PTR MINERALS LTD — Interim / Quarterly Report 2024

Mar 14, 2024

Petratherm Limited

ABN 17 106 806 884

Interim Report - 31 December 2023

Petratherm Limited Corporate directory For the half-year ended 31 December 2023

Directors	Derek Carter
	Simon O'Loughlin
	Donald Stephens
	Simon Taylor
Company secretary	Katelyn Adams
Registered office	C/- HLB Mann Judd (SA) Pty Ltd
	169 Fullarton Road
	DULWICH SA 5065
Principal place of business	22B Beulah Rd
	NORWOOD SA 5067
Share register	Computershare Investor Services Pty Ltd
	Level 5, 115 Grenfell Street
	ADELAIDE SA 5000
Auditor	Grant Thornton Audit Pty Ltd
	Level 3, 170 Frome Street
	ADELAIDE SA 5000
Solicitors	O'Loughlins Lawyers
	Level 2, 99 Frome Street
	ADELAIDE SA 5000
Bankers	National Australia Bank
	22 - 28 King William Street
	ADELAIDE SA 5000
Stock exchange listing	Petratherm Limited shares are listed on the Australian Securities Exchange (ASX
	code: PTR)
Website	www.petratherm.com.au

1

Petratherm Limited Contents For the half-year ended 31 December 2023

Directors' report	3
Auditor's independence declaration	6
Statement of profit or loss and other comprehensive income	7
Statement of financial position	8
Statement of changes in equity	9
Statement of cash flows	10
Notes to the financial statements	11
Directors' declaration	17
Independent auditor's review report to the members of Petratherm Limited	18

2

Petratherm Limited Directors' report For the half-year ended 31 December 2023

The Directors present their report, together with the financial statements, on the consolidated entity (referred to hereafter as the 'Group') consisting of Petratherm Limited (referred to hereafter as the 'Company' or 'parent entity') and the entities it controlled at the end of, or during, the half-year ended 31 December 2023.

Directors

The following persons were Directors of Petratherm Limited during the whole of the financial half-year and up to the date of this report, unless otherwise stated:

Derek Carter (Non-Executive Chairman) Simon O'Loughlin (Non-Executive Director) Donald Stephens (Non-Executive Director) Simon Taylor (Non-Executive Director)

Review of operations

The loss for the Group after providing for income tax amounted to $416,152 (31 December 2022: $330,876).

The Company’s primary focus during the reporting period was advancing exploration on rare earths (REEs) in the Northern Gawler Craton and copper-gold in the World-Class Olympic Domain. The Company also expanded its copper-gold land position at the Woomera and Mabel Creek Project areas.

Comet REE project

Step-out drilling Petratherm’s Artemis Prospect returning thick intercepts of high-grade REE mineralisation. Drilling extended the zone of REE mineralisation over an approximate 3km by 1.5km area and it remains open laterally in several directions. Significant intercepts include:[1]

• 23ACCR426 37m @ 1564 ppm TREO from 15m Inc.

• 3m @ 2439 ppm TREO from 21m Inc.

• 6m @ 2113 ppm TREO from 27m Inc.

• 6m @ 2500 ppm TREO from 36m

• 23ACCR428 15m @ 1046 ppm TREO from 6m Inc.

• 3m @ 2005 ppm TREO from 12m

• 23ACCR431 13m @ 1413 ppm TREO from 6m Inc.

• 6m @ 1619 ppm TREO from 6m

• 23ACCR422 33m @ 801 ppm TREO from 18m Inc.

• 15m @ 1097 ppm TREO from 18m

• Greenfields exploration drilling 25 kilometres east of the advanced Meteor and Artemis Rare Earth (REE) Prospects uncovered a new high-grade REE Prospect (Comet East). Total Rare Earths Oxide (TREO) grades up to 2990 ppm were recorded with significant concentrations of high value Magnet Rare Earth Minerals. Significant intercepts include:[2]

• • 23ACCE021 12m @ 1633 ppm TREO from 33m inc.

• 6m @ 2562 ppm TREO from 36m inc.

• 3m @ 2990 ppm TREO from 39m

• 23ACCE035 9m @ 1113 ppm TREO from 30m

To date less than 10% of the Comet Project area has been explored and significant potential for further rare earth occurrences remain.

Additionally, beneficiation work completed by the Company from samples collected at the Meteor Prospect, found that lowcost sieve separation processing, produced a significant increase in REE grades as the bulk of the rare earth mineralisation is hosted in fine clay fraction within the weathering profile. This work produced a REE ore concentrate with a grade of approximately 2000ppm TREO (including >500ppm Magnet Rare Earth Oxide (MREO)).

1 ASX Announcement 4 September 2023 – Drilling hits High-Grade Clay Hosted Rare Earths 2 ASX Announcement 28 August 2023 – Major New Rare Earths Prospect Area Uncovered at Comet

3

Petratherm Limited Directors' report For the half-year ended 31 December 2023

Mabel Creek Copper-Gold project

During the reporting period, the Company significantly expanded the Mabel Creek Project area. In July, Dean Bore (EL 6919) was granted to PTR covering a 470km[2] area and in November two large exploration licence areas (EL 6949 & EL 6950) covering a further 1,314km[2] were granted over an identified prospective IOCG fertile zone along the eastern side of the tenement holdings.[3] PTR intends to undertake gravity surveying over these new areas during the 2024 calendar period to explore for IOCG style geophysical targets for later drill testing.

Dean Bore contains the historic BigNE target, a regionally prominent, partly overlapping gravity and magnetic complex spanning a 7km by 4km area. Limited historical drilling completed at the BigNE Target indicated that the area has been subjected to a mineralising iron-oxide (hematite) alteration event and anomalous copper assays up to 0.32% were recorded over short intervals within the iron rich alteration zones. Additional gravity survey work undertaken by Petratherm during the period has identified 2 gravity only anomalous target areas which have not been drill tested and warrant follow-up.

In November the Company drill tested a strong gravity target (Olympus) with a single drill hole to target depth, ending at 519.6 metres. The drilled sequence was principally granite and garnet rich gneiss showing only low levels of alteration and no mineralisation is recorded[4] .

Woomera Copper-Gold project

The Woomera IOCG Project is located in the World Class Copper-Gold Olympic Province of South Australia. It is close to BHP’s Oak Dam West copper-gold discovery and the operating Carrapateena Copper-gold mine. During the period, the Company was granted a new tenement, ‘The Pines’ (EL 6918), providing an additional 195km[2 ] bringing the total land package at the Woomera Project to 668km[2] .

Iron-Oxide Copper-Gold (IOCG) style mineralisation is effectively targeted using gravity surveying as the iron-hosted coppergold ores are denser than surrounding rock producing discrete local gravity highs. ‘The Pines’ area has limited gravity coverage and PTR intends to undertake a precision ground gravity survey to screen for potential IOCG mineralisation in the prospective basement rocks which underlie the younger cover strata.

Corporate

The Company had exploration and evaluation costs of $842,000 relating principally to the Comet and Mabel Creek Project drilling activities. Administration and corporate costs totaled $489,000. The Company held $1,724,000 cash at the end of the Period.

Significant changes in the state of affairs

There were no significant changes in the state of affairs of the Group during the financial half-year.

Matters subsequent to the end of the financial half-year

On 23 February 2024, the Group informed its shareholders that it has been advised by the Australian Taxation Office (ATO) that the in-specie distribution of shares in Outback Goldfield Corp. (Outback Goldfields or "OZ" (formerly Skarb Exploration)) to the Group 's shareholders in April 2021, is an unfranked dividend for taxation purposes.

The ATO's decision does not result in the Group incurring any additional tax liability. The profit received by the Group from the transaction with OZ was offset by carried forward losses.

On 29 February 2024, the Group announced that it has executed a Letter of Agreement under which G4 Metals Pty Ltd (G4M) agrees to grant the Group the right to earn - in to EL6873. The Group can earn up to 70% interest via a 2 Stage Farm-in with further provisions, dependent on G4M's elections, to earn up to a 100% equity in the project.

3 PTR Announcement – 13 November 2023 – Drilling Underway at Olympus IOCG Target

4 PTR Announcement - 29 November 2023 – Drilling Completed at Olympus Gravity Target

4

Petratherm Limited Directors' report For the half-year ended 31 December 2023

Auditor's independence declaration

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

This report is made in accordance with a resolution of Directors, pursuant to section 306(3)(a) of the Corporations Act 2001.

On behalf of the Directors

==> picture [114 x 50] intentionally omitted <==

_________ Derek Carter Chairman

15 March 2024

5

==> picture [161 x 31] intentionally omitted <==

Grant Thornton Audit Pty Ltd Grant Thornton House Level 3 170 Frome Street Adelaide SA 5000 GPO Box 1270 Adelaide SA 5001 T +61 8 8372 6666

Auditor’s Independence Declaration

To the Directors of Petratherm Limited

In accordance with the requirements of section 307C of the Corporations Act 2001 , as lead auditor for the review of Petratherm Limited for the half-year ended 31 December 2023. I declare that, to the best of my knowledge and belief, there have been:

• a no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; and

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

GRANT THORNTON AUDIT PTY LTD Chartered Accountants

B K Wundersitz Partner – Audit & Assurance

Adelaide, 15 March 2024

www.grantthornton.com.au

ACN-130 913 594

Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389. ‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Limited is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389 and its Australian subsidiaries and related entities. Liability limited by a scheme approved under Professional Standards Legislation.

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Petratherm Limited Statement of profit or loss and other comprehensive income For the half-year ended 31 December 2023

Note Revenue Bank interest income Other income Total revenue Expenses Employee benefits expense Employee share-based payment 15 Exploration expenses Secretarial, professional and consultancy Other expenses 5 Total expenses Loss before income tax expense Income tax expense Loss after income tax expense for the half-year attributable to the Owners of Petratherm Limited Other comprehensive income for the half-year, net of tax Total comprehensive income for the half-year attributable to the Owners of Petratherm Limited Basic earnings/(losses) per share 14 Diluted earnings/(losses) per share 14	Consolidated 31 December 2023 31 December 2022 $ $ 33,528 36,020 - 276	Consolidated 31 December 2023 31 December 2022 $ $ 33,528 36,020 - 276
	33,528	36,296
	(188,236) (16,759) (4,190) (54,180) (186,315)	(83,489) (22,122) (73,181) (59,398) (128,982)
	(449,680)	(367,172)
	(416,152) -	(330,876) -
	(416,152) -	(330,876) -
	(416,152)	(330,876)
	Cents (0.19) (0.19)	Cents (0.15) (0.15)

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

7

Petratherm Limited Statement of financial position As at 31 December 2023

Note Assets Current assets Cash and cash equivalents Trade and other receivables Financial assets 6 Other assets Total current assets Non-current assets Property, plant and equipment Exploration and evaluation assets 7 Other assets Total non-current assets Total assets Liabilities Current liabilities Trade and other payables 8 Employee benefits Total current liabilities Non-current liabilities Employee benefits Total non-current liabilities Total liabilities Net assets Equity Issued capital 9 Reserves 10 Accumulated Losses Total equity	Consolidated 31 December 2023 30 June 2023 $ $ 424,011 1,239,464 62,575 567,658 1,300,000 1,300,000 41,211 11,842	Consolidated 31 December 2023 30 June 2023 $ $ 424,011 1,239,464 62,575 567,658 1,300,000 1,300,000 41,211 11,842
	1,827,797	3,118,964
	7,713 4,415,947 48,000	11,066 3,695,858 18,000
	4,471,660	3,724,924
	6,299,457	6,843,888
	156,376 59,952	294,313 72,525
	216,328	366,838
	22,438	16,966
	22,438	16,966
	238,766	383,804
	6,060,691	6,460,084
	27,489,120 (1,464,895) (19,963,534)	27,489,120 (1,463,285) (19,565,751)
	6,060,691	6,460,084

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

8

Petratherm Limited Statement of changes in equity For the half-year ended 31 December 2023

Consolidated Balance at 1 July 2022 Loss after income tax expense for the half-year Other comprehensive income for the half-year, net of tax Total comprehensive income for the half-year Transactions with Owners in their capacity as Owners: Share-based payments Transaction costs Balance at 31 December 2022 Consolidated Balance at 1 July 2023 Loss after income tax expense for the half-year Other comprehensive income for the half-year, net of tax Total comprehensive income for the half-year Transactions with Owners in their capacity as Owners: Share-based payments Lapsed options transferred to accumulated losses Balance at 31 December 2023	Issued capital $ 27,505,756 - -	FVOCI Reserve $ (1,534,664) - -	Share-based payments reserve $ 37,273 - -	Accumulated losses $ (18,786,782) (330,876) -	Total equity $ 7,221,583 (330,876) -
	- - (16,640)	- - -	- 22,122 -	(330,876) - -	(330,876) 22,122 (16,640)
	27,489,116	(1,534,664)	59,395	(19,117,658)	6,896,189
	Issued capital $ 27,489,120 - -	FVOCI Reserve $ (1,534,664) - -	Share-based payments reserve $ 71,379 - -	Accumulated losses $ (19,565,751) (416,152) -	Total equity $ 6,460,084 (416,152) -
	- - -	- - -	- 16,759 (18,369)	(416,152) - 18,369	(416,152) 16,759 -
	27,489,120	(1,534,664)	69,769	(19,963,534)	6,060,691

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

9

Petratherm Limited Statement of cash flows For the half-year ended 31 December 2023

Cash flows from operating activities Receipts from customers Payments to suppliers and employees Interest received Government grants/subsidies received Payments for exploration activities (expensed) Net cash used in operating activities Cash flows from investing activities Investment in financial assets Payments for property, plant and equipment Payments for exploration activities (capitalised) Payments for security deposits Government grants/subsidies received Research & development tax incentives received Net cash used in investing activities Cash flows from financing activities Share issue transaction costs Net cash used in financing activities Net decrease in cash and cash equivalents Cash and cash equivalents at the beginning of the financial half-year Cash and cash equivalents at the end of the financial half-year	Consolidated 31 December 2023 31 December 2022 $ $ - 304 (476,985) (95,385) 48,173 9,486 - 147,500 (4,190) (73,181)	Consolidated 31 December 2023 31 December 2022 $ $ - 304 (476,985) (95,385) 48,173 9,486 - 147,500 (4,190) (73,181)
	(433,002)	(11,276)
	- - (850,825) (30,000) 73,150 425,224	(2,800,000) (4,418) (934,224) - - -
	(382,451)	(3,738,642)
	-	(16,640)
	-	(16,640)
	(815,453) 1,239,464	(3,766,558) 4,691,770
	424,011	925,212

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

10

Petratherm Limited Notes to the financial statements For the half-year ended 31 December 2023

Note 1. General information

The consolidated financial statements cover Petratherm Limited as a Group consisting of Petratherm Limited and the entities it controlled at the end of, or during, the half-year. The financial statements are presented in Australian dollars, which is Petratherm Limited's functional and presentation currency.

Petratherm Limited is a listed public company limited by shares, incorporated and domiciled in Australia. Its registered office and principal place of business are:

Registered office

Principal place of business

C/- HLB Mann Judd (SA) Pty Ltd 22B Beulah Rd 169 Fullarton Road NORWOOD SA 5067 DULWICH SA 5065

A description of the nature of the Group's operations and its principal activities are included in the Directors' report, which is not part of the financial statements.

The financial statements were authorised for issue, in accordance with a resolution of Directors, on 15 March 2024.

Note 2. Material accounting policy information

These general purpose financial statements for the interim half-year reporting period ended 31 December 2023 have been prepared in accordance with Australian Accounting Standard AASB 134 'Interim Financial Reporting' and the Corporations Act 2001, as appropriate for for-profit oriented entities. Compliance with AASB 134 ensures compliance with International Financial Reporting Standard IAS 34 'Interim Financial Reporting'.

These general purpose financial statements do not include all the notes of the type normally included in annual financial statements. Accordingly, these financial statements are to be read in conjunction with the annual report for the year ended 30 June 2023 and any public announcements made by the Company during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.

The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period, except for the policies stated below.

New or amended Accounting Standards and Interpretations adopted

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

Going Concern

The interim financial report has been prepared on the basis of a going concern. During the half-year reporting period ended 31 December 2023 the Group recorded a net cash outflow from operating and investing activities of $815,453 and an operating loss of $397,783. These conditions give rise to a material uncertainty that may cast significant doubt upon the Group’s ability to continue as a going concern.

The ability of the Group to continue to pay its debts as and when they fall due is dependent upon the entity successfully continuing the development of its exploration assets and raising additional funds which may be from a variety of means inclusive of, but not limited to issue of new equity, debt, asset sales or entering into joint venture arrangements on mineral properties.

The Directors believe it is appropriate to prepare these accounts on a going concern basis because Directors will not commit to expenditure unless sufficient funding has been sourced.

If additional capital is not obtained, the going concern basis may not be appropriate, with the result that the Group may have to realise its assets and extinguish its liabilities, other than in the ordinary course of business and at amounts different from those stated in the financial report. No allowance for such circumstances has been made in the financial report.

11

Petratherm Limited Notes to the financial statements For the half-year ended 31 December 2023

Note 3. Critical accounting judgements, estimates and assumptions

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in relation to assets, liabilities, contingent liabilities, revenue and expenses. Management base their judgements, estimates and assumptions on historical experience and on other various factors, including expectations of future events, management believes to be reasonable under the circumstances. The resulting accounting judgements and estimates will seldom equal the related actual results. The judgements, estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities (refer to the respective notes) within the next financial year are discussed below.

Exploration and evaluation costs

Exploration and evaluation costs have been capitalised on the basis that the Group will commence commercial production in the future, from which time the costs will be amortised in proportion to the depletion of the mineral resources. Key judgements are applied in considering costs to be capitalised which includes determining expenditures directly related to these activities and allocating overheads between those that are expensed and capitalised. In addition, costs are only capitalised that are expected to be recovered either through successful development or sale of the relevant mining interest. Factors that could impact the future commercial production at the mine include the level of reserves and resources, future technology changes, which could impact the cost of mining, future legal changes and changes in commodity prices. To the extent that capitalised costs are determined not to be recoverable in the future, they will be written off in the period in which this determination is made.

Note 4. Operating segments

The Board has considered the requirements of AASB 8 Operating Segments and the internal reports that are reviewed by the Board in allocating resources and has concluded at this time that there are no separately identifiable segments.

Note 5. Other expenses

AGM expenses Audit fees Insurance costs Legal fees Listing fees Occupancy Costs Promotion and public relation expenses Share registry expenses Other expenses	Consolidated 31 December 2023 31 December 2022 $ $ 9,666 9,814 5,905 17,586 13,322 11,765 49,253 7,280 20,458 42,196 14,643 10,902 41,535 16,184 11,041 8,703 20,492 4,552	Consolidated 31 December 2023 31 December 2022 $ $ 9,666 9,814 5,905 17,586 13,322 11,765 49,253 7,280 20,458 42,196 14,643 10,902 41,535 16,184 11,041 8,703 20,492 4,552
	186,315	128,982

Note 6. Financial assets

NAB term deposit Mining guarantee	Consolidated 31 December 2023 30 June 2023 $ $ 1,200,000 1,200,000 100,000 100,000	Consolidated 31 December 2023 30 June 2023 $ $ 1,200,000 1,200,000 100,000 100,000
	1,300,000	1,300,000

The financial assets included are the term deposits with maturity greater than 3 months.

12

Petratherm Limited Notes to the financial statements For the half-year ended 31 December 2023

Note 7. Exploration and evaluation assets

Exploration and evaluation - at cost	Consolidated 31 December 2023 30 June 2023 $ $ 4,415,947 3,695,858

Reconciliations

Reconciliations of the written down values at the beginning and end of the current financial half-year are set out below:

Consolidated Balance at 1 July 2023 Additions through expenditures capitalised Balance at 31 December 2023	Exploration and evaluation $ 3,695,858 720,089
	4,415,947

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

Exploration and evaluation expenditure has been carried forward to the extent that they are expected to be recouped through the successful development of the area or where activities in the area have not yet reached a stage that permits reasonable assessment of the existence of economically recovered reserves. Management assessment of carried forward expenditure resulted in impairment charges of $NIL (December 2022: $NIL).

Note 8. Trade and other payables

Trade payables Other payables	Consolidated 31 December 2023 30 June 2023 $ $ 87,367 48,882 69,009 245,431	Consolidated 31 December 2023 30 June 2023 $ $ 87,367 48,882 69,009 245,431
	156,376	294,313

Trade payables are non-interest bearing and normally settled on 60-day terms.

Note 9. Issued capital

Ordinary shares - fully paid	31 December 2023 Shares 224,751,139	Consolidated 30 June 2023 31 December 2023 Shares $ 224,751,139 27,489,120	30 June 2023 $ 27,489,120

Ordinary shares

Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the Company in proportion to the number of and amounts paid on the shares held. The fully paid ordinary shares have no par value and the Company does not have a limited amount of authorised capital.

13

Petratherm Limited Notes to the financial statements For the half-year ended 31 December 2023

Note 9. Issued capital (continued)

On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each share shall have one vote.

Proceeds from share issues are used to maintain and expand the Group’s exploration activities and fund operating costs. There are no externally imposed capital requirements.

Note 10. Reserves

Financial assets at fair value through other comprehensive income reserve Share-based payments reserve	Consolidated 31 December 2023 30 June 2023 $ $ (1,534,664) (1,534,664) 69,769 71,379	Consolidated 31 December 2023 30 June 2023 $ $ (1,534,664) (1,534,664) 69,769 71,379
	(1,464,895)	(1,463,285)

Financial assets at fair value through other comprehensive income reserve

The reserve is used to recognise increments and decrements in the fair value of financial assets at fair value through other comprehensive income.

Share-based payments reserve

The reserve is used to recognise the value of equity benefits provided to employees and Directors as part of their remuneration, and other parties as part of their compensation for services.

Note 11. Dividends

There were no dividends paid, recommended or declared during the current or previous financial half-year.

Note 12. Commitments

Capital commitments Committed at the reporting date but not recognised as liabilities, payable: Exploration and evaluation*	Consolidated 31 December 2023 30 June 2023 $ $ 799,431 751,498

• In order to maintain current rights of tenure to exploration tenements, the Company is required to meet minimum expenditure requirements in respect of tenement lease rentals. These obligations are expected to be fulfilled in the normal course of operations.

14

Petratherm Limited Notes to the financial statements For the half-year ended 31 December 2023

Note 13. Events after the reporting period

On 23 February 2024, the Group informed its shareholders that it has been advised by the Australian Taxation Office (ATO) that the in-specie distribution of shares in Outback Goldfield Corp. (Outback Goldfields or "OZ" (formerly Skarb Exploration)) to the Group's shareholders in April 2021, is an unfranked dividend for taxation purposes.

The ATO's decision does not result in the Group incurring any additional tax liability. The profit received by the Group from the transaction with OZ was offset by carried forward losses.

On 29 February 2024, the Group announced that it has executed a Letter of Agreement under which G4 Metals Pty Ltd (G4M) agrees to grant the Group the right to earn - in to EL6873. The Group can earn up to 70% interest via a 2 Stage Farm-in with further provisions, dependent on G4M's elections, to earn up to a 100% equity in the project.

No other matter or circumstance has arisen since 31 December 2023 that has significantly affected, or may significantly affect the Group's operations, the results of those operations, or the Group's state of affairs in future financial years.

Note 14. Earnings per share

Loss after income tax attributable to the Owners of Petratherm Limited Weighted average number of ordinary shares used in calculating basic earnings per share Weighted average number of ordinary shares used in calculating diluted earnings per share Basic earnings/(losses) per share Diluted earnings/(losses) per share	Consolidated 31 December 2023 31 December 2022 $ $ (416,152) (330,876)	Consolidated 31 December 2023 31 December 2022 $ $ (416,152) (330,876)
	Number 224,751,139	Number 224,751,139
	224,751,139	224,751,139
	Cents (0.19) (0.19)	Cents (0.15) (0.15)

Note 15. Share-based payments

A summary of the Company options on issue during the period is as follows:

31 December 2023

31 December 2023
Exercise Grant date Expiry date price 16/08/2021 16/08/2024 $0.10 01/10/2021 01/10/2024 $0.08 12/01/2023 12/01/2026 $0.09 01/05/2023 01/05/2026 $0.02 05/05/2023 05/05/2026 $0.09 29/12/2023 29/12/2026 $0.06 29/12/2023 29/12/2026 $0.06	Balance at the start of the half-year 100,000 1,000,000 500,000 250,000 75,000 - -	Granted during the period - - - - - 75,000 250,000	Exercised - - - - - - -	Lapsed (100,000) - - (250,000) - - -	Balance at the end of the half-year - 1,000,000 500,000 - 75,000 75,000 250,000
	1,925,000	325,000	-	(350,000)	1,900,000

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Petratherm Limited Notes to the financial statements For the half-year ended 31 December 2023

Note 15. Share-based payments (continued)

The above options were equity-settled share-based compensation benefits granted to the employees under the employees share option plan. The options are simple time vesting options. On 9 August 2023, 100,000 unlisted options with an exercise price of $0.098 and 250,000 unlisted options with an exercise price of $0.096 lapsed. As a result, the expenses recognised during the period on a prorata basis was ($1,610). The fair value of the options granted during the period were calculated by using a Black-Scholes option pricing model applying the following inputs:

Grant date:	29 December 2023	29 December 2023
Vesting date:	29 December 2024	29 December 2024
Expiry date:	29 December 2026	29 December 2026
Share price at grant date:	$0.047	$0.047
Exercise price:	$0.069	$0.069
Expected share price volatility:	125.04%	125.04%
Risk-free interest rate:	5.22%	5.22%
Fair value at grant date:	$11,732	$3,519

The weighted average remaining contractual life of options outstanding at the end of the financial year was 1.54 years (2022: 2.0 years).

16

Petratherm Limited Directors' declaration For the half-year ended 31 December 2023

In the Directors' opinion:

• the attached financial statements and notes comply with the Corporations Act 2001, Australian Accounting Standard AASB 134 'Interim Financial Reporting', the Corporations Regulations 2001 and other mandatory professional reporting requirements;

• the attached financial statements and notes give a true and fair view of the Group's financial position as at 31 December 2023 and of its performance for the financial half-year ended on that date; and

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

Signed in accordance with a resolution of Directors made pursuant to section 303(5)(a) of the Corporations Act 2001.

On behalf of the Directors

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_________Derek Carter Chairman

15 March 2024

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==> picture [161 x 31] intentionally omitted <==

Grant Thornton Audit Pty Ltd Grant Thornton House Level 3 170 Frome Street Adelaide SA 5000 GPO Box 1270 Adelaide SA 5001 T +61 8 8372 6666

Independent Auditor’s Review Report

To the Members of Petratherm Limited

Report on the half year financial report

Conclusion

We have reviewed the accompanying half year financial report of Petratherm Limited (the Company) and its subsidiaries (the Group), which comprises the consolidated statement of financial position as at 31 December 2023, and the consolidated statement of profit or loss and other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the half year ended on that date, a summary of significant accounting policies, other selected explanatory notes, and the directors’ declaration.

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the accompanying half-year financial report of Petratherm Limited does not comply with the Corporations Act 2001 including:

• a giving a true and fair view of the Group’s financial position as at 31 December 2023 and of its performance for the half year ended on that date; and

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

Basis for Conclusion

We conducted our review in accordance with ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity . Our responsibilities are further described in the Auditor’s Responsibilities for the Review of the Financial Report section of our report. We are independent of the Company in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the annual financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

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Material uncertainty related to going concern

We draw attention to Note 2 in the financial report, which indicates that the Group incurred net cash outflows from operating and investing activities of $815,453 and an operating loss of $397,783 during the half year ended 31 December 2023. As stated in Note 2 these events or conditions, along with other matters as set forth in Note 2, indicate that a material uncertainty exists that may cast significant doubt on the Group's ability to continue as a going concern. Our conclusion is not modified in respect of this matter.

Directors’ responsibility for the half-year financial report

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

Auditor’s responsibility

Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity , in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the half year financial report is not in accordance with the Corporations Act 2001 including giving a true and fair view of the Group’s financial position as at 31 December 2023 and its performance for the half-year ended on that date, and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 .

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

GRANT THORNTON AUDIT PTY LTD Chartered Accountants

B K Wundersitz Partner – Audit & Assurance

Adelaide, 15 March 2024

Grant Thornton Audit Pty Ltd 2