ORA BANDA MINING LTD - Annual Report 2021

==> picture [166 x 75] intentionally omitted <==

==> picture [58 x 17] intentionally omitted <==

==> picture [596 x 465] intentionally omitted <==

Annual Report 2021

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

==> picture [596 x 247] intentionally omitted <==

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

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

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021 2
----- End of picture text -----

Corporate Directory

DIRECTORS

Peter Mansell (Non-executive Chairman) Peter Nicholson (Managing Director) David Quinlivan (Non-executive Director) Keith Jones (Non-executive Director) Mark Wheatley (Non-executive Director)

COMPANY SECRETARIES

Tony Brazier Susan Park

REGISTERED & PRINCIPAL OFFICE ADDRESS

Level 1, 2 Kings Park Road West Perth 6005 Australia

Telephone: Within Australia: 1300 035 592 Outside Australia: +61 8 6365 4548

Email: [email protected] Website: www.orabandamining.com.au

SHARE REGISTRY

Computershare Investor Services Pty Limited GPO Box 2975 Melbourne VIC 3001 Telephone: 1300 555 159

AUDITOR

KPMG 235 St Georges Terrace Perth WA 6000

SECURITIES EXCHANGE LISTING

Listed on the Australian Securities Exchange under the trading code OBM

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021 2

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

Chairman’s Letter

Dear Shareholder

I am pleased to present Ora Banda Mining Limited’s (“Ora Banda” or “Company”) annual report for the 2021 financial year.

The year has been a momentous one for the Company, with Ora Banda making the sea change from explorer to producer – and having done so against a backdrop of a global pandemic the likes of which we have never seen before.

The Company’s efforts during the year were focussed on bringing its 100%-owned Davyhurst Gold Project located north-west of Kalgoorlie in Western Australia back into a state of readiness to begin production.

Amongst other things, this works programme involved the refurbishment of the existing 1.2Mtpa processing plant, the installation of a new power station and LNG facility, the construction of a new 64-room camp at Riverina, the refurbishment of the existing 172-room village at Davyhurst, workforce recruitment and the letting of a substantial number of mining related contracts to get mining activity started.

Ora Banda’s focus and hard work was marked by a historical moment on 7 February 2021, when the Company poured its first gold bar – an occasion that was well reported by Australian and International news media.

Since that day, the Company has been working to continue commissioning the project and get its Davyhurst processing plant to its nameplate, steady state output of circa 82,000 ounces per annum.

This ramp up of mining and production has not been without challenges. Production and plant throughput at Davyhurst were negatively affected during the year by materials handling characteristics of the ore and plant maintenance issues. Ora Banda itself, like so many other mining companies, was also impacted by the acute shortage of skilled and specialist workers caused by the COVID-19 pandemic and the “boom time” wages being paid due to the current employment climate.

The embargoes placed by Governments on immigration and inter-state travel have caused significant hardship to the mining sector in Western Australia. Ora Banda has felt this acutely. The industry in this State is unable to access its required labour at reasonable cost, or, in many cases, at all. Understandably, labour looks for job security and gravitates away from the less financially secure junior sector to more secure mature operations. This exacerbates the labour shortage for junior miners and is unsustainable for this integral sector of the State’s economy. We look forward to the State Government addressing these issues as a matter of urgency.

Although Ora Banda is fortunate compared to most other start-ups in that it is debt free, the Company’s slower than planned ramp-up to a steady state production has impacted the bottom line - this necessitated a return to capital markets and the sale of a non-core asset to raise further monies so that we could continue with our growth plans.

During the year Ora Banda was fortunate to recruit accomplished mining professional, Peter Nicholson, to the role of Managing Director as part of a planned changeover with founding Chief Executive, David Quinlivan. I’m pleased to report that David agreed to stay on the Board at Ora Banda in a non-executive role and thus we retained his considerable knowledge. With Peter now on the team, we have enjoyed fresh eyes on the Davyhurst project and further rigour being applied to our commissioning process work.

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

CHAIRMAN’S LETTER

One of Ora Banda’s great attractions remains its Tier-1 location and the vast geological potential of its large 1,210 km[2] tenement package. During the year the Company spent considerable monies on exploration and often with meaningful success.

The Company’s exploration strategy has been two-fold: firstly, to target near mine ounces to replace those depleted from mining activity at the Riverina, Golden Eagle and Missouri mines and secondly, to drill greenfield targets at areas which have been ranked for perspectivity according to historical work done on them.

Near mine exploration drilling at Riverina South continued to define new resources and it is hoped that both the Riverina South Extension and the British Lion prospects located immediately south of the Riverina open pit mine will be the key to a larger future gold project at Davyhurst.

Away from the Company’s central mining hub Ora Banda pursued multiple targets among them being the exciting Iguana prospect where infill and extensional drilling was conducted to upgrade the current mineral resource.

I am convinced that Ora Banda is now well positioned for value recognition.

Ora Banda is now a producer, with a large resource base, at the time of record gold prices, in a world-class jurisdiction, in a state which, while suffering the labour consequences arising because of COVID-19, has remained relatively untouched by the disease, at a time when both larger Australian and North American producers are looking for growth opportunities and of which many are well cashed up.

Consequently Ora Banda’s future is bright providing we can keep unlocking the value of the Davyhurst project. The Company’s immediate challenge is to continue to work hard on improving our mining and production performance and to organically grow our near-mine opportunities. We confidently believe further market recognition will come as we improve these key value drivers.

Making the large jump from explorer to producer is not easy. I would therefore like to sincerely thank my fellow directors, our staff and consultants for all their efforts during the year, and finally, to our shareholders for their continued support.

==> picture [79 x 81] intentionally omitted <==

Peter Mansell Chairman

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

Directors’ Report

The directors of Ora Banda Mining Limited (“Ora Banda”, “Company” or “OBM”) present their report on the results and state of affairs of the Group, being the Company and its controlled entities for the financial year ended 30 June 2021.

DIRECTORS

The names and details of the Group’s directors in office during the financial year and until the date of this report are as follows.

Names, qualifications, experience and special responsibilities of directors & company secretaries

==> picture [483 x 408] intentionally omitted <==

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

Director Qualifications, experience and special responsibilities
Peter Mansell B.Com, LLB, H. Dip. Tax, FAICD
Non-executive Chairman
Mr Mansell has extensive experience in the mining, corporate and energy sectors, both as
Appointed 22 June 2018 an advisor and independent non-executive director of listed and unlisted companies. Mr
Mansell practised law for a number of years as a partner in corporate and resources law
firms in South Africa and Australia.
Other current ASX directorships:
• Energy Resources Australia Limited (appointed 26 October 2015)
• DRA Global Limited (appointed 16 September 2019)
Former ASX directorships in the last three years:
• Nil
Peter Nicholson B.Eng., GradDipAppFin GAICD, MAusIMM, SF Fin
Managing Director
Mr Nicholson has over 25 years of industry experience in operational and mine
Appointed 1 July 2021 management roles coupled with experience in private equity across companies involved
in international mining and mining services. His experience spans a range of assets and
commodities over 50 countries.
Other current ASX directorships:
• Nil
Former ASX directorships in the last three years:
• Nil
David Quinlivan B.App Sci, Min Eng, GradDipFinServ, FAusImm, FFINSA, MMICA
Non-executive Director
Mr Quinlivan is a mining engineer and principal of Borden Mining Services. He has over
Appointed 2 April 2019 35 years’ experience on projects throughout the world including mining and executive
leadership experience gained through a number of mining development roles.
Mr Quinlivan is a Fellow of the Australian Institute of Mining and Metallurgy, Fellow of
the Financial Services Institute of Australia, Member of the Mining Industry Consultants
Association and Member of the Institute of Arbitrators & Mediators Australia.
Other current ASX directorships:
• Silver Lake Resources Limited (appointed 25 June 2015)
• Dalaroo Metals Limited (appointed 5 March 2021)
Former ASX directorships in the last three years:
• Nil
----- End of picture text -----

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

==> picture [483 x 222] intentionally omitted <==

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

Director Qualifications, experience and special responsibilities
Keith Jones Mr Jones is a chartered accountant with over 40 years’ industry experience. He led the
Non-executive Director Western Australian practice of Deloitte for 15 years, the Energy and Resources group, and
was Chairman of Deloitte Australia.
Appointed 2 April 2019
Other current ASX directorships:
• Coda Minerals Limited (appointed 26 April 2018)
Former ASX directorships in the last three years:
• Gindalbie Resources Limited (appointed 27 February 2013 / resigned 23 July 2019)
Mark Wheatley B.E (Chem Eng Hons 1), MBA
Non-executive Director
Mr Wheatley is a chemical engineer with over 30 years in mining and related industries. He
Appointed 2 April 2019 has been involved as a director in both large and small companies and has led a number of
listed company exploration and production turnaround stories.
Other current ASX directorships:
• Peninsula Energy Limited (appointed 26 April 2016)
• Prospect Resources Limited (appointed 8 January 2021)
Former ASX directorships in the last three years:
• Nil
----- End of picture text -----

Joint Company Secretaries

==> picture [483 x 134] intentionally omitted <==

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

Director Qualifications, experience and special responsibilities
Tony Brazier B.Bus, ACA, AGIA, ACIS
Appointed 2 April 2019 Mr Brazier is a chartered accountant with over 25 years’ experience across a range
of industries. He has extensive experience in project modelling and financing,
process optimisation, financial reporting and analysis, corporate governance and risk
management.
Susan Park B.Com, ACA, F Fin, FGIA, FCIS, GAICD
Appointed 2 April 2019 Ms Park has over 25 years’ experience in the corporate finance industry. She has held
senior management positions at Ernst & Young, PricewaterhouseCoopers, Bankwest and
Norvest Corporate.
----- End of picture text -----

Directors’ Interests in the shares, options and performance rights of Ora Banda Mining Limited

Direct and indirect interests of the directors and their related parties in the Company’s shares, options and performance rights as at 30 September 2021 were:

==> picture [484 x 120] intentionally omitted <==

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

Fully Paid Unlisted Unlisted
Director Shares Incentive Options Performance Rights
Peter Mansell 5,907,407 592,592 -
Peter Nicholson - - -
David Quinlivan 5,801,635 1,728,395 865,660
Keith Jones 2,591,975 395,061 -
-
Mark Wheatley 2,168,752 395,061
----- End of picture text -----

Further details of the vesting conditions applicable are disclosed in the remuneration report.

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

DIRECTORS’ REPORT

PRINCIPAL ACTIVITIES

The principal activities of the Group during the financial year were mineral exploration and development at its 100% owned Davyhurst Gold Project (“DGP”).

During the year, the Company announced it had completed construction and commenced gold production at the DGP.

During the financial year the Group declared commercial production at the DGP. The declaration, which was made on 31 March 2021, followed a commissioning period subsequent to the commencement of gold production in early February 2021.

REVIEW OF OPERATIONS

DGP is located approximately 120 km north-west of Kalgoorlie, within the tier 1 gold mining province of the Eastern Goldfields in Western Australia. OBM’s tenement package consists of 95 granted tenements covering an area of approximately 1,210 km[2] . Refer Figure 2 for a map of project locations.

The Group’s operations over the last 12 months like others in the industry experienced some disruption from COVID-19, however the Company has mitigated the impacts as far as practicable with minimal impact to operations.

Davyhurst Activities

During the year the Company completed the processing plant refurbishment while maintaining an exploration programme. Activities included refurbishment of the 1.2Mtpa processing plant; installation of a new power station and liquified natural gas (“LNG”) facility; construction of a 64-room camp at Riverina; refurbishment of the 172-room Davyhurst village and upgrade of all the associated facilities to support the mine and commencement of mining and processing operations.

Processing plant refurbishment

GR Engineering Services was awarded an engineering, procurement and construction contract associated with the restart of the existing Davyhurst gold processing plant. The scope of work included the refurbishment, optimisation and recommissioning of the existing 1.2 Mtpa Davyhurst gold processing plant, borefields and associated infrastructure. The remedial works programme was delivered on budget. Figure 1 displays an image of the plant subsequent to commissioning.

Dry commissioning of the plant commenced on schedule in December 2020 and wet commissioning commenced on schedule in January 2021 with the first parcel of low-grade commissioning ore being fed into the primary crusher on 17 January 2021. On 7 February 2021, the Company completed its first gold pour from the refurbished plant.

==> picture [466 x 239] intentionally omitted <==

Figure 1 Processing plant post commissioning

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

DIRECTORS’ REPORTDIRECTORS’ REPORT

==> picture [485 x 612] intentionally omitted <==

Figure 2 Project locations

9 9

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

DIRECTORS’ REPORT

Power Station

During the year, installation of the new power station and LNG facility was completed. The total installed capacity is 9.5 megawatts. The new power station was pre-commissioned in December 2020 in preparation for dry commissioning of the processing plant, followed by the wet commissioning and recommencement of processing operations in January 2021 – see Figure 3.

==> picture [465 x 259] intentionally omitted <==

Figure 3: New Power Station with LNG facility in background pre-commissioned

Village Infrastructure

The 172-room Davyhurst village was upgraded and became fully operational during the year. Construction of the 64-room Riverina camp commenced in October 2020 and included completion of all accommodation units; kitchen, wet and dry messes; gymnasium; first aid room; communications tower; sewage and wastewater treatment system. The camp was completed and became fully operational receiving its first occupants during February 2021. Refer Figures 4 and 5.

==> picture [236 x 111] intentionally omitted <==

Figure 4 Riverina camp

==> picture [222 x 129] intentionally omitted <==

Figure 5 Riverina camp – Outdoor dining area

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

DIRECTORS’ REPORT

Mining Operations

Refer table 1 for a summary of mining activities during the year. There was no mining activity in the prior year.

Riverina – Open Pit

Riverina is located approximately 44 km north of the Davyhurst gold processing plant. The mine commenced operations during the year following clearing and grade control activities. The open pit has advanced strongly through the year.

Golden Eagle – Underground

Dewatering of the Golden Eagle underground mine commenced during the year with the initial dewatering programme being conducted via a borehole that had intersected the underground mine workings near the bottom of the mine. Power supply and ventilation were reinstated without issue. Dewatering was completed on 16 January with mining commencing subsequent to this. Initial production was behind budget but accelerated towards the end of the financial year to approximate budgeted production at the end of the financial year.

Missouri – Open Pit

The Missouri mine is approximately 37 km south-west of the Davyhurst gold processing plant. During the last quarter of the year mining operations commenced at Missouri. Site offices and communications were established as well as the mobilisation of necessary equipment, with these activities completed soon after the year end. The Missouri deposit has previously been mined, with the pit floor containing historically blasted material.

==> picture [483 x 413] intentionally omitted <==

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

Quarter
Davyhurst Gold Project
Mining Units FY 2020 Sep-20 Dec-20 Mar-21 Jun-21 FY 2021
Open Pit
Riverina
Waste mined bcm - - 368,486 1,095,832 1,096,114 2,560,432
Ore mined t - - 93,039 140,361 316,299 549,699
Grade g/t - - 1.34 1.22 1.22 1.24
Contained gold oz - - 3,995 5,512 12,408 21,915
Missouri
Waste mined bcm - - - - 46,062 46,062
Ore mined t - - - - 6,339 6,339
Grade g/t - - - - 1.28 1.28
Contained gold oz - - - - 261 261
Underground
Golden Eagle
Ore mined t - - - 25,235 72,235 97,470
Grade g/t - - - 3.70 2.43 2.76
Contained gold oz - - - 3,004 5,641 8,645
Davyhurst Total
Ore mined t - - 93,039 165,596 394,873 653,508
Grade g/t - - 1.34 1.60 1.44 1.47
Contained gold oz - - 3,995 8,516 18,310 30,821
----- End of picture text -----

Table 1: Summary of mining activities during the year

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

DIRECTORS’ REPORT

Processing Operations

Gold ore is treated at the Davyhurst gold processing plant. A summary of processing plant production is set out below in Table 2. There were no processing activities in the prior year.

Following the refurbishment and commissioning of the 1.2Mtpa processing facility in early February 2021, ore processing and production commenced. Processing and plant throughput were negatively affected during the year by material handling characteristics and maintenance issues. Slurry viscosity of the predominantly oxide feed blend resulted in lower than forecast leach and adsorption tank slurry densities. This resulted in lower than forecast throughput however as the year progressed and the percentage of oxide in the feed reduced the viscosity issues receded.

==> picture [483 x 188] intentionally omitted <==

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

Quarter
Davyhurst Gold Project
Processing Units FY 2020 Sep-20 Dec-20 Mar-21 Jun-21 FY 2021
Ore processed
Ore processed t - - - 128,500 201,817 330,317
Head grade g/t - - - 1.53 1.81 1.70
Contained gold oz - - - 6,319 11,733 18,052
Recovery % - - - 90.8% 87.2% 88.5%
Gold poured oz - - - 4,370 10,356 14,726
Gold sold oz - - - 3,204 10,665 13,869
Bullion on hand oz - - - 1,166 857 857
----- End of picture text -----

Table 2: Summary of processing plant production

Exploration

Riverina South

During the year the Company completed the Phase 2 resource definition drilling programme totalling 68 reverse circulation (RC) drill holes for 7,338 metres and reduced the drill hole spacing down to a maximum 40m x 25m in two discrete areas at Riverina South (immediately south of the proposed Riverina open pit) and around the old workings associated with the British Lion prospect – refer Figure 6.

The results from the drilling programme were included in resource estimation work that resulted in the Riverina South maiden resource estimate of 43,000 Au ounces which was announced on 5 October 2020. The Riverina South Project includes both the Riverina South Extension and the British Lion prospects and is located immediately to the south of the Company’s planned Riverina Open Pit which is a key part of the Company’s larger DGP.

The maiden Mineral Resource for the Riverina South Project is 650,000 tonnes @ 2.1g/t for 43,000 ounces and includes both an open pit component (includes material constrained within A$2,400 optimised pit shells with a grade greater than 0.5 g/t Au) and an underground component (includes material that is outside the A$2,400 pit shells with a grade greater than 2.0 g/t Au).

Riverina South Phase 3 resource definition drilling commenced in December. This programme is focussed within the area of the A$2,400 pit optimisation with the aim to increase the confidence of the resource to indicated and measured categories and produce an ore reserve in a timely fashion that would utilise the mining fleet currently in operation at the main Riverina deposit.

This programme is the third phase of drilling that has occurred in rapid succession on the Riverina South deposit, which also includes the historical British Lion mine. There is approximately 7,400 metres of RC drilling remaining in the Phase 3 programme.

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

DIRECTORS’ REPORT

Iguana

Below are the key results from an infill drilling programme that commenced at Iguana in April 2021. A total of 27 RC holes were completed for 3,750 metres. The initial Iguana infill drilling programme targeted the immediate resource area that is approximately 750 metres long (north-south), 300 metres wide (east-west) and has a depth of approximately 120 metres. The bulk of the drilling was conducted inside the A$2,100 optimised resource constraint shell.

Results returned include:

9.0m @ 7.6 g/t from 181m
4.0m @ 7.9 g/t from 68m
4.0m @ 7.6 g/t from 84m

Regional exploration

During the second half of the year the Company conducted a first pass exploration air-core (AC) drilling programme of priority grass roots targets dispersed throughout the Company’s tenement package (Figure 7) and received results subsequent to year end. The regional programme focussed on testing gold targets with no previous drilling or effective exploration. A total of 16,112 drilling metres were completed to blade refusal, with 6,027 metres currently awaiting assay return. Assays have been received for drilling at Sunraysia North, Gem Star North, Santalum and Queen of Hearts with results for other target areas still pending.

Three of the four targets for which results have been returned intersected gold mineralisation which is highly significant for first pass exploration drilling and of these, Sunraysia North and Santalum prospects gave standout results. The Sunraysia North drilling was designed to test the southern continuation of the Riverina & British Lion mineralised trend in an area with no previous drilling. Results are highly promising with significant end of hole mineralisation intersected along the Riverina trend in three successive drill lines spaced 400m apart.

The Santalum drilling was designed to test an undrilled auger surface geochemical anomaly on the southern end of the interpreted Round Dam mineralised trend. Significant gold mineralisation was intersected in one hole on the most northern line with mineralisation open to the north. Further AC and RC drilling is currently being planned to follow up these encouraging results.

The Company’s mineral resource statement now stands at 23.4Mt @ 2.8g/t for 2,140k ounces of contained gold. Refer to page 33 for further details.

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

DIRECTORS’ REPORT

==> picture [484 x 634] intentionally omitted <==

Figure 6 Riverina Area Location Plan

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

DIRECTORS’ REPORT

==> picture [445 x 639] intentionally omitted <==

Figure 7 Regional location map

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

DIRECTORS’ REPORT

Corporate

Capital Raising

On 3 July 2020 the Company announced it was launching a $55 million equity raising in two components being a two-tranche institutional placement to raise $40 million and an underwritten 1 for 9 accelerated non-renounceable entitlement offer to raise approximately $15 million.

The raising was undertaken at an issue price of $0.23 per fully paid ordinary share.

In total $55.09 million was raised before costs with the shares issued in three tranches as follows:

128,832,632 fully paid ordinary shares issued on 15 July 2020;
14,524,973 fully paid ordinary shares issued on 31 July 2020; and
96,143,565 fully paid ordinary shares issued on 15 September 2020.

During the year $1.98 million was raised via the exercise of 7,666,667 unlisted options with an exercise price of $0.2578 per option.

On 8 June 2021 the Company announced it had completed a $21 million placement (before costs) with shares to be issued at $0.17 per share.

Financial Review

The Group recorded a net loss of $22.28 million for the year ended 30 June 2021 (30 June 2020: net loss of $6.68 million).

During the year ended 30 June 2021 the Group incurred $33.97 million (30 June 2020: $10.53 million) of mine development and exploration expenditure; and acquired plant and equipment of $23.14 million (30 June 2020: $1.27 million).

During the year ended 30 June 2021 the Group recorded net cash outflows of $54.56 million in operating and investing activities, which was funded by existing cash of $10.58 million at 1 July 2020 and cash inflows of $78.07 million from share issues and the exercise of options. The Group’s closing cash balance at 30 June 2021 was $24.22 million.

Liquidity and Capital Resources

The table below sets out summary information about the Group’s earnings and movements in shareholder wealth for the five years to 30 June 2021:

==> picture [483 x 194] intentionally omitted <==

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

FY 2021 FY 2020 FY 2019 FY 2018 FY 2017
Performance Measures $ $ $ $ $
Net assets/(liabilities) 102,017,000 48,031,000 35,368,000 (35,977,000) 11,115,000
Current assets 46,567,000 12,040,000 14,710,000 3,544,000 8,030,000
Cash 24,220,000 10,577,000 14,142,000 5,000 44,000
Contributed equity 443,696,000 368,194,000 350,519,000 287,168,000 251,282,000
Accumulated losses 344,550,000 322,266,000 (328,181,000) (336,255,000) (250,333,000)
Net (loss)/profit before tax (22,284,000) (6,675,000) 8,233,000 (86,390,000) (18,103,000)
Share price at start of year 0.27 0.16 0.11 0.37 0.43
Share price at end of year 0.15 0.27 0.16 0.11 0.37
Earnings/(loss) per share (2.73) (0.12) 0.11 (1.69) (0.03)
----- End of picture text -----

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

DIRECTORS’ REPORT

Capital Structure

As discussed above:

During the year ended 30 June 2021 the Company issued 240 million ordinary shares through three tranches at a price of $0.23 per share, raising $55.09 million before capital raising costs;
$1.98 million was raised via the exercise of 7,666,667 unlisted options with an exercise price of $0.2578 per option: and
$21.01 million was raised before costs with shares to be issued at $0.17 per share.

Additionally, 7,735,825 ordinary shares were issued on the exercise of unlisted vested options and performance rights at a nil exercise price.

A total of 10,636,449 unlisted performance rights were issued during the year ended 30 June 2021, as follows:

633,681 performance rights are subject to a vesting condition based on Relative Total Shareholder Return, whereby the Company’s total shareholder return is measured relative to the returns of a peer group over the performance period 1 July 2019 to 30 June 2022. A total of 50% of the performance rights will vest if the Company’s performance relative to the peer group is at the 50th percentile, while 100% of the performance rights will vest if the Company’s performance relative to the peer group is at the 75th percentile. The vesting of the performance rights between the 50th and the 75th percentile will be 50% to 100% vesting based on a straight-line pro rata basis;
354,874 performance rights are subject to a vesting condition based on Total Shareholder Return (“TSR”), of the Company over the performance period 1 July 2020 to 30 June 2021. The fair value of the TSR performance rights was estimated as at the date of grant using a Monte-Carlo simulation model taking into account the terms and conditions upon which the performance rights were granted;
6,454,032 performance rights are subject to a vesting condition based on Relative Total Shareholder Return, whereby the Company’s total shareholder return is measured relative to the returns of a peer group over the performance period 1 July 2020 to 30 June 2023. A total of 50% of the performance rights will vest if the Company’s performance relative to the peer group is at the 50th percentile, while 100% of the performance rights will vest if the Company’s performance relative to the peer group is at the 75th percentile. The vesting of the performance rights between the 50th and the 75th percentile will be 50% to 100% vesting based on a straight-line pro rata basis;
3,193,862 performance rights are subject to a vesting condition based on the achievement of the Company’s performance metrics over the performance period 1 July 2020 to 30 June 2021. The vesting criteria are 50% vesting based on the Company’s management response criteria, 40% vesting based on the Company’s physical and cost performance criteria and 10% based on the Company’s relative shareholder return performance criteria.

SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS

There were no significant changes in the state of affairs of Ora Banda during the year.

EVENTS AFTER BALANCE DATE

On 1 July 2021 Peter Nicholson was appointed Managing Director with immediate effect, following the retirement of David Quinlivan from the position. Mr Quinlivan transitioned to a non-executive role.

On 5 July 2021 the Company announced the results of a share purchase plan with 4,382,393 new ordinary fully paid shares subsequently issued at an issue price of $0.17 per share raising a total of $745,000 before costs.

On 18 August 2021 the Company issued 588,236 fully paid ordinary shares at an issue price of $0.17 per share to a director, David Quinlivan, raising $100,000 subsequent to receipt of shareholder approval on 19 July 2021 for his participation in the capital raising announced on 8 June 2021.

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

DIRECTORS’ REPORT

On 3 September 2021 the Company announced it had signed a term sheet with TNT Mines Limited (ASX:TIN), subsequently renamed Red Dirt Metals Limited (ASX:RDT), to dispose of the Mount Ida asset for consideration of $11,000,000 before costs. On 20 September 2021 the Company announced the sale was unconditional with settlement expected to occur in September. Settlement occurred on 23 September with funds received on the same date.

Apart from the above, no other matters have arisen since the end of the financial year that impact or are likely to impact the results of the Group in subsequent financial periods.

DIVIDENDS

No dividend has been paid or declared by the Company up to the date of this report.

LIKELY DEVELOPMENTS

There are no likely developments of which the Directors are aware which could be expected to significantly affect the results of the Group’s operations in subsequent financial years not otherwise disclosed in the Principal Activities; Review of Operations or the Events After Balance Date sections of the Directors’ Report.

CORPORATE GOVERNANCE

In recognising the need for appropriate standards of corporate behaviour and accountability, the Directors of Ora Banda have adhered to the principles of good corporate governance. The Company’s corporate governance policies are located on the Company’s website.

OPTIONS AND PERFORMANCE RIGHTS

Unissued ordinary shares of the Company under option and performance right as at 30 September 2021 are as follows:

==> picture [483 x 161] intentionally omitted <==

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

Number of unissued
Date granted ordinary shares Exercise price Expiry date
31 January 2018 2,178,331 $3.3328 31 January 2023
31 January 2018 2,178,331 $2.9578 31 January 2023
Various [ (1)] 3,854,862 $3.3328 2 February 2023
Various [ (1)] 3,854,862 $2.9578 2 February 2023
11 June 2019 2,916,667 $1.1203 11 June 2023
Various [ (2)] 10,084,518 Nil Various
Various [ (3)] 6,715,586 Nil Various
----- End of picture text -----

(1) Consists of options issued to Hawke’s Point, as participants under the rights issue (including pursuant to underwriting arrangements). The issue dates of these options were 9 February 2018, 27 February 2018 and 14 March 2018

(2) Options issued under the Group’s employee share scheme to various key management personnel are subject to the satisfaction of the vesting conditions outlined in the Remuneration Report

(3) Performance rights issued under the Group’s employee share scheme to various key management personnel are subject to the satisfaction of the vesting conditions outlined in the Remuneration Report

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

DIRECTORS’ REPORT

The following ordinary shares of the Company were issued during or since the end of the financial year as a result of the exercise of an option or performance right:

==> picture [483 x 95] intentionally omitted <==

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

Date issued Number of ordinary shares issued Amount paid per share
31 July 2020 956,669 Nil
Various 7,666,667 $0.2578
2 November 2020 2,180,058 Nil
30 June 2021 2,966,667 Nil
----- End of picture text -----

MEETINGS OF DIRECTORS

The number of meetings of the board of directors held during the year and the number of meetings attended by each director was as follows:

==> picture [484 x 124] intentionally omitted <==

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

Remuneration & Nomination Audit & Risk Management
Board of Directors Committee Committee
Eligible to attend Attended Eligible to attend Attended Eligible to attend Attended
Peter Mansell 18 18 1 1 3 2
David Quinlivan 18 18 - - - -
Keith Jones 18 18 1 1 3 3
Mark Wheatley 18 18 1 1 3 3
----- End of picture text -----

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

DIRECTORS’ REPORT

REMUNERATION REPORT (AUDITED)

This remuneration report outlines the remuneration arrangements in place for key management personnel (“KMP”) of the Group which includes the executive director, non-executive directors and senior executives.

1. BASIS OF PREPARATION

This remuneration report has been prepared and audited in accordance with the requirements of the Corporations Act 2001 and applicable accounting standards.

2. KEY MANAGEMENT PERSONNEL

KMP comprise 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). Unless otherwise indicated, all KMP held their position throughout the financial year and up to the date of this report.

The report details the remuneration arrangements for the Group’s KMP including non-executive directors, executive directors and senior executives:

Name	Position	Term as KMP
Non-executive Directors Peter Mansell Keith Jones Mark Wheatley Executive Director David Quinlivan Senior Executives	Non-executive Chairman Non-executive Director Non-executive Director Managing Director	Full year Full year Full year Full year
Peter Nicholson	Chief Executive Officer	Appointed 2 April 2021
Tony Brazier	Chief Financial Officer & Company Secretary	Full year
Andrew Czerw	General Manager – Resource Development	Full year
Brendan Fyfe	General Counsel	Full year
Derek Byrne	Chief Operating Officer	Appointed 1 June 2021

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

DIRECTORS’ REPORT

3. REMUNERATION GOVERNANCE

Board and Remuneration & Nomination Committee responsibility

The Remuneration & Nomination Committee is a subcommittee of the board. It assists the board to ensure that the Company develops and implements remuneration policies and practices that are appropriate for a company of the nature, size and standing of OBM.

The Remuneration & Nomination Committee is responsible for making recommendations to the board on:

Remuneration arrangements (including base pay, performance targets, bonuses, equity awards, superannuation, retirement rights, termination payments) for the executive director and senior executives;
Remuneration of non-executive directors; and
Establishment of employee incentive and equity-based plans and the number and terms of any incentives proposed to be issued to Executives pursuant to those plans, including any vesting criteria.

Remuneration principles

The Company’s remuneration strategy and structure is reviewed by the board and the Remuneration & Nomination Committee for business appropriateness and market suitability on an ongoing basis. KMP are remunerated and rewarded in accordance with the Company’s remuneration policies (outlined in further detail below).

Engagement of remuneration consultants

During the year, the Company did not engage remuneration consultants to provide a “remuneration recommendation” (as defined in the Corporations Act 2001), however independent advice was received when the current remuneration framework was established. This advice was in respect of remuneration reporting and general advice in respect of market practice for long term incentive plans. In addition, the Remuneration & Nomination Committee benchmark KMP remuneration annually using external independent industry reports and data to ensure that remuneration levels are competitive and meet the objectives of the Company.

2020 AGM voting outcome and comments

The Company received more than 99% votes in favour of the adoption of its Remuneration Report for the 2020 financial year.

4. FY21 KMP REMUNERATION

In determining KMP remuneration, the board aims to ensure that remuneration practices are:

Competitive and reasonable, enabling the Company to attract and retain high calibre talent;
Aligned to the Company’s strategic and business objectives and the creation of shareholder value;
Transparent and easily understood; and
Acceptable to shareholders.

The Company’s approach to remuneration ensures that remuneration is competitive, performance-focussed, clearly links appropriate reward with desired business performance, and is simple to administer and understand by executives and shareholders. In line with the remuneration policy, remuneration levels are reviewed annually to ensure alignment to the market and the Company’s stated objectives.

The Company’s reward structure for executives provides for a combination of fixed and variable pay with the following components:

Fixed remuneration in the form of base salary, superannuation and benefits;
Variable remuneration in the form of short-term incentives (“STI”) and long-term incentives (“LTI”).

In accordance with the Company’s objective to ensure that executive remuneration is aligned to Company performance, a portion of executives’ remuneration is placed “at risk”. The relative proportion of target FY21 total remuneration packages split between the fixed and variable remuneration is shown below:

==> picture [483 x 62] intentionally omitted <==

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

Fixed Remuneration Target STI Target LTI
Executive (% of total remuneration) (% of total remuneration) (% of total remuneration)
Managing Director 40% 20% 40%
Senior Executives 40% 20% 40%
----- End of picture text -----

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

DIRECTORS’ REPORT

a. Fixed remuneration

Fixed remuneration is set at a level that is aligned to market benchmarks and reflective of executives’ skills, experience, responsibilities and performance.

When positioning base pay, the Company presently aims to position aggregate fixed remuneration at approximately the 50th percentile of the industry benchmark AON Report (an independent, industry recognised report on the gold and mining industry). This is to ensure that the Company’s remuneration arrangements remain competitive against peer companies to assist with the retention and attraction of key talent.

Executive remuneration is benchmarked annually to ASX-listed companies of similar size (by market capitalisation), revenue base, employee numbers and complexity. Specific reference is also made to peer companies within the mining and exploration sectors.

b. Short-term incentive (“STI”) arrangements

The purpose of the STI plan is to link the achievement of key Company targets with the remuneration received by those executives charged with meeting those targets. The STI Plan is structured so that executives have the opportunity to earn a cash and/or equity bonus if certain key performance indicators (“KPIs”) are achieved. The Company must report a surplus of net cash flows from operating activities for the applicable performance period for any cash STI to be paid.

Each year the Nomination & Remuneration Committee (“Committee”), in conjunction with the board, set KPI targets for executives. Ordinarily, the KPIs would include measures relating to the Group and the individual, and include environmental, health & safety, financial, production, exploration, business development and company performance measures.

The maximum target STI opportunity for executives is as follows:

==> picture [472 x 53] intentionally omitted <==

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

Executive Maximum STI Opportunity – Cash Maximum STI Opportunity – Equity
Managing Director 50% of fixed remuneration 75% of fixed remuneration
Senior Executives 50% of fixed remuneration 75% of fixed remuneration
----- End of picture text -----

FY21 Performance against STI measures

A summary of the KPI targets set for FY21 and their respective weightings is as follows:

==> picture [483 x 78] intentionally omitted <==

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

KPI Weighting Measure
Management Response Performance 50% Management’s effectiveness in responding to issues arising
during the 2021 financial year
Corporate, Financial & Operational Goals 40% Performance against annual corporate and financial goals
Company Performance 10% TSR performance
----- End of picture text -----

In assessing KMP performance against the KPI targets during the year, the Committee considered the following achievements against objectives set at the start of the year:

Achieving OH&S objectives;
Achieving environmental objectives;
Delivery of positive exploration results; and
Company’s total shareholder return (“TSR”) performance.

Based on the above assessment, STI payments for FY21 to executives were as follows:

==> picture [483 x 120] intentionally omitted <==

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

Maximum STI % STI STI Awarded STI Awarded Value of Rights
Executive opportunity Awarded – Cash – Rights Granted ($) STIP Rights Class
David Quinlivan 100% 34.7% - 379,846 110,391 FY2021 Incentive Rights
Tony Brazier 100% 34.7% - 259,310 73,826 FY2021 Incentive Rights
Andrew Czerw 100% 34.7% - 279,156 79,476 FY2021 Incentive Rights
Brendan Fyfe 100% 34.7% - 239,902 68,300 FY2021 Incentive Rights
Derek Byrne 100% 34.7% - 74,969 21,344 FY2021 Incentive Rights
----- End of picture text -----

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

DIRECTORS’ REPORT

c. Long-term incentive (“LTI”) arrangements

Participation in the LTI plan will take the form of a grant of incentives (being performance rights and/or options) under the Company’s Long Term Incentive Plan. The grant of incentives, including the terms attaching to the grant, will be determined annually by the board and shall be consistent with the rules of the long term incentive plan. Typically, the vesting period for incentives granted under the LTI plan will be three years.

During the 30 June 2021 financial year, the following were issued to KMP under the Company’s employee option plan:

==> picture [472 x 310] intentionally omitted <==

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

RTSR RTSR RTSR TSR TSR Other Other
LTI LTI LTI STI STI STI STI
Option/Performance Zero-priced Perform- Perform- Perform- Perform- Perform- Perform-
Right Class Options ance Rights ance Rights ance Rights ance Rights ance Rights ance Rights
Underlying security
share price at
grant date $0.295 $0.295 $0.300 $0.295 $0.300 $0.295 $0.300
Exercise price Nil Nil Nil Nil Nil Nil Nil
Grant date 02/11/2020 02/11/2020 27/11/2020 02/11/2020 27/11/2020 02/11/2020 27/11/2020
Vesting date 30/06/2022 30/06/2023 30/06/2023 30/06/2021 30/06/2021 30/06/2021 30/06/2021
Expiry date 30/06/2024 30/06/2028 30/06/2028 30/06/2026 30/06/2026 30/06/2026 30/06/2026
Risk-free rate 0.11% 0.13% 0.09% 0.11% 0.03% 0.11% 0.03%
Volatility 80% 80% 100% 80% 100% 80% 100%
Dividend yield Nil Nil Nil Nil Nil Nil Nil
Number of
performance rights
issued 633,681 3,586,589 1,457,443 245,565 109,308 2,210,089 983,774
Valuation per option $0.154 $0.229 $0.2611 $0.192 $0.2062 $0.295 $0.30
Fair value per option
class $97,587 $821,329 $380,538 $47,148 $22,539 $651,976 $295,132
----- End of picture text -----

The measure of volatility used in the option pricing model is the annualised standard deviation of the continuously compounded rates of return on the historical TSR of Ora Banda and each constituent of the peer group for the length of time equal to the measurement period. The recent volatilities of the constituents of the peer group and Ora Banda (using comparable companies) was calculated over a one, two and three-year period.

Share-based payments

Of the issued performance rights, 5,677,713 are subject to a vesting condition based on Relative Total Shareholder Return (“RTSR”), whereby the Company’s total shareholder return is measured relative to the returns of a peer group over the performance period 1 July 2019 to 30 June 2022 (633,681 performance rights) and 1 July 2020 to 30 June 2023 (5,044,032 performance rights). The fair value of the RTSR performance rights was estimated as at the date of grant using a Monte-Carlo simulation model taking into account the terms and conditions upon which the performance rights were granted. These performance rights will vest according to the following schedule:

Company’s Performance Relative to Peer Group	Percentage of Performance Rights Eligible to Vest	ASX Comparator Group
Below 50th percentile	-%
50th to 75th percentile	50% to 100% on a straight-line pro rata	BC8; BDC; BGL; DCN; GOR; MML; PNR; PRU; RMS; RSG; SBM; SLR; TRY; WGX; WMX
Above 75th percentile	100%

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

DIRECTORS’ REPORT

Of the issued performance rights, 354,874 are subject to a vesting condition based on TSR, of the Company over the performance period 1 July 2020 to 30 June 2021. The fair value of the TSR performance rights was estimated as at the date of grant using a MonteCarlo simulation model taking into account the terms and conditions upon which the performance rights were granted. These performance rights will vest according to the following schedule:

==> picture [483 x 135] intentionally omitted <==

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

Company’s TSR as at 30 June 2021 Percentage of Performance Rights Eligible to Vest
TSR<0% -%
0%≤TSR<5% 10%
5%≤TSR<10% 25%
10%≤TSR<15% 50%
15%≤TSR<20% 75%
TSR>20% 100%
----- End of picture text -----

The remaining 3,193,862 performance rights are subject to a vesting condition based on the achievement of the Company’s performance metrics (“Other”) over the performance period 1 July 2020 to 30 June 2021. The fair value of these performance rights was estimated as at the date of grant using the Black-Scholes option pricing methodology taking into account the terms and conditions upon which the performance rights were granted. These performance rights will vest according to the following schedule:

==> picture [483 x 57] intentionally omitted <==

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

Company’s TSR as at 30 June 2021 Performance Rights Eligible to Vest
Ora Banda corporate, financial & operational goals 1,419,494
Ora Banda management response 1,774,368
----- End of picture text -----

During the year 218,239 fully paid ordinary shares were issued to Brendan Fyfe (General Counsel) as part of the Company’s employee incentive scheme. $0.06 million was expensed in relation to these shares.

At the Company’s annual general meeting held on 27 November 2020, shareholders approved the issue of 1,414,192 FY20 STI fully paid ordinary shares to the Company’s Managing Director, David Quinlivan. This represented 86.1% of the maximum STI opportunity (equity) component of Mr Quinlivan’s remuneration package. $0.42 million was expensed during the year in relation to the shares. The shares were issued on 14 December 2020.

d. Contracts with Key Management Personnel

David Quinlivan – Managing Director

Mr Quinlivan is employed under a Contract for Services with Borden Mining Services Pty Limited which commenced on 1 December 2018. Mr Quinlivan received the following remuneration:

Monthly retainer fee of $34,675 inclusive of superannuation, together with reasonable out of pocket expenses incurred on a direct basis;
Retention bonus of $150,000 subject to continued service as the Managing Director to 30 June 2021;
Non-cash incentive: Participation in the Company’s option scheme. Invitation to participate in the Company’s option scheme is at the full discretion of the board and may be amended from time to time.

The term of the agreement was initially six months from the commencement date being 1 December 2018. Mr Quinlivan agreed to an ongoing role as Managing Director to 30 June 2021.

Either party may terminate the contract and term upon the provision of 60 days’ written notice, or such shorter period remaining on the contract period being not less than 30 days.

Effective from 1 July 2021, Mr Quinlivan’s monthly fee reduced to $10,083.33 as a non-executive director.

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

DIRECTORS’ REPORT

Peter Nicholson – Chief Executive Officer

Mr Nicholson is employed under an executive employment agreement which commenced on 2 April 2021. Mr Nicholson received the following remuneration:

Fixed remuneration of $550,000 per annum inclusive of superannuation;
Non-cash incentive: Participation in the Company’s option scheme. Invitation to participate in the Company’s option scheme is at the full discretion of the board and may be amended from time to time.

The termination provisions of the agreement are:

For no cause or incapacity: twelve months’ notice period (or any greater period required by the Fair Work Act 2009);
Redundancy: redundancy pay in accordance with applicable legislation;
Serious misconduct or fraud: no notice period would be provided.

Tony Brazier – Chief Financial Officer & Company Secretary

Mr Brazier is employed under an executive employment agreement which commenced on 7 January 2019. Mr Brazier received the following remuneration:

Fixed remuneration of $355,875 per annum comprising a base salary of $325,000 and 9.5% superannuation;
Non-cash incentive: Participation in the Company’s option scheme. Invitation to participate in the Company’s option scheme is at the full discretion of the board and may be amended from time to time.

The termination provisions of the agreement are:

For no cause or incapacity: three months’ notice period (or any greater period required by the Fair Work Act 2009);
Redundancy: 30% of the fixed remuneration (or greater as required by the Fair Work Act 2009);
Serious misconduct or fraud: no notice period would be provided.

Effective from 1 July 2021, Mr Brazier’s fixed remuneration was increased to $364,650 per annum comprising a base salary of $331,500 per annum and 10% superannuation.

Andrew Czerw – General Manager – Resource Development

Mr Czerw is employed under an employment agreement which commenced on 10 April 2014. Mr Czerw received the following remuneration:

Fixed remuneration of $383,250 per annum comprising a base salary of $350,000 and 9.5% superannuation;
Non-cash incentive: Participation in the Company’s option scheme. Invitation to participate in the Company’s option scheme is at the full discretion of the board and may be amended from time to time.

The termination provisions of the agreement are:

For no cause or incapacity: three months’ notice period (or any greater period required by the Fair Work Act 2009);
Redundancy: 30% of the fixed remuneration (or greater as required by the Fair Work Act 2009);
Serious misconduct or fraud: no notice period would be provided.

Effective from 1 July 2021, Mr Czerw’s fixed remuneration was increased to $392,000 per annum comprising a base salary of $357,000 per annum and 10% superannuation.

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

DIRECTORS’ REPORT

Brendan Fyfe – General Counsel

Mr Fyfe is employed under an executive employment agreement which commenced on 6 January 2020. Mr Fyfe received the following remuneration:

Fixed remuneration of $328,500 per annum comprising a base salary of $300,000 and 9.5% superannuation;
Non-cash incentive: Participation in the Company’s option scheme. Invitation to participate in the Company’s option scheme is at the full discretion of the board and may be amended from time to time.

The termination provisions of the agreement are:

For no cause or incapacity: three months’ notice period (or any greater period required by the Fair Work Act 2009);
Redundancy: 30% of the fixed remuneration (or greater as required by the Fair Work Act 2009);
Serious misconduct or fraud: no notice period would be provided.

Effective from 1 July 2021, Mr Fyfe’s fixed remuneration increased to $336,600 per annum comprising a base salary of $306,000 per annum and 10% superannuation.

Derek Byrne – Chief Operating Officer

Mr Byrne is employed as the Chief Operating Officer under an executive employment agreement which commenced on 1 June 2021. Mr Byrne received the following remuneration:

Fixed remuneration of $383,250 per annum comprising a base salary of $350,000 and 9.5% superannuation;
Non-cash incentive: Participation in the Company’s option scheme. Invitation to participate in the Company’s option scheme is at the full discretion of the board and may be amended from time to time.

The termination provisions of the agreement are:

For no cause or incapacity: three months’ notice period (or any greater period required by the Fair Work Act 2009);
Redundancy: redundancy pay in accordance with applicable legislation;
Serious misconduct or fraud: no notice period would be provided.

Effective from 1 July 2021, Mr Byrne’s fixed remuneration increased to $385,000 per annum comprising a base salary of $350,000 per annum and 10% superannuation.

e. Non-executive Directors’ Remuneration

The Company’s policy is to remunerate non-executive directors (“NEDs”) at market rates (for comparable companies) for their time commitment and responsibilities. To align their interests with those of shareholders, NEDs are encouraged to hold shares in the Company. The amount of aggregate remuneration sought to be approved by shareholders and the fee structure is reviewed annually against fees paid to NEDs of comparable companies.

Payments reflect the demands that are made on and the responsibilities of NEDs. NEDs’ fees and payments are reviewed annually by the board. The Company’s constitution and ASX Listing Rules specify that the NEDs’ remuneration fee pool shall be determined from time to time at a general meeting of shareholders.

In accordance with current corporate governance practices, the structure for the remuneration of NEDs and senior executives is separate and distinct. Shareholders approve the maximum aggregate remuneration for NEDs. On 7 June 2019 shareholders approved the current limit of $850,000. The board determines the actual payments to directors. The remuneration of NEDs (inclusive of all committee fees and exclusive of superannuation) for the year ended 30 June 2021 have been set at $165,000 for the Chair and $110,000 for other NEDs.

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

DIRECTORS’ REPORT

f. Key Management Personnel Remuneration Table

The following table discloses details of the nature and amount of each element of the emoluments of each director of Ora Banda and each of the senior executives determined a KMP for the years ended 30 June 2021 and 30 June 2020.

KMP Year	Short Term Post employ- ment Other long term Share- based Payments Total Salary & Fees STI (Cash) STI (Equity)4 Superann- uation Leave Accrued Rights4	Performance related Remuneration
	$ $ $ $ $ $ $	%
Non-executive Directors
Peter Mansell 2021 2020 Keith Jones 2021 2020 Mark Wheatley 2021 2020	165,000 - - 15,675 - 52,868 233,543 121,756 - - 11,567 - 173,995 307,318 110,000 - - 10,450 - 35,245 155,695 81,018 - - 7,697 - 115,997 204,712 110,000 - - 10,450 - 35,245 155,695 81,018 - - 7,697 - 115,997 204,712	23% 57% 23% 57% 23% 57%
Executive Director
David Quinlivan3 2021 2020	380,000 150,000 110,391 36,100 - 196,993 873,484 300,000 - - 28,500 - 377,586 706,086	52% 53%
Senior Executives
Peter Nicholson1 2021 2020 Tony Brazier 2021 2020 Andrew Czerw 2021 2020 Brendan Fyfe 2021 2020 Derek Byrne2 2021 2020	130,605 - - 5,355 10,046 - 146,006 - - - - - - - 325,000 - 73,826 34,998 8,792 175,909 618,525 275,000 - 82,442 22,002 15,057 199,734 594,235 350,000 - 79,476 36,736 14,093 173,707 654,012 267,500 - 77,945 21,927 53,881 188,800 610,053 300,000 - 132,681 30,894 14,817 182,896 661,288 135,738 - 125,930 10,501 12,001 65,506 349,676 29,167 - 1,779 2,771 2,805 4,241 40,763 - - - - - - -	- - 40% 47% 39% 44% 48% 55% 15% -
Total 2021 2020	1,899,772 150,000 398,153 183,429 50,553 857,104 3,539,011 1,262,030 - 286,317 109,891 80,939 1,237,615 2,976,792	40%
		51%

Peter Nicholson was appointed Chief Executive Officer on 2 April 2021
Derek Byrne was appointed Chief Operating Officer on 1 June 2021
The cash STI relates to a retention bonus contingent on Mr Quinlivan being Managing Director to 30 June 2021
The fair value of performance rights is calculated at the date of grant using the Black-Scholes and Monte-Carlo simulation option pricing models and allocated to each reporting period evenly over the period from grant date to vesting date. The value disclosed is the portion of the fair value of the performance rights recognised as an expense in each reporting period. Share-based awards are recognised as an expense straight-line over the expected time to vesting

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

DIRECTORS’ REPORT

5. LINK BETWEEN COMPANY PERFORMANCE, SHAREHOLDER WEALTH GENERATION AND REMUNERATION

The Nomination & Remuneration Committee applies a series of criteria to assess the performance of the Company. Criteria used in this assessment was execution of development projects and exploration success as well as the following metrics in respect of the current and previous financial years.

==> picture [483 x 47] intentionally omitted <==

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

Criteria 2021 2020 2019 2018 2017
Closing cash balances at 30 June ($m) 24.22 10.58 14.14 0.01 0.04
Closing share price at 30 June ($) 0.15 0.27 0.16 0.11 0.37
----- End of picture text -----

The Company’s remuneration practices reflect the achievement of certain of the Company and KMP performance objectives. The Company’s overall objective has been to continue to define resources and reserves, complete the refurbishment of the processing plant and return the Company back to production.

6. KEY MANAGEMENT PERSONNEL HOLDINGS

Option and Performance Rights holdings of Key Management Personnel

30 June 2021 Non-executive Directors Peter Mansell Keith Jones Mark Wheatley Executive Director David Quinlivan Senior Executives Peter Nicholson	Balance at 1 July 2020 1,185,185 790,123 790,123 4,346,790 -	Granted as compen- sation1 - - - 2,550,525 -	Rights/ options exercised2 (592,593) (395,062) (395,062) (395,062) -	Rights/ options forfeited3 - - - (823,237) -	Rights/ options expired - - - - -	Balance at 30 June 2021 592,592 395,602 395,602 5,679,016 -	Vested during the year 592,593 395,062 395,062 869,846 -	Vested and exercisable at 30 June 2021 - - - 869,846 -
Tony Brazier	3,247,384	1,741,214	(1,129,648)	(486,908)	-	3,372,042	870,421	259,310
Andrew Czerw	3,085,974	1,874,431	(1,068,031)	(524,171)	-	3,368,203	856,934	279,156
Brendan Fyfe	2,461,481	2,244,539	(740,767)	(450,466)	-	3,514,787	239,902	239,902
Derek Byrne4	830,406	-	-	(140,771)	-	689,635	74,969	74,969
Total	16,737,466	8,410,709	(4,716,225)	(2,425,553)	-	18,006,397	4,294,789	1,723,183

Performance rights granted as compensation represents “RTSR” and “Other” performance rights issued under the terms outlined above
All options and performance rights were exercised at nil price and each KMP received a quantity of ordinary shares equivalent to the number of options and performance rights exercised
On 30 June 2020, 34.7% of FY21 STIP performance rights vested and the remaining 65.3% FY21 STIP performance rights were forfeited
Derek Byrne was appointed Chief Operating Officer on 1 June 2021

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

DIRECTORS’ REPORT

Value of Options and Performance Rights Exercised and Forfeited

The following table discloses the fair value of options and performance rights when exercised or forfeited, calculated as the number of options/rights multiplied by the share price on the dates of which those options/rights were exercised or forfeited:

30 June 2021	Exercised	Value on date of exercise ($)	Forfeited	Value on date of forfeiture ($)
Non-Executive Directors Peter Mansell Keith Jones Mark Wheatley Executive Director David Quinlivan Senior Executives	592,593 395,062 395,062 395,062	88,889 59,259 59,259 59,259	- - - 823,237	- - - 123,486
Peter Nicholson1	-	-	-	-
Tony Brazier	1,129,648	244,635	486,908	73,036
Andrew Czerw	1,068,031	231,291	524,171	78,626
Brendan Fyfe	740,767	218,526	450,466	67,570
Derek Byrne2	-	-	140,771	21,116
Total	4,716,225	961,118	2,425,553	363,834

Ordinary Shareholdings of Key Management Personnel

30 June 2021 Non-Executive Directors Peter Mansell Keith Jones Mark Wheatley Executive Director David Quinlivan Senior Executives	Balance at 1 July 2020 3,814,815 1,818,396 1,437,497 1,761,729	Purchases 1,323,528 202,046 159.722 1,152,416	Other - - - 1,414,192	On the exercise of options/rights 592,593 395,062 395,062 395,062	Balance at 30 June 2021 5,730,936 2,415,504 1,832,719 4,723,399
Peter Nicholson1	-	-	-	-	-
Tony Brazier	671,111	108,696	-	1,129,648	1,909,455
Andrew Czerw	875,556	200,000	-	1,068,030	2,143,586
Brendan Fyfe	-	-	218,240	740,767	959,007
Derek Byrne2	16,297	-	-	-	16,297
Total	10,395,401	2,986,846	1,632,432	4,716,224	19,730,903

Peter Nicholson was appointed Chief Executive Officer on 2 April 2021
Derek Byrne was appointed Chief Operating Officer on 1 June 2021

There were no alterations to the terms and conditions of performance rights granted as remuneration since their grant date.

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

DIRECTORS’ REPORT

Loans to Key Management Personnel

There were no loans to KMP during the financial year (30 June 2020: Nil).

Other transactions with Directors

Other than as described in this Remuneration Report, there were no other transactions between the Group and directors or their related entities.

End of REMUNERATION REPORT (AUDITED)

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

DIRECTORS’ REPORT

ENVIRONMENTAL REGULATIONS

The Group is subject to significant environmental regulation in respect to its mineral exploration activities. These obligations are regulated under relevant government authorities within Australia. The Group is a party to exploration and mine development licences. Generally these licences specify the environmental regulations applicable to exploration and mining operations in the respective jurisdictions. The Group aims to ensure that it complies with the identified regulatory requirements in each jurisdiction in which it operates.

Compliance with environmental obligations is monitored by the directors. No environmental breaches have been notified to the Group by any government agency during the year ended 30 June 2021.

WARDENS COURT PROCEEDINGS

The Company (and its wholly owned subsidiaries) is a party to various proceedings in the Wardens Court pursuant to which third parties are seeking to challenge its title to various mining tenements by way of forfeiture and other proceedings. The directors are confident that the Company (and its wholly owned subsidiaries) will be successful in defending these proceedings. There were no proceedings against any subsidiary that could bring into doubt whether the Company controlled any of its subsidiaries within the Group.

PROCEEDINGS ON BEHALF OF THE COMPANY

Other than as referred to above, no person has applied for leave of court or 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.

NON AUDIT SERVICES

The Group may decide to employ the auditor on assignments additional to their statutory audit duties where the auditor’s expertise and experience with the Group are important. The directors consider the general standard of independence for auditors imposed by the Corporations Act 2001 before any engagements are agreed.

No non audit services were provided by KPMG, the Group’s auditor, during the year (30 June 2020: $Nil). Further details of remuneration of the auditor are set out at Note 19.

AUDITOR INDEPENDENCE

A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is included immediately following the Directors’ Report and forms part of this Directors’ Report.

INDEMNIFICATION OF AUDITOR

The Company has not provided any insurance or indemnity to the auditor of the Company.

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

DIRECTORS’ REPORT

INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS

The Company has entered into indemnity agreements with each of the directors and officers of the Company. Under the agreements, the Company will indemnify those officers against certain claims or for any expenses or costs which may arise as a result of work performed in their respective capacities as officers of the Company or any related entities.

The Company has taken out an insurance policy insuring directors and officers of the Company against any liability arising from a claim brought by a third party against the Company or its directors or officers, and against liabilities for costs and expenses incurred by them in defending any legal proceedings arising out of their conduct while acting in their capacity as a director or officer of the Company, other than conduct involving a wilful breach of duty in relation to the Company.

During the year, the Company paid premiums in respect of the above insurance policy. The contract prohibits the disclosure of the nature of the liabilities and/or the amount of the premium.

ROUNDING OF AMOUNTS

In accordance with ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191, the amounts in the Directors’ Report and in the financial report have been rounded to the nearest one thousand dollars, or in certain cases, to the nearest dollar (where indicated).

This report is made in accordance with a resolution of directors, pursuant to section 298(2)(a) of the Corporations Act 2001.

On behalf of the directors

==> picture [110 x 70] intentionally omitted <==

Peter Nicholson Managing Director Perth, Western Australia 30 September 2021

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

Annual Mineral Resource and Ore Reserve Statement

==> picture [58 x 17] intentionally omitted <==

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ACN 625 763 957 ANNUAL REPORT 2021

ANNUAL MINERAL RESOURCE AND ORE RESERVE STATEMENT

In accordance with ASX Listing Rule 5.21, the Company reviews and reports its Mineral Resources and Ore Reserves at least annually. The date of reporting is 30 June each year, to coincide with the Company’s end of financial year balance date. If there are any material changes to its Mineral Resources or Ore Reserves over the course of the year, the Company is required to promptly report these changes.

Mineral Resource at 30 June 2021

==> picture [483 x 628] intentionally omitted <==

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

MEASURED INDICATED INFERRED TOTAL MATERIAL
PROJECT Cut-Off (‘000t) (g/t Au) (‘000t) (g/t Au) (‘000t) (g/t Au) (‘000t) (g/t Au) (‘000oz.)
GOLDEN EAGLE 2.0 73 5 235 4.1 97 3.7 405 4.1 53
LIGHTS OF ISRAEL 3.0 - - 74 4.3 180 4.2 254 4.2 34
MAKAI SHOOT 1.0 - - 1,985 2.0 153 1.7 2,138 2.0 137
Open Pit 0.5 - - 1,948 2.4 131 2.9 2,079 2.4 159
WAIHI Underground 2.0 - - 188 3.7 195 4.0 383 3.8 47
TOTAL - - 2,136 2.5 326 3.5 2,462 2.6 206
Central Davyhurst Subtotal - - 4,430 2.4 756 3.3 5,259 2.5 431
LADY GLADYS 1.0 - - 1,858 1.9 190 2.4 2,048 1.9 125
Open Pit 0.5 86 2.0 1,829 1.8 34 2.6 1,949 1.9 117
RIVERINA AREA Underground 2.0 - - 390 5.2 618 5.9 1,008 5.6 183
TOTAL 86 2.0 2,219 2.4 652 5.7 2,957 3.2 300
Open Pit 0.5 - - 386 1.6 17 1.6 403 1.6 21
BRITISH LION Underground 2.0 - - 36 3.2 3 3.8 39 3.8 5
TOTAL - - 422 1.7 20 2.0 442 1.8 25
Open Pit 0.5 - - - - 691 1.5 691 1.5 33
FOREHAND Underground 2.0 - - - - 153 2.5 153 2.5 12
TOTAL - - - - 844 1.7 844 1.7 46
Open Pit 0.5 - - - - 127 2.3 127 2.3 9
SILVER TONGUE Underground 2.0 - - - - 77 4.5 77 4.5 11
TOTAL - - - - 204 3.1 204 3.1 21
SUNRAYSIA 1.0 - - 175 2.1 318 2.0 493 2.0 32
Riverina-Mulline Subtotal 86 2.0 4,674 2.0 2,228 3.1 6,988 2.4 548
Open Pit 0.5 - - 1,252 3.4 128 3.3 1,380 3.4 151
SAND KING Underground 2.0 - - 438 3.7 698 3.8 1,136 3.7 136
TOTAL - - 1,690 3.5 826 3.7 2,516 3.5 287
Open Pit 0.5 - - 1,453 3.4 17 3.5 1,470 3.4 159
MISSOURI Underground 2.0 - - 364 3.4 258 3.4 622 3.4 68
TOTAL - - 1,817 3.4 275 3.4 2,092 3.4 227
PALMERSTON / CAMPERDOWN 1.0 - - 118 2.3 174 2.4 292 2.4 23
BLACK RABBIT 1.0 - - - - 434 3.5 434 3.5 49
Siberia Subtotal - - 3,625 3.4 1,709 3.5 5,334 3.4 585
Open Pit 0.5 - - 241 3.7 28 1.6 269 3.5 30
Callion Underground 2.0 - - 255 6.0 156 5.5 411 5.8 77
TOTAL - - 496 4.9 184 4.9 680 4.9 107
Callion Subtotal - - 496 4.9 184 4.9 680 4.9 107
FEDERAL FLAG 1.0 32 2 112 1.8 238 2.5 382 2.3 28
SALMON GUMS 1.0 - - 199 2.8 108 2.9 307 2.8 28
WALHALLA 1.0 - - 448 1.8 216 1.4 664 1.7 36
WALHALLA NORTH 1.0 - - 94 2.4 13 3.0 107 2.5 9
MT BANJO 1.0 - - 109 2.3 126 1.4 235 1.8 14
MACEDON 1.0 - - - - 186 1.8 186 1.8 11
Walhalla Subtotal 32 2.0 962 2.1 887 2.0 1,881 2.1 125
IGUANA 1.0 - - 690 2.1 2,032 2.0 2,722 2.0 175
LIZARD 1.0 106 4 75 3.7 13 2.8 194 3.8 24
Lady Ida Subtotal 106 4.0 765 2.3 2,045 2.0 2,916 2.1 199
Davyhurst Total 200 2.9 15,000 2.6 7,800 2.8 23,100 2.7 2,000
BALDOCK - - - 136 18.6 0 0.0 136 18.6 81
METEOR - - - - - 143 9.3 143 9.3 43
WHINNEN - - - - - 39 13.3 39 13.3 17
Mount Ida Total - - 140 18.6 180 10.2 320 13.8 140
Combined Total 200 2.9 15,100 2.7 8,000 3.0 23,400 2.8 2,140
----- End of picture text -----

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

ANNUAL MINERAL RESOURCE AND ORE RESERVE STATEMENT

The Missouri, Sand King, Riverina Area, British Lion, Waihi, Callion, Golden Eagle, Forehand and Silver Tongue Mineral Resources have been updated in accordance with all relevant aspects of the JORC code 2012, and initially released to the market on 15 December 2016 & 26 May 2020 (Missouri), 3 January 2017 & 26 May 2020 (Sand King), 2 December 2019 & 26 May 2020 (Riverina), 4 February 2020 (Waihi), 15 May 2020 & 29 June 2020 (Callion), 8 April 2020 (Golden Eagle) and 9 October 2020 (Riverina South)
All Mineral Resources listed above, with the exception of the Missouri, Sand King, Riverina Area, British Lion, Waihi, Callion, Golden Eagle, Forehand and Silver Tongue Mineral Resources, were prepared previously and first disclosed under the JORC Code 2004 (refer Swan Gold Mining Limited Prospectus released to the market on 13 February 2013). These Mineral Resources have not been updated in accordance with JORC Code 2012 on the basis that the information has not materially changed since it was first reported
The Riverina Area, British Lion, Waihi, Sand King, Missouri, Callion, Forehand and Silver Tongue Open Pit Mineral Resource Estimates are reported within a A$2,400/oz pit shell above 0.5g/t. The Riverina Area, British Lion, Waihi, Sand King, Missouri, Callion, Forehand, Silver Tongue and Golden Eagle Underground Mineral Resource Estimates are reported from material outside a A$2,400 pit shell and above 2.0 g/t
Previously, Riverina South included Riverina South and British Lion Resources. Currently Riverina South is included in the Riverina Area Resources as it is contiguous with Riverina mineralisation. British Lion is now quoted separately
Resources are inclusive of in-situ ore reserves and are exclusive of surface stockpiles
The values in the above table have been rounded

Ore Reserve at 30 June 2021

Total Ore Reserves at 30 June 2021 are estimated of 6.2 Mt @ 2.4 g/t Au for 470,000 ounces of contained gold.

==> picture [484 x 157] intentionally omitted <==

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

PROVED PROBABLE TOTAL MATERIAL
PROJECT [1,2,9] (‘000t) (g/t Au) (‘000t) (g/t Au) (‘000t) (g/t Au) (‘000oz)
Sand King [3,4] 1,200 2.7 1,200 2.7 110
Missouri [3,4] 20 0.9 1,600 2.7 1,600 2.6 130
Riverina [3,4,5] 340 1.1 1,300 1.7 1,700 1.6 86
Golden Eagle [6,7] 50 3.2 85 3.6 140 3.5 15
Waihi [3,4] 1,300 2.4 1,300 2.4 110
Callion [3,4] 230 2.7 230 2.7 20
TOTAL 410 1.4 5,800 2.4 6,200 2.4 470
----- End of picture text -----

The table contains rounding adjustments to two significant figures and does not total exactly
This Ore Reserve was estimated from practical mining envelopes and the application of modifying factors for mining dilution and ore loss
For the open pit Ore Reserve dilution skins were applied to the undiluted LUC Mineral Resource estimate at zero grade. The in-pit global dilution is estimated to be 31% at Sand King, 45% at Missouri, 24% at Riverina, 13% at Waihi and 26% at Callion all of which were applied at zero grade. The lower dilution at Riverina, Waihi and Callion reflecting the softer lode boundary and allows for inherent dilution within the lode wireframe. All Inferred Mineral Resources were considered as waste at zero grade
The Open Pit Ore Reserve was estimated using incremental cut-off grades specific to location and weathering classification. They range from 0.67 g/t to 0.80 g/t Au and are based on a price of A$2200 per ounce and include ore transport, processing, site overheads and selling costs and allow for process recovery specific to the location and domain and which range from 85% (Sand King fresh ore) to 95%
Approximately 100,000 t at 1.6 g/t at Riverina was downgraded from Proved to Probable due to current uncertainty surrounding reconciliations experienced during the implementation phase
The underground Ore Reserve was estimated from practical mining envelopes derived from expanded wireframes to allow for unplanned dilution. A miscellaneous unplanned dilution factor of 5% at zero grade was also included. The global dilution factor was estimated to be 52% with zero dilution grade
The underground Ore Reserve was estimated using stoping cut-off of 2.1 g/t Au which allows for ore drive development, stoping and downstream costs such as ore haulage, processing, site overheads and selling costs. An incremental cut-off grade of 0.66 g/t Au was applied to ore drive development and considers downstream costs only. Cut-off grades were derived from a base price of A$2200 per ounce and allow for process recovery of 92%
For Golden Eagle, approximately 35,000 t at 3.9 g/t of material was classified as Proved and derived from the Measured portion of the Mineral Resource. The balance of the Proved material was contained within surface stockpiles
The Ore Reserve is inclusive of surface stockpiles above the relevant incremental cut-off and total 370,000 t at 1.1 g/t. All surface stockpiles were classified as Proved

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

ANNUAL MINERAL RESOURCE AND ORE RESERVE STATEMENT

Governance Arrangements and Internal Controls

Ora Banda Mining has ensured that the Mineral Resources and Ore Reserves quoted are subject to good governance arrangements and internal controls. The Mineral Resources and Ore Reserves reported have been generated by internal Company geologists, who are experienced in best practice in modelling and estimation methods. The competent person has also undertaken reviews of the quality and suitability of the underlying information used to generate the resource estimation. In addition, Ora Banda Mining’s management carry out regular reviews and audits of internal processes and external contractors that have been engaged by the Company.

Competent Person Statement

The information in this announcement that relates to exploration results, and the Riverina, Riverina South, British Lion, Waihi, Golden Eagle, Callion, Sand King and Missouri Mineral Resources is based on information compiled under the supervision of Mr Ross WhittleHerbert, an employee of Ora Banda Mining Limited, who is Member of the Australian Institute of Geoscientists. Mr Whittle-Herbert has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Whittle-Herbert consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Sand King, Missouri, Riverina, Riverina South, British Lion, Waihi, Golden Eagle and Callion Mineral Resources are reported in accordance with the JORC 2012 code. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements dated 15 December 2016 (Missouri) and 3 January 2017 (Sand King), 2 December 2019 (Riverina), 4 February 2020 (Waihi), 8 April 2020 (Golden Eagle), 15 May 2020 (Callion) and restated in market announcement “Davyhurst Gold Project - Ore Reserve Update” dated 26 May 2020.

Mineral Resources other than Sand King, Missouri, Riverina, Riverina South, British Lion, Waihi, Golden Eagle and Callion were first reported in accordance with the JORC 2004 code in Swan Gold Mining Limited Prospectus released to the market on 13 February 2013. Mineral Resources other than Sand King, Missouri, Riverina, Riverina South, British Lion, Waihi, Golden Eagle and Callion have not been updated to comply with JORC Code 2012 on the basis that the information has not materially changed since it was first reported.

The information in this report that relates to Ore Reserves is based on information compiled by Mr Geoff Davidson, who is an independent mining engineering consultant, and has sufficient relevant experience to advise Ora Banda Mining Limited on matters relating to mine design, mine scheduling, mining methodology and mining costs. Mr Davidson is a Fellow member of the Australian Institute of Mining and Metallurgy. Mr Davidson is satisfied that the information provided in this statement has been determined to a feasibility level of accuracy or better, based on the data provided by Ora Banda Mining Limited. Mr Davidson consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

Auditor’s Independence Declaration

==> picture [58 x 17] intentionally omitted <==

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957ACN 625 763 957 ANNUAL REPORT 2021

AUDITOR’S INDEPENDENCE DECLARATION

==> picture [90 x 67] intentionally omitted <==

Lead Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001

To the Directors of Ora Banda Mining Limited

I declare that, to the best of my knowledge and belief, in relation to the audit of Ora Banda Mining Limited for the financial year ended 30 June 2021 there have been:

i. no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and
ii. no contraventions of any applicable code of professional conduct in relation to the audit.

==> picture [84 x 38] intentionally omitted <==

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

KPM_INI_01
----- End of picture text -----

KPMG PAR_SIG_01

==> picture [96 x 45] intentionally omitted <==

R Gambitta Partner

Perth

30 September 2021

KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by a scheme approved under Professional Standards Legislation.

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

Consolidated Statement of Profit or Loss

and other comprehensive income for the year ended 30 June 2021

==> picture [484 x 28] intentionally omitted <==

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

30 June 2021 30 June 2020
Notes $’000 $’000
----- End of picture text -----

Notes	30 June 2021 $’000 30 June 2020 $’000
Revenue 3 Cost of sales 4 Gross profit Other income 5 General and administration expenses 6(a) Exploration and evaluation expenses Impairment reversal 11 Other operating expenses 6(b) Operating loss Finance income 6(c) Finance expense 6(c) Loss before income tax expense Income tax expense 7 Loss for the year Total comprehensive loss for the year Total comprehensive loss attributable to: Equity holders of the Parent Basic loss per share 27 Diluted loss per share 27	25,115 - (25,938) -
	(823) - 44 254 (10,904) (6,826) (6,125) (4,810) - 7,311 (3,942) (2,567)
	(21,750) (6,638) 88 195 (622) (232)
	(22,284) (6,675) - -
	(22,284) (6,675)
	(22,284) (6,675)
	(22,284) (6,675)
	(2.73) (0.12) (2.73) (0.12)

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

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

Consolidated Statement of Financial Position as at 30 June 2021

==> picture [483 x 28] intentionally omitted <==

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

30 June 2021 30 June 2020
Notes $’000 $’000
----- End of picture text -----

Notes	30 June 2021 $’000 30 June 2020 $’000
Assets Current assets Cash and cash equivalents 8 Trade and other receivables 9 Inventories 10 Prepayments Total current assets Non-current assets Receivables and other assets 9 Exploration, evaluation and development expenditure 11 Property, plant and equipment 12 Right-of-use assets 13 Total non-current assets Total assets Liabilities Current liabilities Trade and other payables 15 Lease liabilities 14 Provisions 16 Total current liabilities Non-current liabilities Trade and other payables 15 Lease liabilities 14 Provisions 16 Total non-current liabilities Total liabilities Net assets Equity Share capital 17 Reserves 18 Accumulated losses Total equity	24,220 10,577 1,396 1,408 20,312 55 639 1,164
	46,567 12,040
	3,085 30 58,538 44,841 36,863 14,558 27,455 381
	125,941 59,810
	172,508 71,850
	21,050 3,880 9,178 210 1,036 370
	31,264 4,460
	75 100 18,010 182 21,142 19,077
	39,227 19,359
	70,491 23,819
	102,017 48,031
	443,696 368,194 2,871 2,103 (344,550) (322,266)
	102,017 48,031

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

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

Consolidated Statement of Changes In Equity for the year ended 30 June 2021

==> picture [484 x 57] intentionally omitted <==

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

Fair value of
Share-based investments in
Contributed Accumulated payments listed equities
equity losses reserve reserve Total
Consolidated Notes $’000 $’000 $’000 $’000 $’000
----- End of picture text -----

Consolidated Notes	Contributed equity $’000 Accumulated losses $’000 Share-based payments reserve $’000 Fair value of investments in listed equities reserve $’000 Total $’000
At 1 July 2019 Loss for the year Total comprehensive income Issue of ordinary shares (net of costs) 17 Share-based payments 28 Transfer from fair value reserve Lapsed share-based payments Transactions with owners in capacity of owners At 30 June 2020 Loss for the year Total comprehensive loss Issue of ordinary shares (net of costs) 17 Options/rights exercised 17 Share-based payments 28 Transactions with owners in capacity of owners At 30 June 2021	350,519 (328,181) 12,279 751 35,368
	- (6,675) - - (6,675)
	- (6,675) - - (6,675) 63,351 - - - 63,351 - - 387 - 387 - 751 - (751) - - 11,839 (11,839) - -
	63,351 - 387 - 63,738
	368,194 (322,266) 2,103 - 48,031
	- (22,284) - - (22,284)
	- (22,284) - - (22,284) 72,161 - - - 72,161 1,976 - - - 1,976 1,365 - 768 - 2,133
	75,502 - 768 - 79,270
	443,696 (344,550) 2,871 - 102,017

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

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

Consolidated Statement of Cash Flows for the year ended 30 June 2021

==> picture [483 x 27] intentionally omitted <==

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

30 June 2021 30 June 2020
Notes $’000 $’000
----- End of picture text -----

Notes	30 June 2021 $’000 30 June 2020 $’000
Cash flows from operating activities Receipts from customers Other receipts Payments to suppliers and employees Interest paid Net cash flows used in operating activities 26 Cash flows from investing activities Payments for development expenses Payments for property, plant and equipment Payments for other assets Receipts from pre commercial production sales Refund of deposits Proceeds from sale of plant and equipment Interest received Net cash flows used by investing activities Cash flows from financing activities Proceeds from the issue of shares 17 Payments for costs of raising capital 17 Proceeds from the exercise of options 17 Repayment of lease liabilities Net cash flows from financing activities Net increase/(decrease) in cash and cash equivalents held Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year 8	25,115 - 44 205 (36,053) (10,954) (428) -
	(11,322) (10,554)
	(24,292) (9,412) (23,136) (1,092) (4,146) - 7,154 - 1,091 - 13 49 82 195
	(43,234) (10,455)
	76,093 18,500 (3,932) (825) 1,976 - (5,938) (231)
	68,199 17,444
	13,643 (3,565)
	10,577 14
	24,220 10,577

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

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

Notes to the Consolidated Financial Statements

for the year ended 30 June 2021

==> picture [58 x 17] intentionally omitted <==

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ACN 625 763 957 ANNUAL REPORT 2021

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

1. BASIS OF PREPARATION

Ora Banda Mining Limited (“the Company”) and its subsidiaries (“the Group”) are a for-profit group of companies incorporated and domiciled in Australia whose shares are publicly traded on the Australian Securities Exchange (“ASX”). The nature of the operations and principal activities of the Group are described in the Directors’ Report.

The consolidated financial statements were approved by the board of directors on 30 September 2021. The consolidated financial report is a general purpose financial report which has been prepared in accordance with the requirements of the Corporations Act 2001, Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (“AASB”). The financial report has been prepared on a historical cost basis, except for certain financial assets and liabilities which are measured on a fair value basis. The consolidated financial report is presented in Australian dollars, which is the functional and presentation currency of the Company and its subsidiaries.

Compliance with Australian Accounting Standards ensures that the consolidated financial statements and notes comply with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).

The Company is of a kind referred to in ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191 and in accordance with that Instrument, all financial information has been rounded off to the nearest thousand dollars, unless otherwise stated.

(a) Basis of consolidation

The consolidated financial statements comprise the financial statements of the Group. A list of controlled companies (subsidiaries) at year end is disclosed in Note 24.

The financial statements of subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies.

Intra-group balances and transactions, and any unrealised income and expenses arising from intra-group transactions, are eliminated in preparing the consolidated financial statements.

(b) Fair value measurement

A number of the Group’s accounting policies and disclosures require the determination of fair value for both financial and non-financial assets and liabilities. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in the principal or, in its absence, the most advantageous market to which the Group has access at that date. The fair value of a liability reflects its non-performance risk. Fair values have been determined for measurement and/or disclosure purposes based on the following methods. When applicable, further information about the assumptions made in determining fair values is disclosed in the notes specific to that asset or liability.

When measuring the fair value of an asset or liability, the Group uses observable market data as far as possible. Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (ie: as prices) or indirectly (ie: derived from prices);
Level 3: Inputs for the asset or liability that are not based on observable market data.

If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement. The Group recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.

(c) New accounting standards and standards not yet effective

The Company has adopted all new standards and pronouncements applicable to the reporting period. Any new, revised or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted and are not expected to have a material impact on the Group.

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(d) Commercial production

Amortisation of capitalised mine development costs begins when pre-determined levels of operating capacity intended by management have been achieved. The determination of when a mine is in the position for it to be capable of operating in the manner intended by management (known as “commercial production”) is a matter of significant judgement.

Management considers several factors when determining when a mining operation has achieved the intended levels of operating capacity, including:

When the mine is substantially complete and ready for its intended use;
When the mine has the ability to sustain ongoing production at a steady or increasing level;
When the mine has reached a level of pre-determined percentage of design capacity;
When mineral recoveries are at or near intended production levels; and
When a reasonable period of testing of mining and processing operations have been successfully completed.

Once commercial production is declared, the capitalisation of certain mine development and construction costs ceases. Subsequent costs are regarded as either forming part of the cost of inventories or are expensed. However, any costs relating to mining asset additions or improvements, or mineable reserve development, are assessed to determine whether capitalisation is appropriate.

In March 2021 the board declared commercial production had been achieved as at 31 March 2021.

(e) Going concern

The consolidated financial report has been prepared on a going concern basis, which presumes the continuity of normal business activities, the realisation of assets and the settlement of liabilities in the ordinary course of business.

At 30 June 2021 the Company had cash and bullion on hand of $25.94 million and a net working capital surplus of $15.3 million. It incurred a loss after income tax of $22.28 million for the year ended 30 June 2021. Net cash outflows from operating activities were $11.32 million and cash outflows from investing activities were $43.23 million, reflecting the commencement of mining activities and refurbishment of the Davyhurst processing plant and associated infrastructure undertaken during the year.

During the year the Company raised the following funds:

$55.08 million in July and September 2020, through the issue of 239.5 million ordinary shares; and
$21.01 million in June 2021, through the issue of 123.6 million ordinary shares.

Further, on 23 September 2021 the Company completed the sale of its Mt Ida gold assets to TNT Mines Limited (ASX:TIN), subsequently renamed Red Dirt Metals Limited (ASX:RDT), for consideration of $11,000,000 before transaction costs.

In addition to the industry wide problem of human resourcing, operations were affected by the following:

Materials handling properties of Riverina oxide ore;
Power outages;
Crusher screens in the SKALA double deck unit; and
Higher levels of maintenance.

The directors consider the preparation of the Company’s consolidated financial report on a going concern basis to be appropriate based on cashflow forecasts. These forecasts rely on the attainment of planned production from open pit and underground mining operations, together with processing plant activities and costs of production. Critical to the cash flow forecast is achieving forecast gold production and pricing.

The Company has a reasonable expectation that such production forecasts will be achieved through a combination of improved ore characteristics and processing plant stability.

The realisation of forecast gold production at anticipated pricing and costs of production, or ability to raise additional funding, is key to the Company’s ability to continue as a going concern. The directors have a reasonable expectation that forecast gold production can be achieved or, if required, additional funding can be secured.

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

2. SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and reported amounts of assets and liabilities, income and expenses.

Judgements and estimates which are material to the financial report are found in the following notes:

Note 7: Income tax – consideration to recognition of deferred tax assets;
Note 9: Trade receivables – provision for expected credit losses on trade and other receivables;
Note 11: Amortisation of development expenditure – estimation of future mineable inventory and future development expenditure when calculating units of production amortisation;
Note 11: Reserves and resources – estimating reserves and resources;
Notes 11 and 12: Property, plant and equipment – consideration of impairment triggers
Note 16: Provision for rehabilitation – measurement of provision based on key assumptions; and
Note 28: Share-based payments – estimations involving valuation of performance rights issued to directors and employees.

3. REVENUE

	30 June 2021 $’000 30 June 2020 $’000
Gold sales Silver sales	25,087 - 28 -
	25,115 -

Gold sales during the year exclude $7.15 million of gold sold prior to commercial production being declared. These sales were capitalised to mine development expenditure.

No sales were made under hedge arrangements during the financial year and at 30 June 2021 and the Company has no hedge arrangements for future financial years.

Accounting policies

Gold bullion sales

Under AASB 15 Revenue from Contracts with Customers, revenue is recognised when a customer obtains control of the goods or services. Determining the timing of the transfer of control requires judgement. With the sale of gold bullion, this occurs when physical bullion, from a contracted sale, is transferred from the Company’s account into the account of the buyer.

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

4. COST OF SALES

==> picture [483 x 27] intentionally omitted <==

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

30 June 2021 30 June 2020
$’000 $’000
----- End of picture text -----

	30 June 2021 $’000 30 June 2020 $’000
Mining and processing costs Amortisation and depreciation Employee benefits expense Royalties	16,067 - 5,965 - 3,187 - 719 -
	25,938 -

Accounting policies

Mining and processing costs

This includes all costs related to mining and milling, net of costs capitalised to mine development and production stripping. This category also includes movements in the cost of inventory and any net realisable value write downs.

Amortisation

The Group applies the units of production method for amortisation of its production phase assets, which results in an amortisation charge proportional to the depletion of the anticipated remaining life of mine production. These calculations require the use of estimates and assumptions in relation to reserves and resources, metallurgy and the complexity of future capital development requirements. These estimates and assumptions are reviewed annually and changes to these estimates and assumptions may impact the amortisation charge in the Statement of Profit or Loss and asset carrying values.

The Group uses ounces mined over estimated remaining reserves as its basis for depletion of production phase assets.

Depreciation

Depreciation is calculated on either a reducing balance basis or on a straight-line basis over the estimated useful life of each part of an item of property, plant and equipment. Leased assets are depreciated over the shorter of the lease term and their useful life while processing plants are depreciated on the life of the mine basis. Capital works in progress are not depreciated until it is ready for use. Depreciation methods, useful lives and residual values are reassessed at each reporting date.

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The estimated useful lives for the current and comparative period are as follows:

==> picture [323 x 94] intentionally omitted <==

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

Period
Buildings 3-6 years
Haul roads 3-6 years
Plant and equipment 3- 6 years
Office furniture and equipment 3-6 years
Motor vehicles 3-5 years
----- End of picture text -----

5. OTHER INCOME

	30 June 2021 $’000 30 June 2020 $’000
Profit on sale of property, plant & equipment Debts recovered Other income	13 49 31 144 - 61
	44 254

6. (a) GENERAL AND ADMINISTRATION EXPENSES

==> picture [483 x 27] intentionally omitted <==

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

30 June 2021 30 June 2020
$’000 $’000
----- End of picture text -----

	30 June 2021 $’000 30 June 2020 $’000
Employee benefits expenses Share-based payments (Note 28) Administration and corporate costs Movements in expected credit loss Depreciation expense	3,519 1,986 2,133 1,663 4,908 2,852 - (125) 344 450
	10,904 6,826

6. (b) OTHER OPERATING EXPENSES

	30 June 2021 $’000 30 June 2020 $’000
Site contractors and consultants Consumables Salaries and wages Depreciation and amortisation Other operating expenses	1,370 140 563 73 671 1,150 816 - 522 1,204
	3,942 2,567

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

6. (c) FINANCE INCOME/(EXPENSE)

==> picture [483 x 27] intentionally omitted <==

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

30 June 2021 30 June 2020
$’000 $’000
----- End of picture text -----

	30 June 2021 $’000 30 June 2020 $’000
Interest income Finance income Accretion of rehabilitation provision Interest expense on lease liabilities Finance expense Net finance expense	88 195
	88 195
	(74) (211) (548) (21)
	(622) (232)
	(534) (37)

Accounting policies

Interest income comprises bank interest on funds invested and is recognised as it accrues, using the effective interest method. Finance expenses comprise interest expense on borrowings (including leases) and unwinding of the discount on provisions. All borrowing costs are recognised in the consolidated statement of profit or loss and other comprehensive income using the effective interest method in the period in which they are incurred except borrowing costs that are directly attributable to the acquisition, construction and production of a qualifying asset that necessarily takes a substantial period to get ready for its intended use or sale. In this case, borrowing costs are capitalised as part of the qualifying asset.

7. INCOME TAX

==> picture [484 x 27] intentionally omitted <==

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

30 June 2021 30 June 2020
$’000 $’000
----- End of picture text -----

	30 June 2021 $’000 30 June 2020 $’000
(a) Components of tax expense: Current tax benefit Deferred tax (b) Deferred income tax related to items recognised directly to equity Gain on financial asset at fair value through other comprehensive income (c) Prima facie income tax expense The prima facie tax payable on loss before income tax is reconciled to the income tax expense as follows: Prima facie income tax benefit/(expense) on loss before income tax at 30% (2020: 30%). Tax effect of: - Expenses not deductible in determining taxable profit/loss - Items which are non-assessable in determining taxable profit/loss - Losses and other deferred tax balances not recognised during the year Income tax expense/(benefit) attributable to loss	- - - -
	- -
	- -
	(6,685) (2,003) 643 527 - - 6,042 1,476
	- -

Based on the 30 June 2020 lodged Group income tax return and estimates for 30 June 2021, the Group has an unrecognised deferred tax asset of $84.26 million on carried forward tax losses of $280.86 million. Losses carried forward of $170.24 million as at 30 June 2016 are subject to the satisfaction of the same business test or the business continuity test, due to several continuity of ownership failures during the loss years. Losses incurred post 30 June 2016 are subject to the satisfaction of the continuity of ownership test.

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Accounting policies

Income tax

Income tax expense comprises current and deferred tax. Income tax expense is recognised in profit or loss except to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity.

Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at balance date, and any adjustment to tax payable in respect of previous years.

Deferred tax is recognised using the balance sheet method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences when they reverse, based on the laws that have been enacted or substantively enacted at balance date.

Tax losses

Deferred tax assets are recognised for the carry-forward of unused tax losses to the extent that it is probable that taxable profits will be available in the future against which unused tax losses can be utilised. The deductible carry-forward tax losses do not expire under current tax legislation. Deferred tax assets have not been recognised in respect of these items because it is not probable that future taxable profit will be available against which the Group can utilise the benefits therefrom, detailed further in significant judgements below.

Tax consolidation

Ora Banda Mining Limited and its wholly owned Australian resident subsidiaries have formed a tax consolidated group with effect from 1 July 2002. Ora Banda Mining Limited is the head entity of the tax consolidated group.

Tax effect accounting by members of the tax consolidated group

The head entity and the controlled entities in the tax consolidated group continue to account for their own current and deferred tax amounts. The Group has applied the group allocation approach in determining the appropriate amount of current taxes and deferred taxes to allocate to members of the tax consolidated group. The current and deferred tax amounts are measured in a systematic manner that is consistent with the broad principles in AASB 112 Income Taxes.

Significant judgements

Deferred tax assets

Deferred tax assets, including those arising from unutilised tax losses, require the Group to assess the likelihood that it will generate sufficient taxable earnings in future periods, in order to utilise recognised deferred tax assets. Assumptions about the generation of future taxable profits depend on management’s estimates of future cash flows. These estimates of future taxable income are based on forecast cash flows from operations (which are impacted by production and sales volumes, commodity prices, reserves, operating costs, closure and rehabilitation costs, capital expenditure and other capital management transactions). To the extent that future cash flows and taxable income differ significantly from estimates, the ability of the Group to realise the net deferred tax assets could be impacted.

8. CASH AND CASH EQUIVALENTS

	30 June 2021 $’000 30 June 2020 $’000
Cash at bank and on hand	24,220 10,577
	24,220 10,577

Accounting policies

Cash and cash equivalents comprise cash balances and call deposits with maturities of three months or less. The Group ensures that as far as possible it maintains excess cash and cash equivalents in short-term high interest-bearing deposits. The Group’s exposure to interest rate risk and a sensitivity analysis of financial assets and liabilities are disclosed in Note 23.

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

9. TRADE AND OTHER RECEIVABLES

==> picture [484 x 27] intentionally omitted <==

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

30 June 2021 30 June 2020
$’000 $’000
----- End of picture text -----

	30 June 2021 $’000 30 June 2020 $’000
Current GST receivables Other receivables Less provision for expected credit loss Non-current Security deposits	1,065 239 2,271 1,981 (1,940) (1,976)
	1,396 1,408
	3,085 30

The Group’s exposure to credit risk is disclosed in Note 23.

Accounting policies

Trade receivables are recognised initially at the value of the invoice sent to the counterparty and subsequently at the amounts considered recoverable (amortised cost). Where there is evidence that the receivable is not recoverable, it is impaired with a corresponding change to the Consolidated Statement of Profit or Loss and Other Comprehensive Income. GST receivable balances are recorded initially as the consideration to be received from the federal government, and then subsequently at amortised cost.

Impairment of receivables

==> picture [484 x 27] intentionally omitted <==

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

30 June 2021 30 June 2020
$’000 $’000
----- End of picture text -----

	30 June 2021 $’000 30 June 2020 $’000
Reconciliation of provision for expected credit loss Carrying amount at beginning of year Reversal due to debt recovery Amounts written off during the year Carrying amount at the end of year	1,976 2,442 - (171) (36) (295)
	1,940 1,976

Significant judgements

Provision for expected credit losses of trade and other receivables

The provision relates to outstanding amounts for shares issued to previous related parties and advances provided to previous related parties for the recharges of costs incurred by the Group on behalf of the previous related party arising from prior periods. These amounts are disclosed as ‘other receivables’. All related party receivables have been fully provided for based on an expected credit loss rate of 100%. The assessment of expected credit losses is a significant estimate. The amount of expected credit losses is sensitive to changes in circumstances. The Group’s historical credit loss experience may also not be representative of customer’s actual default in the future.

10. INVENTORIES

	30 June 2021 $’000 30 June 2020 $’000
CURRENT Materials and supplies Ore stocks Gold in circuit Bullion on hand Total inventories	1,360 44 15,032 - 2,200 1,720 11
	20,312 55

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Accounting policies

Inventories

Ore stockpiles, gold in circuit and gold bullion are physically measured or estimated and valued at the lower of cost and net realisable value. The cost comprises direct materials, labour and transportation expenditure in bringing such inventories to their existing location and condition, together with an appropriate portion of fixed and variable overhead expenditure based on weighted average cost incurred during the period in which such inventories were produced.

Net realisable value is the estimated selling price in the ordinary course of business less estimated cost of completion and the estimated cost necessary to perform the sale. Inventories of consumable supplies and spare parts that are expected to be used in production are valued at cost. Obsolete or damaged inventories of such items are valued at net realisable value.

During the year ore stockpiles were reduced by $3.89 million (2020: $Nil) as a result of a write down to net realisable value. This write down was recognised as an expense.

As a result at 30 June 2021 ore stockpiles were held at net realisable value with all other inventories at cost.

Bullion on hand

Bullion on hand comprises gold that has been delivered to the Perth Mint prior to year-end but which has not yet been delivered into a sale contract.

11. EXPLORATION EVALUATION AND DEVELOPMENT EXPENDITURE

==> picture [483 x 26] intentionally omitted <==

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

30 June 2021 30 June 2020
$’000 $’000
----- End of picture text -----

	30 June 2021 $’000 30 June 2020 $’000
Exploration and evaluation phase Cost brought forward Acquisitions during the year Transferred to development phase Balance at 30 June Development phase Cost brought forward Transfer from exploration and evaluation phase Expenditure during the year Impairment reversal Rehabilitation provision adjustment Revenue capitalised Transferred to production phase Balance at 30 June Total Production phase Cost brought forward Transfer from development phase Expenditure during the year Rehabilitation provision adjustment Amortisation expense Balance at 30 June Total	1,972 - - 1,972 (1,972) -
	- 1,972
	42,869 25,035 1,972 - 25,415 8,553 - 7,311 (257) 2,222 (7,161) - (51,517) (252)
	11,321 42,869
	44,841 44,841
	- - 51,517 - 2,429 - 1,699 - (8,428)
	47,217 -
	58,538 44,841

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Accounting policies and significant judgements

Exploration and evaluation phase

Expenditure on areas of interest in the exploration and evaluation phase are those expenditures incurred in connection with the exploration for and evaluation of minerals resources before the technical feasibility and commercial viability of extracting a mineral resource are demonstrable. Exploration and evaluation phase assets include the costs of acquiring exploration licenses or exploration rights and the fair value (at acquisition date) of exploration and evaluation assets acquired. All other expenditure on areas of interest in the exploration and evaluation phase, including all expenditure incurred prior to securing legal rights to explore an area, is expensed as incurred.

Capitalised exploration and evaluation expenditure is accumulated in respect of each identifiable area of interest. An “area of interest” is an individual geological area which is considered to constitute a favourable environment for the presence of a mineral deposit or has been proved to contain such a deposit. These costs are carried forward only if they relate to an area of interest for which rights of tenure are current and where:

such costs are expected to be recouped through successful development and exploitation or from sale of the area; and
exploration and evaluation activities in the area have not, at balance date, reached a stage which permits a reasonable assessment of the existence or otherwise of economically recoverable resources, and active and significant operations in, or relating to, this area are continuing.

A regular review is undertaken of each area of interest to determine the appropriateness of continuing to carry forward capitalised costs in relation to the area of interest. If capitalised costs do not meet the criteria noted above, they are written off in full against the Consolidated Statement of Profit or Loss and Other Comprehensive Income.

During the year, $6.13 million of costs incurred on areas of interest in the exploration and evaluation phase were expensed to the Consolidated Statement of Profit or Loss and Other Comprehensive Income (2020: $4.81 million) as they did not meet the recognition criteria noted above.

Exploration and evaluation assets are transferred to development phase assets once technical feasibility and commercial viability of an area of interest is demonstrable. At this stage, exploration and evaluation assets are tested for impairment, and any impairment loss is recognised, prior to being reclassified.

Impairment testing of exploration and evaluation assets

Exploration and evaluation assets are assessed for impairment if sufficient data exists to determine technical feasibility and commercial viability or facts and circumstances suggest that the carrying amount exceeds the recoverable amount.

Exploration and evaluation assets are tested for impairment when any of the following facts and circumstances exist:

the term of exploration licence in the specific area of interest has expired during the reporting period or will expire in the near future, and is not expected to be renewed;
substantive expenditure on further exploration and evaluation of mineral resources in the specific area are not budgeted or planned;
exploration for and evaluation of mineral resources in the specific area have not led to the discovery of commercially viable quantities of mineral resource and the decision was made to discontinue such activities in the specific area; or
sufficient data exists to indicate that, although development in the specific area of interest is likely to proceed, the carrying amount of the exploration and evaluation asset is unlikely to be fully recovered from successful development or by sale.

When a potential impairment is indicated, an assessment is performed for each cash generating unit which is no larger than the area of interest.

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Development phase assets

The Group capitalises expenditure on areas of interest in the development phase only where the following criteria are met:

The Group has right of tenure in the area of interest;
The expenditure is for the purpose of furthering an already proven mineral resource area; and
The expenditure provides future economic benefit by developing the underlying resources to further progress the asset towards commercial production.

Development phase assets are transferred to mine properties and mining assets when commercial production is achieved at the area of interest.

Impairment testing of assets in the development or production phase

The carrying amounts of assets in the development or production phase are reviewed at each balance date to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated.

The recoverable amount of an asset or cash-generating unit is the greater of its value-in-use (“VIU”) and its fair value less costs of disposal (“FVLCD”). For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (“cash-generating unit”).

An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount. Impairment losses are recognised in the Statement of Profit or Loss and Other Comprehensive Income.

Impairment losses recognised in prior periods are assessed at each balance date for any indications that the loss has decreased or no longer exists and therefore should be reversed. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had initially been recognised. Impairment reversals are also recognised in the Statement of Profit or Loss and Other Comprehensive Income. In the prior period $7.31 million in prior impairments was reversed.

Exploration expenditure commitments

Exploration expenditure commitments represent tenement rentals and minimum spend requirements that are required to be met under the relevant legislation should the Group wish to retain tenure on all its current tenements (refer Note 20).

Mine properties and mining assets

Mine properties represent the acquisition cost and/or accumulated exploration, evaluation and development expenditure in respect of areas of interest in which mining has commenced. When commercial production is achieved, capitalised costs in the development phase are transferred to mine properties, at which time it is amortised on a unit of production basis based on ounces mined over the total estimated reserves and resources related to this area of interest.

Significant factors considered in determining the technical feasibility and commercial viability of the project are the completion of a feasibility study, the existence of sufficient resources to proceed with development and approval by the board of directors to proceed with development of the project.

Underground development expenditure incurred in respect of mine development after the commencement of production is carried forward as part of mine development only when substantial future economic benefits are expected, otherwise this expenditure is expensed as incurred.

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Deferred stripping costs

Stripping is the process of removing overburden and waste materials from surface mining operations to access the ore. Stripping costs are capitalised during the development of a mine and are subsequently amortised over the life of mine on a units of production basis, where the unit of account is ounces of gold mined from reserves. Stripping costs capitalised at year end are included in the production phase of development expenditure (refer Note 11).

Reserves and resources

Resources are estimates of the amount of gold product that can be economically extracted from the Group’s mine properties. In order to calculate resources, estimates and assumptions are required about a range of geological, technical and economic factors, including quantities, grades, production techniques, recovery rates, production costs, future capital requirements, short and long term commodity prices and exchange rates.

Estimating the quantity and/or grade of resources requires the size, shape and depth of ore bodies to be determined by analysing geological data. This process may require complex and difficult geological judgments and calculations to interpret the data.

The Group determines and reports ore resources under the Australian Code of Reporting for Mineral Resource and Ore Reserves (2004 and 2012), known as the JORC Code. The JORC Code requires the use of reasonable assumptions to calculate resources. Due to the fact that economic assumptions used to estimate resources change from period to period, and geological data is generated during the course of operations, estimates of reserves and resources may change from period to period. Changes in reported resources and reserves may affect the Group’s financial results and financial position in a number of ways, including:

asset carrying values may be impacted due to changes in estimates of future cash flows;
amortisation charged in the Statement of Profit or Loss and Other Comprehensive Income may change where such charges are calculated using the units of production basis;
decommissioning, site restoration and environmental provisions may change due to changes in estimated resources after expectations about the timing or costs of these activities change; and
recognition of deferred tax assets, including tax losses.

12. PROPERTY, PLANT AND EQUIPMENT

==> picture [484 x 37] intentionally omitted <==

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

Motor Furniture Plant & Capital
Vehicles & Fittings Equipment WIP Total
$’000 $’000 $’000 $’000 $’000
----- End of picture text -----

	Motor Vehicles $’000 Furniture & Fittings $’000 Plant & Equipment $’000 Capital WIP $’000 Total $’000
Balance 1 July 2019 Additions Transfers Write-offs Depreciation expense Balance 30 June 2020 Balance 1 July 2020 Additions Transfers Write-offs Depreciation expense Balance 30 June 2021	199 707 12,373 - 13,279 - - 181 1,341 1,270 - (377) 629 (252) 252 - - (15) - (15) (35) (79) (114) - (451)
	164 251 13,054 1,089 14,558
	164 251 13,054 1,089 14,558 478 295 62 22,301 23,136 - - 22,576 (22,576) - - - - - - (49) (10) (772) - (831)
	593 536 34,920 814 36,863

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Accounting policies

All assets acquired, including property, plant and equipment, are initially recorded at their cost of acquisition being the fair value of the consideration provided plus incidental costs directly attributable to the acquisition.

Property, plant and equipment assets located on a mine site are carried at cost less accumulated depreciation and any accumulated impairment losses. All such assets are depreciated over the estimated remaining economic life of the mine, using a units-ofproduction basis based on reserves. The cost of certain items of property, plant and equipment has been determined with reference to its fair value, detailed in significant judgements below.

All other property, plant and equipment assets are carried at cost less accumulated depreciation and impairment losses. These items are depreciated on a straight-line basis over the assets estimated useful life which is three to six years. Depreciation commences from the time the asset is held ready for use.

Cost includes expenditures that are directly attributable to the acquisition of the asset. The cost of self-constructed assets includes the cost of materials and direct labour, any other costs directly attributable to bringing the asset to a working condition for its intended use, and the costs of dismantling and removing the items and restoring the site on which they are located.

When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment. The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Group and its cost can be measured reliably. The costs of the day-to-day servicing of property, plant and equipment are recognised in profit or loss as incurred.

Impairment testing

Property, plant and equipment is evaluated annually, at 30 June, to determine whether there are any indications of impairment or any circumstances justifying the reversal of previously recognised impairment losses. Factors such as changes in assumptions in future commodity prices, exchange rates, production rates and input costs, are monitored to assess for indications of impairment or reversal of previously recognised impairments. If any such indications of impairment or impairment reversals exist, a formal estimate of the recoverable amount is performed. In assessing whether an impairment is required, the carrying value of the asset is compared with its recoverable amount, which is the higher of FVLCD and VIU.

As at 30 June 2021, it was assessed that there were no indicators of impairment nor indicators of impairment reversal pertaining to property, plant and equipment.

13. RIGHT-OF-USE ASSETS

==> picture [483 x 37] intentionally omitted <==

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

Property, plant and
equipment
$’000
----- End of picture text -----

	Property, plant and equipment $’000
Non-current Cost Opening balance at 1 July 2020 Disposals Additions Closing balance at 30 June 2021 Accumulated depreciation Opening balance at 1 July 2020 Disposal Depreciation charge for the year Closing balance at 30 June 2021 Carrying amount – Opening balance at 1 July 2020 Carrying amount – Closing balance at 30 June 2021	603 (132) 33,304
	33,775
	222 (132) 6,230
	6,320
	381
	27,455

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The Group leases mining; power generation and other equipment for the purposes of production and exploration activities. These leases run for a period of approximately 1 to 5 years, with an option to renew the lease after that date. Leases that contain extension options are exercisable by the Group and not the lessor.

14. LEASE LIABILITIES

==> picture [484 x 27] intentionally omitted <==

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

30 June 2021 30 June 2020
$’000 $’000
----- End of picture text -----

	30 June 2021 $’000 30 June 2020 $’000
Analysed as: Current Non-current Maturity analysis Within one year Later than one year but not later than five years Minimum lease payments Future finance charges Total lease liabilities	9,178 210 18,010 182
	27,188 392
	9,860 226 18,710 187
	28,570 413 (1,382) (21)
	27,188 392

Payments made during the year under lease arrangements qualifying under AASB 16 Leases but were variable by nature and therefore not included in the minimum lease payments used to calculate lease liabilities, totalled $8.65 million (2020: Nil). These include payments for services, including labour charges, under those contracts that contained payments for the right of use assets.

Payments made in relation to low value items and leases less than a year not recognised as right of use assets amounted to $0.36 million (2020: $0.01 million).

The right-of-use assets to which the lease liabilities relate are disclosed in Note 13.

For the year ended 30 June 2021, the Group recognised $33.34 million of additional lease liabilities, $6.31 million of lease repayments and $0.55 million of interest costs in relation to these leases.

Total depreciation in relation to these leases during the financial year amounted to $6.23 million.

Accounting policies

The Group leases assets including properties and equipment. As a lessee, the Group previously classified leases as operating or financial leases based on its assessment of whether the lease transferred substantially all of the risks and rewards of ownership. Under AASB 16 Leases, the Group recognises right of use assets and lease liabilities for some of these leases (ie: they are recorded on-the balance sheet). The Group presents lease liabilities separately in the balance sheet.

In accordance with AASB 16, a contract is, or contains, a lease if the contract conveys a right to control the use of an identified asset for a period in exchange for consideration.

The Group recognises right-of-use assets at the commencement date of the lease and is initially measured at cost, and subsequently at cost less any accumulated depreciation and impairment losses and adjusted for any changes to lease liabilities. The cost of rightof-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date.

The Group has elected not to recognise a right-of-use asset and corresponding lease liability for short-term leases with terms of 12 months or less and leases of low-value assets. Lease payments on these assets are expensed to profit or loss as incurred.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that cannot be readily determined, the Group’s incremental borrowing rate. Generally, the Group uses its incremental borrowing rate as the discount rate. The lease liability is subsequently increased by the interest cost on the lease liability and decreased by lease payments made. The carrying amount of lease liabilities is remeasured if there is a modification to an index or rate, a change in the residual value guarantee, or changes in the assessment of whether a purchase, extension or termination option will be exercised.

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The lease payments include fixed monthly payments, variable lease payments and amounts expected to be paid under residual value guarantees less any incentives received. Variable lease payments that do not depend on an index or rate are recognised as an expense in the period it was incurred. The lease payment also includes the exercise price, or termination price, of a purchase option in the event the lease is likely to be extended, or terminated, by the Group. The Group has applied judgement to determine the lease term for some lease contracts in which it is a lessee that includes renewal options. The assessment of these options will impact the lease term and therefore affects the amount of lease liabilities and right-of-use assets recognised.

15. TRADE AND OTHER PAYABLES

==> picture [483 x 27] intentionally omitted <==

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

30 June 2021 30 June 2020
$’000 $’000
----- End of picture text -----

	30 June 2021 $’000 30 June 2020 $’000
Current Trade payables Accruals Other payables Non-current Other payables	7,951 2,482 11,004 1,068 2,095 330
	21,050 3,880
	75 100
	75 100

The Group’s exposure to liquidity risk and a sensitivity analysis of financial assets and liabilities are disclosed in Note 23.

Accounting policies

Trade payables are recognised at the value of the invoice received from a supplier. They represent liabilities for goods and services provided to the Group prior to the end of the financial year that are unpaid and arise when the Group becomes obliged to make future payments in respect of the purchase of these goods and services. The amounts are unsecured and generally paid between 14-30 days of recognition.

16. PROVISIONS

==> picture [483 x 27] intentionally omitted <==

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

30 June 2021 30 June 2020
$’000 $’000
----- End of picture text -----

	30 June 2021 $’000 30 June 2020 $’000
Current Provision for annual leave Provision for long service leave Non-current Provision for restoration Provision for rehabilitation (a) Provision for rehabilitation Carrying amount at beginning of year Re-assessment of provision Accretion Carrying amount at the end of year	945 301 91 69
	1,036 370
	546 - 20,596 19,077
	21,142 19,144
	19,077 16,644 1,445 2,222 74 211
	20,596 19,077

The Group makes full provision for the future cost of rehabilitating mine sites and related production facilities on a discounted basis on the development of mines or installation of those facilities.

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The rehabilitation provision represents the present value of rehabilitation costs relating to mine sites and decommissioning of the plant. These provisions have been based on estimates provided by an external consultant. Key inclusions and pertinent matters underpinning the provision are:

Provision covers the four project areas, being Carnegie, Siberia, Mt Ida and Heron;
Project areas (apart from the DGP site) have undergone limited scale exploration activities and have been in care and maintenance;
Cost estimates for the four project areas, included actual mining contractor and equipment rates and average industry contracting rates;
Provision incorporates costs for the demolition and cartage of fixed infrastructure to the nearest nominated waste disposal area;
No allowance has been made for decommissioning of assets not owned by the Group but are located on Group owned leases;
Rehabilitation costs being incurred over a 4.5 year period;
10% (2020: 10%) contingency has been included in the provision calculation;
Allowance has been made within the contingency, for post-closure maintenance and reworking of environmental rehabilitation;
Discount rate applied of 0.08%, estimated based on yields of government risk-free bonds; and
Inflation rate of 2.1%, estimated based on Reserve Bank of Australia forecast and rate for inflation.

Assumptions, which are based on the current economic environment, have been made which the Company believes are a reasonable basis upon which to estimate the future liability. These estimates are reviewed regularly to take into account any material changes to the assumptions. However, actual rehabilitation costs will ultimately depend upon future market prices for necessary decommissioning works required which will reflect market conditions at the relevant time.

Accounting policies

Provisions are recognised when the Group has a present (legal or constructive) obligation as a result of a past event, it is probable that the Group will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at balance date, taking into account the risks and uncertainties surrounding the obligation. If the time value of money is material, provisions are discounted using a current pre-tax rate specific to the liability. The increase in the provision resulting from the passage of time is recognised as a finance cost.

Short-term employee benefits

Liabilities for employee benefits for wages, salaries and annual leave represents present obligations resulting from employees’ services provided to balance date and are calculated at undiscounted amounts based on remuneration wage and salary rates that the Group expects to pay as at balance date including related on-costs.

Long-term employee benefits

The Group’s net obligation in respect of long-term employee benefits is the amount of future benefit that employees have earned in return for their service in the current and prior periods plus related on costs. The benefit is discounted to determine its present value using a discount rate that equals the yield at balance date on Australian high-quality corporate bonds that have maturity dates approximating the terms of the Group’s obligations.

Rehabilitation costs

Mine rehabilitation costs will be incurred by the Group either while operating, or at the end of the operating life of, the Group’s facilities and mine properties. The Group assesses its mine rehabilitation provision at each balance date. The Group recognises a rehabilitation provision where it has a legal and constructive obligation as a result of past events, and it is probable that an outflow of resources will be required to settle the obligation, and a reliable estimate of the amount of the obligation can be made. The nature of these restoration activities includes dismantling and removing structures; rehabilitating mines and tailings dams; dismantling operating facilities; closing plant and waste sites; and restoring, reclaiming and revegetating affected areas.

The obligation generally arises when the asset is installed, or the ground/environment is disturbed at the mining operation’s location. When the liability is initially recognised, the present value of the estimated costs is capitalised by increasing the carrying amount of the related mining assets to the extent that it was incurred as a result of the development/construction of the mine.

Additional disturbances that arise due to further development/construction at the mine are recognised as additions or charges to the corresponding assets and rehabilitation liability when they occur.

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Changes in the estimated timing of rehabilitation or changes to the estimated future costs are dealt with prospectively by recognising an adjustment to the rehabilitation liability and a corresponding adjustment to the asset to which it relates, if the initial estimate was originally recognised as part of an asset measured in accordance with AASB 116 Property Plant and Equipment.

Rehabilitation 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 a financing cost. The estimated costs of rehabilitation are reviewed annually and adjusted as appropriate for changes in legislation, technology or other circumstances.

Significant judgements

Provision for rehabilitation

Decommissioning and restoration costs are a normal consequence of mining and much of this expenditure is incurred at the end of a mine’s life. In determining an appropriate level of provision, consideration is given to the expected future costs to be incurred, the timing of these expected future costs (largely dependent on the life of the mine) and the estimated future level of inflation. The ultimate cost of decommissioning and restoration is uncertain, and costs can vary in response to many factors including changes to the relevant legal requirements, the emergence of new restoration techniques or experience at other mine sites. The expected timing of expenditure can also change, currently proposed to be 2027 (2020: 2026), for example in response to changes in reserves or to production rates. Changes to any of the estimates could result in significant changes to the level of provisioning required, which would in turn impact future financial results. At 30 June 2021, the provision of $20.60 million (30 June 2020: $19.08 million) represents the Company’s best estimate of the rehabilitation costs required.

17. SHARE CAPITAL

==> picture [483 x 27] intentionally omitted <==

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

30 June 2021 30 June 2021 30 June 2020 30 June 2020
Number $’000 Number $’000
----- End of picture text -----

	30 June 2021 Number 30 June 2021 $’000	30 June 2020 Number 30 June 2020 $’000
Issued and paid up capital (a) Movements in share capital Balance as at 1 July 2019 Shares issued under placement Shares issued on exercise of options Cost of capital raising Balance as at 30 June 2020 Shares issued under placement1 Shares issued on exercise of options2 Shares issued on vesting of performance rights3 Shares issued in relation to employee & director incentives4 Shares issued under placement5 Shares issued on exercise of director options6 Shares issued on vesting of employee incentive options7 Cost of capital raising Balance as at 30 June 2021	968,763,876 443,696	590,284,962 368,194
		485,719,962 350,519 100,000,000 18,500 4,565,000 - - (825)
		590,284,962 368,194 239,501,170 55,085 7,666,667 1,976 3,136,727 514 1,632,431 490 123,575,252 21,008 1,777,778 217 1,188,889 145 - (3,933)
		968,763,876 443,696

On 3 July 2020, the Company announced it was launching a $55 million equity raising (before costs) comprising an institutional placement of approximately $40 million and a 1 for 9 accelerated non-renounceable entitlement offer to raise approximately $15 million with all shares to be issued for $0.23.
The institutional placement and associated entitlement offer settled in two tranches with 128,832,632 fully paid ordinary shares being issued on 15 July 2020 to raise $29.6m followed by 96,143,565 fully paid ordinary shares being issued on 15 September 2020 and raising $22.1 million.
The successful completion of the retail component of the entitlement offer was announced on 29 July 2020 and 14,524,973 fully paid ordinary shares were issued on 31 July 2020 raising $3.3 million.
7,666,667 fully paid ordinary shares were issued as a result of the exercise of unlisted options at an exercise price of $0.26 per option
3,136,725 fully paid ordinary shares were issued as a result of the exercise of unlisted vested performance rights at a nil exercise price
1,632,431 fully paid ordinary shares were issued as part of remuneration incentives to an employee and director of the Company. Refer to Note 28
On 8 June 2021 the Company announced it had completed a $21 million placement (before costs) with shares to be issued at $0.17 per share
1,777,778 fully paid ordinary shares were issued as a result of the exercise of unlisted options at a nil exercise price. Refer to Note 28
1,188,889 fully paid ordinary shares were issued as a result of unlisted incentive options issued at a nil exercise price to employees

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(b) Rights of each type of share

Ordinary shares participate in dividends and the proceeds on winding up of the parent entity in proportion to the number of shares held. At shareholders meetings each ordinary share gives entitlement to one vote when a poll is called.

(c) Share options and performance rights

Employee share scheme

The Group continued to offer employee participation in short term and long term incentive schemes as part of the remuneration packages for the employees of the Group. Refer to Note 28 for further information.

(d) Dividends paid or proposed

No dividends were paid or proposed during the current or previous financial year. No dividends have been proposed subsequent to the end of the current financial year.

Accounting policies

Issued and paid-up capital is recognised at the fair value of the consideration received by the Company. Any transaction costs arising on the issue of ordinary shares are recognised directly in equity as a reduction of the share proceeds received.

18. RESERVES

==> picture [484 x 27] intentionally omitted <==

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

30 June 2021 30 June 2020
Notes $’000 $’000
----- End of picture text -----

Fair value of investments in listed equities reserve	(a)	-	-
Share-based payment reserve	(b)	2,871	2,103
		2,871	2,103
(a) Fair value of investments in listed equities reserve
(i) Nature and purpose of reserve
This reserve is used to record unrealised movements in investments in listed equities at fair value through other
comprehensive income and not distributable.
(ii) Movements in reserve
Balance at beginning of year		-	751
Transferred to retained earnings		-	(751)
Balance at end of year		-	-

(b) Share-based payments reserve

(i) Nature and purpose of reserve

The reserve is used to record the fair value of shares, options or performance rights issued to employees and directors as part of their remuneration. The balance is transferred to share capital when options or performance rights are exercised and balance is transferred to retained earnings when they expire.

(ii) Movements in reserve

Balance at beginning of year Share-based payments expense (Note 28) Options and rights exercised Expired options transferred to retained earnings Balance at end of year	2,103 12,279 2,133 1,663 (1,365) - - (11,839)
	2,871 2,103

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

19. REMUNERATION OF AUDITOR

==> picture [483 x 27] intentionally omitted <==

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

30 June 2021 30 June 2020
$ $
----- End of picture text -----

	30 June 2021 $ 30 June 2020 $
Amounts paid or due and payable to: KPMG - Auditing and reviewing the financial reports Other auditor - Auditing and reviewing the financial reports1	105,000 45,000
	105,000 45,000
	- 66,443
	- 66,443

Consists of amounts invoiced by previous auditor for prior period audit services, received during the 2020 financial year

20. EXPLORATION EXPENDITURE COMMITMENTS

Exploration expenditure commitments represent tenement rentals and expenditure requirements that may be required to be met under the relevant legislation should the Group with to retain tenure on all current tenements in which the Group has an interest.

The terms and conditions under which the Group retains title to its various mining tenements oblige it to meet the tenement rentals and minimum levels of exploration expenditure as gazetted by the Western Australian government, as well as local government rates and taxes.

The exploration commitments of the Group not provided for in the consolidated financial statements and payable are as follows:

==> picture [482 x 26] intentionally omitted <==

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

30 June 2021 30 June 2020
$ $
----- End of picture text -----

	30 June 2021 $ 30 June 2020 $
Amounts paid or due and payable to: Within one year Between two and five years Greater than five years	1,162 1,182 6,192 5,618 - 1,736
	7,354 8,536

21. SEGMENT INFORMATION

An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Group’s other components. The Group has one operating segment, gold mining in Western Australia. The Group does not have customers other than the Perth Mint and its bankers, and all the group assets and liabilities are located within Western Australia. Group performance is evaluated based on the financial position and operating profit or loss and is measured on a consistent basis with the information contained in the consolidated financial statements. As such, no additional information is provided to that already contained in the consolidated financial statements.

Major customer

During the year ended 30 June 2021, $25.11 million in revenue was derived from sales to one customer, being the Perth Mint. In the prior year, $Nil was derived.

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

22. RELATED PARTY TRANSACTIONS

==> picture [484 x 27] intentionally omitted <==

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

30 June 2021 30 June 2020
$ $
----- End of picture text -----

	30 June 2021 $ 30 June 2020 $
(a) Key management personnel compensation - Short-term employee benefits - Post-employment payments - Share-based payments	2,100,325 1,262,030 183,429 190,830 1,255,257 1,523,932
	3,539,011 2,976,792

(b) Individual directors and executives’ compensation disclosures

Information regarding individual directors and executive’s compensation and some equity instruments disclosures as permitted by Corporations Regulations 2M.3.03 is provided in the Remuneration Report section of the Directors’ Report.

During the year 9,226,449 performance rights were awarded to KMP. See Note 28 and the Remuneration Report for further details of these related party transactions.

23. FINANCIAL RISK MANAGEMENT

The Group’s principal financial assets comprise trade and other receivables and cash that arises directly from its operations. The Group’s principal financial liabilities comprise trade payables. The main purpose of these financial instruments is to manage cash flow and assist the Group in its daily operational requirements.

The Group is exposed to the following financial risks in respect to the financial instruments that it held at the end of the year:

Interest rate risk;
Liquidity risk; and
Credit risk.

The directors have overall responsibility for identifying and managing operational and financial risks.

(a) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate as a result of changes in market interest rates.

At balance date, the interest rate profile of the Group’s interest-bearing financial instruments was:

==> picture [469 x 26] intentionally omitted <==

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

30 June 2021 30 June 2020
$’000 $’000
----- End of picture text -----

	30 June 2021 $’000 30 June 2020 $’000
Fixed rate instruments Lease liabilities Variable rate instruments Cash and cash equivalents	27,188 392
	24,220 10,577

An increase/decrease of 1% in the interest rate applicable to the interest-bearing financial instruments at balance date would result in an increase/decrease in net loss of $242,000 for the year ended 30 June 2021 (2020: an increase/decrease in net profit of $102,000). This analysis assumes that all other variables remain constant.

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(b) Liquidity risk

Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group’s reputation. The Group manages liquidity risk by maintaining adequate cash reserves from funds generated from operations and by continuously monitoring forecast and actual cash flows.

Maturity analysis

The tables below represent the undiscounted contractual settlement terms for financial instruments and management’s expectation for settlement of maturities.

30 June 2021	< 12 month $’000 2-5 years $’000 > 5 years $’000 Total contractual cash flows $’000 Carrying amount $’000
Trade and other payables Lease liabilities Net maturities	21,050 75 - 21,125 21,125 9,860 18,710 - 28,570 27,188
	30,910 18,785 - 49,695 48,313

30 June 2020	< 12 month $’000 2-5 years $’000 > 5 years $’000 Total contractual cash flows $’000 Carrying amount $’000
Trade and other payables Lease liabilities Net maturities	3,880 100 - 3,980 3,980 226 187 - 413 392
	4,106 287 - 4,393 4,372

(c) Credit risk

Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Group is exposed to credit risk from its operating activities (primarily trade and other receivables). Exposure to credit risk associated with its financing activities arising from deposits with banks and financial institutions, foreign exchange transactions and other financial instruments is not considered to be significant.

Trade and other receivables

Customer credit risk is managed subject to the Group’s established policy, procedures and control relating to customer credit risk management. The Group trades only with recognised creditworthy third parties. The Group’s only customer is The Perth Mint and at 30 June 2021, the exposure to credit risk associated with this customer and trade receivables is not significant. The Group has other receivables that have been specifically identified as being of significant risk with respect to collection and therefore are included, in full, in the expected credit loss.

An impairment analysis is performed at each balance date using a provision matrix to measure expected credit losses. The provision rates are based on days past due for groupings of various customer segments with similar loss pattern. The calculation reflects the probability weighted outcome, the time value of money and reasonable and supportable information that is available at balance date about past events, current conditions and forecasts of future economic conditions.

The maximum exposure to credit risk for trade and other receivables at the balance date is the carrying value of each class of financial assets disclosed in Note 9. The Group does not hold collateral as security.

Cash and cash equivalents

The Group limits its exposure to credit risk by only investing in liquid securities and only with major Australian financial institutions.

(d) Fair values versus carrying values

The carrying value of cash and cash equivalents, trade and other receivables and trade and other payables is considered to be a fair approximation of their fair values.

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

24. INVESTMENTS IN CONTROLLED ENTITIES

The Company controlled the following subsidiaries:

==> picture [483 x 31] intentionally omitted <==

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

Country of Class Equity holding
Name of controlled entities incorporation of shares 2021 2020
----- End of picture text -----

Monarch Nickel Pty Limited	Australia	Ordinary	100	100
Monarch Gold Pty Limited	Australia	Ordinary	80	80
Carnegie Gold Pty Limited	Australia	Ordinary	100	100
Siberia Mining Corporation Pty Limited	Australia	Ordinary	100	100
Eastern Goldfields Mining Services Pty Limited	Australia	Ordinary	100	100
Controlled entities of Siberia Mining Corporation Pty Limited
Mt Ida Gold Operations Pty Limited	Australia	Ordinary	100	100
Ida Gold Operations Pty Limited	Australia	Ordinary	100	100
Pilbara Metals Pty Limited	Australia	Ordinary	100	100
Siberia Gold Operations Pty Limited	Australia	Ordinary	100	100
Mt Ida Gold Pty Limited	Australia	Ordinary	100	100

Holding company

The ultimate holding company of the Group is Ora Banda Mining Limited, which is based in Western Australia and listed on the Australian Securities Exchange.

Accounting policies

Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases.

25. CONTINGENT LIABILITIES

The Company and its wholly owned subsidiaries are parties to various proceedings in the Wardens Court pursuant to which third parties are seeking to challenge its title to various mining tenements by way of forfeiture and other proceedings. The Group has legal representation in respect of these plaints. The directors do not believe the plaints have a reasonable prospect of success and the plaints will be vigorously defended by the Group.

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

26. CASH FLOW STATEMENT

==> picture [483 x 637] intentionally omitted <==

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

30 June 2021 30 June 2020
$’000 $’000
(a) Reconciliation of cash and cash equivalents
Cash balances comprise:
Cash and cash equivalents 24,220 10,577
For the purposes of the cash flow statement, cash and
cash equivalents consist of cash and cash equivalents
as defined above, net of outstanding bank overdrafts.
(b) Reconciliation of net cash outflows from operating activities
to loss after income tax
(Loss)/profit after income tax (22,284) (6,675)
Adjusted for non-cash items:
Depreciation 830 450
Amortisation 6,244 -
-
Impairment (reversal)/expense (7,311)
Interest expense – capitalised - 21
Accretion of rehabilitation provision 74 211
Share-based payments 2,133 1,663
-
Profit on sale of property, plant and equipment (49)
Property, plant and equipment write-offs - 15
NRV adjustment 3,879 -
Changes in operating assets and liabilities:
(Increase)/decrease in receivables 12 (850)
(Increase)/decrease in inventories (20,257) (55)
(increase)/decrease in other assets 525 -
Increase/(decrease) in payables and provisions 17,522 2,026
Net cash outflow from operating activities (11,322) (10,554)
27. EARNINGS/(LOSS) PER SHARE
30 June 2021 30 June 2020
$’000 $’000
(Loss)/profit used in the calculation of basic (loss)/earnings per share (22,284) (6,675)
Number Number
Weighted average number of ordinary shares on issue used
in the calculation of basic earnings per share 817,426,397 560,434,327
Effect of dilution: - -
Weighted average number of ordinary shares on issue adjusted
for the effect of dilution 817,426,397 560,434,327
Basic (loss)/earnings per share (2.73) (0.12)
Diluted (loss)/earnings per share (2.73) (0.12)
----- End of picture text -----

A total of 36,337,005 options and rights were on issue at 30 June 2021 (30 June 2020: 40,046,782) and have not been accounted for in the above diluted earnings per share calculations as the Group is in a loss position.

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Accounting policies

Basic EPS is calculated as profit attributable to ordinary shareholders of the Company divided by the weighted average number of ordinary shares.

Diluted EPS is determined by adjusting the profit attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding for the effects of all dilutive potential ordinary shares, including options and rights granted to employees.

28. SHARE-BASED PAYMENTS

Equity-settled share-based payments are provided to directors, employees, consultants and other advisors. The issue to each individual director, employee, consultant or advisor is controlled by the board and ASX Listing Rules. Terms and conditions of the payments are determined by the board, subject to approval where required.

During the year ended 30 June 2021, a share-based payment expense of $2,133,000 (30 June 2020: $1,663,000) was recognised in the Consolidated Statement of Profit or Loss and Other Comprehensive Income and $64,000 (30 June 2020: $Nil) was recognised as a share-based payment expense that was offset against share capital.

==> picture [484 x 27] intentionally omitted <==

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

2021 2021 2020 2020
Option movements during the year Number WAEP ($) Number WAEP ($)
----- End of picture text -----

Option movements during the year	2021 Number 2021 WAEP ($) 2020 Number 2020 WAEP ($)
At 1 July Granted during the year Exercised/expired during year Forfeited during the year At 30 June	40,046,782 1.12 44,433,913 1.11 10,636,448 - 5,581,071 Nil (14,346,225) 0.14 (9,616,253) 0.43 - Nil (351,949) Nil
	36,337,005 1.13 40,046,782 1.12

The weighted-average share price at the date of exercise for options exercised during the year ended 30 June 2021 was $0.28 (2020: $0.23).

30 June 2021

A total of 10,636,449 unlisted performance rights were issued during the year ended 30 June 2021. Of the issued performance rights, 7,087,713 are subject to a vesting condition based on RTSR, whereby the Company’s total shareholder return is measured relative to the returns of a peer group over the performance period 1 July 2020 to 30 June 2022 (633,681 performance rights) and 1 July 2020 to 30 June 2023 (6,454,032 performance rights). The fair value of the RTSR performance rights was estimated as at the date of grant using a Monte-Carlo simulation model taking into account the terms and conditions upon which the performance rights were granted. These performance rights will vest according to the following schedule:

Company’s Performance Relative to Peer Group	Percentage of Performance rights Eligible to Vest	ASX Comparator Group
Below 50th percentile	-%
50th to 75th percentile	50% to 100% on a straight-line pro rata	BC8; BDC; BGL; DCN: GOR; MML; PNR; PRU; RMS; RSG; SBM; SLR; TRY; WGX; WMX
Above 75th percentile	100%

Of the issued performance rights 354,874 are subject to a vesting condition based on TSR, of the Company over the performance period 1 July 2020 to 30 June 2021. The fair value of the TSR performance rights was estimated as at the date of grant using a MonteCarlo simulation model taking into account the terms and conditions upon which the performance rights were granted. These performance rights will vest according to the following schedule:

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

==> picture [483 x 135] intentionally omitted <==

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

Company’s TSR as at 30 June 2021 Percentage of Performance Rights Eligible to Vest
TSR <0% -%
0%≤TSR<5% 10%
5%≤TSR<10% 25%
10%≤TSR<15% 50%
15%≤TSR<20% 75%
TSR>20% 100%
----- End of picture text -----

The remaining 3,193,862 issued performance rights are subject to a vesting condition based on the achievement of the Company’s performance metrics (“Other”) over the performance period 1 July 2020 to 30 June 2021. The fair value of these performance rights was estimated as at the date of grant using the Black-Scholes option pricing methodology taking into account the terms and conditions upon which the performance rights were granted. These performance rights will vest according to the following schedule:

==> picture [483 x 57] intentionally omitted <==

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

Option Vesting Conditions Performance Rights Eligible to Vest
Ora Banda corporate, financial & operational goals 1,419,494
Ora Banda management response 1,774,368
----- End of picture text -----

On 30 June 2021, 35% equivalent to 1,233,183 (2020: 86% equivalent to 1,171,267) of STIP “Other” performance rights vested and the remaining 65% equivalent to 2,315,554 (2020: 14% equivalent to 189,090) of STIP “Other” performance rights were forfeited.

The terms and conditions upon which the performance rights were granted are summarised in the following table:

==> picture [483 x 60] intentionally omitted <==

Underlying security share
price at grant date	$0.295	$0.295	$0.30	$0.295	$0.30	$0.295	$0.30
Exercise price	Nil	Nil	Nil	Nil	Nil	Nil	Nil
Grant date	02/11/2020	02/11/2020	27/11/2020	02/11/2020	27/11/2020	02/11/2020	27/11/2020
Vesting date	30/06/2022	30/06/2023	30/06/2023	30/06/2021	30/06/2021	30/06/2021	30/06/2021
Expiry date	30/06/2024	30/06/2028	30/06/2028	30/06/2026	30/06/2026	30/06/2026	30/06/2026
Risk-free rate	0.11%	0.13%	0.09%	0.11%	0.03%	0.11%	0.03%
Volatility	80%	80%	100%	80%	100%	80%	100%
Dividend yield	Nil	Nil	Nil	Nil	Nil	Nil	Nil
Number of performance
rights issued	633,681	4,996,589	1,457,443	245,565	109,308	2,210,089	983,774
Valuation per option	$0.154	$0.229	$0.2611	$0.192	$0.2062	$0.295	$0.30
Fair value per option class	$97,587	$1,144,219	$380,538	$47,148	$22,539	$651,976	$295,132

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

30 June 2020

The fair value of options/rights granted during the 2020 year was calculated at the date of grant using the Black-Scholes and MonteCarlo simulation option pricing models. The inputs to the valuation models used to determine the fair value at the grant dates were as follows:

==> picture [483 x 17] intentionally omitted <==

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

Option Class Other RTSR RTSR Other RTSR
----- End of picture text -----

Underlying security share price at grant date	$0.17	$0.17	$0.175	$0.17	$0.17
Exercise price	Nil	Nil	Nil	Nil	Nil
Grant date	9/10/2019	9/10/2019	15/11/2019	24/01/2020	24/01/2020
Vesting date	30/06/2020	30/06/2022	30/06/2022	30/06/2020	30/06/2022
Expiry date	31/07/2020	30/06/2024	30/06/2024	31/07/2020	30/06/2024
Risk-free rate	0.62%	0.60%	0.75%	0.75%	0.75%
Volatility	80%	80%	80%	80%	80%
Dividend yield	Nil	Nil	Nil	Nil	Nil
Number of options/rights issued	500,000	500,000	2,000,000	860,357	1,720,714
Valuation per option	$0.17	$0.12	$0.128	$0.17	$0.114
Fair value per option class	$85,000	$60,000	$256,000	$146,261	$196,161

Accounting policies

The grant date fair value of equity-settled share-based payment awards granted to employees is generally recognised as an expense, with a corresponding increase in equity, over the vesting period of the awards. The amount recognised as an expense is adjusted to reflect the number of awards for which the related service and non-market performance conditions are expected to be met, such that the amount ultimately recognised is based on the number of awards that meet the related service and non-market performance conditions at the vesting date. For share-based payment awards with non-vesting conditions, the grant date fair value of the share-based payment is measured to reflect such conditions and there is no true-up for differences between expected and actual outcomes.

29. EVENTS AFTER BALANCE DATE

On 1 July 2021 Peter Nicholson was appointed Managing Director with immediate effect on the retirement of David Quinlivan from the position.

On 5 July 2021 the Company announced the results of its share purchase plan with 4,382,393 new ordinary fully paid shares subsequently issued at an issue price of $0.17 per share raising a total of $745,00 before costs.

On 18 August 2021 the Company issued 588,236 fully paid ordinary shares at an issue price of $0.17 per share to a director, David Quinlivan raising $100,000 subsequent to receipt of shareholder approval on 19 July 2021 for his participation in the capital raising announced on 8 June 2021.

Apart from the above, no other matters have arisen since the end of the financial year that impact or are likely to impact the results of the Group in subsequent financial periods.

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

30. PARENT ENTITY INFORMATION

(a) Financial position

==> picture [483 x 27] intentionally omitted <==

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

30 June 2021 30 June 2020
$’000 $’000
----- End of picture text -----

	30 June 2021 $’000 30 June 2020 $’000
Assets Current assets Non-current assets Total assets Liabilities Current liabilities Non-current liabilities Total liabilities Equity Contributed equity Accumulated losses Reserves Total equity (b) Financial performance (Loss)/profit for the year Other comprehensive income Total comprehensive (loss)/profit for the year	27,167 11,527 88,407 36,485
	115,574 48,012
	13,557 3,367 - 156
	13,557 3,523
	443,696 368,194 (344,550) (325,808) 2,871 2,103
	102,017 44,489
	(18,743) (9,384) - -
	(18,743) (9,384)

(c) Contingent liabilities and commitments

Contingent liabilities and commitments identified are as per those detailed within Notes 20 and 25 of this report.

(d) Deed of cross guarantee

Ora Banda Mining Limited and the following entities are parties to a deed of cross guarantee (which was executed on 26 June 2018 and lodged with the Australian Securities and Investments Commission) under which each Company guarantees the debts of the others:

Monarch Nickel Pty Limited;
Carnegie Gold Pty Limited;
Siberia Mining Corporation Pty Limited;
Mt Ida Gold Operations Pty Limited;
Ida Gold Operations Pty Limited;
Pilbara Metals Pty Limited;
Siberia Gold Operations Pty Limited; and
Mt Ida Gold Pty Limited.

By entering into the deed, the wholly owned entities have been relieved from the requirement to prepare financial statements and a Directors’ Report under Corporations Instrument 2016/785 issued by the Australian Securities and Investments Commission.

The above companies represent a “Closed Group” for the purposes of the Corporations Instrument, and as there are no other parties to the deed of cross guarantee that are controlled by Ora Banda Mining Limited, they also represent the “Extended Closed Group”. As the Extended Closed Group includes all material subsidiaries of Ora Banda Mining Limited, there is no difference between the Consolidated Statement of Profit or Loss and Other Comprehensive Income and Consolidated Statement of Financial Position of the Ora Banda Mining Limited consolidated entity and the Extended Closed Group.

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

Directors’ Declaration

In the opinion of the directors of Ora Banda Mining Limited and its controlled entities:
(a) (a) the Group’s consolidated financial statements and notes set out on pages 39 to 70 are 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 2021 and of its performance, for the financial year ended on that date; and
- (ii) complying with Australian Accounting Standards and the Corporations Regulations 2001;
(b) the financial report also complies with International Financial Reporting Standards as set out in Note 1;
(c) there are reasonable grounds to believe that the Group will be able to pay its debts as and when they become due and payable; and
(d) at the date of this declaration, there are reasonable grounds to believe that the Company and the subsidiaries identified in Note 24, will be able to meet any obligations or liabilities to which they are or may become subject to by virtue of the Deed of Cross Guarantee between the Company and those subsidiaries.
the directors have been given the declarations required by Section 295A of the Corporations Act 2001 from the Managing Director and Chief Financial Officer for the financial year ended 30 June 2021.

Signed in accordance with a resolution of directors made pursuant to section 295(5)(a) of the Corporations Act 2001.

On behalf of the directors

==> picture [111 x 70] intentionally omitted <==

Peter Nicholson Managing Director Perth, Western Australia 30 September 2020

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

Independent Auditor’s Report

==> picture [67 x 17] intentionally omitted <==

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021ANNUAL REPORT 2021

INDEPENDENT AUDITOR’S REPORT

==> picture [95 x 71] intentionally omitted <==

Independent Auditor ’ s Report

To the shareholders of Ora Banda Mining Limited

Report on the audit of the Financial Report

Opinion

We have audited the Financial Report of The Financial Report comprises: Ora Banda Mining Limited (the Company).

Consolidated statement of financial position as at 30
In our opinion, the accompanying Financial June 2021 Report of the Company is in accordance with the Corporations Act 2001 , including: • Consolidated statement of profit or loss and other comprehensive income, Consolidated statement of
• giving a true and fair view of the changes in equity, and Consolidated statement of Group’s financial position as at 30 cash flows for the year then ended June 2021 and of its financial • Notes including a summary of significant accounting
performance for the year ended on policies
that date; and • Directors’ Declaration.
complying with Australian Accounting Standards and the Corporations The Group consists of the Company and the entities it Regulations 2001 . controlled at the year-end or from time to time during the financial year.

Basis for opinion

We conducted our audit in accordance with Australian Auditing Standards . We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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 fulfilled our other ethical responsibilities in accordance with the Code.

KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by a scheme approved under Professional Standards Legislation.

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

INDEPENDENT AUDITOR’S REPORT

==> picture [62 x 46] intentionally omitted <==

Key Audit Matters

The Key Audit Matters we identified are:

Property, plant and equipment and Exploration Evaluation and Development expenditure
Going concern basis of accounting.

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.

Property, plant and equipment and Exploration Evaluation and Development expenditure ($95 million)

Refer to Note 11 & Note 12 to the Financial Report

Property, plant and equipment and Exploration Evaluation and Development expenditure ($95 million)	Property, plant and equipment and Exploration Evaluation and Development expenditure ($95 million)
Refer to Note 11 & Note 12 to the Financial Report

The key audit matter	How the matter was addressed in our audit
Existence, accuracy and completeness of capitalised expenditure incurred as part of the development and construction of the Davyhurst Gold Project is a key audit matter due to the size of the capitalised expenditure ($95 million) representing 55% of total assets. The Group used judgement in the identification and allocation of cost between operating expenditure and capital expenditure. The risks we focused on included: • the existence of capital expenditure; • the capital nature of expenditure particularly the determination of when the Davyhurst Gold Project was considered capable of operating at commercial production and in a manner intended by the Group; and • determination of impairment triggers, particularly arising from having reached commercial production and subsequent commissioning challenges at Davyhurst.	Our procedures included: • Test of controls relating to the authorisation and accuracy of the recording and classification of capital expenditure • Assessment of the allocation of costs between operating expenditure, ore stockpiles and capital expenditure by inspecting underlying documentation on a sample basis and assessing the nature of the underlying activities • Challenge the Group’s determination of commercial production declaration from 1 April 2021 by evaluating the criteria by which the declaration was made against underlying documentation • Selecting a sample of supplier, contractor and customer invoices raised prior to and post 31 March 2021 and 30 June 2021. We checked the timing of recorded expenditure against the details of the service description on the invoice • Challenging the Group’s assertion as to the presence of no impairment indicators. This included assessing the status of the Davyhurst mine, financial performance since commercial production and comparing forecast prices to published views of market commentators on future trends.

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

INDEPENDENT AUDITOR’S REPORT

==> picture [62 x 46] intentionally omitted <==

Going concern basis of accounting

Going concern basis of accounting	Going concern basis of accounting

Refer to Note 1 (e)
The key audit matter	How the matter was addressed in our audit
The Group’s use of the going concern basis of accounting and the associated extent of uncertainty is a key audit matter due to the high level of judgement required by us in evaluating the Group’s assessment of going concern and the events or conditions that may cast significant doubt on their ability to continue as a going concern. These are outlined in Going Concern Basis for Preparation of Financial Statements Note. The Directors have determined that the use of the going concern basis of accounting is appropriate in preparing the financial report. Their assessment of going concern was based on cash flow projections. The preparation of these projections incorporated a number of assumptions and significant judgements. We critically assessed the levels of uncertainty, as it related to the Group’s ability to continue as a going concern, within these assumptions and judgements, focusing on the following: • Impact of gold production forecasts and future commodity prices to cash inflows projections • The Group’s planned levels of operational and capital expenditures • The Group’s ability to raise additional funds including sale of assets. This included nature of planned methods to achieve this, feasibility and status/progress of those plans. In assessing this key audit matter, we involved senior audit team members who understand the Group’s business, industry and the economic environment it operates in.	Our procedures included: • We analysed the cash flow projections by: − Evaluating the underlying data used to generate the projections. We specifically looked for their consistency, including forecast sales and production output and commodity prices, with the Group’s intentions, as outlined in the Group’s operational plan, and their comparability to approved budgets and historical performance − Analysing the impact of reasonably possible changes in projected cash flows and their timing particularly gold production, to the projected periodic cash positions. Assessing the resultant impact to the ability of the Group to pay debts as and when they fall due and continue as a going concern − Assessing the planned levels of operating and capital expenditures for consistency of relationships and trends to the Group’s approved budgets, performance since year end, and our understanding of the business, industry and economic conditions of the Group. • We read correspondence relating potential funding sources including sale of assets, to assess the options available to the Group including capital raising. • We evaluated the Group’s going concern disclosures in the financial report by comparing them to our understanding of the matter, the events or conditions incorporated into the cash flow projection assessment, the Group’s plans to address those events or conditions, and accounting standard requirements.

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

INDEPENDENT AUDITOR’S REPORT

==> picture [62 x 46] intentionally omitted <==

Other Information

Other Information is financial and non-financial information in Ora Banda Mining Limited’s annual reporting which is provided in addition to the Financial Report and the Auditor's Report. The Directors are responsible for the Other Information.

Our opinion on the Financial Report does not cover the Other Information and, accordingly, we do not and will not express an audit opinion or any form of assurance conclusion thereon, with the exception of the Remuneration Report and our related assurance opinion.

In connection with our audit of the Financial Report, our responsibility is to read the Other Information. In doing so, we 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.

We are required to report if we conclude that there is a material misstatement of this Other Information, and based on the work we have performed on the Other Information that we obtained prior to the date of this Auditor’s Report we have nothing to report.

Responsibilities of the Directors for the Financial Report

The Directors are responsible for:

preparing the Financial Report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
implementing necessary internal control to enable the preparation of a Financial Report that gives a true and fair view and is free from material misstatement, whether due to fraud or error
assessing the Group and Company’s ability to continue as a going concern and whether the use of the going concern basis of accounting is appropriate. This includes disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless they either intend to liquidate the Group and Company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the Financial Report

Our objective is:

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 Australian Auditing Standards will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error. They 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 the 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 at: https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf .This description forms part of our Auditor’s Report.

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

INDEPENDENT AUDITOR’S REPORT

==> picture [62 x 46] intentionally omitted <==

Report on the Remuneration Report

Opinion

In our opinion, the Remuneration Report of Ora Banda Mining Limited for the year ended 30 June 2021, complies with Section 300A of the Corporations Act 2001 .

Directors’ 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 responsibilities

We have audited the Remuneration Report included in the Directors’ report for the year ended 30 June 2021.

Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards .

==> picture [83 x 38] intentionally omitted <==

KPMG

==> picture [95 x 44] intentionally omitted <==

R Gambitta Partner Perth

30 September 2021

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

ASX Additional Information

SCHEDULE OF TENEMENTS

==> picture [483 x 554] intentionally omitted <==

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

Tenement No. Status Registered Holder Ownership Location
E16/0344 Granted SIBERIA MINING CORPORATION PTY LTD 100/100 Coolgardie
E16/0456 Granted SIBERIA MINING CORPORATION PTY LTD 100/100 Coolgardie
E16/0473 Granted CARNEGIE GOLD PTY LTD 100/100 Coolgardie
E16/0474 Granted CARNEGIE GOLD PTY LTD 100/100 Coolgardie
E16/0475 Granted CARNEGIE GOLD PTY LTD 100/100 Coolgardie
E16/0480 Granted CARNEGIE GOLD PTY LTD 100/100 Coolgardie
E16/0482 Granted SIBERIA MINING CORPORATION PTY LTD 100/100 Coolgardie
E16/0483 Granted SIBERIA MINING CORPORATION PTY LTD 100/100 Coolgardie
E16/0484 Granted SIBERIA MINING CORPORATION PTY LTD 100/100 Coolgardie
E16/0486 Granted SIBERIA MINING CORPORATION PTY LTD 100/100 Coolgardie
E16/0487 Granted SIBERIA MINING CORPORATION PTY LTD 100/100 Coolgardie
E24/0203 Granted ATRIPLEX PTY LIMITED 100/100 Kalgoorlie
E24/0230 Application SIBERIA MINING CORPORATION PTY LTD 100/100 Kalgoorlie
E29/0640 Granted MT IDA GOLD PTY LTD 100/100 Menzies
E29/0889 Granted HERON RESOURCES LIMITED 100/100 Menzies
E29/0895 Granted MT IDA GOLD PTY LTD 100/100 Menzies
E29/0955 Granted SIBERIA MINING CORPORATION PTY LTD 100/100 Kalgoorlie
E29/0964 Granted Mt IDA PTY LTD 100/100 Menzies
E30/0333 Granted CARNEGIE GOLD PTY LTD 100/100 Menzies
E30/0335 Granted CARNEGIE GOLD PTY LTD 100/100 Coolgardie
E30/0338 Granted CARNEGIE GOLD PTY LTD 100/100 Menzies
E30/0454 Granted CARNEGIE GOLD PTY LTD 100/100 Menzies
E30/0468 Granted CARNEGIE GOLD PTY LTD 100/100 Menzies
E30/0490 Granted CARNEGIE GOLD PTY LTD 100/100 Menzies
E30/0491 Granted CARNEGIE GOLD PTY LTD 100/100 Menzies
E30/0504 Application CARNEGIE GOLD PTY LTD 100/100 Menzies
G30/0006 Application CARNEGIE GOLD PTY LTD 100/100 Menzies
G30/0007 Application CARNEGIE GOLD PTY LTD 100/100 Menzies
G30/0008 Granted CARNEGIE GOLD PTY LTD 100/100 Menzies
G30/0009 Granted CARNEGIE GOLD PTY LTD 100/100 Menzies
L15/0224 Granted SIBERIA MINING CORPORATION PTY LTD 100/100 Coolgardie
L16/0058 Granted SIBERIA MINING CORPORATION PTY LTD 100/100 Coolgardie
L16/0062 Granted SIBERIA MINING CORPORATION PTY LTD 100/100 Coolgardie
L16/0072 Granted CARNEGIE GOLD PTY LTD 100/100 Coolgardie
----- End of picture text -----

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

==> picture [483 x 684] intentionally omitted <==

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

Tenement No. Status Registered Holder Ownership Location
L16/0073 Granted CARNEGIE GOLD PTY LTD 100/100 Coolgardie
L16/0103 Granted SIBERIA MINING CORPORATION PTY LTD 100/100 Coolgardie
L16/0134 Application SIBERIA MINING CORPORATION PTY LTD 100/100 Coolgardie
L16/0137 Application SIBERIA MINING CORPORATION PTY LTD 100/100 Coolgardie
L16/0138 Application SIBERIA MINING CORPORATION PTY LTD 100/100 Coolgardie
L24/0085 Granted SIBERIA MINING CORPORATION PTY LTD 100/100 Coolgardie
L24/0115 Granted SIBERIA MINING CORPORATION PTY LTD 96/96 Kalgoorlie
L24/0170 Granted CARNEGIE GOLD PTY LTD 100/100 Kalgoorlie
L24/0174 Granted CARNEGIE GOLD PTY LTD 100/100 Kalgoorlie
L24/0188 Granted SIBERIA MINING CORPORATION PTY LTD 100/100 Kalgoorlie
L24/0224 Granted SIBERIA MINING CORPORATION PTY LTD 100/100 Kalgoorlie
L24/0233 Granted CARNEGIE GOLD PTY LTD 100/100 Kalgoorlie
L24/0240 Granted CARNEGIE GOLD PTY LTD 100/100 Kalgoorlie
L24/0242 Application CARNEGIE GOLD PTY LTD 100/100 Kalgoorlie
L24/0246 Application SIBERIA MINING CORPORATION PTY LTD 100/100 Kalgoorlie
L29/0074 Granted MT IDA GOLD PTY LTD 100/100 Menzies
L30/0035 Granted CARNEGIE GOLD PTY LTD 96/96 Menzies
L30/0037 Granted CARNEGIE GOLD PTY LTD 100/100 Menzies
L30/0066 Granted CARNEGIE GOLD PTY LTD 100/100 Menzies
L30/0069 Granted CARNEGIE GOLD PTY LTD 100/100 Menzies
L30/0074 Granted CARNEGIE GOLD PTY LTD 100/100 Menzies
L30/0077 Application CARNEGIE GOLD PTY LTD 100/100 Menzies
L30/0078 Application CARNEGIE GOLD PTY LTD 100/100 Menzies
L30/0079 Application CARNEGIE GOLD PTY LTD 100/100 Menzies
L30/0080 Application CARNEGIE GOLD PTY LTD 100/100 Menzies
L30/0081 Application CARNEGIE GOLD PTY LTD 100/100 Menzies
L30/0082 Application CARNEGIE GOLD PTY LTD 100/100 Menzies
L30/0083 Application CARNEGIE GOLD PTY LTD 100/100 Menzies
L30/0086 Application CARNEGIE GOLD PTY LTD 100/100 Menzies
L30/0088 Application CARNEGIE GOLD PTY LTD 100/100 Menzies
M16/0262 Granted SIBERIA MINING CORPORATION PTY LTD 100/100 Coolgardie
M16/0263 Granted SIBERIA MINING CORPORATION PTY LTD 100/100 Coolgardie
M16/0264 Granted SIBERIA MINING CORPORATION PTY LTD 100/100 Coolgardie
M16/0268 Granted CARNEGIE GOLD PTY LTD 100/100 Coolgardie
M16/0470 Granted CARNEGIE GOLD PTY LTD 100/100 Coolgardie
M24/0039 Granted CHARLES ROBERT GARDNER 96/96 Kalgoorlie
M24/0115 Granted SIBERIA MINING CORPORATION PTY LTD 96/96 Kalgoorlie
M24/0159 Granted SIBERIA MINING CORPORATION PTY LTD 100/100 Kalgoorlie
M24/0208 Granted SIBERIA MINING CORPORATION PTY LTD 96/96 Kalgoorlie
M24/0376 Granted SIBERIA MINING CORPORATION PTY LTD 100/100 Kalgoorlie
M24/0634 Granted HERON RESOURCES LIMITED 100/100 Kalgoorlie
M24/0660 Granted HERON RESOURCES LIMITED 100/100 Kalgoorlie
----- End of picture text -----

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

ASX ADDITIONAL INFORMATION

==> picture [483 x 681] intentionally omitted <==

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

Tenement No. Status Registered Holder Ownership Location
M24/0663 Granted HERON RESOURCES LIMITED 100/100 Kalgoorlie
M24/0664 Granted HERON RESOURCES LIMITED 100/100 Kalgoorlie
M24/0665 Granted HERON RESOURCES LIMITED / IMPRESS ENERGY 90/100 & 10/100 Kalgoorlie
M24/0683-I Granted HERON RESOURCES LIMITED 100/100 Kalgoorlie
M24/0686 Granted HERON RESOURCES LIMITED 100/100 Kalgoorlie
M24/0757 Granted HERON RESOURCES LIMITED 100/100 Kalgoorlie
M24/0772-I Granted HERON RESOURCES LIMITED 100/100 Kalgoorlie
M24/0797 Granted HERON RESOURCES LIMITED 100/100 Kalgoorlie
M24/0845 Granted SIBERIA MINING CORPORATION PTY LTD 100/100 Kalgoorlie
M24/0846 Granted SIBERIA MINING CORPORATION PTY LTD 100/100 Kalgoorlie
M24/0847 Granted SIBERIA MINING CORPORATION PTY LTD 100/100 Kalgoorlie
M24/0848 Granted SIBERIA MINING CORPORATION PTY LTD 100/100 Kalgoorlie
M24/0915-I Granted HERON RESOURCES LIMITED 100/100 Kalgoorlie
M24/0916 Granted HERON RESOURCES LIMITED 100/100 Kalgoorlie
M24/0960 Granted SIBERIA MINING CORPORATION PTY LTD 100/100 Kalgoorlie
M24/0973 Application HERON RESOURCES LIMITED 100/100 Kalgoorlie
M29/0002 Granted MT IDA GOLD PTY LTD 100/100 Menzies
M29/0165 Granted MT IDA GOLD PTY LTD & STUART LESLIE HOOPER 95/100 & 5/100 Menzies
M29/0422 Granted MT IDA GOLD PTY LTD 100/100 Menzies
M30/0102 Granted CARNEGIE GOLD PTY LTD 100/100 Menzies
M30/0103 Granted CARNEGIE GOLD PTY LTD 100/100 Menzies
M30/0111 Granted CARNEGIE GOLD PTY LTD 100/100 Menzies
M30/0123 Granted CARNEGIE GOLD PTY LTD 100/100 Menzies
M30/0126 Granted CARNEGIE GOLD PTY LTD 100/100 Menzies
M30/0157 Granted CARNEGIE GOLD PTY LTD 96/96 Menzies
M30/0187 Granted CARNEGIE GOLD PTY LTD 100/100 Coolgardie
M30/0253 Granted CARNEGIE GOLD PTY LTD 100/100 Menzies
M30/0255 Granted CARNEGIE GOLD PTY LTD 100/100 Coolgardie
M30/0256 Granted CARNEGIE GOLD PTY LTD 100/100 Menzies
P16/2921 Granted CARNEGIE GOLD PTY LTD 100/100 Coolgardie
P16/2922 Granted CARNEGIE GOLD PTY LTD 100/100 Coolgardie
P24/4395 Granted HERON RESOURCES LIMITED 100/100 Kalgoorlie
P24/4396 Granted HERON RESOURCES LIMITED 100/100 Kalgoorlie
P24/4400 Granted HERON RESOURCES LIMITED 100/100 Kalgoorlie
P24/4401 Granted HERON RESOURCES LIMITED 100/100 Kalgoorlie
P24/4402 Granted HERON RESOURCES LIMITED 100/100 Kalgoorlie
P24/4403 Granted HERON RESOURCES LIMITED 100/100 Kalgoorlie
P24/4750 Granted SIBERIA MINING CORPORATION PTY LTD 100/100 Kalgoorlie
P24/4751 Granted SIBERIA MINING CORPORATION PTY LTD 100/100 Kalgoorlie
P24/4754 Granted SIBERIA MINING CORPORATION PTY LTD 100/100 Kalgoorlie
P24/5073 Granted SIBERIA MINING CORPORATION PTY LTD 100/100 Kalgoorlie
P24/5074 Granted SIBERIA MINING CORPORATION PTY LTD 100/100 Kalgoorlie
----- End of picture text -----

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

ASX ADDITIONAL INFORMATION

Tenement Acquisitions & Disposals

Mining tenements disposed: Nil Mining tenements acquired: E30/504 granted on 15 September 2021

The following information is provided, in accordance with Listing Rule 4.10:

CORPORATE GOVERNANCE

The Company’s corporate governance plan is available on the Company’s website at www.orabandamining.com.au.

SECURITY HOLDERS

SUBSTANTIAL SHAREHOLDERS

The Company has the following substantial shareholders as at 15 September 2021:

==> picture [288 x 48] intentionally omitted <==

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

Shares Held
Hawke’s Point Holdings I Limited 384,930,323
Perennial Value Management Limited 60,790,279
----- End of picture text -----

NUMBER OF HOLDERS IN EACH CLASS OF EQUITY SECURITIES AND THE VOTING RIGHTS ATTACHED (AS AT 15 SEPTEMBER 2021)

ORDINARY SHARES

There are 3,081 holders of ordinary shares as at 15 September 2021. Each shareholder is entitled to one vote per share. In accordance with the Company’s constitution, on a show of hands every member present in person or by proxy or attorney or duly authorised representative has one vote for every fully paid ordinary share held.

OPTIONS & PERFORMANCE RIGHTS

There are 406 holders of unlisted options and 17 holders of performance rights. There are no voting rights attaching to the options or performance rights. A total of 26,224,237 options and 7,687,215 performance rights are on issue. If exercised, the 26,224,237 options and 7,687,215 performance rights will convert into 33,911,452 ordinary shares.

The options and performance rights have the following exercise prices and expiry dates:

==> picture [483 x 144] intentionally omitted <==

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

No. of holders No. of Options Exercise Price Expiry Date
60 2,178,331 $2.9578 31/01/2023
59 2,178,331 $3.3328 31/01/2023
348 3,854,862 $2.9578 02/02/2023
347 3,854,862 $3.3328 02/02/2023
4 2,916,667 $1.1203 11/06/2023
11 10,751,184 Nil Various
12 7,687,215 Nil Various
1 490,000 Nil 30/09/2021
----- End of picture text -----

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

ASX ADDITIONAL INFORMATION

DISTRIBUTION SCHEDULE OF THE NUMBER OF HOLDERS IN EACH CLASS OF EQUITY SECURITY AS AT 15 SEPTEMBER 2021

==> picture [483 x 501] intentionally omitted <==

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

Range Total holders Units % Units
ORDINARY SHARES
1 - 1,000 288 55,389 0.01
1,001 - 5,000 578 1,798,230 0.18
5,001 - 10,000 431 3,368,112 0.35
10,001 - 100,000 1,329 51,867,956 5.33
100,001 Over 455 916,644,818 94.13
Total 3,081 973,734,505 100.00
Range Total holders Units % Units
UNLISTED OPTIONS EXPIRING 31 JANUARY 2023 AT $2.9578
1 - 1,000 3 2,666 0.12
1,001 - 5,000 23 74,996 3.44
5,001 - 10,000 13 97,166 4.46
10,001 - 100,000 16 466,836 21.43
100,001 Over 5 1,536,667 70.55
Total 60 2,178,331 100.00
UNLISTED OPTIONS EXPIRING 31 JANUARY 2023 AT $3.3328
1 - 1,000 2 1,666 0.08
1,001 - 5,000 23 74,996 3.44
5,001 - 10,000 13 98,166 4.51
10,001 - 100,000 16 466,836 21.43
100,001 Over 5 1,536,667 70.54
Total 59 2,178,331 100.00
UNLISTED OPTIONS EXPIRING 2 FEBRUARY 2023 AT $2.9578
1 - 1,000 286 48,419 1.26
1,001 - 5,000 47 112,365 2.91
5,001 - 10,000 8 58,269 1.51
10,001 - 100,000 5 206,642 5.36
100,001 Over 5 3,429,167 88.96
Total 348 3,854,862 100.00
----- End of picture text -----

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

ASX ADDITIONAL INFORMATION

DISTRIBUTION SCHEDULE OF THE NUMBER OF HOLDERS IN EACH CLASS OF EQUITY SECURITY AS AT 15 SEPTEMBER 2021 (Cont)

==> picture [484 x 485] intentionally omitted <==

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

Range Total holders Units % Units
UNLISTED OPTIONS EXPIRING 11 JUNE 2023 AT $1.1203
1 - 1,000 - - -
1,001 - 5,000 - - -
5,001 - 10,000 - - -
10,001 - 100,000 - - -
100,001 Over 4 2,916,667 100.00
Total 4 2,916,667 100.00
UNLISTED INCENTIVE OPTIONS EXPIRING BETWEEN 30 SEPTEMBER 2021 AND 30 JUNE 2024 AT NIL EXERCISE PRICE
1 - 1,000 - - -
1,001 - 5,000 - - -
5,001 - 10,000 - - -
10,001 - 100,000 - - -
100,001 Over 10 10,751,184 100.00
Total 10 10,751,184 100.00
UNLISTED PERFORMANCE RIGHTS EXPIRING BETWEEN 30 SEPTEMBER 2021 AND 30 JUNE 2028 AT NIL EXERCISE PRICE
1 - 1,000 - - -
1,001 - 5,000 - - -
5,001 - 10,000 - - -
10,001 - 100,000 - - -
100,001 Over 12 7,687,215 100.00
Total 12 7,687,215 100.00
UNLISTED PERFORMANCE OPTIONS EXPIRING ON EVENT RELATED DATES AT NIL EXERCISE PRICE
1 - 1,000 - - -
1,001 - 5,000 - - -
5,001 - 10,000 - - -
10,001 - 100,000 - - -
100,001 Over 1 490,000 100.00
Total 1 490,000 100.00
----- End of picture text -----

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

ASX ADDITIONAL INFORMATION

MARKETABLE PARCEL

On 15 September 2021 there were 778 shareholders with less than a marketable parcel (being 4,348 shares), based on the closing price of $0.115 per share.

TWENTY LARGEST HOLDERS OF EACH CLASS OF QUOTED SECURITY

The names of the 20 largest holders of each class of quoted security, the number of equity securities each holds and the percentage of issued capital each holds (as at 15 September 2021) are set out below:

==> picture [483 x 354] intentionally omitted <==

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

Rank Name Units % of Units
1. CITICORP NOMINEES PTY LIMITED 395,952,859 40.66
2. HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED 80,396,960 8.26
3. NATIONAL NOMINEES LIMITED 52,502,446 5.39
4. NPS MINING ALLIANCE PTY LIMITED 40,619,516 4.17
5. MR HENDRICUS INDRISIE 31,085,556 3.19
6. CS THIRD NOMINEES PTY LIMITED 23,481,362 2.41
7. BNP PARIBAS NOMS PTY LTD 18,790,788 1.93
8. HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED- 18,298,006 1.88
9. WYLLIE GROUP 15,805,116 1.62
10. BNP PARIBAS NOMINEES PTY LTD 14,555,270 1.49
11. RALMANA PTY LIMITED 9,044,586 0.93
12. INVESTMET LIMITED (IN LIQUIDATION) 8,016,667 0.82
13. J P MORGAN NOMINEES AUSTRALIA PTY LIMITED 7,957,662 0.82
14. MANFAM PTY LIMITED

5,907,407 0.61
15. BNP PARIBAS NOMINEES PTY LTD 5,686,754 0.58
16. MR ANDREW STEPHEN WILLIAM BROWN + MR IAIN RAYMOND BROWN 5,081,739 0.52

17. WHITEHALL NOMINEES PTY LIMITED 4,500,000 0.46
18. LASTING LEGACY PTY LIMITED 4,000,000 0.41
19. VINGO HOLDINGS LIMITED 3,431,355 0.35
20. HARVEY SPRINGS ESTATE PTY LIMITED 3,307,447 0.34
TOP TWENTY SHAREHOLDERS 748,421,496 76.86
TOTAL REMAINING SHAREHOLDERS 225,313,009 23.14
TOTAL SHAREHOLDERS 973,734,505 100.00
----- End of picture text -----

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021

ASX ADDITIONAL INFORMATIONDIRECTORS’ REPORT

==> picture [10 x 17] intentionally omitted <==

==> picture [71 x 17] intentionally omitted <==

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

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

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ACN 625 763 957 ANNUAL REPORT 2021ANNUAL REPORT 2021 8515
----- End of picture text -----

DIRECTORS’ REPORT

==> picture [58 x 17] intentionally omitted <==

==> picture [596 x 465] intentionally omitted <==

orabandamining.com.au

ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ORA BANDA MINING LIMITED AND ITS CONTROLLED ENTITIES ACN 625 763 957 ANNUAL REPORT 2021ANNUAL REPORT 2021 8614

AI assistant

ORA BANDA MINING LTD — Annual Report 2021

65475_rns_2021-10-21_9e619bc9-8f18-40b3-8107-4378e8db8885.pdf

Corporate Directory

DIRECTORS

COMPANY SECRETARIES

REGISTERED & PRINCIPAL OFFICE ADDRESS

SHARE REGISTRY

AUDITOR

SECURITIES EXCHANGE LISTING

Contents

Chairman’s Letter

Directors’ Report

DIRECTORS

Joint Company Secretaries

Directors’ Interests in the shares, options and performance rights of Ora Banda Mining Limited

PRINCIPAL ACTIVITIES

REVIEW OF OPERATIONS

Davyhurst Activities

Processing plant refurbishment

Power Station

Village Infrastructure

Mining Operations

Riverina – Open Pit

Golden Eagle – Underground

Missouri – Open Pit

Processing Operations

Exploration

Riverina South

Iguana

Regional exploration

Corporate

Capital Raising

Financial Review

Liquidity and Capital Resources

Capital Structure

SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS

EVENTS AFTER BALANCE DATE

DIVIDENDS

LIKELY DEVELOPMENTS

CORPORATE GOVERNANCE

OPTIONS AND PERFORMANCE RIGHTS

MEETINGS OF DIRECTORS

REMUNERATION REPORT (AUDITED)

Contents:

1. BASIS OF PREPARATION

2. KEY MANAGEMENT PERSONNEL

3. REMUNERATION GOVERNANCE

Board and Remuneration & Nomination Committee responsibility

Remuneration principles

Engagement of remuneration consultants

2020 AGM voting outcome and comments

4. FY21 KMP REMUNERATION

a. Fixed remuneration

b. Short-term incentive (“STI”) arrangements

FY21 Performance against STI measures

c. Long-term incentive (“LTI”) arrangements

Share-based payments

d. Contracts with Key Management Personnel

Peter Nicholson – Chief Executive Officer

Tony Brazier – Chief Financial Officer & Company Secretary

Andrew Czerw – General Manager – Resource Development

Brendan Fyfe – General Counsel

Derek Byrne – Chief Operating Officer

e. Non-executive Directors’ Remuneration

f. Key Management Personnel Remuneration Table

5. LINK BETWEEN COMPANY PERFORMANCE, SHAREHOLDER WEALTH GENERATION AND REMUNERATION

6. KEY MANAGEMENT PERSONNEL HOLDINGS

Value of Options and Performance Rights Exercised and Forfeited

Ordinary Shareholdings of Key Management Personnel

Loans to Key Management Personnel

Other transactions with Directors

ENVIRONMENTAL REGULATIONS

WARDENS COURT PROCEEDINGS

PROCEEDINGS ON BEHALF OF THE COMPANY

NON AUDIT SERVICES

AUDITOR INDEPENDENCE

INDEMNIFICATION OF AUDITOR

INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS

ROUNDING OF AMOUNTS

ORA BANDA MINING LTD Annual Report 2021