RESOLUTION MINERALS LTD — Interim / Quarterly Report 2024

Jan 18, 2024

QUARTERLY ACTIVITIES REPORT

Resolution Minerals Ltd (RML or Company) (ASX: RML) provides its quarterly report for the quarter ended 31 December 2023.

During the quarter, RML announced the results of its Benmara Project drilling program. The Company received assays for three deep stratigraphic diamond core drill holes at the Benmara Copper Project in the Northern Territory (ASX announcement 13 November 2023). Copper values ranged from 3-10 times background within host rocks and most significantly, chalcopyrite was identified, which supports the potential for a sediment-hosted copper system in the South Nicholson Basin, an idea which was previously only a conceptual model. The drill program was designed to test the stratigraphy adjacent to the Fish River and Bauhinia faults (Figure 1). Prospective units in all three holes were found to be overlying potential copper source rocks of the Benmara Group, Buddycurrawa Volcanics, which were highly oxidised and contain abundant mafic clasts. Deeper sections of the source rock show evidence of metal depletion and K (Potassic) alteration, demonstrating metal mobility in conjunction with hydrothermal fluid migration signifying the potential for nearby concentrated metal accumulation.

Figure 1. The 2023 Diamond Drill Hole Locations

Drilling at the Benmara Project during 2023 was funded by OZ Minerals (now BHP Group) as part of their Initial-Period commitment as outlined in the Heads of Agreement between the two companies (ASX announcement 9 September 2022) and a $150,000 grant from the NT Government's Resourcing the Territory initiative. Subsequently (ASX announcement 27 December 2023), RML was notified that the BHP Group would not be proceeding with further earn-in activities at Resolution's Benmara Copper Project.

The Company is not aware of any new information or data materially affecting the results crossreferenced in this announcement.

CORPORATE

Wollogorang Project Sale Complete

Resolution completed the sale of the Wollogorang Project to NT Minerals Limited (ASX:NTM) on 17 October 2023. NTM now holds a 100% unencumbered interest in the seven Wollogorang Project tenements, EL31272, EL30496, EL30590, EL31546, EL31548, EL31549, EL31550 via the sale of the holding company - Mangrove Resources Pty Ltd - to NTM. Resolution received $250,000 for the project - comprising $50,000 cash and $200,000 worth of shares (22,199,101 shares) in NTM.

Director changes

During the quarter, Managing Director Chris McFadden and non-executive directors, Duncan Chessell and Paul Kitto resigned from the board of the Company. Further, Mendel Rogatsky and Aharon Zaetz were appointed as non-executive directors to the board of the Company.

Cash balance 31 December 2023

The cash at bank at the end of the Quarter (31 December 2023) was $389k.

Appendix 5B expenditure disclosure

RML's Appendix 5B includes expenditure amounts of $62k in items 6.1 and 6.2 representing payments of Executive and Non-executive Director fees paid as salaries and to entities nominated by relevant Directors.

During the December Quarter, RML expended $1,279k on exploration activities. This expenditure primarily represents costs associated with drilling activities at the Company's Benmara Project in the NT.

TENEMENT TABLE

Tenement number	Tenement name	Beneficial Interest	Changes during Quarter
		at the end of the
		Quarter
	Wollogorang Project - Northern Territory, Australia
EL30496	Karns	0%	Sale of tenements*
EL30590	Selby	0%	Sale of tenements*
EL31272	Running Creek	0%	Sale of tenements*
EL31546	Calvert	0%	Sale of tenements*
EL31548	Sandy Creek	0%	Sale of tenements*
EL31549	Camel Creek	0%	Sale of tenements*
EL31550	Madulgina Creek	0%	Sale of tenements*
	Benmara Project – Northern Territory, Australia
EL31287	Pandanus	100%	None
EL32228	Benmara	100%	None
EL32229	Murphy	100%	None
EL32849	Paradise Bore	100%	None
EL32850	Boxer	100%	None
EL32883	Murphy	100%	None
EL33059	Lilly	100% (Application)	None
EL33612	Benmara	100% (Application)	None
EL33613	Benmara	100% (Application)	None
	Carrara Range Project – Northern Territory, Australia
EL32622	Carrara	100%	None
EL32620	Carrara	100%	None
EL32577	Carrara	100%	None
EL32621	Carrara	100% (Application)	None
EL32619	Carrara	100% (Application)	None
EL32578	Carrara	100% (Application)	None
George Project – South Australia, Australia
EL6838	George	100%	None
EL6839	George	100%	None
EL6840	George	100%	None
EL6905	George	100%	None
64North Project – Alaska, USA
1,195AlaskaStateClaims	64North Project claims	51%	None
Allegra Project – Alaska, USA
201AlaskaStateClaims	Allegra Project claims	100%	None

ASX RELEASE

Authorised for release by the board of Resolution Minerals Ltd.

For further information, please contact Aharon Zaetz Non-Executive Director.

Aharon Zaetz Non-Executive Director Resolution Minerals Ltd M: +61 424 743 098 ari@resolutionminerals.com

Appendix 5B

Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Name of entity
Resolution Minerals Ltd
ABN	Quarter ended ("current quarter")
99 617 789 732	31 December 2023

	Consolidated statement of cash flows	Current quarter$A'000	Year to date(6months)$A'000
1.	Cash flows from operating activities
1.1	Receipts from customers	-	-
1.2	Payments for
	(a)exploration & evaluation	(33)	(33)
	(b)development	-	-
	(c)production	-	-
	(d)staff costs	(226)	(402)
	(e)administration and corporate costs	(147)	(242)
1.3	Dividends received (see note 3)	-	-
1.4	Interest received	7	23
1.5	Interest and other costs of finance paid	-	-
1.6	Income taxes paid	-	-
1.7	Government grants and tax incentives	-	-
1.8	Other (provide details if material)	119	245
1.9	Net cash from / (used in) operatingactivities	(280)	(409)

2.		Cash flows from investing activities
2.1		Payments to acquire or for:
	(a)	entities	-	-
	(b)	tenements	-	-
	(c)	property, plant and equipment	-	(4)
	(d)	exploration & evaluation	(1,246)	(2,347)
	(e)	investments	-	-
	(f)	other non-current assets	-	-

	Consolidated statement of cash flows	Current quarter$A'000	Year to date(6months)$A'000
2.2	Proceeds from the disposal of:
	(a)entities	-	-
	(b)tenements	-	-
	(c)property, plant and equipment	79	79
	(d)investments	78	78
	(e)other non-current assets	-	-
2.3	Cash flows from loans to other entities	-	-
2.4	Dividends received (see note 3)	-	-
2.5	Other – Joint Venture receipts	73	1,718
2.6	Net cash from / (used in) investingactivities	(1,016)	(476)

3.	Cash flows from financing activities
3.1	Proceeds from issues of equity securities(excluding convertible debt securities)	-	-
3.2	Proceeds from issue of convertible debtsecurities	-	-
3.3	Proceeds from exercise of options	-	-
3.4	Transaction costs related to issues of equitysecurities or convertible debt securities	-	-
3.5	Proceeds from borrowings	-	-
3.6	Repayment of borrowings	-	-
3.7	Transaction costs related to loans andborrowings	-	-
3.8	Dividends paid	-	-
3.9	Other – lease payments	(9)	(18)
3.10	Net cash from / (used in) financingactivities	(9)	(18)

4.	Net increase / (decrease) in cash andcash equivalentsfor the period
4.1	Cash and cash equivalents at beginning ofperiod	1,711	1,309
4.2	Net cash from / (used in) operatingactivities (item 1.9 above)	(280)	(409)
4.3	Net cash from / (used in) investing activities(item 2.6 above)	(1,016)	(476)
4.4	Net cash from / (used in) financing activities(item 3.10 above)	(9)	(18)

	Consolidated statement of cash flows	Current quarter$A'000	Year to date(6months)$A'000
4.5	Effect of movement in exchange rates oncash held	(17)	(17)
4.6	Cash and cash equivalents at end ofperiod	389	389

5.	Reconciliation of cash and cashequivalentsat the end of the quarter (as shown in theconsolidated statement of cash flows) to therelated items in the accounts	Current quarter$A'000	Previous quarter$A'000
5.1	Bank balances	369	1,691
5.2	Call deposits	20	20
5.3	Bank overdrafts	-	-
5.4	Other - restricted cash (joint venture)	-	-
5.5	Cash and cash equivalents at end ofquarter (should equal item 4.6 above)	389	1,711

6.	Payments to related parties of the entityand theirassociates	Current quarter$A'000
6.1	Aggregate amount of payments to related parties and theirassociates included in item 1	62
6.2	Aggregate amount of payments to related parties and theirassociates included in item 2	-
	Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and anexplanation for, such payments.

7.	FinancingfacilitiesNote: the term "facility' includes all forms of financingarrangements available to the entity.Add notes as necessary for an understanding of thesources of finance available to the entity.	Total facilityamountat quarterend$A'000	Amount drawnatquarter end$A'000
7.1	Loan facilities	-	-
7.2	Credit standby arrangements	-	-
7.3	Other (please specify)	-	-
7.4	Total financing facilities	-	-
7.5	Unused financing facilities available at quarter end		-
7.6	Include in the box below a description of each facility above, including the lender, interestrate, maturity date and whether it is secured or unsecured. If any additional financingfacilities have been entered into or are proposed to be entered into after quarter end,include a note providing details of those facilities as well.
	Not applicable

8.	Estimated cash available for future operating activities	$A'000
8.1	Net cash from / (used in) operating activities (item 1.9)	(280)
8.2	(Payments for exploration & evaluation classified as investingactivities) (item 2.1(d))	(1,246)
8.3	Total relevant outgoings (item 8.1 + item 8.2)	(1,526)
8.4	Cash and cash equivalents at quarter end (item 4.6)	389
8.5	Unused finance facilities available at quarter end (item 7.5)	-
8.6	Total available funding (item 8.4 + item 8.5)	389
8.7	Estimated quarters of funding available (item 8.6 divided byitem 8.3)	0.3
	Note: if the entity has reported positive relevant outgoings (ie a net cash inflow) in item 8.3, answer item 8.7 as "N/A".Otherwise, a figure for the estimated quarters of funding available must be included in item 8.7.
8.8	If item 8.7 is less than 2 quarters, please provide answers to the following questions:
	8.8.1Does the entity expect that it will continue to have the current level of net operatingcash flows for the time being and, if not, why not?
Answer: No. The majority of exploration expenditure included in item 2.1(d) relates toexploration at the Company's Benmara project and is funded via funds from BHPvia a joint venture arrangement as disclosed in item 2.5. The expenditure related tothe Benmara project will reduce in the current quarter as the drilling program hasbeen completed as announced on 21 September 2023 and BHP has elected to notproceed with the project. Additionally, the Company has reduced expenditure,including, but not limited to, the proposed payment of director fees with equity ratherthan cash.

8.8.2	Has the entity taken any steps, or does it propose to take any steps, to raise furthercash to fund its operations and, if so, what are those steps and how likely does itbelieve that they will be successful?
	Answer: Resolution has undertaken numerous fundraising activities in the past, including,but not limited to, private placements, rights issues and share purchase plans. TheCompany expects that it will be able to raise further funds if required. Additionally,the Company has investments that may be sold if required. Finally, the Companyhas in place an Acuity Capital At-The-Market facility which may be utilised to raisefurther funds.
8.8.3	Does the entity expect to be able to continue its operations and to meet its businessobjectives and, if so, on what basis?
	Answer: Yes. Resolution expects to be able to continue its operations and to meet itsbusiness objectives following fundraising activities as detailed above. In the eventthat funding support is not sufficient to meet planned expenditures, Resolution willreduce corporate spend and other activities as required.
	Note: where item 8.7 is less than 2 quarters, all of questions 8.8.1, 8.8.2 and 8.8.3 above must be answered.

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.
• 2 This statement gives a true and fair view of the matters disclosed.

Date: 19 January 2024

Authorised by: the Board of the Company (Name of body or officer authorising release – see note 4)

Notes

• 1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity's activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.
• 1. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.
• 1. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.
• 1. If this report has been authorised for release to the market by your board of directors, you can insert here: "By the board". If it has been authorised for release to the market by a committee of your board of directors, you can insert here: "By the [name of board committee – eg Audit and Risk Committee]". If it has been authorised for release to the market by a disclosure committee, you can insert here: "By the Disclosure Committee".
• 1. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council's Corporate Governance Principles and Recommendations, the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.