LODE RESOURCES LTD — Interim / Quarterly Report 2022

Mar 8, 2022

LODE RESOURCES LTD

ABN 30 637 512 415

INTERIM FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2021

Corporate Directory

Directors	Andrew Van Heyst	Executive Chairman
	Edward Leschke	Managing Director
	Keith Mayes	Non-Executive Director
	Jason Beckton	Non-Executive Director
Company Secretary	Marcelo Mora
Principal Place of Business	ESN Partners ‘Australia Square’
and Registered Office	Level 30, 264-278 George Street
	Sydney NSW 2000
	Australia
	Telephone:	(61 2) 9008 1381
	Web site:	www.loderesources.com
Share Registry	Advanced Share Registry Limited
	110 Stirling Highway
	Nedlands, Western Australia 6009
	Telephone:	(61 8) 9389 8033
	Facsimile:	(61 8) 9262 3723
Auditors	PKF (NS) Audit and Assurance Limited
	Partnership
	Level 8
	1 O’Connell Street
	Sydney NSW 2000
Solicitors	Thomson Geer
	Level 14
	60 Martin Place
	Sydney NSW 2000
Stock Exchange Listings	Australian Securities Exchange	(Code – LDR)

Contents

	Page
Directors' Report ..............................................................................................................................	1
Lead Auditor’s Independence Declaration.......................................................................................	5
Condensed Interim Statement of Profit or Loss and Other Comprehensive Income ......................	6
Condensed Interim Statement of Financial Position .......................................................................	7
Condensed Interim Statement of Changes in Equity ......................................................................	8
Condensed Interim Statement of Cash Flows .................................................................................	9
Notes to the Interim Financial Statements.......................................................................................	10
Directors' Declaration ......................................................................................................................	15
Independent Auditor's Review Report .............................................................................................	16

LODE RESOURCES LTD

DIRECTORS' REPORT

The Directors of Lode Resources Ltd ('Lode' or the 'Company') present their report together with the condensed interim financial report and the auditor's review report thereon for the half year ended 31 December 2021.

Directors

The names and particulars of the Directors of the Company at any time during or since the end of the half year are:

Andrew Mark Van Heyst, Executive Chairman

Director since 18 November 2019.

With more than 30 years' experience in Industrial Equities and Advisory. Has worked at Merrill Lynch in New York as Head of Australian Sales and for ABN AMRO as Head of Australian Sales and Head of Americas Client Account Management for Global Equity Product. In 2005 Andrew moved back to Australia joining Shaw and Partners as a Corporate Advisor focussing on Small Cap resources and prior to Lode listing was Executive Director at Bridge Street Capital Partners.

Edward Jan Leschke, Managing Director

Director since 18 November 2019

Mr. Leschke graduated with a Bachelor of Applied Science Geology degree from the Queensland University of Technology.

With more than 30 years' experience in the resources industry including Managing Director of ASX listed Equus Mining Limited from start up project development covering areas such as project identification, acquisition and generation, geological mapping, exploration drilling, local community and government liaison, financial management, strategy, fundraisings, ASX listing, and statutory reporting. Previously worked as a resource analyst in stockbroking/funds management as well as a geologist in the mining industry.

Keith Anthony Mayes, Non-Executive Director

Director since 10 March 2020

With more than 30 years' experience in the resource sector in exploration, business development, operational and financial roles with major mining companies including North Ltd, Newmont, Rio Tinto, and Oxiana in Australia, Eurpoe, Middle East, and Africa. Keith is currently GM of Australian Garnet a subsidiary of Resource Development Group and formerly COO at ASX listed KGL Resources that is undertaking exploration and development of the large Jervois copper/silver/gold project in central Australia and COO at Altura Mining Ltd where he discovered the world-class Pilgangoora lithium deposit.

Jason Michael Beckton, Non-Executive Director

Director since 29 September 2020

Mr. Beckton holds BSc (Hons) Melbourne and a Masters of Economic Geology from the University of Tasmania.

With more than 25 years of geological corporate experience in Australia, North and South America and China. Was Project Manager for Bolbisi Gold NL's Palmerejo silver/gold project in Mexico where he managed a program defining 3.1moz AuEq. Managed the discovery of Exeter Resource Corp's 30 moz AuEq Caspiche Porphyry prospect in the Maricunga Gold Copper Belt of Chile. Previously MD of ASX listed Chinalco Yunnan Copper Resources exploring the Mt Isa, Lao and Chilean copper districts.

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LODE RESOURCES LTD DIRECTORS' REPORT

Review of Operations

Corporate Activities

• Lode Resources Ltd (ASX: LDR or ‘Lode’ or ‘the Company’) commenced trading on the Australian Stock Exchange (ASX Ltd) on 2 July 2021.

• On 14 July, The Company issued 500,000 unlisted options to the Exploration Manager. Each option has an exercise price of $0.30 expiring on 14 July 2023 and vest immediately.

• During the half-year ended 31 December 2021, Lode was granted Exploration Licence EL 9319 Sandon.

Financial position and performance

The Company recognised a loss for the half year period ended 31 December 2021 of 571,374 (31 December 2020: Loss $83,711). The net assets of the Company at 31 December 2021 were $4,577,875 (30 June 2021: $5,099,249) including cash of $3,488,178 (30 June 2021: $4,739,139).

The Company’s strategy is to continue with its program of exploring and developing the Company’s tenements in the New England Fold Belt. The Company listed on the ASX in late June 2021 and believes that the current cash reserves, will be sufficient to fund the Company’s operational requirements and achieve its short-term business objectives. The Company will consider further funding when appropriate.

Exploration Tenements

Since the successful completion of the A$5.1M IPO, admission to the Official List of ASX Limited (‘ASX’) on Wednesday, 30 June and the commenced trading on Friday, 2 July Phase I drilling and other field activities have been carried out at three of six projects 100% owned by Lode. All these projects are located in the highly prospective but under-exploited New England Fold Belt in north-eastern NSW.

Figure 1: Lode’s Project Locations (yellow polygons)

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Mt Carrington
Twin Hills Gold & Silver
Gold &
Silver
Webbs Consol
Silver Timbarra
Webbs
Gold &
Silver Silver
Sandon
Base Metals
Elsinore
Thor Tea Tree Copper
NSW Gold Gold
Uralla
Gold Hillgrove
Gold &
Rocky River Antinomy
Gold
Okapi Resources
Enmore Gold Discovery
Newmont Fender
Gold Copper
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LODE RESOURCES LTD

DIRECTORS' REPORT

Lode’s strategy is to:

• Systematically explore and develop the Company’s Tenements in the New England Fold Belt;

• Target large-scale gold, silver and copper mineral systems;

• Use modern exploration methods and best practices in cost effective programs; and

• Advance discoveries to the development stage.

At the Webbs Consol silver and base metals project, located near Emmaville Phase I drilling resulted in 9 drill holes being completed for a total of 1,299 metres drilled. Historical records of underground sampling indicated high-grade mineralisation remained open at relative shallow depths and subsequent geophysical anomalies were never followed-up by drilling.

High-grade silver-zinc mineralisation was intersected over substantial widths at the main shaft prospect. The most significant two drill intercepts were drill holes WCS006 and WCS7 as shown below.

WCS006: 27.50m @ 467 g/t silver eq or 9.44 % zinc eq from 104.60m

incl. 4.40m @ 800 g/t silver eq or 16.24 % zinc eq from 105.60m

WCS007: 24.15m @ 374 g/t silver eq or 7.57 % zinc eq from 122.90m

incl. 10.30m @ 675 g/t silver eq or 13.71 % zinc eq from 129.70m

A preliminary flotation test on WCS006 mineral intercept has resulted in very high recoveries (up to 97.3% Ag, 98.7% Zn, 94.7% Pb) indicating the potential for industry standard beneficiation and high-quality silver-zinclead concentrate product.

Follow-up surface work at Webbs Consol has resulted in multiple Phase II drill targets being identified through recent Phase I drilling, mapping, sampling, and an extensive historical literature review.

Phase I drilling also commenced at the Uralla gold project, located near the Uralla township, with 12 RC drill holes being completed for a total of 915 metres drilled. The Uralla goldfield was one of the earlier goldfields discovered in NSW and a significant gold producer in the 1850’s. Despite this long history, the mineralisation style has only recently been recognised as being typical of an Intrusive Related Gold System (IRGS) and this has strong implications for this project’s discovery potential.

The drilling completed was designed to test high-grade gold mineralisation sampled at surface as well as targets generated by the recent DroneMag and Auger drilling surveys at the Hudson’s gold prospect. Assays from this drill program were outstanding at half-year end.

During the half-year drilling also commenced at the Trough Gully copper mine, part of the Fender copper project located near Tamworth. This project has incurred surface exploration carried out by several companies since the 1960s, comprising stream/soil, surface mapping, IP, and magnetics however no drilling has occurred. Significant copper in drainage anomalies and several know historical workings on VMS style mineralisation provides some very attractive exploration targets.

The Trough Gully copper mine had previously never been drilled so Lode’s initial drilling strategy was simply to test for mineralisation extensions adjacent to historical underground workings, both down dip and along strike. Assays from this drill program were outstanding at half-year end.

Total cash expenditure during the half-ended 31 December 2021 was A$1,251,000. Exploration and evaluation cash expenditure was $690,000. Approximately one-half of this expenditure was spent on exploration activities at the Uralla Gold Project and the remainder on the Webbs Consol Silver Project. Activities included mapping, rock and soil sampling, geophysics and pre-drilling preparations, and significant drilling.

Approximately two-thirds of expenditure was spent on exploration activities at the Webbs Consol silver and base metals project and the remainder Uralla gold project and Fender base metals project.

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LODE RESOURCES LTD

DIRECTORS' REPORT

Used of funds	Prospectus Year 1 Budget	6 Months Actuals to 31 December 2021
Webbs Consol (EL8933)	241,200	452,195
Uralla (EL8980 and EL9087)	332,800	277,216
Fender (EL9003)	229,400	149,272
Elsinore (EL9004)	26,500	3,201
Tea Tree (EL6016)	35,300	1,219
Thor (EL6020)	36,800	1,447
Sandon (EL9319)	-	12,549
Miscellaneous	278,000	46,680
Contingency 15%	177,000	-
Equipment	-	32,700
Exploration Management	-
Total $ 1,357,000		976,479

Competent Person’s Statement

The information in this Report that relates to Exploration Results is based on information compiled by Mr. Mitchell Tarrant, who is a Member of the Australian Institute of Geoscientists. Mr. Tarrant, who is the Project Manager for Lode Resources, has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is 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’. Mr Tarrant has a beneficial interest as an optionholder of Lode Resources Ltd and consents to the inclusion in this Report of the matters based on the information in the form and context in which it appears.

No Material Changes

Lode Resources Ltd confirms that it is not aware of any new information or data that would materially affect the information included in the quarterly activities report released on 28 January 2022 and the market announcements on 15 February 2022 and 21 February 2022 and that all material assumptions and technical parameters in the market announcements continue to apply and have not materially changed.

Subsequent Events

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

Lead Auditor's Independence Declaration

The Lead Auditor's Independence Declaration is set out on page 5 and forms part of the Directors' Report for the half-year ended 31 December 2021.

Signed at Sydney this 9th day of March 2022 in accordance with a resolution of the Board of Directors:

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Andrew M. Van Heyst Executive Chairman

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Edward J. Leschke

Managing Director

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Lode Resources Limited

Auditors Independence Declaration under Section 307C of the Corporations Act 2001

I declare that, to the best of my knowledge and belief, during the half-year ended 31 December 2021, there have been:

• a) no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the review, and

• b) no contraventions of any applicable code of professional conduct in relation to the review.

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PKF

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SCOTT TOBUTT PARTNER

9 MARCH 2022

SYDNEY, NSW

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LODE RESOURCES LTD

Condensed Interim Statement of Profit or Loss and Other Comprehensive Income For the half-year ended 31 December 2021

Notes CONTINUING OPERATIONS Other income Expenses Administration and consultants’ expenses Employee, directors and consultants costs Amortisation and depreciation Legal and professional expenses Travel expenses Other expenses Operating loss before financing income and expense Interest income Interest expense Net finance expense Loss before income tax 3 Income tax benefit/(expense) Loss for the period Other comprehensive income for the period Total comprehensive loss for the period Earnings per share Basic and diluted loss per share	31 December 2021 31 December 2020 $ $ - -
	(99,383) - (311,184) - (20,901) (4,732) (40,927) (3,704) - (129,563) (42,784)
	(569,467) (83,711)
	64 - (1,971) -
	(1,907) -
	(571,374) (83,711) - -
	(571,374) (83,711) - -
	(571,374) (83,711)
	(0.007) (0.002)

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

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LODE RESOURCES LTD

Condensed Interim Statement Of Financial Position As at 31 December 2021

Notes Current assets Cash and cash equivalents Trade and other receivables Other assets Total current assets Non-current assets Other financial assets Property, plant and equipment Exploration and evaluation assets 4 Total non-current assets Total assets Current liabilities Trade and other payables Employee entitlements Lease liability Total current liabilities Non–current liabilities Lease liability Total non-current liabilities Total liabilities Net assets Equity Issued capital 5 Reserves Accumulated losses Total equity	31 December 2021 30 June 2021 $ $ 3,488,178 4,739,139 110,552 40,875 4,456 1,636
	3,603,186 4,781,650
	154,528 98,800 49,444 28,740 1,229,934 332,834
	1,433,906 460,374
	5,037,092 5,242,024
	387,901 142,775 21,139 - 31,961 -
	441,001 142,775
	18,216 -
	18,216 -
	459,217 142,775
	4,577,875 5,099,249
	5,611,514 5,611,514 135,000 85,000 (1,168,639) (597,265)
	4,577,875 5,099,249

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

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LODE RESOURCESLTD

Condensed Interim Statement Of Changes In Equity For the half year ended 31 December 2021

Balance at 1 July 2020 Loss for the period Other comprehensive income Total comprehensive loss for the period Transactions with owners recorded directly in equity Ordinary shares issued Transaction costs on issue of shares Balance at 31 December 2020 Balance at 1 July 2021 Loss for the period Total other comprehensive income Total comprehensive loss for the period Transactions with owners recorded directly in equity Share base payments Balance at 31 December 2021	Issued capital Option Premium reserve Accumulated losses Total
	$ $ $ $ 365,022 - (22,331) 342,691 - - (83,711) (83,711) - - - -
	- - (83,711) (83,711)
	783,000 - - 783,000 (82,548) - - (82,548)
	1,065,474 - (106,042) 959,432
	5,611,514 85,000 (597,265) 5,099,249 - - (571,374) (571,374) - - - -
	- - (571,374) (571,374)
	- 50,000 - 50,000
	5,611,514 135,000 (1,168,639) 4,577,875

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

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LODE RESOURCES LTD

Condensed Interim Statement Of Cash Flows For the half year ended 31 December 2021

Cash flows from operating activities Cash payments in the course of operations Net cash used in operations Interest received Net cash used in operating activities Cash flows from investing activities Payments for exploration and evaluation expenditure Payment for plant and equipment Net cash used in investing activities Cash flows from financing activities Proceeds from share issues Lease payments Transaction costs on share issue Net cash (used in) / provided by financing activities Net increase / (decrease) in cash held Cash at the beginning of the reporting period Cash and cash equivalents at 31 December	31 December 31 December 2021 2020 $ $ (446,611) (35,241)
	(446,611) (35,241) 64 -
	(446,547) (35,241)
	(690,393) (30,699) (40,608) -
	(731,001) (30,699)
	- 365.022 (14,249) - (59,164) -
	(73,413) 365,022
	(1,250,961) 299,082 4,739,139 -
	3,488,178 299,082

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

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LODE RESOURCES LTD

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS 31 December 2021

1. REPORTING ENTITY

Lode Resources Ltd (the 'Company') is a company domiciled in Australia as an individual entity. The interim financial statements, of the Company as at and for the half-year ended 31 December 2021. The Company is a for-profit entity and is primarily engaged in identifying and evaluating gold, copper, and silver resource opportunities in New England Fold Belt of New South Wales.

The annual financial statements of the Company as at and for the year ended 30 June 2021 are available upon request from the Company's registered office at C/o ESN Partners, Australia Square, Level 30, 264 - 278 George Street, Sydney, NSW, 2000 or at www.loderesources.com.

2. BASIS OF PREPARATION

(a) Statement of compliance

The condensed interim financial statements are general purpose financial statements prepared in accordance with the requirements of the Corporations Act 2001 and Australian Accounting Standard AASB 134 Interim Financial Reporting.

Selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in financial position and performance of the Company since the last annual financial statements as at and for the year ended 30 June 2021. The condensed interim financial statements do not include all of the information required for full annual financial statements, and should be read in conjunction with the annual financial statements of the Company as at and for the year ended 30 June 2021 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 and the ASX Listing Rules.

This condensed interim financial report was approved by the Board of Directors on 9 March 2021.

(b) Estimates

The preparation of the condensed interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expense. Actual results may differ from these estimates.

The significant judgements made by management in applying the Company’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the annual financial statements for the year ended 30 June 2021.

Fair value of Options

There were estimates were used to value the issue of 500,000 options issued on 14 July 2021 with a fair value of $50,000. Estimates used in this valuation are outlined in Note 5.

(d) Employee Benefits

Short-term employee benefits

Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to be settled wholly within 12 months of the reporting date are measured at the amounts expected to be paid when the liabilities are settled.

Other long-term employee benefits

The liability for annual leave and long service leave not expected to be settled within 12 months of the reporting date are measured at 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 corporate bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows.

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LODE RESOURCES LTD

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS 31 December 2021

(d) Employee Benefits (cont’d)

Defined contribution superannuation expense

Contributions to defined contribution superannuation plans are expensed in the period in which they are incurred.

(e) Right-of-Use Assets

A right-of-use asset is recognised at the commencement date of a lease. The right-of-use asset is measured at cost, which comprises the initial amount of the lease liability, adjusted for, as applicable, any lease payments made at or before the commencement date net of any lease incentives received, any initial direct costs incurred, and an estimate of costs expected to be incurred for dismantling and removing the underlying asset, and restoring the site or asset.

Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease or the estimated useful life of the asset, whichever is the shorter. Where the Company expects to obtain ownership of the leased asset at the end of the lease term, the depreciation is over its estimated useful life. Right-of use assets are subject to impairment or adjusted for any remeasurement of lease liabilities.

(f) Lease Liabilitites

A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the present value of the lease payments to be made over the term of the lease, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate. Lease payments comprise of fixed payments less any lease incentives receivable, variable lease payments that depend on an index or a rate, amounts expected to be paid under residual value guarantees, exercise price of a purchase option when the exercise of the option is reasonably certain to occur, and any anticipated termination penalties. The variable lease payments that do not depend on an index or a rate are expensed in the period in which they are incurred.

Lease liabilities are measured at amortised cost using the effective interest method. The carrying amounts are remeasured if there is a change in the following: future lease payments arising from a change in an index or a rate used; residual guarantee; lease term; certainty of a purchase option and termination penalties. When a lease liability is remeasured, an adjustment is made to the corresponding right-of use asset, or to profit or loss if the carrying amount of the right-of-use asset is fully written down.

(g) Changes in Accounting Policies

All other accounting policies used are consistent with those applied in the 30 June 2021 financial report.

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LODE RESOURCES LTD

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS 31 December 2021

3. LOSS BEFORE INCOME TAX

3. LOSS BEFORE INCOME TAX
The following items are relevant in explaining the financial performance for the half-year: Interest income on cash deposits Interest expense Total	31 December 2021 31 December 2020 $ $ 64 - (1,971) -
	(1,907) -

Lease liability repayment for the six months ended 31 December 2021 was $14,249 (2020 – $Nil) and is recognised as cash outflows from lease repayments.

4. EXPLORATION AND EVALUATION EXPENDITURE

EL 8933 Webbs Consol EL 8980 Uralla EL 9003 Fender EL 9004 Elsinore EL 9084 Tea Tree EL 9085 Thor Gold EL 9319 Sandon EL 9087 Uralla West Net book value Balance at beginning of the period Expenditure incurred Net book value	31 December 2021 30 June 2021 $ $ 501,208 49,014 479,667 202,717 176,783 27,510 16,926 13,724 10,719 9,500 20,431 18,984 12,549 - 11,651 11,385 1,229,934 332,834 332,834 30,699 897,100 302,135
	1,229,934 332,834

The recoverability of the carrying amount of the exploration and evaluation assets is dependent on the successful development and commercial exploitation, or alternatively, sale of the respective areas of interest.

During the half-year ended 31 December 2021, Lode was granted Exploration Licence EL 9319 Sandon.

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LODE RESOURCES LTD

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS 31 December 2021

5. ISSUED CAPITAL

(a) Issued and paid-up share capital

Ordinary shares, fully paid at 1 July Movement in Ordinary Shares: Issued ordinary shares 1 July 2020 for $0.010 Issued ordinary shares 5 January 2021 for $0.010 Issued ordinary shares 28 June 2021 for $0.020 Less cost of issue	31 December 2021 30 June 2021 Number $ Number $ 79,966,002 5,611,514 46,460,002 365,022 - - 200,000 10,000 - - 7,730,000 773,000 - - 25,576,000 5,115,200 - - - (651,708)
	79,966,002 5,611,514 79,966,002 5,611,514

The Holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at the shareholder's meetings. In the event of winding up of the Company, ordinary shareholders rank after creditors and are fully entitled to any proceeds of liquidation.

(b) Share based payment

• On 14 July 2021, the Company granted 500,000 unlisted options to the Exploration Manager. The options have an exercise price of $0.30, vest immediately and expire on 14 July 2023.

The fair value of the options granted on 14 July 2021 to the Exploration Manager was $50,000. The BlackScholes formula model inputs were the Company's share price of $0.18 at the grant date, a volatility factor of 137.76% based on historical share price performance and a risk-free interest rate of 0.04% based on the 2-year government bond rate.

The terms and conditions of the options held by the exploration manager during the half-year ended 31 December 2021 are as follows:

										Balance at
						Granted	Total	Total		end of the
	Grant	Expiry	Vesting	Exercise	Start of the	during the	Exercised	Number		period
	date	date	date	price	period	period	Number	Expired		Number
14	July 2021 7 July 2023		Immediately	$0.30	-	500,000	-		-	500,000

• On 31 March 2021, the Company granted 1,000,000 unlisted options to the Non-Executive Directors. The options have an exercise price of $0.30, vest immediately and expire on 2 July 2023.

The terms and conditions of the options held by key management personnel during the half-year ended 31 December 2021 are as follows:

										Balance at
						Granted	Total	Total		end of the
	Grant	Expiry	Vesting	Exercise	Start of the	during the	Exercised	Number		period
	date	date	date	price	period	period	Number	Expired		Number
31	March 2021	2 July 2023	Immediately	$0.30	1,000,000	-	-		-	1,000,000

The fair value of options granted on 31 March 2021 to Non-executive Directors was $85,000. The Black-Scholes formula model inputs were the Company's share price of $0.20 at the grant date, a volatility factor of 100.00%, and a risk-free interest rate of 0.08% based on the 2-year government bond rate.

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LODE RESOURCES LTD

NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS 31 December 2021

6. OPERATING SEGMENTS

The Company’s chief operating decision maker has considered the requirements of AASB 8, Operating Segments, and has concluded that, during the half-year ended 31 December 2021, the Company operated in the mineral exploration within the geographical segments of Australia with no separate reportable segment.

7. EVENTS OCCURRING SUBSEQUENT TO 31 DECEMBER 2021

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

8. RELATED PARTIES

Transactions with key management personnel

Transactions between related parties are on normal commercial terms and conditions no more favourable than those available to other parties unless otherwise stated.

No directors have entered into a material contract with the Company and there were no material contracts involving directors' interests existing at 31 December 2021.

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LODE RESOURCES LTD

DIRECTORS'DECLARATION 31 December 2021

In the opinion of the directors of Lode Resources Ltd (the 'Company'):

• (a) the financial statements and notes set out on pages 6 to 14, are in accordance with the Corporations Act 2001 , including:

• (i) giving a true and fair view of the Company’s financial position as at 31 December 2021 and of its performance for the half-year ended on that date; and

• (ii) complying with Australian Accounting Standard AASB 134: Interim Financial Reporting and the Corporations Regulations 2001; and

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

Signed at Sydney this 9[th] day of March 2022

in accordance with a resolution of the Board of Directors:

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Andrew Van Heyst Executive Chairman

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Edward Leschke

Managing Director

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INDEPENDENT AUDITOR’S REVIEW REPORT

TO THE MEMBERS OF LODE RESOURCES LTD

Report on the Half-Year Financial Report

Conclusion

We have reviewed the accompanying half-year financial report of Lode Resources Ltd (the Company), which comprises the statement of financial position as at 31 December 2021, and the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the half-year ended on that date, a statement of accounting policies, other selected explanatory notes, and the directors’ declaration.

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of Lode Resources Ltd is not in accordance with the Corporations Act 2001 including:

• (a) giving a true and fair view of the Company’s the financial position as at 31 December 2021, and of its financial performance for the half-year ended on that date; and

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

Independence

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001. In accordance with the Corporations Act 2001, we have given the directors of the Company a written Auditor’s Independence Declaration.

Directors’ Responsibility for the Half-Year Financial Report

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

Auditor’s Responsibility for the Review of the Half-Year Financial Report

Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity , in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the half-year financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the Company’s financial position as at 31 December 2020 and its performance for the half year ended on that date, and complying with Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. As the auditor of Lode Resources Ltd (formerly Lode Resources Pty Ltd), ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

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Auditor’s Responsibility for the Review of the Half-Year Financial Report (cont’d)

A review of a half-year 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.

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PKF SCOTT TOBUTT PARTNER

9 MARCH 2022 SYDNEY, NSW

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