MUSTERA PROPERTY GROUP LIMITED — Interim / Quarterly Report 2021

Oct 28, 2021

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QUARTERLY ACTIVITIES REPORT FOR 30 SEPTEMBER 2021

29 OCTOBER 2021

Mustera Property Group Ltd ( Mustera or the Company ) is pleased to provide an update on its operational activities during the September 2021 Quarter (the Quarter ).

ASX CODE: MPX

H IGH LIGHTS

DIRECTORS

Mr Nicholas Zborowski Executive Director

Mr Anthony Ho Non-Executive Director

Mr Jack Spencer-Cotton Non-Executive Director

1. The main activities centred on the Company’s flagship project, Forbes Residences in Applecross where the following key events took place:

2. The appointed builder, PACT Construction (the Builder) took site possession;

3. Forward works building permit received;

4. Construction commenced;

5. 57% of apartments now sold.

COMPANY SECRETARY

1. $5.5m raised in the Quarter and a further $1.5m raised as fresh equity shortly after the Quarter.

Joan Dabon

CAPITAL STRUCTURE

Ordinary Shares: 142.2M Options: 16.5M

COMPANY ENQUIRIES

Nicholas Zborowski Executive Director

15 McCabe Street North Fremantle WA 6159

T : +61 8 9386 7069 E : info@mustera.com.au W : www.mustera.com.au

1. Forbes Residences (the Project )

During the Quarter, construction commenced on the Company’s flagship project, Forbes Residences. The Builder took site possession and mobilised on site with the installation of their site office. Temporary fence was installed to the boundary and the piling rig was mobilised.

The Builder commenced with the piling to the northern boundary once the grout injections were complete.

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Mustera Property Group Ltd ACN 142 375 522

To celebrate the commencement of construction, the Company invited its shareholders, employees, agents, design consultants, the Builder and future owners to attend the traditional sod turning event. This event and turnout successfully commemorated a significant milestone for the Project.

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In addition to construction commencing, the Company continued with its sales and marketing campaign for the Project with 57% of the apartments now sold.

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2. Corporate and Financial Commentary

Cashflow

The Company successfully raised $5.5m (before costs) as fresh equity through a nonrenounceable rights offer ( Rights Offer ) to shareholders. Shortly after the end of the Quarter, a further $1.5m was raised as shortfall subscription under the Rights Offer.

Furthermore, the Company has entered into a definitive term sheet for the Project’s debt financing and formal documentation is expected to be completed shortly in relation to this financing.

Payments to related parties

A description of and explanation for payments to related parties and their associates per Section 6.1 of the Appendix 4C following this Quarterly Activities Report is set out in the table below.

	Current	Previous
Payments to related parties of the entity and their	Quarter	Quarter
associates	$A’000	$A’000
Directors’ remuneration
Executive Director	50	45
Non-ExecutiveDirectors	60	6
Total Directors’ remuneration	110	51
Total payments to related parties of the entity and	110	51
theirassociates

AUTHORISED BY

THE BOARD OF DIRECTORS

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Rule 4.7B

Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B

Name of entity

Mustera Property Group Ltd

ABN

13 142 375 522

Quarter ended (“current quarter”)

30 September 2021

Consolidated statement of cash flows	Current quarter $A’000	Year to date (3 months) $A’000
1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for (a) research and development (b) product manufacturing and operating costs (c) advertising and marketing (d) leased assets (e) staff costs (f) administration and corporate costs 1.3 Dividends received (see note 3) 1.4 Interest received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Government grants and tax incentives 1.8 Other (provide details if material) 1.9 Net cash from / (used in) operating activities	649 - (1,938) (142) (5) (142) (347) - 4 (118) (4) - -	649 - (1,938) (142) (5) (142) (347) - 4 (118) (4) - -
	(2,043)	(2,043)
2. Cash flows from investing activities 2.1 Payments to acquire or for: (a) entities (b) businesses (c) property, plant and equipment (d) investments (e) intellectual property (f) other non-current assets	(425) - - (2,900) - -	(425) - - (2,900) - -

ASX Listing Rules Appendix 4C (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B

Consolidated statement of cash flows	Consolidated statement of cash flows	Current quarter $A’000	Year to date (3 months) $A’000
2.2 Proceeds from disposal of: (a) entities (b) businesses (c) property, plant and equipment (d) investments (e) intellectual property (f) other non-current assets 2.3 Cash flows from loans to other entities 2.4 Dividends received (see note 3) 2.5 Other (provide details if material) 2.6 Net cash from / (used in) investing activities		- - - 1,350 - - - - -	- - - 1,350 - - - - -
		(1,975)	(1,975)
3. Cash flows from financing activities 3.1 Proceeds from issues of equity securities (excluding convertible debt securities) 3.2 Proceeds from issue of convertible debt securities 3.3 Proceeds from exercise of options 3.4 Transaction costs related to issues of equity securities or convertible debt securities 3.5 Proceeds from borrowings 3.6 Repayment of borrowings 3.7 Transaction costs related to loans and borrowings 3.8 Dividends paid 3.9 Other (provide details if material) 3.10 Net cash from / (used in) financing activities		5,502 - - - - - - - -	5,502 - - - - - - - -
		5,502	5,502
4. 4.1 4.2 4.3	Net increase / (decrease) in cash and cash equivalents for the period Cash and cash equivalents at beginning of period Net cash from / (used in) operating activities (item 1.9 above) Net cash from / (used in) investing activities (item 2.6 above)	421 (2,043) (1,975)	421 (2,043) (1,975)

ASX Listing Rules Appendix 4C (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B

Consolidated statement of cash flows	Consolidated statement of cash flows	Current quarter $A’000	Year to date (3 months) $A’000
4.4 4.5 4.6	Net cash from / (used in) financing activities (item 3.10 above) Effect of movement in exchange rates on cash held Cash and cash equivalents at end of period	5,502 -	5,502 -
		1,906	1,906
5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts		Current quarter $A’000	Previous quarter $A’000
5.1 Bank balances 5.2 Call deposits 5.3 Bank overdrafts 5.4 Other (provide details) 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above)		1,906	421
		1,906	421
6. Payments to related parties of the entity and their associates			Current quarter $A'000
6.1 Aggregate amount of payments to related parties and their associates included in item 1 (director remuneration) 110 6.2 Aggregate amount of payments to related parties and their associates included in item 2 Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments.			110

ASX Listing Rules Appendix 4C (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B

7. 7.1 7.2 7.3 7.4 7.5 7.6	Financing facilities Note: the term “facility’ includes all forms of financing arrangements available to the entity. Add notes as necessary for an understanding of the sources of finance available to the entity. Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 Loan facilities Credit standby arrangements Other (business credit card) 50 6 Total financing facilities 50 6 Unused financing facilities available at quarter end 44 Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well.	Total facility amount at quarter end $A’000	Amount drawn at quarter end $A’000
		50	6
		50	6

8.	Estimated cash available for future operating activities	$A’000
8.1 8.2 8.3 8.4 8.5 8.6	Net cash from / (used in) operating activities (item 1.9) (2,043) Cash and cash equivalents at quarter end (item 4.6) 1,906 Unused finance facilities available at quarter end (item 7.5) 44 Total available funding (item 8.2 + item 8.3) 1,950 Estimated quarters of funding available (item 8.4 divided by item 8.1) 0.95 Note: if the entity has reported positive net operating cash flows in item 1.9, answer item 8.5 as “N/A”. Otherwise, a figure for the estimated quarters of funding available must be included in item 8.5. If item 8.5 is less than 2 quarters, please provide answers to the following questions: 8.6.1 Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not?	(2,043) 1,906 44
		1,950
	Answer: Yes.
	8.6.2 Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful?
	Answer: Yes, subsequent to the reporting period, a further $1.5m was raised as fresh equity (refer to the attached Quarterly Activities Update). In addition, the Company is completing formal documentation of a debt financing facility in relation to the development of its Forbes Residence Project (refer also to the attached Quarterly Activities Update).
	8.6.3 Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis?
	Answer: Yes, based on the equity and debt financing initiatives noted above and in the Quarterly Activities Update.
	Note: where item 8.5 is less than 2 quarters, all of questions 8.6.1, 8.6.2 and 8.6.3 above must be answered.

ASX Listing Rules Appendix 4C (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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Appendix 4C Quarterly cash flow report for entities subject to Listing Rule 4.7B

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

• 2 This statement gives a true and fair view of the matters disclosed.

Date: 29 October 2021

Authorised by: The Board of Directors

(Name of body or officer authorising release – see note 4)

Notes

1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity’s activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.

2. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standard applies to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4. If this report has been authorised for release to the market by your board of directors, you can insert here: “By the board”. If it has been authorised for release to the market by a committee of your board of directors, you can insert here: “By the [ name of board committee – eg Audit and Risk Committee ]”. If it has been authorised for release to the market by a disclosure committee, you can insert here: “By the Disclosure Committee”.

5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations , the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.

ASX Listing Rules Appendix 4C (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms.

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