METAL HAWK LIMITED. — Interim / Quarterly Report 2022

Mar 14, 2022

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Metal Hawk Limited ABN 24 630 453 664

Interim Financial Report For the half-year ended 31 December 2021

METAL HAWK LIMITED CONTENTS

Contents

Page Corporate Directory ................................................................................................................................................... 1 Directors’ Report ........................................................................................................................................................ 2 Auditor’s Independence Declaration ....................................................................................................................... 4 Statement of Financial Position ............................................................................................................................... 5 Statement of Profit or Loss and Other Comprehensive Income ......................................................................... 6 Statement of Changes in Equity .............................................................................................................................. 7 Statement of Cash Flows ......................................................................................................................................... 9 Notes to the Financial Statements ........................................................................................................................ 10 Directors’ Declaration .............................................................................................................................................. 18 Independent Auditor’s Review Report .................................................................................................................. 19

METAL HAWK LIMITED CORPORATE DIRECTORY

CORPORATE DIRECTORY

Directors

Mr Brett Lambert Mr William Belbin Mr David Pennock

Company Secretary

Mr Chris Marshall

Registered and Principal Office

Level 2, 18 Kings Park Road West Perth WA 6005

Telephone: +61 8 9226 0110

Postal Address

Level 2, 18 Kings Park Road West Perth WA 6005

Auditor

BDO Audit (WA) Pty Ltd Level 9, 5 Spring Street Perth WA 6000

Share Registry

Automic Pty Ltd Level 5, 191 St Georges Terrace Perth WA 6000

Telephone: 1300 288 664

Stock Exchange Listing

Shares: ASX Code MHK

Website and Email

Website: www.metalhawk.com.au Email: admin@metalhawk.com.au

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METAL HAWK LIMITED DIRECTORS’ REPORT For the half-year ended 31 December 2021

DIRECTORS’ REPORT

Your Directors submit the Interim Report of Metal Hawk Limited (“ the Company ”) for the half-year ended 31 December 2021. To comply with the provisions of the Corporations Act 2001 , the Directors report as follows:

DIRECTORS

The names of the Directors who held office during the whole of the interim period and until the date of this report are noted below. Directors were in office for the entire period unless otherwise stated.

Brett Lambert Non-Executive Chairman William Belbin Managing Director David Pennock Executive Director

REVIEW OF RESULTS AND FINANCIAL POSITION

Metal Hawk Limited is listed on the Australia Securities Exchange ( ASX:MHK ), classified as a West Australian junior gold explorer, and has approximately 55.17 million shares on issue at the date of this report. The Company has not reached a stage in its development where it is generating an operating profit.

The net loss after income tax for the half-year was $805,714 (31 December 2020: $832,506), which included exploration expenditure of $37,335 (31 December 2020: $4,331).

REVIEW OF OPERATIONS

During the half year period Metal Hawk continued exploration on its goldfields projects. A maiden RC drilling program was conducted at Kanowna East with encouraging gold mineralisation intersected. Metal Hawk and JV partners Western Areas completed extensive aircore (AC) programs (for gold and nickel) at the Emu Lake project, both of which will be followed up in 2022. Metal Hawk also completed a successful drilling program at Berehaven, where RC drilling discovered high grade nickel sulphides. Follow-up work included AC, RC and diamond drilling and is continuing in 2022.

Please refer to the Company’s announcements for further information.

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METAL HAWK LIMITED DIRECTORS’ REPORT For the half-year ended 31 December 2021

SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS

In the opinion of the Directors there were no matters that significantly affected the state of affairs of the Company during the financial year, other than those matters referred to in the overview above.

MATTERS SUBSEQUENT TO BALANCE DATE

Subsequent to balance date the Board resolved to exercise the option to complete the purchase of the nickel rights on 12 tenements held by Horizon Minerals. The final consideration involved the issue of 3m fully paid ordinary shares to Horizon on 24th February 2022.

Aside from the matters noted above, there have been no other matters or circumstances that have arisen since the end of the financial year that have significantly affected, or may significantly affect, the operations of the Company, the results of these operations, or the state of affairs of the Company in future financial years.

AUDITOR’S INDEPENDENCE DECLARATION

A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is set out immediately after this Directors’ report.

Signed in accordance with a resolution of the Directors.

William Belbin

Director

15 March 2022 Perth

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Tel: +61 8 6382 4600 Fax: +61 8 6382 4601 www.bdo.com.au

Level 9, Mia Yellagonga Tower 2 5 Spring Street Perth, WA 6000 PO Box 700 West Perth WA 6872 Australia

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DECLARATION OF INDEPENDENCE BY DEAN JUST TO THE DIRECTORS OF METAL HAWK LIMITED

As lead auditor for the review of Metal Hawk Limited for the half-year ended 31 December 2021, I declare that, to the best of my knowledge and belief, there have been:

1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; and

2. No contraventions of any applicable code of professional conduct in relation to the review.

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Dean Just Director

BDO Audit (WA) Pty Ltd

Perth, 15 March 2022

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BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation.

METAL HAWK LIMITED INTERIM FINANCIAL STATEMENTS

STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2021

Note Assets Cash and cash equivalents Trade and other receivables Deposits and bonds 3.1 Total current assets Property, plant and equipment 5.1 Right of use assets Exploration and evaluation assets 4.1 Total non-current assets Total assets Liabilities Trade and other payables Employee benefits Lease liabilities Total current liabilities Lease liabilities Total non-current liabilities Total liabilities Net assets Equity Share capital 6.1 Reserves Accumulated losses Total equity	31 December 2021 30 June 2021 $ $ 4,467,853 1,769,800 99,937 7,782 18,927 2,016,364
	4,586,717 3,793,946
	200,809 95,012 27,550 45,918 3,795,452 1,747,805
	4,023,811 1,888,735
	8,610,528 5,682,681
	(168,589) (24,455) (15,751) - (30,332) (40,225)
	(214,672) (64,680)
	- (8,077)
	- (8,077)
	(214,672) (72,757)
	8,395,856 5,609,924
	10,290,150 7,030,655 1,356,151 1,024,000 (3,250,445) (2,444,731)
	8,395,856 5,609,924

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

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METAL HAWK LIMITED INTERIM FINANCIAL STATEMENTS

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 31 DECEMBER 2021

Note Other income Exploration expensed General and administrative expenses 2.2 Professional fees Personnel expenses 2.2 Marketing and business development Depreciation and amortisation Finance expenses Other expenses Loss before income tax Income tax expense Loss for the period Loss per share Basic and diluted (cents per share)	31 December 2021 31 December 2020 $ $ 12,217 - (37,334) (4,331) (108,711) (447,005) (193,931) (39,598) (385,382) (316,885) (54,685) (15,419) (27,823) (6,848) (1,663) (806) (8,402) (1,614)
	(805,714) (832,506) - -
	(805,714) (832,506)
	(1.60) (2.85)

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

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METAL HAWK LIMITED FINANCIAL STATEMENTS

STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 DECEMBER 2021

TATEMENT OF CHANGES IN EQUITY OR THE HALF-YEAR ENDED 31 DECEMBER 2021
Note Balance at 1 July 2021 Total comprehensive loss for the period Loss for the period Total comprehensive loss for the period Transactions with owners, recorded directly in equity: Contributions by and distributions to owners Issue of ordinary shares 6.1 Conversion of options 6.1 Share-based payment transactions 6.1/ 7.1 Capital raising costs Total contributions by and distributions to owners Balance at 31 December 2021	Issued capital $ Share-based payments reserve $ Accumulated losses $ Total $ 7,030,655 1,024,000 (2,444,731) 5,609,924
	- - (805,714) (805,714)
	- - (805,714) (805,714)
	2,424,306 - - 2,424,306 75,000 - - 75,000 918,000 332,151 - 1,250,151 (157,811) - - (157,811)
	3,259,495 332,151 - 3,591,646
	10,290,150 1,356,151 (3,250,445) 8,395,856

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

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METAL HAWK LIMITED FINANCIAL STATEMENTS

STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 DECEMBER 2020

Note Balance at 1 July 2020 Total comprehensive loss for the period Loss for the period Total comprehensive loss for the period Transactions with owners, recorded directly in equity: Contributions by and distributions to owners Issue of ordinary shares 6.1 Share-based payment transactions 6.1/ 7.1 Capital raising costs Total contributions by and distributions to owners Balance at 31 December 2020	Issued capital $ Share-based payments reserve $ Accumulated losses $ Total $ 765,949 488,514 (978,965) 275,498
	- - (832,506) (832,506)
	- - (832,506) (832,506)
	6,250,000 - - 6,250,000 344,901 535,486 - 880,387 (330,195) - - (330,195)
	6,264,706 535,486 - 6,800,192
	7,030,655 1,024,000 (1,811,471) 6,243,184

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

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METAL HAWK LIMITED FINANCIAL STATEMENTS

STATEMENT OF CASH FLOWS FOR THE HALF-YEAR ENDED 31 DECEMBER 2021

Note Cash flows from operating activities Payments to suppliers and employees Interest received Interest paid Payments for exploration expensed Net cash used in operating activities Cash flows from investing activities Payments for property, plant and equipment Payments for capitalised exploration Payment for term deposit Receipt of term deposit Net cash from / (used in) investing activities Cash flows from financing activities Proceeds from issue of shares Proceeds from exercise of options Payment of capital raising costs Payment of lease liabilities Net cash from financing activities Net increase in cash and cash equivalents Cash and cash equivalents at commencement of period Cash and cash equivalents at period end	31 December 2021 31 December 2020 $ $ (482,446) (551,744) 12,217 - (1,663) (806) (37,335) (4,331)
	(509,227) (556,881)
	(115,251) (46,987) (1,000,892) (696,627) - (3,000,000) 2,000,000 -
	883,857 (3,743,614)
	2,424,206 6,250,000 75,000 - (157,812) (191,669) (17,971) (5,430)
	2,323,423 6,052,901
	2,698,053 1,752,406 1,769,800 97,993
	4,467,853 1,850,399

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

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METAL HAWK LIMITED NOTES TO THE FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2021

SECTION 1 BASIS OF PREPARATION

This financial report for the half-year ended 31 December 2021 is a condensed general purpose financial report prepared in accordance with AASB 134 Interim Financial Reporting and the Corporations Act 2001.

The half-year financial report does not include all notes of the type normally included within the financial report and therefore cannot be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of the Group as the full financial report.

The half-year financial report should be read in conjunction with the most recent annual financial report for the year ended 30 June 2021.

It is also recommended that the half-year financial report be considered together with any public announcements made by Metal Hawk Limited during the half-year ended 31 December 2021 in accordance with the continuous disclosure obligations arising under the ASX Listing Rules.

1.1 SIGNIFICANT ACCOUNTING POLICIES

The Group has adopted all the new or amended Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (“AASB”) that are mandatory for the current reporting period.

Adoption of new and revised standards

Standards and interpretations applicable to 31 December 2021

For the half-year ended 31 December 2021, the Directors have reviewed all new and revised Standards and Interpretations issued by the AASB that are relevant to the Company and effective for the reporting periods beginning on or after 1 July 2021.

As a result of this review, the Directors have determined that there is no material impact of the new and revised Standards and Interpretations on the Company and therefore no material change is necessary to Company accounting policies.

Standards and Interpretations in issue not yet adopted

The Directors have also reviewed all of the new and revised Standards and Interpretations in issue not yet adopted that are relevant to the Company and effective for the reporting periods beginning on or after 1 January 2022.

As a result of this review, the Directors have determined that there is no material impact of the new and revised Standards and Interpretations in issue not yet adopted on the Company and therefore no material change is necessary to Company accounting policies.

1.2 JUDGEMENTS AND ESTIMATES

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

In preparing this consolidated interim financial report, 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 consolidated financial statements as at and for the year ended 30 June 2020, except as disclosed below.

Contingent Consideration

The Company executed several asset acquisitions during the current period and prior periods, of which deferred contingent consideration has been agreed as disclosed in the 30 June 2021 financial report. The Company holds the right, in their complete discretion to settle any deferred consideration payable upon achievement of certain milestones via payment of cash or issue of equity. Judgement has been exercised in determining the fair value of consideration.

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METAL HAWK LIMITED NOTES TO THE FINANCIAL STATEMENTS

SECTION 2 RESULTS FOR THE YEAR

This section focuses on the results and performance of the Company, with disclosures including components of the operating loss.

2.1 OPERATING SEGMENTS

AASB 8 Operating Segments requires operating segments to be identified based on internal reports about components of the Company that are regularly reviewed by the Chief Operating Decision Maker in order to allocate resources to the segment and to assess its performance.

The Company’s operating segment has been determined with reference to the management accounts used by the Chief Operating Decision Maker to make decisions regarding the Company’s operations and allocation of working capital.

Based on the quantitative thresholds included in AASB 8, there is only one reportable segment, being base minerals exploration and evaluation in Australia.

The results of this segment are those of the Company as a whole and are set out in the statement of profit or loss and other comprehensive income and the assets and liabilities of the Company as a whole are set out in the statement of financial position.

There have been no changes to the basis of segmentation or the measurement basis for the segment profit or loss since 30 June 2021.

2.2 RESULTS FOR THE PERIOD

(a) Significant items

) Significant items
	31 December	31 December
	2021	2020
	$	$
General and Administrative
Listing and registry expenses	60,547	409,593
Other expenses	48,164	37,412
Personnel expenses
Wages and superannuation	155,808	84,898
Share-based payments	229,574	231,987

SECTION 3 WORKING CAPITAL DISCLOSURES

This section focuses on the cash funding available to the Company and working capital position at period end.

3.1 DEPOSITS AND BONDS

Current Term deposit (i) Rental bond	31 December 2021 30 June 2021 $ $ - 2,000,000 18,927 16,364
	18,927 2,016,364

(i) Term deposit has an interest rate of 0.6% and a maturity date of 30 November 2021.

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METAL HAWK LIMITED NOTES TO THE FINANCIAL STATEMENTS

SECTION 4 ASSETS AND LIABILITIES SUPPORTING EXPLORATION AND EVALUATION

This section focuses on the assets and liabilities which form the core of the ongoing business, including those assets and liabilities which support ongoing exploration and evaluation as well as capital and other commitments existing at 31 December 2021.

Key estimates and assumptions in this section

Indicators of impairment for exploration and evaluation assets

The Company has reviewed exploration and evaluation assets for indicators of impairment in accordance with AASB 6 and has concluded that capitalised exploration and evaluation expenditure was not impaired at period end. In making this evaluation, management is required to make assessments on the status of each project and the future plans towards successful development and commercial exploitation, or alternatively sale, of the respective areas of interest.

4.1 EXPLORATION AND EVALUATION EXPENDITURE

Costs carried forward in respect of areas of interest Exploration and evaluation expenditure Movements for the year Opening balance Tenement acquisitions – via share-based payments Tenement acquisitions – via cash payments Capitalised expenditure Expenditure written-off	31 December 2021 30 June 2021 $ $ 3,795,452 1,747,805
	1,747,805 194,155 918,100 411,000 - 287,804 1,129,547 1,033,919 - (179,073)
	3,795,452 1,747,805

A total of $37,334 (2020: $4,331) has been expensed during the six months to 31 December for exploration expenditure on tenements for which tenement applications were either still in progress or had been discontinued and therefore an inability to capitalise expenditure under AASB 6 is present due to absence of tenement ownership.

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METAL HAWK LIMITED NOTES TO THE FINANCIAL STATEMENTS

SECTION 5 NON-CURRENT ASSETS AND LEASE LIABILITIES

5.1 PROPERTY, PLANT AND EQUIPMENT

Gross carrying amount Balance at 1 July 2020 Additions Balance at 1 July 2021 Additions Balance at 31 December 2021 Depreciation Balance at 1 July 2020 Depreciation for the period Balance at 1 July 2021 Depreciation for the period Balance at 31 December 2021 Carrying amounts Balance at 1 July 2021 Balance at 31 December 2021	Plant & Equipment Office Equipment Motor Vehicles Computer Equipment Total $ $ $ $ $ - - - - - 3,300 7,798 89,265 2,660 103,023
	3,300 7,798 89,265 2,660 103,023 57,507 4,884 52,861 - 115,252
	60,807 12,682 142,126 2,660 218,275
	- - - - - (122) (1,273) (6,320) (296) (8,011)
	(122) (1,273) (6,320) (296) (8,011) (2,123) (1,295) (5,590) (447) (9,455)
	(2,245) (2,568) (11,910) (743) (17,466)
	3,178 6,525 82,945 2,364 95,012
	58,562 10,114 130,216 1,917 200,809

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METAL HAWK LIMITED NOTES TO THE FINANCIAL STATEMENTS

SECTION 6 EQUITY AND FUNDING

This section focuses on the debt and equity funding available to the Company at year end, most notably covering share capital, loans and borrowings.

6.1 Issued Capital

Balance at 1 July Shares issued and expensed during the period: Issue of fully paid shares for cash Issue of shares on conversion of options Issue of shares for acquisition of exploration tenements Vesting expense of prior period SBPs Capital raising costs Balance at 31 December	Ordinary shares Number of shares Amount in $ 2021 2020 2021 2020 47,247,500 13,060,000 7,030,655 765,949 5,387,125 32,187,500 2,424,206 6,250,000 330,769 - 75,000 - 2,200,000 2,000,000 918,100 320,000 - - - 24,901 - - (157,811) (330,195)
	55,165,394 47,247,500 10,290,150 7,030,655

The holders of ordinary shares are entitled to receive dividends as declared from time and are entitled to one vote per share at meetings of the Company. Option holders cannot participate in any new share issues by the Company without exercising their options.

In the event of a winding up of the Company, ordinary shareholders rank after all other shareholders (if any) and creditors and are fully entitled to any proceeds on liquidation.

All issued shares are fully paid.

Nature and purpose of reserves

Share-based payments reserve

The share-based payments reserve represents the fair value of options issued to directors and consultants. Refer to note 7.1 for further details of these plans.

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METAL HAWK LIMITED NOTES TO THE FINANCIAL STATEMENTS

SECTION 7 OTHER DISCLOSURES

The disclosures in this section focuses on share schemes in operation and financial risk management of the Company. Other mandatory disclosures, such as details of related party transactions, can also be found here.

7.1 SHARE-BASED PAYMENTS

The share-based payment expense included within the financial statements can be broken down as follows:

	31 December	31 December
	2021	2020
	$	$
Expensed in personnel expenses (Director remuneration)
Options issued to Directors	224,374	-
Options issued to Employees	5,200	-
Vesting expense on prior period issuances - options	-	206,486
Vesting expense on prior period issuances - shares	-	24,901
Expensed in professional fees
Shares issued to consultants	102,577	-
Expensed in general and administrative expenses
Options issued to consultants	-	99,474
Capital raising costs within equity
Options issued to consultants	-	138,526
Capitalised within exploration and evaluation
Shares issued to vendors	918,100	320,000
Options issued to vendors	-	91,000

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METAL HAWK LIMITED NOTES TO THE FINANCIAL STATEMENTS

7.1 SHARE-BASED PAYMENTS (continued)

Options

At 31 December 2021, excluding free-attaching options issued, a summary of the Company options in issue and not exercised are as follows. Options are settled by the physical delivery of shares:

							Expired /		Vested and
			Exercise	Balance at	Granted	Exercised	forfeited	Balance at	exercisable
Grant	Vesting	Expiry	Price	the start of	during	during	during	the end of	at the end of
date	date	date	(cents)	the period	the period	the period	the period	the period	the period
13-Sep-19	19-Nov-20	13-Sep-22	25	4,500,000	-	-	-	4,500,000	4,500,000
13-Sep-19	19-Nov-20	13-Sep-23	30	4,000,000	-	-	-	4,000,000	4,000,000
10-Sep-20	10-Sep-20	10-Sep-23	20	1,000,000	-	-	-	1,000,000	1,000,000
19-Nov-20	19-Nov-20	19-Nov-23	25	1,000,000	-	-	-	1,000,000	1,000,000
19-Nov-20	19-Nov-20	19-Nov-24	30	1,000,000	-	-	-	1,000,000	1,000,000
30-Nov-21	30-Nov-21	30-Nov-25	42	-	2,550,000	-	-	2,550,000	2,550,000
02-Dec-21	02-Dec-22	30-Nov 24	42	-	550,000	-	-	550,000	-1
Total				11,500,000	3,100,000	-	-	14,600,000	14,050,000
Weighted Average Exercise Price (cents)				26.74	42.00	-	-	29.98	29.51

The weighted average remaining contractual life of options outstanding at year end was 1.91 years.

1 Options issued on Grant Date 2 December 2021 vest upon satisfaction of a continued service condition after 12 months.

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METAL HAWK LIMITED NOTES TO THE FINANCIAL STATEMENTS

7.1 SHARE BASED PAYMENTS (continued)

Options (continued)

Options granted during the period have been valued using the Black-Scholes Option Valuation model, which takes account of factors including the option exercise price, the current level and volatility of the underlying share price, the risk-free interest rate, expected dividends on the underlying share, current market price of the underlying share and the expected life of the option. See below for the assumptions used for grants made during the period.

	Director & Consultant Options	ESIP Options
Number of options	2,550,000	550,000
Exercise price (cents)	42	42
Grant date	30-Nov-21	02-Dec-21
Expiry date	30-Nov-25	30-Nov-24
Life of the options (years)	4	3
Volatility	100%	100%
Risk free rate	1.3%	1.35%
Fair value at grant date (cents)	12.82	11.871
Share price at grant date (cents)	22	23.5

1 ESIP options vest after a 12-month continuous service period and as such are expensed over the vesting period.

7.2 SUBSEQUENT EVENTS

Subsequent to balance date the Board resolved to exercise the option to complete the purchase of the nickel rights on 12 tenements held by Horizon Minerals. The final consideration involved the issue of 3m fully paid ordinary shares to Horizon on 24th February 2022.

Aside from the matters noted above, there have been no other matters or circumstances that have arisen since the end of the financial year that have significantly affected, or may significantly affect, the operations of the Company, the results of these operations, or the state of affairs of the Company in future financial years.

7.3 RELATED PARTY TRANSACTIONS

During the half-year ended 31 December 2021, the Company issued 1.75m options to Directors of the Company, as disclosed above in note 7.1. Apart from the issuance of options, no other related party transactions occurred during the half-year ended 31 December 2021.

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METAL HAWK LIMITED DIRECTORS’ DECLARATION

DIRECTORS’ DECLARATION

1. In the opinion of the Directors of Metal Hawk Limited (the “Company”):

2. (a) the accompanying interim financial statements and notes 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 then ended; and

   • (ii) complying with Australian Accounting Standards, the Corporations Regulations 2001 , professional reporting requirements and other mandatory requirements.

3. (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.

4. (c) the financial statements and notes thereto are in accordance with International Financial Reporting Standards issued by the International Accounting Standards Board.

5. This declaration has been made after receiving the declarations required to be made to the Directors in accordance with Section 295A of the Corporations Act 2001 for the half-year ended 31 December 2021.

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

Dated at Perth 15[th] of March 2022.

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WILL BELBIN Director

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Tel: +61 8 6382 4600 Level 9, Mia Yellagonga Tower 2 Fax: +61 8 6382 4601 5 Spring Street www.bdo.com.au Perth, WA 6000 PO Box 700 West Perth WA 6872 Australia

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INDEPENDENT AUDITOR’S REVIEW REPORT

To the members of Metal Hawk Limited

Report on the Half-Year Financial Report

Conclusion

We have reviewed the half-year financial report of Metal Hawk Limited (the Company), which comprises the statement of financial position as at 31 December 2021, 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 summary of significant accounting policies and other explanatory information, 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 accompanying half-year financial report of the Company does not comply 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 financial performance for the half-year ended on that date; and

• (ii) 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 the audit of the annual financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

We confirm that the independence declaration required by the Corporations Act 2001 which has been given to the directors of the Company, would be the same terms if given to the directors as at the time of this auditor’s review report.

Responsibility of the directors for the 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 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 half-year financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

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BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation.

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Auditor’s responsibility for the review of the financial report

Our responsibility is to express a conclusion on the half-year 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 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 2021 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 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.

BDO Audit (WA) Pty Ltd

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Dean Just Director

Perth, 15 March 2022

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