NORDIC NICKEL LTD ABN 13 647 455 105

Annual Report 30 June 2022

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CONTENTS	PAGE

Corporate Directory	1

Chairman’s Letter	2

Directors’Report	3

Consolidated Statement of Profit or Loss and Other Comprehensive Income	17

Consolidated Statement of Financial Position	18

Consolidated Statement of Changes in Equity	19

Consolidated Statement of Cash Flows	20

Notes to the Consolidated Financial Statements	21

Directors’Declaration	40

Auditor’s Independence Declaration	41

Independent Auditor’s Report	42

ASX Additional Information	46

Schedule of Tenements	48

Important Information and Disclaimers	49

CORPORATE DIRECTORY

Directors

Marcello Cardaci (Non-Executive Chairman) Todd Ross (Managing Director and CEO) Robert Wrixon (Executive Director) Juho Haverinen (Non-Executive Director)

Share Registry

Computershare Investor Services Pty Ltd Level 11 172 St Georges Terrace PERTH WA 6000

Company Secretary

Aaron Bertolatti

Registered Office

Level 12, 197 St Georges Terrace PERTH WA 6000 AUSTRALIA Telephone: + 61 8 9429 8844

Website

Auditors

BDO Audit (WA) Pty Ltd Level 9 Mia Yellagonga Tower 2 5 Spring Street PERTH WA 6000

Stock Exchange

Australian Securities Exchange (Home Exchange: Perth, Western Australia) ASX Code: NNL

www.nordicnickel.com

Chairman’s Letter

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Dear Fellow Shareholders,

We are pleased to present the 2022 Annual Report for Nordic Nickel Ltd (“Nordic Nickel” or “the Company”), our first as a publicly listed company since we commenced trading on the Australian Stock Exchange on 1 June 2022 following our successful $12 million Initial Public Offering (IPO).

Nordic Nickel has listed at an unprecedented time. The world’s largest economies and greenhouse gas emitters are rapidly moving towards a decarbonised world through an energy transition that will require enormous amounts of new supply of critical minerals such as nickel, copper, cobalt and lithium.

Your company is focussed on discovering, developing, and supplying the critical minerals needed for the energy transition in a sustainable, traceable and low carbon way. Nordic Nickel has accumulated an impressive land package of over 425km2 in Finland’s world-class Central Lapland Greenstone Belt (CLGB), a region known to host massive sulphide nickel deposits and other critical minerals.

Nordic Nickel’s nickel sulphide exploration program is focussed on two key projects, our flagship Pulju Project and the Maaninkijoki 3 Project (“Projects”). The successful IPO of Nordic Nickel ensures that your Company is in a strong financial position to proceed with its exploration plans.

Whilst it is only a short period since Nordic Nickel listed on ASX, a considerable amount has already been achieved that highlight both the prospectivity and district-scale potential of the Company’s Projects. At the same time, the Company has set itself up for what will be a very busy and active 12 months ahead.

We have been active since we listed on ASX on 1 June 2022. Within the first three-weeks of listing, the Company published the results of the first pass mineralogical and chemical test work for the near surface disseminated nickel mineralisation at Hotinvaara (the first exploration prospect at Pulju) using historical drill data. The results indicated that a very high percentage of the nickel is contained in nickel sulphides with low impurities, excellent liberation properties and overall was a strong indication that the nickel could potentially be economically recoverable using industry standard processing techniques.

Subsequent to the financial year end, Nordic Nickel announced a maiden Mineral Resource Estimate (MRE) for the Hotinvaara Prospect. The Hotinvaara MRE totals 133.6Mt @ 0.21% Ni, 0.01% Co for 278,530t of contained Ni and 12,650t Co, including an Indicated Resource of 20.9Mt @ 0.22% Ni, for 46,540t of contained Ni and an Inferred Resource of 112.7Mt @ 0.21% Ni, for 231,990t of contained Ni.

Following on from the release of the MRE on Hotinvaara, the Company acquired additional high quality drill data that after further analysis highlighted the significant nickel sulphide prospectivity of the wider Pulju Project area. Overall, over 15,000m of historical drill data has been acquired and while the Company’s upcoming drilling program will be targeting deeper high-grade, massive sulphide nickel mineralisation, the shallow historical drilling of the disseminated nickel mineralisation provides evidence of an extensive and rich nickel system throughout the full Project area.

We look forward to keeping our investors informed as the exploration program commences in full in early 2023 and further results are released over the next 12 months.

Thank you for your continued support.

Yours sincerely

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Marcello Cardaci Non-Executive Chairman Nordic Nickel Limited

Nordic Nickel Ltd

2022 Annual Report

Directors’ Report

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The Directors present their report for Nordic Nickel Ltd (“Nordic Nickel” or “the Company”) and its subsidiaries (“the Group”) for the year ended 30 June 2022.

DIRECTORS

The names of the Directors of Nordic Nickel during the financial year and to the date of this report are:

Marcello Cardaci (Non-Executive Chairman) – appointed 15 March 2022
Todd Ross (Managing Director and CEO) – appointed 19 April 2022
Robert Wrixon (Executive Director)
Juho Haverinen (Non-Executive Director) – appointed 25 March 2022
Aaron Bertolatti (Non-Executive Director) – resigned 19 April 2022

Directors have been in office since the start of the financial period to the date of this report unless otherwise stated.

DIRECTORS’ AND OFFICERS INFORMATION

Marcello Cardaci

Non-Executive Chairman

Marcello is a consultant to the Australian legal practice of Gilbert + Tobin. Mr Cardaci holds degrees in law and commerce and is experienced in a wide range of corporate and commercial matters with a particular emphasis on public and private capital equity raisings and mergers and acquisitions. Gilbert + Tobin specializes in the provision of legal advice to companies involved in various industries including resources and manufacturing.

Todd Ross

Managing Director and CEO

Todd has over 23 years’ experience in finance, derivatives and corporate advisory within the Natural Resources sector. He is the former Managing Director and Head of Western Australia for BNP Paribas. Todd is a specialist in project and acquisition financings across range of commodities across multiple jurisdictions. His previous roles include Senior Positions at BNP Paribas, Westpac, Royal Bank of Canada, CBA and Oakvale Capital. Todd holds a Bachelor of Business from Edith Cowan University and a Graduate Diploma in Applied Finance & Investment from FINSIA.

Robert Wrixon

Executive Director

Robert has over 20 years’ commercial experience in mining including five years with Xstrata in various strategy roles, and as MD and CEO of ASX listed Manhattan Corporation Limited and Haranga Resources Limited. He is a Director and founding partner of Starboard Global, a natural resource PE group based in Hong Kong and holds a PhD in mineral engineering from the University of California, Berkeley.

Juho Haverinen

Non-Executive Director

Juho has over ten years’ experience in planning and overseeing mineral exploration in Finland. He is currently Head of Exploration for Magnus Minerals Oy. Juho has significant experience in Finland with exploration joint ventures with major multinational mining companies. He is a member of the Board of the Finnish Mining Association (FinnMin) and a Board member of Magnus Minerals Oy. Juho holds both BSc and MSc degrees in Geology from the University of Helsinki.

Aaron Bertolatti

Company Secretary

Aaron is a qualified Chartered Accountant and Company Secretary with over 15 years’ experience in the mining industry and accounting profession. Aaron has both local and international experience and provides assistance to a number of resource companies with financial accounting and stock exchange compliance. Aaron has significant experience in the administration of ASX listed companies, corporate governance and corporate finance.

Nordic Nickel Ltd 3 2022 Annual Report

Directors’ Report

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DIRECTORSHIPS OF OTHER LISTED COMPANIES

Directorships of other listed companies held by current directors in the 3 years immediately before the end of the financial year are as follows:

Director	Company	Period of Directorship
Marcello Cardaci	Altamin Limited (ASX: AZI) Manhattan Corporation Limited (ASX: MHC)	Director since October 2014 Director since December 2006
Robert Wrixon	Rafaella Resources Limited (ASX: RFR) Emmerson PLC (AIM: EML)	Director since August 2019 Director since June 2018

INTERESTS IN THE SECURITIES OF THE COMPANY

As at the date of this report, the interests of the Directors in the securities of Nordic Nickel are:

Director	Ordinary Shares	Options1	Options2	Options3	Options4	Options5	Options6
Marcello Cardaci	-	375,000	375,000	-	-	-	-
Todd Ross	2,400,000	-	-	-	1,000,000	1,000,000	1,500,000
Robert Wrixon	11,854,168	250,000	250,000	1,000,000	-	-	-
Juho Haverinen	675,000	250,000	250,000	-	-	-	-

1 Options are exercisable at $0.30 each on or before 23 May 2027 2 Options are exercisable at $0.35 each on or before 23 May 2027 3 Options are exercisable at $0.20 each on or before 31 May 2026 4 Options are exercisable at $0.25 each on or before 23 May 2027

5 Options are exercisable at $0.375 each on or before 23 May 2027

6 Options are exercisable at $0.50 each on or before 23 May 2027

RESULTS OF OPERATIONS

The Group’s net loss after taxation attributable to the members of Nordic Nickel for the year to 30 June 2022 was $1,643,380 (period from 27 January to 30 June 2021: $122,262).

DIVIDENDS

No dividends were paid or declared. The directors do not recommend the payment of a dividend.

CORPORATE STRUCTURE

Nordic Nickel is a company limited by shares, which is incorporated and domiciled in Australia.

NATURE OF OPERATIONS AND PRINCIPAL ACTIVITIES

The principal activity of the Group during the financial year was preparation for listing on the Australian Securities Exchange and preliminary mineral exploration.

ROUNDING OF AMOUNTS

The company is of a kind referred to in Corporations Instruments 2016/191, issues by the Australian Securities and Investment Commission, relating to ‘rounding-off’. Amounts in this report have been rounded off in accordance with that Corporations Instrument to the nearest dollar.

REVIEW OF OPERATIONS

During the financial year the Company successfully completed its Initial Public Offering (IPO) and listed on the Australian Securities Exchange (ASX) on 1 June 2022. The IPO was oversubscribed, raising $12 million, including $4 million worth of oversubscriptions. The IPO was managed by Taylor Collison Limited and Vert Capital.

Nordic Nickel Ltd

2022 Annual Report

Directors’ Report

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The successful IPO puts Nordic in a strong position to commence nickel sulphide exploration across the Company’s two key projects, Pulju and Maaninkijoki 3 located in Finland’s world-class Central Lapland Greenstone Belt (CLGB) and positioning it as a unique investment opportunity in the global battery metals sector.

The CLGB already hosts several Tier-1 deposits including Boliden’s large near surface, 307Mt Kevitsa nickel-copper-gold open pit mine, Europe’s largest gold mine, Agnico-Eagle’s 7.4Moz Kittilä mine, and Anglo American’s high-grade 44Mt Sakatti copper-nickel-PGE underground development project.

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Figure 1: Nordic Nickel’s Project Locations in CLGB

Having released the MRE for the near-surface mineralisation at the Hotinvaara Prospect at the Pulju Project, Nordic is now gearing up for its maiden drilling program, where it is targeting the potential for world-class massive nickel sulphide discoveries at depth similar to the Sakatti deposit. Downhole EM (DHEM) was utilised to track massive sulphides at Sakatti and Nordic will undertake further DHEM at Hotinvaara in Q3 2022 prior to the commencement of the diamond drilling campaign in 2023.

PULJU NICKEL PROJECT

Nordic Nickel’s flagship 100%-owned Pulju Nickel Project is located 50km north of Kittilä with access to world class infrastructure, grid power, national highway, international airport and, most importantly, Europe’s only two nickel smelters. The municipality of Kittilä hosts western Europe’s largest gold mine, Suurikuusikko, operated by Agnico Eagle. The known nickel mineralisation in the CLGB is typically associated with ultramafic cumulate and komatiitic rocks with high-grade, massive sulphide lenses and veins enveloped by very large, lower grade disseminated nickel near surface. The disseminated nickel at Pulju is widespread and indicates a vast nickel rich system. The known massive sulphides in the system will be the primary target for the upcoming drill campaign at Hotinvaara.

Nordic Nickel Ltd

2022 Annual Report

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Directors’ Report
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Figure 2: Location of Pulju Nickel Project and Europe’s entire nickel smelting and refining capacity

Pulju is located 195km from Boliden’s Kevitsa Ni, Cu, Au-PGE mine and 9.5Mtpa processing plant in Sodankyla, Finland. Kevitsa provides feed for the 19ktpa Harjavalta smelter which is approximately 950km to the south and processes concentrate from Kevitsa’s low grade disseminated nickel sulphide ore (Resource Ni grade ~0.21%). Europe’s only other smelter is Terrafame’s 37ktpa Sotkamo smelter which is located 560km from Pulju.

Maiden JORC Mineral Resource Estimate

Subsequent to the financial year end, Nordic Nickel announced a maiden MRE for the Pulju Project’s Hotinvaara Prospect.

The Hotinvaara MRE totals 133.6Mt @ 0.21% Ni, 0.01% Co for 278,530t of contained Ni and 12,650t Co , including an Indicated Resource of 20.9Mt @ 0.22% Ni, for 46,540t of contained Ni and an Inferred Resource of 112.7Mt @ 0.21% Ni, for 231,990t of contained Ni.

The evaluation work was carried out and prepared in accordance with the JORC Code (2012). Table 1 highlights the in-situ mineral resource estimation (total nickel) at different cut-off grades.

Nordic Nickel Ltd

2022 Annual Report

Directors’ Report

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ectors’ Report	ectors’ Report	ectors’ Report	ectors’ Report	ectors’ Report	ectors’ Report	ectors’ Report
*JORC(2012) Mineral Resource Estimate at different cut-off grades*
*0.13% Ni cut-off*					*Contained Metal*
Resource Class	Tonnes Ni Co Cu Mt % ppm ppm				Ni Co Cu Kt Kt Kt
*Indicated*	21.40	0.22	99	56	47.19	2.13	1.20
*Inferred*	122.85	0.20	92	56	246.41	11.35	6.87
TOTAL	144.25 0.20 93 56				*293.60* *13.47* *8.07*
*0.15% Ni cut-off*					*Contained Metal*
Resource Class	Tonnes Ni Co Cu Mt % ppm ppm				Ni Co Cu Kt Kt Kt
*Indicated*	20.95	0.22	100	56	46.54	2.09	1.18
*Inferred*	112.66	0.21	94	57	231.99	10.56	6.45
TOTAL	133.61 0.21 95 57				*278.53* *12.65* *7.62*
*0.17% Ni cut-off*					*Contained Metal*
Resource Class	Tonnes Ni Co Cu Mt % ppm ppm				Ni Co Cu Kt Kt Kt
*Indicated*	18.71	0.23	101	55	42.91	1.88	1.02
*Inferred*	93.26	0.22	96	57	200.78	8.93	5.33
TOTAL	111.97 0.22 97 57				*243.69* *10.81* *6.35*

Table 1: Summary of In-Situ Resources at different cut-off grades

The MRE was based on historical drilling that was commissioned and managed by previous owner, Outokumpu Oy, between 1982 and 1998. Full details of the Hotinvaara MRE were provided in the Company’s ASX Announcement dated 7 July 2022.

Exploration Target

On the basis of the historical drilling at Hotinvaara, it is noted the mineralisation is open to the south and northeast. However, the prospective lithological units that host the mineralisation extend well beyond the drilling area. The prospective Mertavaara Formation host rocks (ultramafic cumulates, serpentinites and komatiites) have been mapped to continue to the south, northeast and northwest.

Approximately 35km[2] of the prospective Mertavaara Formation has been mapped across the Pulju Project exploration licences. The huge extent of the Mertavaara Formation highlights the considerable potential for other deposits within the project area, should drilling be successful. Only 2.5km[2] (7%) of the 35km[2] of Mertavaara Formation occurs within the active Hotinvaara Exploration Licence and is used in this Exploration Target estimate. Mineralisation external of the Mertavaara Formation has not been considered in this estimation. Consequently, the Exploration Target represents only a small part of the prospective geology across the full project area.

Based on the Exploration Target estimation methodology (outlined in the Company’s ASX Announcement dated 7 July 2022), it is estimated the Hotinvaara Exploration Licence area has the potential to contain approximately 275–415Mt @ 0.17-0.25% Ni, 76-114ppm Co and 46–68ppm Cu for 459–1,032kt contained Ni, 21-47kt contained Co and 13-28kt contained Cu.

The potential quantity and grade is conceptual in nature, there has been insufficient exploration and drilling to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource.

Importantly, the Exploration Target is limited solely to the extent of the Hotinvaara exploration licence area, representing just 5km[2] of Nordic’s total prospective project area of 395km[2 ] at Pulju.

Should initial drilling within the Exploration Target area be successful, additional drilling would probably be required to determine if an Inferred category for a JORC (2012) Mineral Resource can be estimated outside the current MRE block model areas.

7 2022 Annual Report

Nordic Nickel Ltd

Directors’ Report

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Metallurgical Test Work

Encouraging results were reported during the year from first pass mineralogical and chemical test work completed on the near surface disseminated nickel mineralisation at Hotinvaara. Nordic provided two bulk samples to Metso:Outotec from the historical drill core available at Hotinvaara: a lower grade sample (Sample 1) that averaged 0.238% Ni, and a sample from a higher grade zone of disseminated mineralisation (Sample 2) that assayed 0.714% Ni.

The results indicate the mineralisation at Hotinvaara can be economically recoverable using industry standard processing techniques, but the Company cautions that these results are a basic precursor to subsequent comprehensive metallurgical and flotation test work that will be required in order to properly indicate recovery levels and ascertain economic potential.

Main findings were as follows:

Ni-in-sulphide measured at 83% of total Ni in Sample 1 and 94% in Sample 2.
Ni-in-silicate is highly depleted (approximately 400ppm Ni) - a common attribute of major nickel deposits.
Simple mineralogy - the sole Ni-bearing sulphide minerals are pentlandite (primary) and pyrrhotite (secondary).
Both pentlandite and pyrrhotite displayed excellent liberation characteristics, even in larger particle size fractions.
Zero arsenic detected.

This initial test work focused solely on the near surface, lower grade disseminated nickel mineralisation that is widespread at Hotinvaara. No test work was conducted on the higher grade, massive and semi-massive sulphide core samples from previous drilling. The Company is optimistic that higher grade mineralisation would have equal, or better, metallurgical characteristics to the disseminated mineralisation. Full details of the test work program were provided in the Company’s ASX Announcement dated 22 June 2022.

Historical Regional Drill Data

In August 2022, the Company announced that it had confirmed the significant regional exploration potential within its flagship 100%-owned Pulju Project after securing high-quality historical drilling data. The results of 54 historical (5,844m) shallow regional drill holes of near-surface disseminated nickel sulphide mineralisation, similar to that drilled extensively at the Company’s Hotinvaara deposit, were confirmed at multiple prospects throughout Pulju and demonstrate the significant regional endowment.

While the focus remains on the deeper massive sulphide potential at Hotinvaara this extensive near surface mineralisation shows just how well-endowed the project is and will provide an invaluable pathfinder for future exploration activities.

Planned Work Programs

Initial ESG Report – September
Commencement of down-hole and ground-based EM surveys – September
Geophysical survey results and 3D modelling – October-December
Commencement of initial drilling program at Pulju – January 2023

Maaninkijoki 3 Project

On 20 January 2022, the Company entered into a binding Letter Agreement (“Letter Agreement”) with Magstar Mining Oy (“MGM”), to earn an interest in MGM’s Maaninkijoki 3 (“MJ3”) Copper-NickelPGM Project (the “Project”), located in the Central Lapland Greenstone Belt of Northern Finland.

Nordic Nickel Ltd

2022 Annual Report

Directors’ Report

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Key Terms:

First Earn-in: To earn a 51% interest in the Project, the Company will complete total exploration expenditure at the Project of €2,000,000 (“First Earn-in Expenditure”) on or before the First Earn-in Deadline, being the date that is exactly four years after the MJ3 Licence is fully granted, free of any objection or encumbrance (being the “Grant Date”). Any expenditure on the MJ3 Licence made by the Company after the signing of the Letter Agreement, even if prior to the Grant Date, will be attributed to the First Earn-In Expenditure.
Second Earn-in: Following completion of the First Earn-in, the Company has the right to earn an additional 24% interest for a total of 75% interest in the Project, by completing the following additional requirements:
maintain a minimum annual expenditure on the Project of €250,000
complete a total expenditure of €5,000,000 within 5 years of commencing the Second EarnIn.
become the project operator
(together, the “Second Earn-in Expenditure”)

Corporate

Change in Status - public company limited by shares

At a General Meeting held on 8 February 2022, the Company’s shareholders approved the resolution to change the status of the Company from a proprietary company limited by shares to a public company limited by shares resulting in the Company’s name being altered from Nordic Nickel Pty Ltd to Nordic Nickel Limited effective from the date that ASIC alters the details of the Company’s registration.

Board Appointments

On the 15 March 2022 Mr Marcello Cardaci was appointed as the Non-Executive Chairman of the Company.

On the 25 March 2022 Mr Juho Haverinen was appointed as a Non-Executive Director of the Company.

On the 19 April 2022 Mr Todd Ross was appointed as the Managing Director and CEO of the Company. Mr Aaron Bertolatti resigned as a Non-Executive Director.

Convertible Note Proceeds

During the year, the Company received funds totalling $260,000 in relation to the issue of convertible notes with an issue price of $5,000 per note.

SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS

Nordic Nickel listed on the ASX on 1 June 2022 after successfully raising A$12.0m at $0.25 per share for its initial public offering.

There have been no other significant changes in the state of affairs of the Group during the financial year.

SIGNIFICANT EVENTS AFTER THE REPORTING DATE

Option Award

On 7 July 2022, the Company issued 250,000 unlisted options exercisable at $0.30 on or before 31 May 2026 and 250,000 unlisted options exercisable at $0.40 on or before 31 May 2026 to a Technical Consultant.

On 1 September 2022, the Company issued 200,000 unlisted options exercisable at $0.30 on or before 31 May 2026 and 200,000 unlisted options exercisable at $0.40 on or before 31 May 2026 to a Technical Consultant.

Nordic Nickel Ltd

2022 Annual Report

Directors’ Report

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No other matter or circumstance has arisen since 30 June 2022 that has significantly affected, or may significantly affect the consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial years.

ENVIRONMENTAL ISSUES

The operations of the Group are presently subject to environmental regulation under the laws of Australia and Finland. The Group is, to the best of its knowledge, at all times in full environmental compliance with the conditions of its licences.

LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS

The Directors have excluded from this report any further information on the likely developments in the operations of the Group and the expected results of those operations in future financial years, as the Directors believe that it would be speculative and prejudicial to the interests of the Group.

ENVIRONMENTAL REGULATIONS AND PERFORMANCE

The operations of the Group are presently subject to environmental regulation under the laws of both Australia. The Group is, to the best of its knowledge, at all times in full environmental compliance with the conditions of its licences.

SHARE OPTIONS

As at the date of this report there were 14,650,000 unissued ordinary shares under options. The details of the options are as follows:

Number	Exercise Price$	ExpiryDate
2,750,000	$0.20	31-May-26
1,000,000	$0.25	23-May-27
1,750,000	$0.30	23-May-27
2,000,000	$0.30	01-Jun-25
1,750,000	$0.35	23-May-27
2,000,000	$0.35	01-Jun-25
1,000,000	$0.375	23-May-27
1,500,000	$0.50	23-May-27
450,000	$0.30	31-May-26
450,000	$0.40	31-May-26
14,650,000

No option holder has any right under the options to participate in any other share issue of the Company or any other entity. No options lapsed or expired unexercised during the financial year. No options were exercised during the year ended 30 June 2022.

INDEMNIFICATION OF DIRECTORS AND OFFICERS

The Company has made an agreement indemnifying all the Directors and officers of the Company against all losses or liabilities incurred by each Director or officer in their capacity as Directors or officers of the Company to the extent permitted by the Corporations Act 2001. The indemnification specifically excludes wilful acts of negligence.

During the financial year, the company paid a premium in respect of a contract to insure the directors and executives of the Company against a liability to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits disclosure of the nature of the liability and the amount of the premium.

Nordic Nickel Ltd

2022 Annual Report

Directors’ Report

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INDEMNIFICATION OF THE AUDITOR

The Company has not, during or since the end of the financial year, indemnified or agreed to indemnify the auditor of the Company or any related entity against a liability incurred by the auditor. During the financial year, the Company has not paid a premium in respect of a contract to insure the auditor of the company or any related entity.

DIRECTORS’ MEETINGS

During the year, in addition to frequent Board discussions, the Directors met regularly to discuss all matters associated with the IPO strategy, status of the nickel projects in Finland, and other Company matters on an informal basis. Circular resolutions were passed as necessary to execute formal Board decisions.

Director	Number of Meetings Eligible to Attend	Number of Meetings Attended
Marcello Cardaci	-	-
Todd Ross	-	-
Robert Wrixon	-	-
Juho Haverinen	-	-
Aaron Bertolatti	-	-

PROCEEDINGS ON BEHALF OF COMPANY

No person has applied for leave of the Court to bring proceedings on behalf of the Company or intervene in any proceedings to which the Company is a party for the purpose of taking responsibility on behalf of the Company for all or any part of those proceedings. The Company was not a party to any such proceedings during the year.

CORPORATE GOVERNANCE

In recognising the need for the highest standards of corporate behaviour and accountability, the Directors of Nordic Nickel Limited support and adhere to the principles of sound corporate governance. The Board recognises the recommendations of the Australian Securities Exchange Corporate Governance Council, and considers that Nordic Nickel complies to the extent possible with those guidelines, which are of importance and add value to the commercial operation of an ASX listed resources company.

The Company has established a set of corporate governance policies and procedures and these can be found on the Company’s website: www.nordicnickel.com.

AUDITOR INDEPENDENCE AND NON-AUDIT SERVICES

Section 307C of the Corporations Act 2001 requires the Company’s auditors to provide the Directors of Nordic Nickel with an Independence Declaration in relation to the audit of the financial report. A copy of that declaration is included within the annual report.

Non-Audit Services

Details of amounts paid or payable to the auditor for non-audit services provided are outlined in note 12 to the financial statements. Non-audit services during the year included the preparation of an independent accountant’s report. The Directors are satisfied that the provision of non-audit services is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001. The value of non-audit services provided during the year was $16,050.

The Directors are of the opinion that the services do not compromise the auditor’s independence as all non-audit services have been reviewed to ensure that they do not impact the integrity and objectivity of the auditor and none of the services undermine the general principles relating to auditor independence as set out in Code of Conduct APES 110 Code of Ethics for Professional Accountants issued by the Accounting Professional & Ethical Standards Board.

Nordic Nickel Ltd

2022 Annual Report

Directors’ Report

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Officers of the Company who are Former Partners of BDO Audit (WA)

There are no officers of the company who are former partners of BDO Audit (WA) Pty Ltd

Auditor

BDO Audit (WA) Pty Ltd continues in office in accordance with section 327 of the Corporations Act 2001.

AUDITED REMUNERATION REPORT

This report, which forms part of the Directors’ report, outlines the remuneration arrangements in place for the key management personnel of Nordic Nickel Limited for the financial year ended 30 June 2022. The information provided in this remuneration report has been audited as required by Section 308(3C) of the Corporations Act 2001.

The remuneration report details the remuneration arrangements for KMP who are defined as those persons having authority and responsibility for planning, directing and controlling the major activities of the Group, directly or indirectly, including any Director (whether executive or otherwise) of the Group.

Details of Directors and Key Management Personnel

Marcello Cardaci (Non-Executive Chairman) – appointed 15 March 2022
Todd Ross (Managing Director and CEO) – appointed 19 April 2022
Robert Wrixon (Executive Director)
Juho Haverinen (Non-Executive Director) – appointed 25 March 2022
Aaron Bertolatti (Non-Executive Director) – resigned 19 April 2022

Remuneration Policy

The Board is responsible for determining and reviewing compensation arrangements for the Directors and Executive Officers. The Board assesses the appropriateness of the nature and amount of emoluments of such officers on a yearly basis by reference to relevant employment market conditions with the overall objective of ensuring maximum stakeholder benefit from the retention of a highquality board and executive team. The expected outcome of this remuneration structure is to retain and motivate Directors and Executive Officers.

As part of its Corporate Governance Policies and Procedures, the board has adopted a formal Remuneration Committee Charter and Remuneration Policy. The Board has elected not to establish a remuneration committee based on the size of the organisation and has instead agreed to meet as deemed necessary and allocate the appropriate time at its board meetings.

‑ Fees and payments to non executive directors reflect the demands which are made on, and the ‑ responsibilities of, the directors. Non executive directors’ fees and payments are reviewed annually by the Board. The Chair’s fees are determined independently to the fees of non ‑ executive directors based on comparative roles in the external market. Non ‑ executive directors do not receive performance-based pay.

Level	Cash Remuneration
Non-Executive Chairman	A$60,000
Managing Director and CEO	A$300,000
Executive Director	A$120,000
Non-Executive Director	A$36,000
Officers	Up to A$102,000

Additional fees

A Director may also be paid fees or other amounts as the Directors determine if a Director performs special duties or otherwise performs services outside the scope of the ordinary duties of a Director.

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2022 Annual Report

Directors’ Report

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A Director may also be reimbursed for out of pocket expenses incurred as a result of their directorship or any special duties.

Details of Remuneration

Details of the nature and amount of each element of the remuneration of each Director and Executive Officer of the Group for the year ended 30 June 2022 are as follows:

2022	Short term - Fixed	Short term - Fixed	Short term - Fixed	Options	Post- employment	Ttl	Option related

	Base Salary			Sh
		Directors	Consulting	are- based		oa
					Super
		Fees	Fees	Payments
	$	$	$	$	$	$	%
Directors
Todd Ross1	38,811	-	-	213,653	3,217	255,681	83.6
Robert Wrixon	-	-	120,000	63,769	-	183,769	34.7
Marcello Cardaci2	-	15,000	-	8,138		23,138	35.2
Juho Haverinen3	-	9,000	-	5,425	-	14,425	37.6
Officer
Aaron Bertolatti	-	-	58,500	31,884	-	90,384	35.3%
	38,811	24,000	178,500	322,869	3,217	567,397	56.9%

1 Todd Ross was appointed as a director on 19 April 2022

2 Marcello Cardaci was appointed as a director on 15 March 2022

3 Juho Haverinen was appointed as a director on 25 March 2022

There were no other Executive Officers of the Company during the financial year ended 30 June 2022.

Details of the nature and amount of each element of the remuneration of each Director and Executive Officer for the year ended 30 June 2021 are as follows:

2021	Short term -	Short term -	Fixed	Options	Post- employment	Ttl	Option related

	Base Salary			Sh
		Directors	Consulting	are- based		oa
					Super
		Fees	Fees	Payments
	$	$	$	$	$	$	%
Directors
Robert Wrixon	-	-	10,000	-	5,758	15,758	36.5
Officer
Aaron Bertolatti	-	-	5,000	-	2,879	7,879	36.5
	-	-	15,000	-	8,637	23,637	36.5

1 Robert Wrixon was appointed as a director on 27 January 2021

1 Aaron Bertolatti was appointed as a director on 27 January 2021

There were no other Executive Officers of the Company during the financial year ended 30 June 2021.

Nordic Nickel Ltd

2022 Annual Report

Directors’ Report

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Shareholdings of Key Management Personnel

The number of shares in the Company held during the financial year by Directors and Executive Officers of the Group, including their personally related parties, is set out below. There were no shares granted during the reporting year as compensation.

	Balance at the start of the year	Granted during the year as compensation	On exercise of share options	Other changes during the year	Balance at the end of the year
Directors
Todd Ross1	-	-	-	2,300,000	2,300,000
Robert Wrixon	10,022,501	-	-	1,666,667	11,689,168
Marcello Cardaci2	-	-	-	-	-
Juho Haverinen3	-	-	-	675,000	675,000
Officers
Aaron Bertolatti	500,000	-	-	273,513	773,513

1 Todd Ross was appointed as a director on 19 April 2022
2 Marcello Cardaci was appointed as a director on 15 March 2022
3 Juho Haverinen was appointed as a director on 25 March 2022

All equity transactions with Directors other than those arising from the exercise of remuneration options have been entered into under terms and conditions no more favourable than those the Company would have adopted if dealing at arm’s length.

Option holdings of Key Management Personnel

The numbers of options over ordinary shares in the Company held during the financial year by each Director and Executive Officer of Nordic Nickel Limited, including their personally related parties, are set out below:

		Balance at	Granted		Other
		the start	during the	Exercised	changes	Balance
		of the	year as	during	during	at the end		Un-
		year	compensation	the year	the year	of the year	Exercisable	exercisable
Directors
Todd Ross1		-	3,500,000	-	-	3,500,000	1,000,000	2,500,0004
Robert Wrixon		1,000,000	500,000	-	-	1,500,000	1,000,000	500,0005
Marcello Cardaci2		-	750,000	-	-	750,000	-	750,0005
Juho Haverinen3		-	500,000	-	-	500,000	-	500,0005
Officers
Aaron Bertol	atti	500,000	250,000	-	-	750,000	500,000	250,0005

1 Todd Ross was appointed as a director on 19 April 2022 2 Marcello Cardaci was appointed as a director on 15 March 2022 3 Juho Haverinen was appointed as a director on 25 March 2022

4 1,000,000 options vest on the date that is 12 months from the listing date (1 June 2023) and 1,500,000 options vest on the date that is 24 months from the listing date (1 June 2024).
5 50% vest on the date that is 12 months from the listing date (1 June 2023) and 50% vest on the date that is 24 months from the listing date (1 June 2024).

The model inputs, not included in the table above, for options granted during the period ended 30 June 2022 included:

a) options issue price was nil;
b) expected lives of the options was 5 years; c) share price at grant date was $0.25;
d) expected volatility of 100%;
e) expected dividend yield of nil; and f) a risk-free interest rate of 3.5%.

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2022 Annual Report

Directors’ Report

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No option holder has any right under the options to participate in any other share issue of the Company or any other entity. Options granted as part of remuneration have been valued using the Black Scholes option pricing model that takes into account the exercise price, the term of the option, the impact of dilution, the share price at grant date and expected price volatility of the underlying share and the risk-free interest rate for the term of the option. Options granted under the plan carry no dividend or voting rights. For details on the valuation of options, including models and assumptions used, please refer to note 18.

Options Affecting Remuneration

The terms and conditions of options affecting remuneration in the current or future reporting years are as follows:

	Grant date	Number of options granted	Expiry date/last exercise date	Exercise price per option	Value of options at grant date1	Number of options vested	Vested	Max value yet to vest
				$	$		%	$
Directors
Todd Ross	01/06/22	1,000,000	23/05/27	0.25	189,769	1,000,000	100	-
	01/06/22	1,000,000	23/05/27	0.375	176,325	-	8	162,3152
	01/06/22	1,500,000	23/05/27	0.50	248,922	-	4	239,0473
Robert Wrixon	01/06/21	1,000,000	31/05/26	0.20	64,101	1,000,000	100	-
	01/06/22	250,000	23/05/27	0.30	45,977	-	8	42,3242
	01/06/22	250,000	23/05/27	0.35	44,679	-	4	42,9063
Marcello Cardaci	01/06/22	375,000	23/05/27	0.30	68,965	-	8	63,4862
	01/06/22	375,000	23/05/27	0.35	67,018	-	4	64,3593
Juho Haverinen	01/06/22	250,000	23/05/27	0.30	45,977	-	8	42,3242
	01/06/22	250,000	23/05/27	0.35	44,679	-	4	42,9063
Officers
Aaron Bertolatti	01/06/21	500,000	31/05/26	0.20	32,050	500,000	100	-
	01/06/22	125,000	23/05/27	0.30	22,988	-	8	21,1622
	01/06/22	125,000	23/05/27	0.35	22,339	-	4	21,4533
		7,000,000			1,073,789	2,500,000		742,282

1 The value at grant date has been calculated in accordance with AASB 2 Share-based payments.

2 Options vest on the date that is 12 months from the listing date (1 June 2023).

3 Options vest on the date that is 24 months from the listing date (1 June 2024).

Service Agreements

Managing Director and CEO

Todd Ross has entered into an employment contract dated 1 April 2022. Under the contract Mr. Ross is to receive an annual Base Salary of A$300,000 inclusive of superannuation. The Contract may be terminated by the Company without notice or without cause by giving three months’ notice in writing and must pay Mr. Ross an amount equal to three months' remuneration. The Agreement may also be terminated by Mr. Ross by providing three months’ notice in writing.

Executive Directors

Robert Wrixon is engaged under an Executive Employment Contract dated 1 April 2022. Under the contract Mr. Wrixon is to receive an annual Base Salary of A$120,000. The Contract may be terminated by the Company without notice or without cause by giving three months’ notice in writing and must pay Mr Wrixon an amount equal to twelve months' remuneration. The Agreement may also be terminated by Mr. Wrixon by providing three months’ notice in writing.

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2022 Annual Report

Directors’ Report

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Executive Officers

Aaron Bertolatti is engaged under a Consulting Agreement dated 1 June 2021. Under the agreement Mr. Bertolatti was to receive a fee of A$5,000 per month from the commencement date, up until the date that Nordic Nickel successfully lists on the ASX. Following admission to the ASX, he will receive A$8,500 per month for the remainder of the engagement. The Agreement may be terminated by the Company without notice or without cause by giving three months’ notice in writing or payment in lieu of notice. The Agreement may also be terminated by Mr. Bertolatti by providing three months’ notice in writing.

Non-Executive Directors

On appointment to the Board, all non-executive directors enter into a service agreement with the Group in the form of a letter of appointment. The letter summarises the Board policies and terms, including compensation, relevant to the Director. The aggregate remuneration for Non-Executive Directors has been set at an amount not to exceed $250,000 per annum. This amount may only be increased with the approval of Shareholders at a general meeting.

Loans to Directors and Executives

There were no loans to Directors and key management personnel during the financial year ended 30 June 2022.

Additional Information

The earnings of the Group for the five years to 30 June 2022 are summarised below:

	2022	2021*
Revenue	-	-
Loss after income tax	$1,643,380	$122,684

The factors that are considered to affect total shareholders return ('TSR') are summarised below:

	2022	2021*
Share price at financial year end ($)	$0.24	$0.10
Total dividends declared (cents per share)	-	-
Basic earnings per share (cents per share)	(2.68)	(0.30)

Nordic Nickel was incorporated in Australia on 27 January 2021 and commenced trading on the Australian Securities Exchange on 1 June 2022.

END OF AUDITED REMUNERATION REPORT

Signed on behalf of the Board in accordance with a resolution of the Directors.

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Marcello Cardaci

Non-Executive Chairman

Perth, Western Australia 14 September 2022

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2022 Annual Report

Nordic Nickel Ltd

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Consolidated Statement of Profit or Loss and Other Comprehensive Income

for the year ended 30 June 2022

Note	30-Jun-22 27-Jan-21 to 30-Jun-21
	$ $
Continuing Operations Expenses Professional and consulting fees Director and employee costs Other expenses Share-based payments expense 18 Travel and accommodation Loss before income tax Income tax expense 3 Net loss for the year/period Other comprehensive income Items that may be reclassified to profit and loss Exchange differences on translation of foreign operations Other comprehensive income for the year/period, net of tax Total comprehensive loss for the year/period Loss per share Loss per share (cents) 15	(785,810) (80,951) (249,505) (21,912) (123,913) (3,566) (443,324) (15,833) (40,828) -
	(1,643,380) (122,262) - -
	(1,643,380) (122,262) (5,953) (422)
	(5,953) (422)
	(1,649,333) (122,684)
	(2.68) (0.30)

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

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2022 Annual Report

Nordic Nickel Ltd

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Consolidated Statement of Financial Position as at 30 June 2022

Note	30-Jun-22 30-Jun-21
	$ $
Current Assets Cash and cash equivalents 4 Receivables 5 Total Current Assets Non-Current Assets Deferred exploration and evaluation expenditure 6 Total Non-Current Assets Total Assets Current Liabilities Trade and other payables 7 Borrowings 8 Total Current Liabilities Total Liabilities Net Assets Equity Issued capital 9 Reserves 10 Accumulated losses 11 Total Equity	10,749,842 850,215 160,091 264,251
	10,909,933 1,114,466
	1,180,468 735,487
	1,180,468 735,487
	12,090,401 1,849,953
	73,939 104,653 - 31,650
	73,939 136,303
	73,939 136,303

	12,016,462 1,713,650
	12,778,351 5,501 1,003,753 1,830,411 (1,765,642) (122,262)
	12,016,462 1,713,650

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

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2022 Annual Report

Nordic Nickel Ltd

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Consolidated Statement of Changes in Equity

for the year ended 30 June 2022

	Issued capital $ Accumulated losses $ Foreign exchange translation reserve $ Convertible note reserve $	Share option reserve $	Total $
Balance at 27 January 2021 Total comprehensive loss for the period Loss for the period Foreign currency translation Total comprehensive loss for the period Transactions with owners in their capacity as owners Shares issued during the period Proceeds from issue of convertible note Share-based payments (note 18) Balance at 30 June 2021 Balance at 1 July 2021 Total comprehensive loss for the year Loss for the year Foreign currency translation Total comprehensive loss for the year Transactions with owners in their capacity as owners Shares issued during the year Costs of issue Share-based payments (note 18) Balance at 30 June 2022	- - - -	-	-
	- (122,262) - - - - (422) -	- -
			(122,262)
			(422)
	- (122,262) (422) -	-	(122,684)
	5,501 - - - - - - 1,815,000 - - - -	- - 15,833
			5,501
			1,815,000
			15,833
	5,501 (122,262) (422) 1,815,000	15,833	1,713,650

	5,501 (122,262) (422) 1,815,000	15,833	1,713,650
	- (1,643,380) - - - - (5,953) -	- -
			(1,643,380)
			(5,953)
	-(1,643,380) (5,953) -	-	(1,649,333)
	13,846,250 - - (1,815,000) (1,073,400) - - - - - - -	- - 994,295
			12,031,250
			(1,073,400)
			994,295
	12,778,351 (1,765,642) (6,375) -	1,010,128	12,016,462

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

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2022 Annual Report

Nordic Nickel Ltd

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Consolidated Statement of Cash Flows

for the year ended 30 June 2022

Note	30-Jun-22 27-Jan-21 to 30-Jun- 21
	$ $
Cash flows from operating activities Payments to suppliers and employees Payments for ASX listing costs Net cash used in operating activities 4 Cash flows from investing activities Payments for exploration expenditure Proceeds from acquisition of Pulju Exploration Oy Net cash used in investing activities Cash flows from financing activities Proceeds from issue of shares Proceeds from issue of convertible note Payments for share issue costs Proceeds from short term borrowings Repayment of short term borrowings Net cash provided by financing activities Net increase in cash and cash equivalents Cash and cash equivalents at the beginning of the year/period Cash and cash equivalents at the end of the year/period 4
	(800,267) (26,322)
	(596,173) -
	(1,396,440) (26,322)


	(452,283) (721,106)
	- 9,992
	(452,283) (711,114)


	12,000,000 1,001
	260,000 1,555,000
	(480,000) -
	- 31,650
	(31,650) -
	11,748,350 1,587,651

	9,899,627 850,215
	850,215 -
	10,749,842 850,215

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

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2022 Annual Report

Nordic Nickel Ltd

Notes to the Consolidated Financial Statements for the year ended 30 June 2022

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1. Corporate Information

The financial report of Nordic Nickel Ltd (“Nordic Nickel” or “the Company”) for the year ended 30 June 2022 was authorised for issue in accordance with a resolution of the Directors on 14 September 2022. Nordic Nickel is a company limited by shares incorporated in Australia whose shares commenced public trading on the Australian Securities Exchange on 1 June 2022. The nature of the operations and the principal activities of the Company are described in the Directors’ Report.

2. Summary of Significant Accounting Policies (a) Basis of Preparation

The financial statements are general-purpose financial statements, which have been prepared in accordance with the requirements of the Corporations Act 2001, Australian Accounting Standards and other authoritative pronouncements of the Australian Accounting Standards Board. The financial statements have also been prepared on a historical cost basis. The presentation currency is Australian dollars. The company is of a kind referred to in Corporations Instruments 2016/191, issued by the Australian Securities and Investment Commission, relating to ‘rounding-off’. Amounts in this report have been rounded off in accordance with that Corporations Instrument to the nearest dollar.

(b) Compliance Statement

The financial report complies with Australian Accounting Standards, which include Australian equivalents to International Financial Reporting Standards (AIFRS). Compliance with AIFRS ensures that the financial report, comprising the financial statements and notes thereto, complies with International Financial Reporting Standards (IFRS).

(c) Basis of Consolidation

The consolidated financial statements comprise the financial statements of Nordic Nickel (‘the Company’) and its subsidiary (‘the Group’). Subsidiaries are those entities over which the Company has the power to govern the financial and operating policies so as to obtain benefits from their activities. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether a Company controls another entity.

In preparing the consolidated financial statements, all intercompany balances and transactions, income and expenses and profit and losses resulting from intra-company transactions have been eliminated in full. Unrealised losses are also eliminated unless costs cannot be recovered. Noncontrolling interests in the results and equity of subsidiaries are shown separately in the Statement of Profit or Loss and Other Comprehensive Income and Consolidated Statement of Financial Position respectively.

(d) Foreign Currency Translation

(i) Functional and presentation currency

Items included in the financial statements of each of the Company’s controlled entities are measured using the currency of the primary economic environment in which the entity operates (‘the functional currency’). The functional and presentation currency of Nordic Nickel is Australian dollars. The functional currency of the Finland subsidiary is the Euro.

(ii) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the statement of profit or loss and other comprehensive income.

(iii) Group entities

The results and financial position of all the Group entities (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

assets and liabilities for each statement of financial position presented are translated at the closing rate at the date of that statement of financial position;

21 2022 Annual Report

Nordic Nickel Ltd

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Nordic Nickel Ltd

Notes to the Consolidated Financial Statements for the year ended 30 June 2022

income and expenses for each statement of profit or loss and other comprehensive income are translated at average exchange rates (unless this is not a reasonable approximation of the rates prevailing on the transaction dates, in which case income and expenses are translated at the dates of the transactions); and
all resulting exchange differences are recognised as a separate component of equity.

On consolidation, exchange differences arising from the translation of any net investment in foreign entities are taken to shareholders’ equity. When a foreign operation is sold or any borrowings forming part of the net investment are repaid, a proportionate share of such exchange differences are recognised in the statement of profit or loss and other comprehensive income, as part of the gain or loss on sale where applicable.

(e) Segment Reporting

For management purposes, the Company is organised into one main operating segment, which involves nickel exploration. All of the Company’s activities are interrelated, and discrete financial information is reported to the management (Chief Operating Decision Makers) as a single segment. Accordingly, all significant operating decisions are based upon analysis of the Company as one segment. The financial results from this segment are equivalent to the financial statements of the Company as a whole.

(f) Changes in accounting policies and disclosures

The Directors have reviewed all of the new and revised Standards and Interpretations issued by the AASB that are relevant to the Company’s operations and effective for future reporting periods. It has been determined by the Directors that there is no impact, material or otherwise, of the new and revised Standards and Interpretations on the Company and therefore, no change will be necessary to Company accounting policies.

(g) Exploration and evaluation expenditure

Exploration and evaluation expenditures in relation to each separate area of interest are recognised as an exploration and evaluation asset in the year in which they are incurred where the following conditions are satisfied:

(i) the rights to tenure of the area of interest are current; and
(ii) at least one of the following conditions is also met:
(a) the exploration and evaluation expenditures are expected to be recouped through successful development and exploration of the area of interest, or alternatively, by its sale; or
(b) exploration and evaluation activities in the area of interest have not at the balance date reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable reserves, and active and significant operations in, or in relation to, the area of interest are continuing.

Exploration and evaluation assets are initially measured at cost and include acquisition of rights to explore, studies, exploratory drilling, trenching and sampling and associated activities and an allocation of depreciation and amortisation of assets used in exploration and evaluation activities. General and administrative costs are only included in the measurement of exploration and evaluation costs where they are related directly to operational activities in a particular area of interest.

Exploration and evaluation assets are assessed for impairment when facts and circumstances suggest that the carrying amount of an exploration and evaluation asset may exceed its recoverable amount. The recoverable amount of the exploration and evaluation asset (for the cash generating unit(s) to which it has been allocated being no larger than the relevant area of interest) is estimated to determine the extent of the impairment loss (if any).

Nordic Nickel Ltd

2022 Annual Report

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Nordic Nickel Ltd

Notes to the Consolidated Financial Statements for the year ended 30 June 2022

Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but only to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in previous years.

Where a decision has been made to proceed with development in respect of a particular area of interest, the relevant exploration and evaluation asset is tested for impairment and the balance is then reclassified to development. Where an area of interest is abandoned, any expenditure carried forward in respect of that area is written off.

(h) Income Tax

The income tax expense or benefit for the year is the tax payable on the current year’s taxable income based on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary difference and to unused tax losses.

The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting year. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.

Current tax assets and liabilities for the current and prior years are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the balance date. Deferred income tax is provided on all temporary differences at the balance date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.

Deferred income tax liabilities are recognised for all taxable temporary differences except when:

the deferred income tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination and that, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; or
the taxable temporary difference is associated with investments in subsidiaries, associates or interests in joint ventures, and the timing of the reversal of the temporary difference can be controlled and it is probable that the temporary difference will not reverse in the foreseeable future.

Deferred income tax assets are recognised for all deductible temporary differences, carry-forward of unused tax assets and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and the carry-forward of unused tax credits and unused tax losses can be utilised, except when:

the deferred income tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; or
the deductible temporary difference is associated with investments in subsidiaries, associates or interests in joint ventures, in which case a deferred tax asset is only recognised to the extent that it is probable that the temporary difference will reverse in the foreseeable future and taxable profit will be available against which the temporary difference can be recognised.

The carrying amount of deferred income tax assets is reviewed at each balance date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be recognised.

Nordic Nickel Ltd

2022 Annual Report

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Nordic Nickel Ltd

Notes to the Consolidated Financial Statements for the year ended 30 June 2022

Unrecognised deferred income tax assets are reassessed at each balance date and are recognised to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered. Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset is recognised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the balance date.

Income taxes relating to items recognised directly in equity are recognised in equity and not in profit or loss.

Deferred tax assets and deferred tax liabilities are offset only if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred tax assets and liabilities relate to the same taxable entity and the same taxation authority.

(i) Other taxes

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Government. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the statement of financial position are shown inclusive of GST.

The net amount of GST recoverable from, or payable to, the Government is included as part of receivables or payables in the statement of financial position. Cash flows are presented in the statement of cash flows on a gross basis, except for the GST component of investing and financing activities, which is receivable from or payable to the Government, are disclosed as operating cash flows.

(j) Impairment of non-financial assets other than goodwill

The Company assesses at each balance date whether there is an indication that an asset may be impaired. If any such indication exists, or when annual impairment testing for an asset is required, the Company makes an estimate of the asset’s recoverable amount.

An asset’s recoverable amount is the higher of its fair value less costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or Company of assets and the asset’s value in use cannot be estimated to be close to its fair value. In such cases the asset is tested for impairment as part of the cash-generating unit to which it belongs. When the carrying amount of an asset or cash-generating unit exceeds its recoverable amount, the asset or cash-generating unit is considered impaired and is written down to its recoverable amount.

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Impairment losses relating to continuing operations are recognised in those expense categories consistent with the function of the impaired asset unless the asset is carried at revalued amount (in which case the impairment loss is treated as a revaluation decrease).

An assessment is also made at each balance date as to whether there is any indication that previously recognised impairment losses may no longer exist or may have decreased. If such indication exists, the recoverable amount is estimated. A previously recognised impairment loss is reversed only if there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognised. If that is the case the carrying amount of the asset is increased to its recoverable amount. That increased amount cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years.

Such reversal is recognised in profit or loss unless the asset is carried at revalued amount, in which case the reversal is treated as a revaluation increase. After such a reversal the depreciation charge is adjusted in future years to allocate the asset’s revised carrying amount, less any residual value, on a systematic basis over its remaining useful life.

Nordic Nickel Ltd

2022 Annual Report

Notes to the Consolidated Financial Statements for the year ended 30 June 2022

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Nordic Nickel Ltd

(k) Cash and cash equivalents

Cash comprises cash at bank and in hand. Cash equivalents are short term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Bank overdrafts are shown within borrowings in current liabilities in the statement of financial position. For the purposes of the statement of cash flows, cash and cash equivalents consist of cash and cash equivalents as defined above, net of outstanding bank overdrafts.

(l) Other receivables Other receivables are recognised at amortised cost, less any allowance for expected credit losses.

(m) Financial Instruments

Recognition, initial measurement and derecognition

Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of the financial instrument. Financial instruments (except for trade receivables) are measured initially at fair value adjusted by transactions costs, except for those carried “at fair value through profit or loss”, in which case transaction costs are expensed to profit or loss. Where available, quoted prices in an active market are used to determine the fair value. In other circumstances, valuation techniques are adopted. Subsequent measurement of financial assets and financial liabilities are described below.

Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire, or when the financial asset and all substantial risks and rewards are transferred. A financial liability is derecognised when it is extinguished, discharged, cancelled or expires.

Financial assets

Except for those trade receivables that do not contain a significant financing component and are measured at the transaction price in accordance with AASB 15, all financial assets are initially measured at fair value adjusted for transaction costs (where applicable).

For the purpose of subsequent measurement, financial assets other than those designated and effective as hedging instruments, are classified into the following categories upon initial recognition: ▪ amortised cost;
fair value through other comprehensive income (FVOCI); and
fair value through profit or loss (FVPL).

Classifications are determined by both:

the contractual cash flow characteristics of the financial assets; and
the entities business model for managing the financial asset.

Financial assets at amortised cost

Financial assets are measured at amortised cost if the assets meet the following conditions (and are not designated as FVPL):

they are held within a business model whose objective is to hold the financial assets and collect its contractual cash flows; and
the contractual terms of the financial assets give rise to cash flows that are solely payments of principal and interest on the principal amount outstanding.

After initial recognition, these are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial. The Group’s cash and cash equivalents, trade and most other receivables fall into this category of financial instruments.

Financial liabilities

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.

Nordic Nickel Ltd

2022 Annual Report

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Nordic Nickel Ltd

Notes to the Consolidated Financial Statements for the year ended 30 June 2022

Financial liabilities are initially measured at fair value, and, where applicable, adjusted for transaction costs unless the Group designated a financial liability at fair value through profit or loss. Subsequently, financial liabilities are measured at amortised cost using the effective interest method except for derivatives and financial liabilities designated at FVPL, which are carried subsequently at fair value with gains or losses recognised in profit or loss. All interest-related charges and, if applicable, gains and losses arising on changes in fair value that are recognised in profit or loss.

(n) Impairment

The Group assesses on a forward-looking basis the expected credit losses associated with its debt instruments carried at amortised cost and FVOCI. The impairment methodology applied depends on whether there has been a significant increase in credit risk.

(o) Trade and other payables

These amounts represent liabilities for goods and services provided to the consolidated entity prior to the end of the financial year and which are unpaid. Due to their short-term nature they are measured at amortised cost and are not discounted. The amounts are unsecured and are usually paid within 30 days of recognition.

(p) Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not recognised for future operating losses.

When the Company expects some or all of a provision to be reimbursed, for example under an insurance contract, the reimbursement is recognised as a separate asset but only when the reimbursement is virtually certain. The expense relating to any provision is presented in the statement of comprehensive income net of any reimbursement.

Provisions are measured at the present value or management’s best estimate of the expenditure required to settle the present obligation at the end of the reporting year. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as an interest expense.

(q) Issued capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds. Incremental costs directly attributable to the issue of new shares or options for the acquisition of a new business are not included in the cost of acquisition as part of the purchase consideration.

(r) Current and Non-Current Classification Assets and liabilities are presented in the statement of financial position based on current and noncurrent classification. An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the Group's normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within 12 months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current.

A liability is classified as current when: it is either expected to be settled in the Group's normal operating cycle; it is held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities are classified as non-current.

Nordic Nickel Ltd

2022 Annual Report

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Nordic Nickel Ltd

Notes to the Consolidated Financial Statements for the year ended 30 June 2022

(s) Other Income Interest income

Interest income is recognised on a time proportionate basis that takes into account the effective yield on the financial asset.

(t) Earnings per share

Basic earnings/loss per share is calculated as net profit/loss attributable to members, adjusted to exclude any costs of servicing equity (other than dividends) and preference share dividends, divided by the weighted average number of ordinary shares, adjusted for any bonus element.

Diluted earnings per share is calculated as net profit/loss attributable to members, adjusted for:

costs of servicing equity (other than dividends) and preference share dividends;
the after-tax effect of dividends and interest associated with dilutive potential ordinary shares that have been recognised as expenses; and
other non-discretionary changes in revenues or expenses during the year that would result from the dilution of potential ordinary shares;

divided by the weighted average number of ordinary shares and dilutive potential ordinary shares, adjusted for any bonus element.

(u) Share-based payment transactions

(i) Equity settled transactions:

The Company provides benefits to individuals acting as employees, and providing services similar to employees (including Directors) of the Company in the form of share-based payment transactions, whereby individuals render services in exchange for shares or rights over shares (‘equity settled transactions’).

The cost of these equity settled transactions with employees is measured by reference to the fair value at the date at which they are granted. The fair value is determined by using the Black Scholes formula. The cost of the equity settled transactions is recognised, together with a corresponding increase in equity, over the period in which the performance conditions are fulfilled, ending on the date on which the relevant employees become fully entitled to the award (‘vesting date’).

The cumulative expense recognised for equity settled transactions at each reporting date until vesting date reflects (i) the extent to which the vesting period has expired and (ii) the number of awards that, in the opinion of the Directors of the Company, will ultimately vest. This opinion is formed based on the best available information at balance date.

No adjustment is made for the likelihood of the market performance conditions being met as the effect of these conditions is included in the determination of fair value at grant date. The statement of comprehensive income charge or credit for a year represents the movement in cumulative expense recognised at the beginning and end of the year. No expense is recognised for awards that do not ultimately vest, except for awards where vesting is conditional upon a market condition. Where the terms of an equity settled award are modified, as a minimum an expense is recognised as if the terms had not been modified. In addition, an expense is recognised for any increase in the value of the transaction as a result of the modification, as measured at the date of the modification.

Where an equity settled award is cancelled, it is treated as if it had vested on the date of the cancellation, and any expense not yet recognised for the award is recognised immediately. However if a new award is substituted for the cancelled award, and designated as a replacement award on the date that it is granted, the cancelled and new award are treated as if they were a modification of the original award, as described in the previous paragraph.

The cost of equity-settled transactions with non-employees is measured by reference to the fair value of goods and services received unless this cannot be measured reliably, in which case the cost is measured by reference to the fair value of the equity instruments granted. The dilutive effect, if any, of outstanding options is reflected in the computation of loss per share.

Nordic Nickel Ltd

2022 Annual Report

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Nordic Nickel Ltd

Notes to the Consolidated Financial Statements for the year ended 30 June 2022

(v) Critical accounting estimates and judgements The application of accounting policies requires the use of judgements, estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant.

Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions are recognised in the year in which the estimate is revised if it affects only that year, or in the year of the revision and future years if the revision affects both current and future years.

Share-based payment transactions:

The Company measures the cost of equity-settled transactions with employees and third parties by reference to the fair value of the equity instruments at the date at which they are granted. The fair value at the grant date is determined using the Black and Scholes option pricing model taking into account the terms and conditions upon which the instruments were granted. During the period the group issued performance options with non-market based vesting conditions. As such management have used significant judgement in assessing the probability of the performance criteria being met.

Deferred Exploration and evaluation Expenditure

Exploration and evaluation expenditure includes prepaid project acquisition costs that have been capitalised on the basis that the Company will complete the acquisition of mineral licenses / leases where it has entered into a binding share purchase agreement. Key judgements are applied in considering costs to be capitalised which includes determining expenditures directly related to these activities and allocating overheads between those that are expensed and capitalised.

In addition, costs are only capitalised that are expected to be recovered through satisfaction of all conditions precedent to proceed with the acquisition. To the extent that capitalised costs are determined not to be recoverable in the future should the acquisition not proceed, they will be written off in the period in which this determination is made.

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

period. Any new, revised or amending Accounting Standards mandatory have not been early adopted.	or Interpretations that are not yet
3. Income Tax (a) Income tax expense Major component of tax expense for the year: Current tax Deferred tax	30-Jun-2022 27-Jan-21 to
	$ 30-Jun-21


	- -
	- -
	- -

Nordic Nickel Ltd

2022 Annual Report

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Nordic Nickel Ltd

Notes to the Consolidated Financial Statements for the year ended 30 June 2022

		30-Jun-2022	27-Jan-21 to
		$	30-Jun-21
	(b) Numerical reconciliation between aggregate tax
	expense recognised in the statement of profit or loss and
	other comprehensive income and tax expense calculated
	per the statutory income tax rate.
	A reconciliation between tax expense and the product of
	accounting loss before income tax multiplied by the Company’s
	applicable tax rate is as follows:
	Loss from continuing operations before income tax expense	(1,643,380)	(122,262)
	Tax at the Australian rate of 30% (2021:30%)	(493,014)	(36,679)
	Share-based payments	132,997	4,750
	Share issue costs	(23,577)	-
	Non-deductible legal expenses	55,598	7,816
	Income tax benefit not brought to account	327,996	24,113
	Income tax expense	-	-
	(c) Deferred tax
	The following deferred tax balances have not been bought to
	account:
	Assets
	Losses available to offset against future taxable income	345,882	19,583
	Unrealised foreign exchange	227	30
	Accrued expenses	6,000	4,500
	Share issue costs	94,306	-
	Net deferred tax asset not recognised	446,415	24,113
		30-Jun-2022	30-Jun-21
		$	$
4.	Cash and cash equivalents
	Reconciliation of cash
	Cash comprises of:
	Cash at bank	10,749,842	850,215
	Reconciliation of operating loss after tax to net cash
	flow from operations
	Loss after tax	(1,643,380)	(122,262)
	Non-cash items
	Share based payments	443,325	15,833
	Change in assets and liabilities
	(Increase)/decrease in trade, other receivables and other		(4,251)
	assets	(167,020)
	Increase/(decrease) in trade and other payables	(29,365)	84,358
	Net cash flow used in operating activities	(1,396,440)	(26,322)
	Non-cash financing and investing activities
	Share based payments	565,324	-
		565,324	-
5.	Receivables - Current
	GST receivable	112,400	3,282
	Other receivables	4,000	260,0001
	Prepayments	43,691	969
		160,091	264,251

1 On 4 June 2021, the Company issued 363 convertible notes with an issue price of $5,000 per note for a total of $1,815,000. $260,000 was still outstanding at 30 June 2021 and subsequently received during the financial year ended 30 June 2022.

Nordic Nickel Ltd 29 2022 Annual Report

Nordic Nickel Ltd Notes to the Consolidated Financial Statements for the year ended 30 June 2022

Debtors, other debtors and GST receivable are non-interest bearing and generally receivable on 30day terms. They are neither past due nor impaired. The amount is fully collectible. Due to the shortterm nature of these receivables, their carrying value is assumed to approximate their fair value.

	30-Jun-2022 30-Jun-21
	$ $
Deferred Exploration and Evaluation Expenditure *Exploration and Evaluation phase - at cost* Opening balance Acquisition of exploration tenements1 Exploration and evaluation expenditure incurred during the year/period Closing balance	735,487 - - 7,121 444,981 728,366
	1,180,468 735,487

6. Deferred Exploration and Evaluation Expenditure

1 On 4 March 2021, Nordic Nickel entered into a Share Purchase Agreement (SPA) with Pulju Exploration Oy (PEO), which held the contractual rights to one granted exploration licence and four exploration licence applications. Pursuant to the SPA, Nordic Nickel purchased 100% of the shares in PEO in consideration for 45,000,000 shares in the capital of Nordic Nickel.

The ultimate recoupment of costs carried forward for exploration expenditure is dependent on the successful development and commercial exploitation or sale of the respective mining areas.

7. Trade and other payables

Trade payables Accruals Other payables	23,579 50,398 32,301 54,255 18,059 -
	73,939 104,653

Trade creditors and other creditors are non-interest bearing and generally payable on 30-day terms. Due to the short-term nature of these payables, their carrying value is assumed to approximate their fair value.

8. Borrowings - current

Borrowings - current
Unsecured, non-interest bearing short-term loans Issued capital (a) Issued and paid up capital Issued and fully paid	- 31,650
	12,778,351 5,501

9. Issued capital

(b) Movements in ordinary shares on issue

	2022 2021
	Number of shares $ Number of shares $
Opening balance Issue of shares - incorporation shares Issue of shares - founder shares Shares issued as consideration for acquisition1 Issue of referrer shares2 Convertible note conversion Issue of shares - IPO ($0.25) Transaction costs on share issue Closing balance	55,000,001 5,501 - - - - 1 1 - - 10,000,000 1,000 - - 45,000,000 4,500 125,000 31,250 - - 12,100,005 1,815,000 - - 48,000,000 12,000,000 - - - (1,073,400) - -
	115,225,006 12,778,351 55,000,001 5,501

Nordic Nickel Ltd

2022 Annual Report

Notes to the Consolidated Financial Statements for the year ended 30 June 2022

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Nordic Nickel Ltd

1 45,000,000 fully paid ordinary shares were issued to Pulju Exploration Oy as consideration for the acquisition of the Finland exploration licenses and applications. The deemed issue price was $0.0001 per share (refer note 6).

2125,000 shares were issued as a referral fee for the introduction of the Company’s Managing Director and CEO. The deemed issue price was $0.25 per share.

(c) Ordinary shares

The Company does not have authorised capital nor par value in respect of its issued capital. Ordinary shares have the right to receive dividends as declared and, in the event of a winding up of the Company, to participate in the proceeds from sale of all surplus assets in proportion to the number of and amounts paid up on shares held. Ordinary shares entitle their holder to one vote, either in person or proxy, at a meeting of the Company.

(d) Capital risk management

The Company’s capital comprises share capital, reserves less accumulated losses amounting to a net equity of $12,016,462 at 30 June 2022. The Company manages its capital to ensure its ability to continue as a going concern and to optimise returns to its shareholders.

The Company was ungeared at year end and not subject to any externally imposed capital requirements. Refer to note 20 for further information on the Company’s financial risk management policies.

(e) Share options

As at 30 June 2022 there were 13,750,000 unissued ordinary shares under options. The details of the options are as follows:

Number	Exercise Price$	ExpiryDate
2,750,000	$0.20	31-May-26
1,000,000	$0.25	23-May-27
1,750,000	$0.30	23-May-27
2,000,000	$0.30	01-Jun-25
1,750,000	$0.35	23-May-27
2,000,000	$0.35	01-Jun-25
1,000,000	$0.375	23-May-27
1,500,000	$0.50	23-May-27
13,750,000

10. Reserves Share option reserve Foreign exchange translation reserve Convertible note reserve Movements in Reserves Share option reserve Opening balance Share-based payments Closing balance	30-Jun-2022 30-Jun-21
	$ $
	1,010,128 15,833 (6,375) (422) - 1,815,000
	981,245 1,830,411
	15,833 - 994,295 15,833
	1,010,128 15,833

Nordic Nickel Ltd

2022 Annual Report

Nordic Nickel Ltd Notes to the Consolidated Financial Statements for the year ended 30 June 2022

The share option reserve is used to record the value of equity benefits provided to Directors and executives as part of their remuneration and non-employees for their goods and services and to record the premium paid on the issue of unlisted options.

	30-Jun-2022 30-Jun-21
	$ $
Foreign exchange translation reserve Opening balance (422) - Foreign exchange translation difference (5,953) (422) Closing balance (6,375) (422) The foreign exchange differences arising on translation of foreign controlled entities are taken to the foreign currency translation reserve. Convertible note reserve Opening balance 1,815,000 - Convertible notes issued during the year/period - 1,815,000 Convertible notes converted during the year/period (1,815,000) - Closing balance - 1,815,000	(422) - (5,953) (422)
	(6,375) (422)
	- 1,815,000

The foreign exchange differences arising on translation of foreign controlled entities are taken to the foreign currency translation reserve.

This convertible note reserve used to recognise equity component of the convertible notes.

On 4 June 2021, the Company issued 363 convertible notes with an issue price of $5,000 per note for a total of $1,815,000. The notes automatically converted into shares immediately after the Company obtained conditional approval (subject only to the imposition of conditions usual to such approvals) from the ASX for its ordinary shares to be quoted on the official list of the ASX.

The conversion price per share of $0.15 was at a forty percent (40%) discount to the IPO issue price of the Company. Interest was not payable on the notes.

11. Accumulated losses

Movements in accumulated losses were as follows: Opening balance Loss for the period Closing balance Auditor’s remuneration The auditor of Nordic Nickel Pty Ltd is BDO Audit (WA) Pty Ltd. Amounts received or due and receivable by the parent auditor for: - an audit or review of the financial report Other services: - Preparation of Independent Limited Assurance Report	(122,262) - (1,643,380) (122,262)
	(1,643,380) (122,262)
	32,000 15,000 16,050 -
	48,050 15,000

12. Auditor’s remuneration

13. Directors and Key Management Personnel Disclosures

a) Remuneration of Directors and Key Management Personnel (KMP)

Details of the nature and amount of each element of the emolument of each Director and KMP of the Company for the financial year are as follows:

Short term employee benefits Share-based payments Other benefits Total remuneration	241,311 - 322,869 - 3,217 -
	567,397 -

Nordic Nickel Ltd

2022 Annual Report

Nordic Nickel Ltd

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Notes to the Consolidated Financial Statements for the year ended 30 June 2022

b) KMP Unlisted Options

During the year ended 30 June 2022, the Company issued 5,500,000 KMP incentive options as detailed below;

Name	Grant date	Number of options granted	Expiry date/last exercise date	Exercise price per option	Value of options at grant date1	Number of options vested
				$	$
Directors
Todd Ross	01/06/22	1,000,000	23/05/27	0.25	189,769	1,000,000
	01/06/22	1,000,000	23/05/27	0.375	176,325	-2
	01/06/22	1,500,000	23/05/27	0.50	248,922	-3
Robert Wrixon	01/06/22	250,000	23/05/27	0.30	45,977	-2
	01/06/22	250,000	23/05/27	0.35	44,679	-3
Marcello Cardaci	01/06/22	375,000	23/05/27	0.30	68,965	-2
	01/06/22	375,000	23/05/27	0.35	67,018	-3
Juho Haverinen	01/06/22	250,000	23/05/27	0.30	45,977	-2
	01/06/22	250,000	23/05/27	0.35	44,679	-3
Officers
Aaron Bertolatti	01/06/22	125,000	23/05/27	0.30	22,988	-2
	01/06/22	125,000	23/05/27	0.35	22,339	-3
		5,500,000			977,636	1,000,000

1 The value at grant date has been calculated in accordance with AASB 2 Share-based payments. 2 Options vest on the date that is 12 months from the listing date (1 June 2023).

3 Options vest on the date that is 24 months from the listing date (1 June 2024).

Refer to note 18 for further details of the incentive options issued during the financial year ended 30 June 2022.

14. Related Party Disclosures

a) Key management personnel

For Director related party transactions please refer to Note 13 “Director and Key Management Personnel Disclosures”.

b) Subsidiaries

The consolidated financial statements include the financial statements of Nordic Nickel Pty Ltd and the subsidiaries listed in the following table:

Name of Entity	Country of Incorporation	Country of Incorporation	Equity Holding
Pulju Exploration Oy	Finland		100%

		30-Jun-2022 30-Jun-21
		$ $
Loss per share Loss used in calculating basic and dilutive EPS		(1,643,380) (122,262)

Nordic Nickel Ltd

2022 Annual Report

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Nordic Nickel Ltd

Notes to the Consolidated Financial Statements for the year ended 30 June 2022

	Number of Shares Number of Shares
Weighted average number of ordinary shares used in calculating basic loss per share: Effect of dilution: Share options Adjusted weighted average number of ordinary shares used in calculating diluted loss per share:	61,270,002 41,103,897 - - 61,270,002 41,103,897

There is no impact from 7,000,000 options outstanding at 30 June 2022 on the earnings per share calculation because they are anti-dilutive. These options could potentially dilute basic EPS in the future.

There have been no transactions involving ordinary shares or potential ordinary shares that would significantly change the number of ordinary shares or potential ordinary shares outstanding between the reporting date and the date of completion of these financial statements.

16. Contingent assets and liabilities

Share Purchase Agreement

As part consideration for the acquisition of the Pulju Nickel Project, it has been agreed that the Company, Magnus Minerals Oy (MMO) and Starboard Global Ltd (SGL) will enter into a royalty agreement, whereby Nordic Nickel agrees to pay a Net Smelter Return royalty of 1.5% on all minerals mined, produced or otherwise recovered from the Pulju Nickel Project, of which 1.0% will be payable to MMO and 0.5% will be payable to SGL.

17. Dividends

No dividend was paid or declared by the Company in the year ended 30 June 2022 or the period since the end of the financial year and up to the date of this report. The Directors do not recommend that any amount be paid by way of dividend for the financial year ended 30 June 2022.

18. Share based payments

(a) Recognised share based payment transactions

Share based payment transactions recognised either as operational expenses in the statement of profit or loss and other comprehensive income or as capital raising costs in the equity during the period were as follows:

	30-Jun-2022 30-Jun-21
	$ $
Options issued to employees and Directors (note 18 (b)) Options issued to suppliers (note 18 (c)) Movement in share option reserve Shares issued to consultants Share-based payments recognised	412,074 15,833 582,221 -
	994,295 15,833
	31,2501 -
	1,025,545 15,833

1 125,000 shares were issued as a referral fee for the introduction of the Company’s Managing Director and CEO.

Share-based payment transactions have been recognised within the consolidated statement of profit or loss and other comprehensive income and consolidated statement of financial positions as follows:

	30-Jun-2022 30-Jun-21
	$ $
Share-based payment expense Issued capital – transaction costs on share issue	443,324 15,833 582,221 -
	1,025,545 15,833

Nordic Nickel Ltd

2022 Annual Report

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Nordic Nickel Ltd

Notes to the Consolidated Financial Statements for the year ended 30 June 2022

(b) Options issued to employees and Directors

The fair value at grant date of options granted during the reporting period was determined using the Black Scholes option pricing model that takes into account the exercise price, the term of the option, the share price at grant date, the expected price volatility of the underlying share and the risk-free interest rate for the term of the option.

The table below summarises options granted during the year ended 30 June 2022:

			Balance					Exercisable
				Granted	Exercised	Expired	Balance at
		Exercise	at start of the					at end of the
Grant	Expiry			during the	during	during the	end of the
Date	date	price per option	year	year	the year	year	year	year
			Number	Number	Number	Number	Number	Number
01/06/22	23/05/27	$0.30	-	1,750,000	-	-	1,750,000	-1
01/06/22	23/05/27	$0.35	-	1,750,000	-	-	1,750,000	-2
01/06/22	23/05/27	$0.25	-	1,000,000	-	-	1,000,000	1,000,000
01/06/22	23/05/27	$0.375	-	1,000,000	-	-	1,000,000	-1
01/06/22	23/05/27	$0.50	-	1,500,000	-	-	1,500,000	-2
				7,000,000			7,000,000	1,000,000

1 Options vest on the date that is 12 months from the listing date (1 June 2023).

2 Options vest on the date that is 24 months from the listing date (1 June 2024).

The expense recognised in respect of the above options granted during the year was $251,631 which represents the fair value of the options. The expense recognised during the year on options granted in prior periods was $160,443. The weighted average fair value of options issued to employees and Directors during the year was $0.179.

The model inputs, not included in the table above, for options granted during the period ended 30 June 2022 included:

g) options issue price was nil;
h) expected lives of the options was 5 years;
i) share price at grant date was $0.25;
j) expected volatility of 100%;
k) expected dividend yield of nil; and
l) a risk-free interest rate of 3.5%.

The table below summarises options granted during the year ended 30 June 2021:

			Balance		Exercised			Exercisable
				Granted		Expired	Balance at
		Exercise	at start of the		during the			at end of the
Grant	Expiry			during the		during the	end of the
Date	date	price per option	period	period	period	period	period	period
			Number	Number	Number	Number	Number	Number
01/06/21	31/05/26	$0.20	-	2,750,000	-	-	2,750,000	-1

1 Options shall vest on the date that Nordic Nickel is successfully admitted for trading on the ASX. Should the Company fail to list on the ASX, the Options will lapse.

The model inputs, not included in the table above, for options granted during the period ended 30 June 2021 included:

a) options issue price was nil;
b) expected lives of the options was 5 years;
c) share price at grant date was $0.10;
d) expected volatility of 100%;
e) expected dividend yield of nil; and
f) a risk-free interest rate of 0.5%.

35 2022 Annual Report

Nordic Nickel Ltd

Nordic Nickel Ltd Notes to the Consolidated Financial Statements for the year ended 30 June 2022

(c) Options issued to suppliers

During the financial year ended 30 June 2022, the Company issued options to brokers and corporate advisors for services rendered during the year. These options have been valued using the BlackScholes option pricing model.

The table below summarises options granted during the year ended 30 June 2022:

Grant Date	Expiry date		Balance					Exercisable
				Granted during the year	Exercised during the year	Expired during the year	Balance at end of the year
		Exercise price per	at start of the					at end of the
		option	year Number	Number	Number	Number	Number	year Number
01/06/22	01/06/25	$0.30	-	2,000,000	-	-	2,000,000	2,000,000
01/06/22	01/06/25	$0.35	-	2,000,000	-	-	2,000,000	2,000,000
				4,000,000			4,000,000	4,000,000

The value recognised in respect of the above options granted during the year was $582,221 which represents the fair value of the options.

The weighted average fair value of options issued to suppliers during the year was $0.141.

The model inputs, not included in the table above, for options granted during the period ended 30 June 2022 included:

a) options issue price was nil;
b) expected lives of the options was 3 years;
c) share price at grant date was $0.25;
d) expected volatility of 100%;
e) expected dividend yield of nil; and
f) a risk-free interest rate of 3.29%.

There were no options issued to suppliers during the period ended 30 June 2021.

19. Financial Risk Management

The Group’s activities expose it to a variety of financial risks including interest rate risk, price risk, credit risk and liquidity risk. The Group’s overall risk management program focuses on the unpredictability of the financial markets and seeks to minimise potential adverse effects on the financial performance of the Group. The Group does not use derivative financial instruments; however the Group uses different methods to measure different types of risk to which it is exposed.

These methods include sensitivity analysis in the case of interest rate and other price risks and aging analysis for credit risk. Risk management is carried out by the Board of Directors with assistance from suitably qualified external and internal advisors. The Board provides written principles for overall risk management and further policies will evolve commensurate with the evolution and growth of the Group.

(a) Liquidity Risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities, the availability of funding through an adequate amount of committed credit facilities and the ability to close out market positions. The Group manages liquidity risk by continuously monitoring forecast and actual cash flows and matching the maturity profits of financial assets and liabilities. As at the reporting date the Group had sufficient cash reserves to meet its requirements. The Group therefore had no credit standby facilities or arrangements for further funding in place.

The financial liabilities of the Group at the reporting date were trade payables incurred in the normal course of business. These were non-interest bearing and were due within the normal 30-60 days terms of creditor payments. The Group does not consider this to be material to the Group and have therefore not undertaken any further analysis of risk exposure.

Nordic Nickel Ltd

2022 Annual Report

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Nordic Nickel Ltd

Notes to the Consolidated Financial Statements for the year ended 30 June 2022

(b) Interest Rate Risk Interest rate risk arises from the possibility that changes in interest rates will affect future cash flows or the fair value of financial instruments. The Company’s exposure to market risk for changes to interest rate risk relates primarily to its earnings on cash.

Interest rate sensitivity

The following table demonstrates the sensitivity of the Company’s Statement of Profit or Loss and Other Comprehensive Income to a reasonably possible change in interest rates, with all other variables constant.

Change in Basis Points	Effect on Post Tax Loss ($)	Effect on equity including retained earnings ($)	Effect on Post Tax Loss ($)	Effect on equity including retained earnings ($)
	2022		2021
Increase 75 basis points	80,624	80,624	6,377	6,377
Decrease 75 basis points	(80,624)	(80,624)	(6,377)	(6,377)

A sensitivity of 75 basis points has been used as this is considered reasonable given the current level of both short term and long-term Australian Dollar interest rates. The change in basis points is derived from a review of historical movements and management’s judgement of future trends.

(c) Credit Risk Exposures

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. The Group has adopted the policy of dealing with creditworthy counterparties and obtaining sufficient collateral or other security where appropriate, as a means of mitigating the risk of financial loss from defaults. The Group measures credit risk on a fair value basis. The Group does not have any significant credit risk exposure to a single counterparty or any group of counterparties having similar characteristics.

The carrying amount of financial assets recorded in the financial statements, net of any provisions for losses, represents the Group’s maximum exposure to credit risk without taking account of the fair value of any collateral or other security obtained.

	30-Jun-2022	30-Jun-21
	$	$
Cash and cash equivalents AA-	10,749,842	850,215

(d) Foreign currency risk

The Company undertakes certain transactions denominated in foreign currencies, hence exposures to exchange rate fluctuations arise. The carrying amounts of the Group’s foreign currency denominated monetary assets and monetary liabilities at the balance date expressed in Australian dollars are as follows:

	Liabilities	Assets
	$	$
2022
Euro	12,301	78,104
2021
Euro	32,780	47,894

Based on the above exposure, had the Australian dollar weakened by 5%/strengthened by 5% against these foreign currencies with all other variables held constant, the consolidated entity’s profit before tax for the year would have been $1,138 lower/higher (2021: $1,027 lower/higher) and equity would have been $3,290 lower/higher (2021: $756 lower/higher). The percentage change is the expected overall volatility of the significant currencies, which is based on management’s assessment of reasonable possible fluctuations taking into consideration movements over the last 6 months each year and the spot rate at each reporting date. The actual foreign exchange loss for the year ended 30 June 2022 was $657.

37 2022 Annual Report

Nordic Nickel Ltd

Notes to the Consolidated Financial Statements for the year ended 30 June 2022

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Nordic Nickel Ltd

(e) Capital Risk Management

The Group’s objectives when managing capital are to safeguard its ability to continue as a going concern, so that it can continue to provide returns to shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. The Group’s capital includes ordinary share capital, partly paid shares and financial liabilities, supported by financial assets.

The Group’s capital includes mainly ordinary share capital and financial liabilities supported by financial assets. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

Due to the nature of the Group’s activities, being mineral exploration, the Group does not have ready access to credit facilities, with the primary source of funding being equity raisings. Therefore, the focus of the Group’s capital risk management is the current working capital position against the requirements of the Group to meet exploration programmes and corporate overheads. The Group’s strategy is to ensure appropriate liquidity is maintained to meet anticipated operating requirements, with a view to initiating appropriate capital raisings as required.

20. Parent Entity Information

The following details information related to the parent entity, Nordic Nickel Pty Ltd, at 30 June 2022. The information presented here has been prepared using consistent accounting policies as presented in Note 1.

	30-Jun-2022 $ 30-Jun-2021 $
Current assets Total assets Current liabilities Total liabilities Net assets Issued capital Reserves Accumulated losses Loss of the parent entity Other comprehensive income for the year/period Total comprehensive loss of the parent entity	10,822,698 1,065,604
	12,027,021 1,838,032
	(61,638) (103,523)
	(61,638) (103,523)
	11,965,383 1,734,509
	12,778,351 5,501
	1,010,129 1,830,833
	(1,823,097) (101,825)
	11,965,383 1,734,509
	(1,721,272) (101,825)
	- -
	(1,721,272) (101,825)

The parent entity does not provide financial guarantees over leases and other commitments held by its subsidiaries.

21. Significant events after the reporting date

Option Award

Nordic Nickel Ltd

2022 Annual Report

Nordic Nickel Ltd

Notes to the Consolidated Financial Statements for the year ended 30 June 2022

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22. Segment Information

The Group has identified its operating segments based on the internal reports that are reported to the Managing Director (the chief operating decision maker) in assessing performance and in determining the allocation of resources. The Board as a whole will regularly review the identified segments in order to allocate resources to the segment and to assess its performance.

The Group operates predominately in one industry, being the exploration of nickel. The main geographic areas that the entity operates in are Australia and Finland. The parent entity is registered in Australia. The Group’s exploration assets are located in Finland.

The following table present revenue, expenditure and certain asset and liability information regarding geographical segments for the year ended 30 June 2022 and the period ended 30 June 2021:

	Australia $ Finland $	Total
Year ended 30 June 2022 Other income Segment revenue Result Loss before tax Income tax expense Loss for the period Asset and liabilities Segment assets Segment liabilities Period ended 30 June 2021 Other income Segment revenue Result Loss before tax Income tax expense Loss for the period Asset and liabilities Segment assets Segment liabilities	- -
		-
	- -	-
	(1,620,616) (22,764) - -
		(1,643,380)
		-
	(1,620,616) (22,764)	(1,643,380)
	10,822,697 1,267,704 61,638 12,301 - -
		12,090,401
		73,939


		-
	- -	-
	(101,724) (20,538) - -
		(122,262)
		-
	(101,724) (20,538)	(122,262)
	1,065,604 784,349 103,523 32,780
		1,849,953
		136,303

Nordic Nickel Ltd

2022 Annual Report

Directors’ Declaration

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In accordance with a resolution of the Directors of Nordic Nickel Ltd, I state that:

In the opinion of the Directors:
a) the financial statements and notes of Nordic Nickel Ltd for the year ended 30 June 2022 are in accordance with the Corporations Act 2001, including:
- i. giving a true and fair view of the consolidated financial position as at 30 June 2022 and of its performance for the year ended on that date; and
- ii. complying with Accounting Standards (including the Australian Accounting Interpretations), the Corporations Regulations 2001 and other mandatory professional reporting requirements; and
b) the financial statements and notes also comply with International Financial Reporting Standards as disclosed in note 2(b).
1. There are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.
This declaration has been made after receiving the declarations required to be made by the Directors in accordance with sections of 295A of the Corporations Act 2001 for the financial year ended 30 June 2022.

On behalf of the Board

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Marcello Cardaci

Non-Executive Chairman

Perth, Western Australia 14 September 2022

Nordic Nickel Ltd

2022 Annual Report

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

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

DECLARATION OF INDEPENDENCE BY PHILLIP MURDOCH TO THE DIRECTORS OF NORDIC NICKEL LTD

As lead auditor of Nordic Nickel Ltd for the year ended 30 June 2022, I declare that, to the best of my knowledge and belief, there have been:

No contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
No contraventions of any applicable code of professional conduct in relation to the audit.

This declaration is in respect of Nordic Nickel Ltd and the entity it controlled during the period.

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Phillip Murdoch

Director

BDO Audit (WA) Pty Ltd

Perth

14 September 2022

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.

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 REPORT

To the members of Nordic Nickel Ltd

Report on the Audit of the Financial Report

Opinion

We have audited the financial report of Nordic Nickel Ltd (the Company) and its subsidiary (the Group), which comprises the consolidated statement of financial position as at 30 June 2022, 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 year then ended, and notes to the financial report, including a summary of significant accounting policies and the directors’ declaration.

In our opinion the accompanying financial report of the Group, is in accordance with the Corporations Act 2001 , including:

(i) Giving a true and fair view of the Group’s financial position as at 30 June 2022 and of its financial performance for the year ended on that date; and
(ii) Complying with Australian Accounting Standards and the Corporations Regulations 2001 .

Basis for opinion

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the Financial Report section of our report. We are independent of the Group in accordance with 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 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 in the same terms if given to the directors as at the time of this auditor’s report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Accounting for Capitalised Exploration and Evaluation Assets


*Key audit matter*	*How the matter was addressed in our audit*

The carrying value of the capitalised exploration and	Our	procedures included, but were not limited to the
evaluation asset as at 30 June 2022 is disclosed in note	following:
6 of the financial report.		Obtaining a schedule of the areas of interest held
As the carrying value of the exploration asset		by the Group and assessing whether the rights to
represents a significant asset of the Group, we		tenure of those areas of interest remained
considered it necessary to assess whether any facts or		current at balance date;
circumstances exist to suggest that the carrying amount of this asset may exceed its recoverable amount.		Considering the status of the ongoing exploration programmes in the respective areas of interest by holding discussions with management, and
Judgement is applied in determining the treatment of		reviewing the Group’s exploration budgets, ASX
exploration expenditure in accordance with Australian		announcements and director’s minutes;
Accounting Standard AASB 6_Exploration for and_ Evaluation of Mineral Resources. In particular:		Considering whether any such areas of interest

amoun o s asse may excee s recoverae amount. Judgement is applied in determining the treatment of exploration expenditure in accordance with Australian Accounting Standard AASB 6_Exploration for and_	programmes in the respective areas of interest by holding discussions with management, and reviewing the Group’s exploration budgets, ASX announcements and director’s minutes;
Evaluation of Mineral Resources. In particular:	 Considering whether any such areas of interest

• Whether the conditions for capitalisation are satisfied; • Which elements of exploration and evaluation expenditures qualify for recognition; and • Whether facts and circumstances indicate that the exploration and expenditure assets should be tested for impairment. As a result, this is considered a key audit matter.	had reached a stage where a reasonable
	assessment of economically recoverable reserves
	existed;
	 Verifying, on a sample basis, exploration and
	evaluation expenditure capitalised during the
	year for compliance with the recognition and
	measurement criteria of AASB 6;
	 Considering whether there are any other facts or
	circumstances existing to suggest impairment
	testing was required;
	 Verifying acquisitions of exploration assets by
	reviewing the acquisition agreement and
	verifying consideration having been issued; and

Assessing the adequacy of the related disclosures in Note 6 of the financial report.

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Other information

The directors are responsible for the other information. The other information comprises the information in the Group’s annual report for the year ended 30 June 2022, but does not include the financial report and the auditor’s report thereon.

Our opinion on the financial report does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the directors for the Financial Report

The directors of the Company are responsible for the preparation of the 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 financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

In preparing the financial report, the directors are responsible for assessing the ability of the group to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the Financial Report

Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.

A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance Standards Board website (http://www.auasb.gov.au/Home.aspx) at:

https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf

This description forms part of our auditor’s report.

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Report on the Remuneration Report

Opinion on the Remuneration Report

We have audited the Remuneration Report included in pages 12 to 16 of the directors’ report for the year ended 30 June 2022.

In our opinion, the Remuneration Report of Nordic Nickel Ltd, for the year ended 30 June 2022, complies with section 300A of the Corporations Act 2001 .

Responsibilities

The directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001 . Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.

BDO Audit (WA) Pty Ltd

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Phillip Murdoch

Director

Perth

14 September 2022

ASX Additional Information

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Additional information required by the Australian Stock Exchange Ltd and not shown elsewhere in this report is as follows. The information is current at 5 September 2022.

Distribution of Share Holders

		Ordinary Shares
	Number of Holders	Number of Shares	%
1-1,000	6	1,106	0.00
1,001-5,000	33	97,032	0.08
5,001-10,000	45	366,691	0.32
10,001-100,000	226	9,924,638	8.61
100,001-and over	126	104,835,539	90.98
TOTAL	436	115,225,006	99.99

There were 13 holders of ordinary shares holding less than a marketable parcel.

Top Twenty Share Holders

The names of the twenty largest holders of quoted equity securities are listed below:

Name	Shares	%
Magnus Minerals Oy\C	18,855,000	16.36
Bring On Retirement Limited	15,098,864	13.10
Dr Robert Christopher Wrixon	11,854,168	10.29
Richard Victor Gazal	10,855,000	9.42
Robert Christopher Wrixon	10,689,168	9.28
Mr Peter Frederick Phillips + Mrs Alice Sau Han Phillips Investment Account>	2,380,383	2.07
Regenerate Investments Pty Ltd	2,300,000	2.00
Lago Corporation Pty Ltd	1,775,000	1.54
Mr Mark Graham Ellis	1,693,500	1.47
Jarhamche Pty Ltd	1,426,667	1.24
Mr Lachlan Stuart Rutherford	1,358,333	1.18
Mr Keith Davidson	1,275,667	1.11
Brindabella Capital Management Pty Ltd	1,200,000	1.04
Philip Warren Cleggett	1,100,000	0.95
Suncity Capital Pty Ltd	1,074,978	0.93
Hsbc Custody Nominees (Australia) Limited	957,198	0.83
Penurco Oy\C	855,000	0.74
Mr Petri Peltonen	855,000	0.74
Sunset Capital Management Pty Ltd	800,000	0.69
Prof Gerard Thomas Wrixon + Mrs Laurel Marcia Wrixon	800,000	0.69
Total: Top 20 holders of Ordinary Fully Paid Shares	87,203,926	75.67

Substantial Shareholders

Name	Shares	%
Magnus Minerals Oy\C	18,855,000	16.36
Bring On Retirement Limited	15,098,864	13.10
Dr Robert Christopher Wrixon	11,854,168	10.29
Richard Victor Gazal	10,855,000	9.42

On-Market Buy Back

There is no current on-market buy back.

Voting Rights

All ordinary shares carry one vote per share without restriction. Options have no voting rights.

Nordic Nickel Ltd

2022 Annual Report

ASX Additional Information

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Use of Proceeds

In accordance with listing rule 4.10.19, the Company confirms that it has used cash and assets in a form readily convertible to cash in a way consistent with its business objectives during the financial year ended 30 June 2022.

Unquoted Securities

Number	Class	Holders with more than 20%
2,750,000	Options over ordinary shares exercisable at $0.20 on or before 31 May 2026.	- Mr Robert Christopher Wrixon 1,000,000 Options - Mr Lachlan Stuart Rutherford 750,000 Options
1,000,000	Options over ordinary shares exercisable at $0.25 on or before 31 May 2027.	- Regenerate Investments Pty Ltd 1,000,000 Options
1,750,000	Options over ordinary shares exercisable at $0.30 on or before 31 May 2027.	- Marcello Cardaci 375,000 Options
2,000,000	Options over ordinary shares exercisable at $0.30 on or before 1 June 2025.	- Taycol Nominees Pty Ltd 1,000,000 Options
1,750,000	Options over ordinary shares exercisable at $0.35 on or before 31 May 2027.	- Marcello Cardaci 375,000 Options
2,000,000	Options over ordinary shares exercisable at $0.35 on or before 1 June 2025.	- Taycol Nominees Pty Ltd 1,000,000 Options
1,000,000	Options over ordinary shares exercisable at $0.375 on or before 31 May 2027.	- Regenerate Investments Pty Ltd 1,000,000 Options
1,500,000	Options over ordinary shares exercisable at $0.50 on or before 31 May 2027.	- Regenerate Investments Pty Ltd 1,500,000 Options
450,000	Options over ordinary shares exercisable at $0.30 on or before 31 May 2026.	- Mr Lachlan Stuart Rutherford 250,000 Options - Mr Julian Hanna 200,000 Options
450,000	Options over ordinary shares exercisable at $0.40 on or before 31 May 2026.	- Mr Lachlan Stuart Rutherford 250,000 Options - Mr Julian Hanna 200,000 Options

Restricted Securities subject to escrow period

The following securities will be restricted pursuant to the ASX Listing Rules for the periods outlined below.

Security	Restriction Period
Shares
56,765,002 ORD Shares	24 months from date of quotation
53,334 ORD Shares	Restricted for a period of 12 months from 13 January 2022
Options
13,750,000 Options	24 months from date of quotation

Nordic Nickel Ltd

2022 Annual Report

Schedule of Tenements

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Tenements Interests

Project	Tenement Name	Area Code	Tenement Type	Status	Registered Holder	Application Date	Grant Date	Expiry Date	Area(km2)
Pulju (100% interest)	Saalama	VA2020:0071	Exploration Reservation	Valid	Puljun Malminetsintä Oy	2/11/2020	4/02/2021	1/11/2022	323.59

	Hotinvaara	ML2019:0101	Ore Exploration Permit	Valid	Puljun Malminetsintä Oy	11/11/2019	24/01/2020	24/01/2024	4.92
	Holtinvaara	ML2013:0090	Ore Exploration Permit	Application	Puljun Malminetsintä Oy	4/11/2013			14.99
	Aihkiselka	ML2013:0092	Ore Exploration Permit	Application	Puljun Malminetsintä Oy	4/11/2013			15.75
	Kiimatievat	ML2019:0102	Ore Exploration Permit	Application	Puljun Malminetsintä Oy	11/11/2019			24.21
	Mertavaara1	ML2013:0091	Ore Exploration Permit	Application	Puljun Malminetsintä Oy	4/11/2013			11.88
	Rööni-Holtti	ML2022:0009	Ore Exploration Permit	Application	Puljun Malminetsintä Oy	9/03/2022			18.65
	Saalamaselkä	ML2022:0010	Ore Exploration Permit	Application	Puljun Malminetsintä Oy	9/03/2022			6.02
	Kaunismaa	ML2022:0011	Ore Exploration Permit	Application	Puljun Malminetsintä Oy	9/03/2022			1.68
	Total								98.09

Maaninkijoki (earning 75% interest)	MJ3	ML2020:0011	Ore Exploration Permit	Application	MagStar Mining Oy	21/03/2020			30.44

Nordic Nickel Ltd

2022 Annual Report

Important Information and Disclaimers

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Competent Persons Statement

The information in this report that relates to Mineral Resources defined at Hotinvaara is based on information compiled by Mr Adam Wheeler who is a professional fellow (FIMMM), Institute of Materials, Minerals and Mining. Mr Wheeler is an independent mining consultant. Mr Wheeler has sufficient experience which is relevant to the style of mineralisation and type of deposits under consideration and to the activity that 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’ (the JORC Code). Mr Wheeler consents to the inclusion of this information in the form and context in which it appears in this report.

The information in this announcement that relates to Exploration Results is based on, and fairly represents, information and supporting documentation compiled under the supervision of Dr Lachlan Rutherford, a consultant to the Company. Dr Rutherford is a Member of the Australasian Institute of Mining and Metallurgy. He has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken 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 (JORC Code). Dr Rutherford consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.

Forward Looking Statements

This announcement contains forward-looking statements that involve a number of risks and uncertainties, including reference to the conceptual Exploration Target area which surrounds the maiden Hotinvaara MRE described in this announcement. These forward-looking statements are expressed in good faith and believed to have a reasonable basis. These statements reflect current expectations, intentions or strategies regarding the future and assumptions based on currently available information. Should one or more of the risks or uncertainties materialise, or should underlying assumptions prove incorrect, actual results may vary from the expectations, intentions and strategies described in this announcement. No obligation is assumed to update forward looking statements if these beliefs, opinions and estimates should change or to reflect other future developments.

Nordic Nickel Ltd

2022 Annual Report

AI assistant

NORDIC RESOURCES LTD — Annual Report 2022

65432_rns_2022-09-13_2c98fe3e-7e1e-4af3-a19e-0b20effe4ae9.pdf

NORDIC NICKEL LTD ABN 13 647 455 105

Annual Report 30 June 2022

CORPORATE DIRECTORY

Directors

Share Registry

Company Secretary

Registered Office

Website

Auditors

Stock Exchange

Dear Fellow Shareholders,

DIRECTORS

DIRECTORS’ AND OFFICERS INFORMATION

Marcello Cardaci

Non-Executive Chairman

Todd Ross

Managing Director and CEO

Robert Wrixon

Executive Director

Juho Haverinen

Non-Executive Director

Aaron Bertolatti

Company Secretary

DIRECTORSHIPS OF OTHER LISTED COMPANIES

INTERESTS IN THE SECURITIES OF THE COMPANY

RESULTS OF OPERATIONS

DIVIDENDS

CORPORATE STRUCTURE

NATURE OF OPERATIONS AND PRINCIPAL ACTIVITIES

ROUNDING OF AMOUNTS

REVIEW OF OPERATIONS

PULJU NICKEL PROJECT

Maiden JORC Mineral Resource Estimate

Exploration Target

The potential quantity and grade is conceptual in nature, there has been insufficient exploration and drilling to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource.

Metallurgical Test Work

Historical Regional Drill Data

Planned Work Programs

Maaninkijoki 3 Project

Key Terms:

Corporate

Change in Status - public company limited by shares

Board Appointments

Convertible Note Proceeds

SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS

SIGNIFICANT EVENTS AFTER THE REPORTING DATE

Option Award

ENVIRONMENTAL ISSUES

LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS

ENVIRONMENTAL REGULATIONS AND PERFORMANCE

SHARE OPTIONS

INDEMNIFICATION OF DIRECTORS AND OFFICERS

INDEMNIFICATION OF THE AUDITOR

DIRECTORS’ MEETINGS

PROCEEDINGS ON BEHALF OF COMPANY

CORPORATE GOVERNANCE

AUDITOR INDEPENDENCE AND NON-AUDIT SERVICES

Non-Audit Services

Officers of the Company who are Former Partners of BDO Audit (WA)

Auditor

AUDITED REMUNERATION REPORT

Details of Directors and Key Management Personnel

Remuneration Policy

Additional fees

Details of Remuneration

Shareholdings of Key Management Personnel

Option holdings of Key Management Personnel

Options Affecting Remuneration

Service Agreements

Managing Director and CEO

Executive Directors

Executive Officers

Non-Executive Directors

Loans to Directors and Executives

Additional Information

END OF AUDITED REMUNERATION REPORT

Marcello Cardaci

NORDIC RESOURCES LTD Annual Report 2022