

At Kaa the gold and copper mineralisation, believed to be associated with the clustering of intermediate dykes, with these dykes containing disseminated malachite and chalcocite. Visible malachite and chalcocite were also seen a further 400m to the east of the clustered dykes and soil grid, Figure 12.

KILLI RESOURCES LIMITED: INTERIM FINANCIAL REPORT − 31 DECEMBER 2023

11

DIRECTORS’ REPORT

==> picture [369 x 215] intentionally omitted <==

Figure 11. Specimen sample from the field of sub-porphyritic andesite, containing malachite and chalcocite blebs, from Kaa prospect.

==> picture [369 x 206] intentionally omitted <==

Figure 12. Specimen sample from the field of porphyry andesite containing chalcocite at Kaa prospect.

The granodiorites from the Permian are magnetically quiet and host the much larger Baloo Cu-Au-Mo anomaly which stretches 4km x 1.5km between the Mt Perry and Mt Rawdon Faults.

During the mapping program the existing soil anomaly was visited, however the area has little to no outcrop, and has weathered in-situ. One specimen sample was located and recorded as a feldspar-quartz porphyry with rare pyrite pseudomorphs, Figure 13.

KILLI RESOURCES LIMITED: INTERIM FINANCIAL REPORT − 31 DECEMBER 2023

12

DIRECTORS’ REPORT

==> picture [369 x 232] intentionally omitted <==

Figure 13. Specimen sample taken from the center of the Cu-Au-Mo soil anomaly where there is limited outcrop. Sample is feldspar quartz porphyry with rare pyrite pseudomorphs, from Baloo prospect.

Next Steps at Mt Rawdon West

Geophysical and geochemical data continues to be evaluated, in conjunction with the findings form the surface mapping, to include modeling and understanding of the intrusions, to assist with drill targeting.

Historical geophysical data is also being re-evaluated to add further information to the geological model.

KILLI RESOURCES LIMITED: INTERIM FINANCIAL REPORT − 31 DECEMBER 2023

13

DIRECTORS’ REPORT

Balfour Project (Copper)

The Balfour Project is located 125kms northeast of Newman in the Pilbara of Western Australia and covers 350km[2] of the prospective Proterozoic Rift. The project covers 25kms of strike of the sub-basin and surrounds the Nicholas Downs Manganese Deposit owned by Hancock Prospecting Figure 14.

The project is prospective for base metal intrusion related mineral deposits, such as sedimentary hosted copper deposits. Two prospects have already been determined, Winterbrook and Whitewood.

In early 2023 Killi entered into an agreement with Black Canyon (ASX:BCA), where the tenement ownership transferred to BCA and the copper rights to the project remained with Killi Resources.

During the half year the Deferred Consideration milestone was achieved with the Company receiving $300,000 worth of Black Canyon shares (ASX:BCA). Total consideration received for the project totalled $500,000.

==> picture [524 x 397] intentionally omitted <==

Figure 14. Location of Balfour Project in relation to existing prospects and mineral resources in the region, Pilbara – Western Australia.

KILLI RESOURCES LIMITED: INTERIM FINANCIAL REPORT − 31 DECEMBER 2023

14

DIRECTORS’ REPORT

West Tanami – Gold and Copper Project, Kimberley

The Company holds a large 1,634km[2] tenement holding in the Kimberley of Western Australia, at the Western end of the Tanami Geological Belt.

During 2023 the Company released the first pass drilling results at the project, from an aircore program and a stratigraphic diamond drillhole completed in conjunction with the Geological Survey of Western Australia.

The aircore drill program returned multiple new gold anomalies downhole at the Fox and Deva prospects. Intercepts included 4m @ 135ppb Au from 72m, and 4m @ 100ppb Au from 8m, which are similar to some of the first aircore and RAB results from the Callie gold deposit, which had low-level gold results due to the nature of these sediment-hosted gold systems, Figure 15.

==> picture [523 x 341] intentionally omitted <==

Figure 15. Location of gold and silver results at the West Tanami Project, from the regional aircore drill program, including the gold anomaly at Deva interpreted as the D5 fault structure that extends from the northern territory and is associated with million-ounce gold systems of the Tanami district.

In addition to the aircore program the Company completed a 840m deep stratigraphic drillhole in partnership with the Geological Survey of Western Australia. The geological units intersected, determined the Fox prospect is within the same geological sequence to Callie, the Dead Bullock Formation.

This is an important development as it was an area previously thought to be an alternative zone of the sequence which was not as prospective for gold mineralisation.

The diamond hole also intersected a dolerite unit within the Dead Bullock Formation, with visible copper mineralisation which returned in assay 0.6m @ 0.27% Cu, 1.23g/t Ag, and 114.5ppm Co, Figure 16 & 17. An area never considered a base metal or nickel/copper belt, this intercept could open the region up to new commodities not previously explored for.

These results triggered a review of surface soils, which also highlighted a surface geochemical copper anomaly which aligns with the interpreted fold hinge of the sediments. KILLI RESOURCES LIMITED: INTERIM FINANCIAL REPORT − 31 DECEMBER 2023 15

DIRECTORS’ REPORT

==> picture [523 x 308] intentionally omitted <==

Figure 16. Cross-section of the Fox prospect with assay results from diamond drillhole, copper, cobalt, silver and gold results.

==> picture [596 x 219] intentionally omitted <==

----- Start of picture text -----

Pyrrhotite
Chalcopyrite
3cm
Pyrrhotite – ground mass
1cm
----- End of picture text -----

Figure 17. Texture of the semi-massive sulphides, dominantly pyrrhotite and chalcopyrite within magmatic unit, cumulate texture within diamond core, Fox Prospect - Tanami.

KILLI RESOURCES LIMITED: INTERIM FINANCIAL REPORT − 31 DECEMBER 2023

16

DIRECTORS’ REPORT

Ravenswood North - Gold & Copper Project, Queensland

The Company is exploring for a new gold and copper system in the Charters Towers district in Queensland. Specifically, an intrusion-related gold system similar to the Ravenswood or Mt Wright deposits, 60kms along strike.

A surface soil geochemistry Au-Ag-Cu anomaly stretching 1.5km[2] , was determined from field work completed in 2022 and 2023 at the Rocky prospect.

The first 11 holes completed within the soil anomaly were completed on a 300m x 300m grid and returned 10m @ 0.66g/t Au and 6m @ 0.83g/t Au. In addition to these gold results, wide zones of silver mineralisation were returned in assay, 75m @ 0.25g/t Ag and 35m @ 0.32g/t Ag . These results are extremely encouraging as they indicate the intrusive system is fertile for gold and silver.

The Company is re-processing geophysical data and designing the next drill program to infill the existing holes.

==> picture [524 x 275] intentionally omitted <==

Figure 18. Rocky long-section of existing drill holes, geophysical anomaly, interpreted geology, with gold and silver drill results (+/-350m section).

==> picture [496 x 218] intentionally omitted <==

KILLI RESOURCES LIMITED: INTERIM FINANCIAL REPORT − 31 DECEMBER 2023

17

DIRECTORS’ REPORT

Compliance Statement

The information in this report that relates to Exploration Results for the West Tanami and Ravenswood North Projects is extracted from the ASX Announcements listed below which are available on the Company website www.killi.com.au and the ASX website (ASX code: KLI):

Date	Announcement title
7thSeptember 2023	High-grade copper and gold at surface, at Baloo Prospect
30thOctober 2023	Large-scale copper-gold porphyry targets defined at Mt Rawdon West
29thNovember 2023	Balfour Project Update

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 estimates in the market announcements continue to apply and have not materially changed. The Company confirm that form and context in which the Competent Person’s finding are presented have not been materially modified from the original market announcements.

Tenement Schedule

Table 1. Killi Resources Tenement Holding 31 December 2023

Iron Bull Bangemall Pty Ltd (a wholly owned subsidiary of Killi Resources Limited) Access Australia Mining Pty Ltd (a wholly owned subsidiary of Killi Resources Limited)

Project	Tenement Number	Holder	Killi Ownership (at end of period)	Change in Ownership
West Tanami (Western Australia)	E80/5100	Iron Bull Bangemall PtyLtd	100%	Nil
	E80/5101	Iron Bull Bangemall PtyLtd	100%	Nil
	E80/5102	Iron Bull Bangemall PtyLtd	100%	Nil
	E80/5103	Iron Bull Bangemall PtyLtd	100%	Nil
Ravenswood Nth (Queensland)	EPM 26889	Access Australia MiningPtyLtd	100%	Nil
	EPM 26890	Access Australia MiningPtyLtd	100%	Nil
	EPM 26892	Access Australia MiningPtyLtd	100%	Nil
	EPM 26908	Access Australia MiningPtyLtd	100%	Nil
	EPM 26909	Access Australia MiningPtyLtd	100%	Nil
	EPM 28413	Access Australia MiningPtyLtd	100%	Nil
Mt Rawdon West (Queensland)	EPM 27828	Access Australia Mining Pty Ltd	100%	Nil

Competent Persons Statement

The information in this report that relates to Exploration Results is based on information compiled by Ms Kathryn Cutler. Ms Cutler is a Member of The Australasian Institute of Mining and Metallurgy. Ms Cutler has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Ms Cutler consents to the inclusion in this report of the matters based on this information in the form and context in which it appears.

KILLI RESOURCES LIMITED: INTERIM FINANCIAL REPORT − 31 DECEMBER 2023

18

DIRECTORS’ REPORT

Significant Change in State of Affairs

There were no other significant changes in the state of affairs of the Group during the period.

Matters Subsequent to Reporting Date

No matters or circumstances have arisen since the end of the financial period which significantly affected or may significantly affect the operations of the Group, the results of those operations, or the state of affairs of the Group in future periods.

Auditor’s Independence Declaration

The Auditor’s Independence Declaration under section 307C of the Corporation Act 2001 is included within this financial report.

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

==> picture [111 x 33] intentionally omitted <==

Richard Bevan Non-Executive Director

Perth, Western Australia, 1 March 2024

KILLI RESOURCES LIMITED: INTERIM FINANCIAL REPORT − 31 DECEMBER 2023

19

==> picture [165 x 49] intentionally omitted <==

AUDITOR’S INDEPENDENCE DECLARATION

As lead auditor for the review of the consolidated financial report of Killi Resources Limited for the half-year ended 31 December 2023, I declare that to the best of my knowledge and belief, there have been no contraventions of:

• a) the auditor independence requirements of the Corporations Act 2001 in relation to the review; and

• b) any applicable code of professional conduct in relation to the review.

Perth, Western Australia 1 March 2024

==> picture [149 x 70] intentionally omitted <==

----- Start of picture text -----

N G Neill
Partner
----- End of picture text -----

==> picture [440 x 83] intentionally omitted <==

KILLI RESOURCES LIMITED: INTERIM FINANCIAL REPORT − 31 DECEMBER 2023

20

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE HALF YEAR ENDED 31 DECEMBER 2023

COMPREHENSIVE INCOME FOR THE HALF YEAR ENDED 31 DECEMBER 2023
Note	31 December 2023 $ 31 December 2022 $
Other income 3 Administration expenses Public company expenses Marketing Exploration expenses Share based payment expense 9 Employee benefit expenses Consulting expenses Loss on revaluation of financial asset 5 Depreciation expense Loss before income tax expense Income tax expense Loss after income tax for the period Other Comprehensive Income Items that may be reclassified to profit or loss Other comprehensive loss for the period, net of tax Total comprehensive loss for the period Loss per share Basic and diluted (loss) per share (cents) 15	305,409 116,182
	(70,635) (71,313)
	(81,094) (64,183)
	(1,085) (43,579)
	(324,613) (2,342,849)
	(48,898) (45,315)
	(184,489) (171,061)
	(69,300) (95,000)
	(30,612) -
	(5,599) (4,488)
	(510,916) (2,721,606)
	- -
	(510,916) (2,721,606)
	- -
	- -
	(510,916) (2,721,606)
	(0.66) (5.23)

The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes.

KILLI RESOURCES LIMITED: INTERIM FINANCIAL REPORT − 31 DECEMBER 2023

21

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2023

Note	31 December 2023 $ 30 June 2023 $
ASSETS Current assets Cash and cash equivalents 4 Trade and other receivables Other financial assets 5 Total current assets Non-current assets Property, plant and equipment Exploration and evaluation expenditure 6 Total non-current assets TOTAL ASSETS LIABILITIES Current liabilities Trade payables and other payables Provisions Total current liabilities TOTAL LIABILITIES NET ASSETS EQUITY Issued capital 7 Reserves 8 Accumulated losses 10 TOTAL EQUITY	1,065,052 1,777,706 25,607 76,715 425,413 156,025
	1,516,072 2,010,446
	64,130 69,729 1,397,364 1,397,364
	1,461,494 1,467,093
	2,977,566 3,477,539
	66,123 113,619 42,523 32,982
	108,646 146,601
	108,646 146,601
	2,868,920 3,330,938
	8,884,711 8,884,711 1,316,663 1,280,737 (7,332,454) (6,834,510)
	2,868,920 3,330,938

The above consolidated statement of financial position should be read in conjunction with the accompanying notes.

KILLI RESOURCES LIMITED: INTERIM FINANCIAL REPORT − 31 DECEMBER 2023

22

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE HALF YEAR ENDED 31 DECEMBER 2023

	Issued Capital Share -Based Payments Reserves Accumulated Losses Total $ $ $ $
Balance at 1 July 2023 Total comprehensive income for the period Loss for the period ended 31 December 2023 Total comprehensive loss for the period Transactions with owners, recorded directly in equity Share based payments lapsed - unvested Share based payments Balance at 31 December 2023	8,884,711 1,280,737 (6,834,510) 3,330,938
	- - (510,916) (510,916)
	- - (510,916) (510,916)
	- (12,972) 12,972 - - 48,898 - 48,898
	8,884,711 1,316,663 (7,332,454) 2,868,920
	Issued Capital Share -Based Payments Reserves Accumulated Losses Total $ $ $ $
Balance at 1 July 2022 Total comprehensive income for the period Loss for the period ended 31 December 2022 Total comprehensive loss for the period Transactions with owners, recorded directly in equity Share based payments Balance at 31 December 2022	7,626,222 1,147,863 (2,757,655) 6,016,430
	- - (2,721,606) (2,721,606)
	- - (2,721,606) (2,721,606)
	- 45,315 - 45,315
	7,626,222 1,193,178 (5,479,261) 3,340,139

The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

KILLI RESOURCES LIMITED: INTERIM FINANCIAL REPORT − 31 DECEMBER 2023

23

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE HALF YEAR ENDED 31 DECEMBER 2023

Note	31 December 2023 $ 31 December 2022 $
Cash flows from operating activities Payments to suppliers and employees Payments for exploration and evaluation Payments to JV partners Interest received Net cash outflow from operating activities Cash flows from investing activities Payments for property, plant and equipment Net cash outflow from investing activities Cash flows from financing activities Net cash inflow from financing activities Net decrease in cash and cash equivalents Cash and cash equivalents at beginning of the period Cash and cash equivalents at end of the period 4	(393,450) (423,070) (324,613) (2,206,278) - (200,000) 5,409 5,287
	(712,654) (2,824,061)
	- (1,904)
	- (1,904)
	- -
	(712,654) (2,825,965) 1,777,706 4,684,488
	1,065,052 1,858,523

The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.

KILLI RESOURCES LIMITED: INTERIM FINANCIAL REPORT − 31 DECEMBER 2023

24

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE HALF YEAR ENDED 31 DECEMBER 2023

1. Summary of significant accounting policies

(a) Basis of preparation

The financial report is a general-purpose financial report that has been prepared in accordance with Australian Accounting Standards, Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board (“AASB”) and the Corporation Act 2001.

Australian Accounting Standards set out accounting policies that the AASB has concluded would result in a financial report containing relevant and reliable information about transactions, events and conditions to which they apply. The financial statements and notes also comply with International Financial Reporting Standards as issued by the International Accounting Standard Board (IASB). Material accounting policies adopted in the preparation of this financial report are presented below. They have been consistently applied unless otherwise stated.

New and amended standards adopted by the entity

The Group has adopted all of the new, revised or amending Accounting Standards and Interpretations issued by the AASB that are mandatory for the current reporting period. Any new, revised or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.

Going Concern

The financial report has been prepared on a going concern basis with the Directors of the opinion that the Group can meet its obligations as and when they fall due.

For the period ended 31 December 2023, the Group recorded a loss of $510,916 (31 December 2022: $2,721,606), had a net current asset position of $1,407,426 (30 June 2023: $1,863,845) and had a net cash outflow from operations of $712,654 (31 December 2022: $2,824,061). At 31 December 2023, the Group had $1,065,052 (30 June 2023: $1,777,706) in cash and cash equivalents. For the Group to continue to carry out its exploration activities, meet its expenditure requirements and continue as a going concern it is dependent on securing additional funding. These conditions indicate a material uncertainty that may cast significant doubt on the Group’s ability to continue as a going concern and therefore whether it will be able to pay its debts as and when they fall due and realise its assets and extinguish its liabilities in the normal course of business.

The Directors have prepared a cashflow forecast for the next 12-month period reflecting the need for further funding as mentioned above. While the Directors are confident that they will be able to raise the funding, the timing, extent and cost of additional funding is always uncertain. In the event that funding of an amount required to meet the future budgeted operational and investing activities of the Company is unavailable, the Directors would undertake steps to scale down its operations and reduce its discretionary expenditure in order to curtail cash outflows.

(b) Accounting policies

These general-purpose financial statements for the interim half-year reporting period ended 31 December 2023 have been prepared in accordance with Australian Accounting Standard AASB 134 ‘Interim Financial Reporting’ and the Corporations Act 2001, as appropriate for for-profit oriented entities. Compliance with AASB 134 ensures compliance with International Financial Reporting Standard IAS 34 ‘Interim Financial Reporting’. These general-purpose financial statements do not include all the notes of the type normally included in annual financial statements. Accordingly, these financial statements are to be read in conjunction with the annual report for the year ended 30 June 2023 and any public announcements made by the company during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001. The principal accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period, unless otherwise stated.

KILLI RESOURCES LIMITED: INTERIM FINANCIAL REPORT − 31 DECEMBER 2023

25

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE HALF YEAR ENDED 31 DECEMBER 2023

2. Segment Information

Operating Segments

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

The Group is managed primarily on the basis of its exploration and corporate activities. Operating segments are therefore determined on the same basis.

Reportable segments disclosed are based on aggregating operating segments where the segments are considered to have similar economic characteristics.

The Group operates within one segment which is mineral exploration within Australia. The Group is domiciled in Australia.

3. Other income

3. Other income
	31 December 2023 31 December 2022 $ $
Interest income Government Grants(i) Proceeds on sale of tenement(ii) Total Other income	5,409 5,287 - 110,895 300,000 -
	305,409 116,182

(i) Co-funding drilling costs received from Department of Energy, Mines, Industry Regulation and Safety.

(ii) Proceeds on sale of tenement to Black Canyon. Refer to Note 5

4. Cash and cash equivalents

4. Cash and cash equivalents
	31 December 2023 30 June 2023 $ $
Cash at bank and in hand Total Cash and cash equivalents 5. Other financial assets	1,065,052 1,777,706
	1,065,052 1,777,706
	31 December 2023 30 June 2023 $ $
Current Financial assets at fair value through profit or loss Held-for trading Australian listed shares Total other financial assets	425,413 156,025
	425,413 156,025
	6 months to December 2023 12 months to 30 June 2023 $ $
Opening balance Shares acquired during the year Changes in fair value of financial assets Total other financial assets	156,025 - 300,000 200,000 (30,612) (43,975)
	425,413 156,025

During the previous financial year Access Australia Mining , entered into a Tenement Sale Agreement to sell 100% of E46/1383 (excluding the rights to explore and mine any copper mineralisation). The consideration included a milestone payment of $300,000 of Black Canyon Ordinary Shares upon estimation of a JORC compliant Mineral Resources from E46/1383 equal to, or greater than 50MT grading at least 10% Mn.

During the half year the Deferred Consideration milestone was achieved and the Company received 2,147,092 Black Canyon shares (ASX:BCA). Total consideration received for the project totalled $500,000.

KILLI RESOURCES LIMITED: INTERIM FINANCIAL REPORT − 31 DECEMBER 2023

26

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE HALF YEAR ENDED 31 DECEMBER 2023

6. Exploration and evaluation expenditure

6. Exploration and evaluation expenditure
	31 December 2023 30 June 2023 $ $
Opening balance Disposal of area of interest during the period Total Exploration & Evaluation Expenditure	1,397,364 1,399,949 - (2,585)
	1,397,364 **1,397,364 **

The value of the Group’s interest in exploration expenditure is dependent upon:

• the continuance of the Company’s rights to tenure of the areas of interest;

• the results of future exploration; and

• the recoupment of costs through successful development and exploitation of the areas of interest, or alternatively, by their sale.

7. Issued capital

(a) Issued and fully paid

. Issued capital a) Issued and fully paid
	31 December 2023 $ No.	30 June 2023 $ No.
Ordinary shares b) Movement reconciliation Ordinary Shares		8,884,711 78,000,058
	8,884,711 78,000,058
	8,884,711 78,000,058	8,884,711 78,000,058
		No. of Shares $
Opening Balance 1 July 2023 Closing balance at 31 December 2023		78,000,058 8,884,711
		78,000,058 8,884,711

(b) Movement reconciliation

8. Reserves

(a) Equity settled share-based payments

. Reserves a) Equity settled share-based payments
	31 December 2023 30 June 2023 $ No. $ No
Option reserve Performance rights reserve b) Movement reconciliation Options		21,000,061 638,339 21,000,061 5,163,463 642,398 5,299,752 1,280,737 No. $
	638,339
	678,324
	1,316,663
Balance at the beginning of the period – 1 July 2023 Balance at the end of the period – 31 December 2023 Performance Rights		21,000,061 638,339
		21,000,061 638,339
		No. $
Balance at the beginning of the period – 1 July 2023 Lapse of Performance Rights Vesting expense – performance rights granted to Board and CEO as part of remuneration package Balance at the end of the period – 31 December 2023		5,299,752 642,398 (136,289) (12,972) - 48,898
		5,163,463 678,324

(b) Movement reconciliation

KILLI RESOURCES LIMITED: INTERIM FINANCIAL REPORT − 31 DECEMBER 2023

27

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2023

9. Share Based Payments

Share based payments during the half year ended 31 December 2023 are summarised below.

• (a) Recognised share-based payment expense

	31 December	31 December
	2023	2022
	$	$
Expense arriving from prior year’s equity settled share-based
payment transactions	48,898	45,315

(b) Securities granted during the half year

Performance Rights

There were no performance rights granted during the half year to 31 December 2023 as share-based payments.

Options

There were no options granted during the half year to 31 December 2023 as share-based payments.

10.Accumulated losses

10. Accumulated losses
	31 December 2023 30 June 2023 $ $
Opening balance Loss after income tax for the period Share based payments lapsed - unvested Total Accumulated losses	6,834,510 2,757,655 510,916 4,076,855 (12,972) -
	7,332,454 6,834,510

11.Key Management Personnel

For the period 31 December 2023, there were no material changes to the Group’s contracts and arrangements to those disclosed in the 30 June 2023 Annual Report.

Other transactions with Key Management Personnel

There have been no other transactions with Key Management Personnel other than those disclosed in note 9 and note 17.

12.Dividends

No dividends have been paid or declared since the start of the financial period, and none are recommended.

13.Commitments

There are no material commitments that the Group has entered into during the period under review other than below.

Exploration Commitments

The Group has certain obligations to expend minimum amounts on exploration in tenement areas. These are not materially different from those disclosed in the 30 June 2023 Annual Report.

14.Contingent Assets and Liabilities

At the date of the report no contingent assets or contingent liabilities exist that the Company is aware of.

KILLI RESOURCES LIMITED: INTERIM FINANCIAL REPORT − 31 DECEMBER 2023

28

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2023

15.Earnings/(Loss) Per Share

Basic earnings per share amounts are calculated by dividing net profit/(loss) for the year attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the year.

The following reflects the income and share data used in the total operations basic and diluted earnings per share computations:

share computations:
	31 December	31 December
	2023	2022
Basic and diluted profit/(loss) per share	$	$
Basic (loss) per share (cents per share)	(0.66)	(5.23)
Diluted (loss) per share (cents per share)	(0.66)	(5.23)
Profit/(Loss)
Profit/(loss) used in the calculation of basic and diluted earnings per
share is as follows:
Loss for the period	(510,916)	(2,721,606)
Weighted average number of ordinary shares
Weighted average number of ordinary shares outstanding during the
period used in calculating basic EPS	78,000,058	52,000,000
Weighted average number of ordinary shares outstanding during the
period used in calculating diluted EPS	78,000,058	52,000,000

16.Subsidiaries

(a) Parent entities

Killi Resources Limited is the ultimate Australian parent entity.

(b) Subsidiaries

The consolidated financial statements include the financial statements of Killi Resources Limited and the subsidiaries listed in the following table.

	Country of Incorporation	% Equity Interest	% Equity Interest	Principal Activity
		31 Dec 2023	30 Jun 2023
Access Mining Australia Pty Ltd Iron Bull Bangemall Ltd Iron Bull International Holdings Ltd	Australia Australia BVI	100 100 100 100 100 100		Operating subsidiary Operating subsidiary Non-Operating subsidiary

KILLI RESOURCES LIMITED: INTERIM FINANCIAL REPORT − 31 DECEMBER 2023

29

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE HALF YEAR ENDED 31 DECEMBER 2023

17.Related Party Transactions

Other than as presented below, there have been no other related party transactions entered into during the period other than those disclosed in note 9 and note 11.

Other Transactions with Key Management Personnel

Grange Consulting: Mr Phil Warren, a Director of the Company, was also the Managing Director of Grange Consulting Group Pty Ltd ( Grange ) from 1 July 2023 to 31 October 2023. $57,750 (ex. GST) was paid to Grange for financial management and company secretarial services for the period ended 31 December 2023 (31 December 2022: $46,200 (ex GST)). $Nil was outstanding and payable to Grange as at 31 December 2023 (31 December 2022: $Nil). On 1 November 2023 Automic Group acquired Grange. Automic Group is not a related party of Mr Phil Warren.

18.Events Subsequent to Reporting Date

No matters or circumstances have arisen since the end of the financial period which significantly affected or may significantly affect the operations of the Group, the results of those operations, or the state of affairs of the Group in future financial years.

19.Financial Instruments

The directors consider that the carrying amount of other financial assets and liabilities recognised in the consolidated financial statements approximate their fair value.

KILLI RESOURCES LIMITED: INTERIM FINANCIAL REPORT − 31 DECEMBER 2023

30

DIRECTOR’S DECLARATION

The directors of the Company declare that:

• (a) The financial statements and notes are in accordance with the Corporations Act 2001 , including:

• (i) complying with the Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 and other mandatory professional reporting requirements.

• (ii) giving a true and fair view of the Group’s financial position as at 31 December 2023 and the performance for the half year ended 31 December 2023.

• (b) At the date of this statement there are reasonable grounds to believe that Killi Resources Limited will be able to pay its debts when they become due and payable.

This declaration is made in accordance with a resolution of the Board of Directors and is signed on behalf of the Directors by:

==> picture [111 x 33] intentionally omitted <==

Richard Bevan

Non-Executive Director

Perth, 1 March 2024

KILLI RESOURCES LIMITED: INTERIM FINANCIAL REPORT − 31 DECEMBER 2023

31

==> picture [165 x 49] intentionally omitted <==

INDEPENDENT AUDITOR’S REVIEW REPORT

To the Members of Killi Resources Limited

Report on the Interim Financial Report

Conclusion

We have reviewed the interim financial report of Killi Resources Limited (“the Company”) and its controlled entities (“the Group”), which comprises the consolidated statement of financial position as at 31 December 2023, 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 half-year ended on that date, selected explanatory notes, and the directors’ declaration, for the Group comprising the Company and the entities it controlled at the half-year end or from time to time during the half-year.

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

• (a) giving a true and fair view of the Group’s financial position as at 31 December 2023 and of its performance for the half-year ended on that date; and

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

Basis for Conclusion

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

Material Uncertainty Related to Going Concern

We draw attention to Note 1(a) in the financial report, which indicates that a material uncertainty exists that may cast significant doubt on the Group’s ability to continue as a going concern. Our conclusion is not modified in respect of this matter.

Responsibility of the Directors for the Financial Report

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

==> picture [440 x 83] intentionally omitted <==

KILLI RESOURCES LIMITED: INTERIM FINANCIAL REPORT − 31 DECEMBER 2023

32

==> picture [165 x 50] intentionally omitted <==

Auditor’s Responsibility for the Review of the Financial Report

Our responsibility is to express a conclusion on the interim financial report based on our review. ASRE 2410 requires us to conclude whether we have become aware of any matter that makes us believe that the interim financial report is not in accordance with the Corporations Act 2001 including giving a true and fair view of the Group’s financial position as at 31 December 2023 and its performance for the half-year ended on that date, and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 .

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

Independence

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001.

==> picture [217 x 56] intentionally omitted <==

HLB Mann Judd N G Neill Chartered Accountants Partner

Perth, Western Australia 1 March 2024

KILLI RESOURCES LIMITED: INTERIM FINANCIAL REPORT − 31 DECEMBER 2023

33