RINCON RESOURCES LIMITED — Interim / Quarterly Report 2022

Mar 14, 2022

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Rincon Resources Limited ABN 54 628 003 538

Half-Year Financial Report for the period ended 31 December 2021

TABLE OF CONTENTS

Corporate Directory	2
Directors’ Report	3
Auditor’s Independence Declaration	12
Consolidated Statement of Profit or Loss and Other Comprehensive Income	13
Consolidated Statement of Financial Position	14
Consolidated Statement of Changes in Equity	15
Consolidated Statement of Cash Flows	16
Notes to the Financial Statements	17
Directors’ Declaration	24
Independent Auditor’s Review Report	25

Rincon Resources Limited Corporate Directory

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Rincon Resources Limited is an Australian listed company focused on the acquisition, exploration and development of commercially significant resource projects in Western Australia, with a focus on gold and base metals. For more details visit www.rinconresources.com.au.

DIRECTORS

Mr Blair Sergeant (Non-Executive Chairman)

Mr Gary Harvey (Managing Director)

Ms Caroline Keats (Non-Executive Director)

COMPANY SECRETARY

Mr Zane Lewis

REGISTERED OFFICE

Suite 1 295 Rokeby Road SUBIACO WA 6008

AUDITORS

RSM Australia Partners Level 32 Exchange Tower 2 The Esplanade PERTH WA 6000

SHARE REGISTRAR

Automic Pty Ltd Level 2, 267 St Georges Terrace PERTH WA 6000

GPO Box 5193, SYDNEY, NSW 2000 Telephone: 1300 288 664 (within Australia) Email: hello@automic.com.au

SECURITIES EXCHANGE LISTING

Australian Securities Exchange Limited (Home Exchange: PERTH, Western Australia) Code: RCR

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Rincon Resources Ltd Directors’ Report

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The Directors present their report, together with the financial statements, of Rincon Resources Limited (the “Company”) and the entities it controlled (referred to hereafter as the “consolidated entity” or “the Group”) at the end of the half-year ended 31 December 2021 (“Half-Year”).

Directors

The following persons were Directors of Rincon Resources Limited during the whole of the financial period and up to the date of this report, unless otherwise stated:

Mr Blair Sergeant – Non-Executive Chairman (appointed Non-Executive Director 18 August 2020 and appointed Chairman 6 December 2021)

Mr Gary Harvey – Managing Director (appointed Managing Director 1 October 2021)

Ms Caroline Keats - Non-Executive Director (appointed 6 December 2021) Mr Geoffrey McNamara –Executive Chairman (resigned 6 December 2021) Mr Zeffron Reeves – Non-Executive Director (resigned 15 November 2021) Mr Ed Mason – Non-Executive Director (resigned 6 December 2021)

Principal activities

The principal activities of the consolidated entity are the acquisition, exploration and development of commercially significant resource projects in Western Australia, with a focus on gold and base metals.

Operating results

The loss, after tax, attributable to the Group for the financial half-year ended 31 December 2021, amounted to $603,448 (2020: $724,115).

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Rincon Resources Ltd Directors’ Report

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Review of operations

Rincon has a 100% interest in three highly prospective gold and copper projects in Western Australia, the South Telfer Copper-Gold Project, Kiwirrkurra Copper-Gold Project, and the Laverton Gold Project. Each project has been subject to historical exploration, which has identified significant and prospective outcropping mineralised systems. The Company has planned and commenced executing systematic exploration of these projects, aimed at delineating gold and copper resources.

South Telfer Copper-Gold Project

During the reporting period, the Company advanced exploration activities at the 100% owned South Telfer Project. A maiden (“Phase 1”) reverse circulation (RC) drilling program totalling 27 holes for 4,944m was completed at the Hasties Prospect,[1] which is located within the broader South Telfer Project area. The drill program aimed to confirm historical drilling results completed by Newcrest Mining Limited (ASX: NCM), as well as testing for extensions to the known shallow copper-gold (Cu-Au) mineralisation at both Hasties Main and Hasties South-East (SE) zones (see Figure 1). Significant zones of copper-gold mineralisation were intersected from both zones, including:[2]

21STRC002: 2m @ 2.90% Cu from 52m, and 4m @ 2.49% Cu from 60m, and 2m @ 2.75% Cu from 72m.

21STRC003: 3m @ 7.18g/t Au from 31m

21STRC012: 8m @ 1.58g/t Au from 19m, and 5m @ 1.60g/t Au from 32m, and 4m @ 5.31% Cu from 57m, and 8m @ 2.64% Cu from 87m.

21STRC011: 42m @ 1.17g/t Au & 0.26% Cu from 0m including:

▪ 12m @ 2.53g/t Au from surface; ▪ 7m @ 0.86% Cu from 13m (incl. 3m @ 1.11% Cu & 1m @ 1.76% Cu); ▪ 5m @ 0.99% Cu from 95m (incl. 1m @ 3.06% Cu); ▪ 4m @ 1.35g/t Au & 0.48% Cu from 31m; & ▪ 2m @ 1.41g/t Au from 39m.

21STRC018: 62m @ 1.06g/t Au & 0.32% Cu from 4m including:

▪ 9m @ 2.94g/t Au from 21m (incl. 5m @ 4.23g/t Au); ▪ 4m @ 1.49g/t Au from 34m; ▪ 4m @ 1.56g/t Au from 42m; & ▪ 20m @ 0.5g/t Au & 0.85% Cu (incl. 8m @ 1.20% Cu).

21STRC019: 22m @ 1.83g/t Au & 0.02% Cu from 8m including:

▪ 7m @ 1.49 g/t Au from 9m (incl. 2m @ 2.86g/t Au); & ▪ 11m @ 2.60g/t Au from 19m (incl. 6m @ 3.85g/t Au).

At Hasties Main zone, broad Cu-Au intervals of up to 94m (21STRC012) downhole width, including 62m @ 1.06 g/t from 4m in 21STRC018 and 22m @ 1.83 g/t from 8m in 21STCR019 were intercepted. Mineralisation occurs above the base of oxidation and is hosted in highly weathered sulphidic-quartz vein arrays and breccia zones (see Figure 2).[3]

1 ASX Announcement 5 October 2021 – Wide, Shallow High-Grade Copper-Gold Mineralisation Intersected at Hasties

2 ASX Announcement 20 September 2021 – High Grade Copper-Gold Mineralisation Intersected at Hasties

3 ASX Announcement 21 October 2021 – Further High-Grade Copper-Gold Mineralisation Intersected at Hasties

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Rincon Resources Ltd Directors’ Report

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Figure 1 – Hasties Prospect Drillhole Location Plan showing Phase 1 drill holes 21STRC001-027.

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Rincon Resources Ltd Directors’ Report

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Figure 2 – Schematic section E-E’ at Hasties Main Zone

The Company was successful in its application for a grant of a maximum of $75,000 towards diamond drilling costs at South Telfer, under Round 24 of the Western Australian Government Exploration Incentive Scheme (“EIS Grant”). The EIS Grant will co-fund a single diamond (DD) drill hole to test the Hasties Deep Target[4] as part of the Company’s Phase 2 drilling program at the Hasties Prospect.

The Phase 2 program aims to test extensional targets along strike from earlier drilling and at depth including targets identified from the Gradient Array Induced Polarisation (GAIP) geophysical survey completed earlier in 2021 over the greater Hastie’s Prospect area.[5]

Phase 2 drilling commenced during the December quarter 2021 and comprises up to 5,000m of combined RC and DD drilling with the EIS co-funded DD drillhole to test the Hasties Deeps target, approximately 300m below and central to the Hasties Main and Hasties South-East zones (see Figure 3). The Hasties Deeps target is associated with an anticline folded intrusive dolerite sill. The Company is targeting Telfer Dome (quartz-dolomite-sulphide reef and breccia/stockwork) and Havieron (sulphide and breccia) style mineralisation, potentially associated with the contact zone between the dolerite sill and overlying sediments, the potential source of the GAIP resistivity high anomaly.

Seven (7) RC holes have been completed to-date and included testing a 300m extension zone along strike to the northwest of the Hasties Main Zone and a new target at Frenchman’s[6] . Five holes tested the 300m extension zone where breccia and gossan exposures were mapped directly along strike to the northwest of the Hasties Main Zone. All holes intersected variable favourable widths of breccia and alteration like that previously logged at Hasties.

Results for the first 7 RC holes were received late January highlighted by multiple Cu-Au intersections in hole 21STRC032, drilled at the Frenchman’s Prospect, located ~900m north of the Hasties Main Zone (see Figure 4). 21STRC032 returned 5m @ 1.74g/t Au from 118m and 4m @ 0.91g/t Au & 0.12% Cu (incl. 1m @ 2.34g/t Au) from 107m[7] down-dip of the previous Cu-Au mineralisation intercepted in historic drill

4 ASX Announcement 8 November 2021 – Phase 2 Drilling at South Telfer Copper-Gold Project

5 ASX Announcement 5 July 2021 - South Telfer Gold-Copper Project Update

6 ASX Announcement 21 December 2021 – Exploration Update – Amended South Telfer Copper-Gold Project

7 ASX Announcement 15 February 2022 – New Frenchman’s Prospect Emerges

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Rincon Resources Ltd Directors’ Report

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hole HWR029. These results are encouraging, and the Company will now look to follow up with further drilling at Frenchman’s as early as possible.

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Figure 3 - 3D Schematic view showing Hastie Prospect, historical copper-gold mineralisation, and the “Hasties Deeps” Drill Target.

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Figure 4 – Frenchman’s schematic section showing 21STRC032.

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Rincon Resources Ltd Directors’ Report

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At Hasties Extended five holes (21STRC028-031 & 033) tested the 300m extension zone of mapped exposures of breccia and gossan along strike to the northwest of the Hasties Mains Zone. All holes intersected various widths of favourable copper-gold style alteration like that previously logged at Hasties (refer ASX Release dated 20 December 2021, available to view at www.rinconresources.com.au). This was seen as encouraging with the potential to extend the Hasties Main Zone to over 600m in strike.

Low-level gold mineralisation and negligible copper mineralisation was intersected and associated with zones of brecciation, quartz and disseminated pyrite. Drillhole 21STRC033, the most northerly hole, drilled through multiple zones of favourable alteration and breccia in an area where the mapped breccia/gossan appears to cut out at surface and disrupted by cross-cutting faulting. The hole intersected several zones of low-level gold (refer Figure 5) associated with these breccia zones. Unfortunately, the hole was abandoned at 216m, 34m short of target.

Importantly, the best intersection in hole 21STRC033 (3m @ 0.36g/t Au from 196m) occurred at the contact of a silicified and brecciated unit and was associated with elevated antimony (≥ 6ppm Antimony) known to be strongly associated with gold mineralisation at Hasties. This is encouraging, and while it’s currently inconclusive, it appears the abandoned hole may have just missed the targeted Hasties Main fault structure. This is based on post drillhole interpretation using the Company’s in-house 3D model. The Company plans to re-enter 21STRC033 when the RC rig returns to site for the completion of Phase 2 drilling.

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Figure 5 – Schematic section showing 21STRC033. Anomalous antimony from 181-200m is highly encouraging and a vector to gold mineralisation.

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Rincon Resources Ltd Directors’ Report

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Kiwirrkurra Copper-Gold Project

During the period, the Company announced high-priority IOCG style copper-gold targets at the Pokali Prospect located within the Kiwirrkurra Project. Independent geophysical consultants Resource Potentials were commissioned earlier in the year to source open-file geophysical, geological, surface geochemical and historical drilling data, compile, re-process and interpret the data as part of a comprehensive review and targeting program at the Company’s highly prospective Kiwirrkurra Copper-Gold Project.[8]

Thirteen priority targets were identified within the project area, including two high-priority IOCG style drill targets at the Pokali Prospect. The Company has proposed a maiden RC and diamond drilling program of up to 3,000m to test the two high-priority IOCG targets at Pokali, and subject to all necessary statutory approvals and heritage survey clearance, drilling at Pokali is scheduled for H2 2022.

The review also identified prospective areas to the east of the current project area and the Company has applied for three new exploration licences, increasing its project landholding to approximately 200km[2 ] (see Figure 6).

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Figure 6 – Kiwirrkurra Copper-Gold Project location plan

The Company was successful in its application for a grant of a maximum of $150,000 towards diamond drilling costs at Kiwirrkurra, under Round 24 of the Western Australian Government Exploration Incentive Scheme.[9] The EIS Grant will co-fund the diamond drill testing of two high-priority IOCG-style targets at the Pokali Prospect at Kiwirrkurra.

Additionally, the Company executed a Mineral Exploration and Land Access Deed of Agreement (“DOA”) with the Tjamu Tjamu (Aboriginal Corporation) Registered Native Title Body Corporate at its Kiwirrkurra Copper-Gold Project.

The Company now awaits the issue of a Ministerial Entry Permit to allow field activities to commence.

8 ASX Announcement 15 October 2021 – Priority Copper-Gold Targets identified Kiwirrkurra Copper-Gold Project

9 ASX Announcement 4 November 2021 – EIS Co-funding Grant for Kiwirrkurra Copper-Gold Project

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Rincon Resources Ltd Directors’ Report

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Laverton Gold Project

During the period, the Company completed aerial photographic mapping and targeting over the Laverton Project.

The main objective of the mapping program was to provide maps of the rock types and structural geology of the project tenements for use in further exploration for gold.

Exploration targets identified in this work program are considered to represent favourable sites for mineralisation interpreted from remote sensing imagery. No field work was completed during this program, and the conclusions reached were based entirely on the photointerpretation of the remote sensing imagery only.

Some 38 exploration targets or points of exploration interest were identified. The targets fell into 5 general categories or geological contexts as follows:[10]

• Geomorphological features where channel iron or placer gold may have been deposited (2 targets)

• Faulted contacts between felsic, mafic, ultramafic and meta-sedimentary units (8 targets).

• Offsets in felsic and ultramafic outcrops (13 targets).

• Alteration on fault or shear trends (10 targets).

• Circular features in the mafic and felsic units or on magnetics which may represent intrusive pipelike structures (5 targets).

The targets are based on what was prominent on the aerial imagery. Numerous other zones may be more prospective but were obscured by regolith cover or did not feature strongly on the imagery.

COVID-19 impact

All the Company’s staff and contractors, including those on site at the projects in Western Australia are safe. The Company has implemented procedures to ensure all staff and contractors remain safe and healthy during the COVID-19 pandemic, including regular testing, altered rosters and strict quarantining procedures. As at the date of this report, the Company’s operations at the Western Australian projects have not been directly affected by COVID-19 restrictions in Australia, however the Company continues to monitor this closely with the health and wellbeing of all staff and contractors.

Corporate Activities

During the half-year ended 31 December 2021 the Company issued a total of 2,000,000 performance rights to Mr Gary Harvey in accordance with his services agreement.

On 1 October 2021, Mr Gary Harvey was appointed Managing Director.

On 15 November 2021, Mr Zeffron Reeves resigned as a Director of the Company.

On 6 December 2021, Ms Caroline Keats was appointed Non-Executive Director of the Company and Mr Geoffrey McNamara and Mr Ed Mason resigned as Directors.

On 9 December 2021, the Company announced the cancellation of 2,100,000 performance rights in accordance with the vesting conditions upon the resignation of Mr Zeffron Reeves, Mr Geoffrey McNamara and Mr Ed Mason.

Significant changes in the state of affairs

There were no significant changes in the state of affairs of the consolidated entity during the period.

10 ASX Announcement 22 October 2021 – Quarterly Activities Report

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Rincon Resources Ltd Directors’ Report

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Events after the reporting date

On 15 February 2022, the Company announced the initial results from the Phase 2 drill program at the South Telfer Copper-Gold Project.

As the impact of the Coronavirus (COVID-19) pandemic is ongoing, it is not practicable to estimate the potential impact, positive or negative, after the reporting date. The situation is rapidly developing and is dependent on measures imposed by the Australian Government and other countries, such as maintaining social distancing requirements, quarantine, travel restrictions and any economic stimulus that may be provided.

Other than as discussed above, no other matter or circumstance has arisen since 31 December 2021 that has significantly affected, or may significantly affect the consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial periods.

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 298(2)(a) of the Corporations Act 2001.

On behalf of the Directors

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________
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________ Mr Blair Sergeant Non-Executive Chairman 15 March 2022

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RSM Australia Partners

Level 32, Exchange Tower 2 The Esplanade Perth WA 6000 GPO Box R1253 Perth WA 6844

T +61 (0) 8 9261 9100 F +61 (0) 8 9261 9111

www.rsm.com.au

AUDITOR’S INDEPENDENCE DECLARATION

As lead auditor for the review of the financial report of Rincon Resources Limited for the half-year ended 31 December 2021, I declare that, to the best of my knowledge and belief, there have been no contraventions of:

• (i) the auditor independence requirements of the Corporations Act 2001 in relation to the review; and

• (ii) any applicable code of professional conduct in relation to the review.

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RSM AUSTRALIA PARTNERS

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Perth, WA Dated: 15 March 2022

TUTU PHONG Partner

THE POWER OF BEING UNDERSTOOD AUDIT | TAX | CONSULTING

RSM Australia Partners is a member of the RSM network and trades as RSM. RSM is the trading name used by the members of the RSM network. Each member of the RSM network is an independent accounting and consulting firm which practices in its own right. The RSM network is not itself a separate legal entity in any jurisdiction.

RSM Australia Partners ABN 36 965 185 036

Liability limited by a scheme approved under Professional Standards Legislation

RINCON RESOURCES LIMITED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE HALF-YEAR ENDED 31 DECEMBER 2021

Note Interest income Other revenue Administration expenses Consultancy expenses Corporate and compliance expenses Depreciation Equity based payments 6 Exploration expenses Employee related expenses Loss before income tax Income tax expense Loss after tax Total comprehensive loss for the period Basic and diluted loss per share (cents per share) 5	Consolidated Half-Year ended 31 December 2021 $ Half-Year ended 31 December 2020 $ 172 218 2,100 - (110,807) (13,505) (122,302) (474,803) (118,013) (168,355) (8,971) - (17,975) - - (1,420) (227,652) (66,250) (603,448) (724,115) - - (603,448) (724,115) (603,448) (724,115) (1.18) (1.35)	Consolidated Half-Year ended 31 December 2021 $ Half-Year ended 31 December 2020 $ 172 218 2,100 - (110,807) (13,505) (122,302) (474,803) (118,013) (168,355) (8,971) - (17,975) - - (1,420) (227,652) (66,250) (603,448) (724,115) - - (603,448) (724,115) (603,448) (724,115) (1.18) (1.35)
		(724,115) -
		(724,115)
		(724,115)
		(1.35)

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

accompanying notes

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RINCON RESOURCES LIMITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2021

Note ASSETS CURRENT ASSETS Cash and cash equivalents Other receivables TOTAL CURRENT ASSETS NON-CURRENT ASSETS Exploration and evaluation 2 Plant and equipment TOTAL NON-CURRENT ASSETS TOTAL ASSETS LIABILITIES CURRENT LIABILITIES Trade and other payables Provisions TOTAL CURRENT LIABILITIES TOTAL LIABILITIES NET ASSETS EQUITY Issued capital 3 Reserves 4 Accumulated losses TOTAL EQUITY	Consolidated As at 31 December 2021 $ As at 30 June 2021 $ 2,633,755 4,429,462 90,173 113,714 2,723,928 4,543,176 3,028,733 1,625,681 57,031 61,330 3,085,764 1,687,011 5,809,692 6,230,187 346,857 199,652 20,552 2,779 367,409 202,431 367,409 202,431 5,442,283 6,027,756 7,149,857 7,149,857 19,496 1,521 (1,727,070) (1,123,622) 5,442,283 6,027,756	Consolidated As at 31 December 2021 $ As at 30 June 2021 $ 2,633,755 4,429,462 90,173 113,714 2,723,928 4,543,176 3,028,733 1,625,681 57,031 61,330 3,085,764 1,687,011 5,809,692 6,230,187 346,857 199,652 20,552 2,779 367,409 202,431 367,409 202,431 5,442,283 6,027,756 7,149,857 7,149,857 19,496 1,521 (1,727,070) (1,123,622) 5,442,283 6,027,756
		4,543,176
		1,625,681 61,330
		1,687,011
		6,230,187
		199,652 2,779
		202,431
		202,431
		6,027,756
		7,149,857 1,521 (1,123,622)
		6,027,756

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

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RINCON RESOURCES LIMITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 DECEMBER 2021

CONSOLIDATED Balance at 1 July 2021 Loss for the period Total comprehensive loss for the period Performance rights issued, vesting expense for the period (Note 6) Balance at 31 December 2021 Balance at 1 July 2020 Loss for the period Total comprehensive loss for the period Share issue in lieu of director’s fees Share issue in lieu of capital raising fee Share issue in lieu of facilitation fee Share issue on conversion of partial loan Share issue on conversion of convertible note Share issue on option exercise Option issue Exercise of options Initial public offering Cost of share issues Balance at 31 December 2020	Issued Capital Reserves Accumulated Losses Total Equity $ $ $ $
	7,149,857 1,521 (1,123,622) 6,027,756
	- - (603,448) (603,448)
	- - (603,448) (603,448)
	- 17,975 - 17,975
	7,149,857 19,496 (1,727,070) 5,442,283
	775,523 - (263,237) 512,286 - - (724,115) (724,115)
	- - (724,115) (724,115) 15,000 - - 15,000 15,570 - - 15,570 246,000 - - 246,000 80,766 - - 80,766 400,000 - - 400,000 199,200 - - 199,200 - 311,710 - 311,710 - (311,710) 311,710 - 6,000,000 - - 6,000,000 (530,518) - - (530,518)
	7,201,541 - (675,642) 6,525,899

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

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RINCON RESOURCES LIMITED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE HALF-YEAR ENDED 31 DECEMBER 2021

Cash flows from operating activities Interest revenue Other revenue Payments to suppliers and employees Net cash flows used in operating activities Cash flows from investing activities Payments for plant and equipment Payments for exploration and evaluation Acquisition of exploration and evaluation projects Net cash flows used in investing activities Cash flows from financing activities Proceeds from issues of shares - IPO Proceeds from exercise of share options Proceeds from issues of convertible notes Proceeds from issues of options Capital raising costs Net cash flows provided by financing activities Net (decrease)/increase in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at period end	Half-Year ended 31 December 2021 $ 172 2,100 (537,774) (535,502) (31,328) (1,228,877) - (1,260,205) - - - - - - (1,795,707) 4,429,462 2,633,755	Half-Year ended 31 December 2020 $ 218 - (553,735)
		(553,517)
		- (113,394) (25,000)
		(138,394)
		6,000,000 199,200 400,000 1,200 (124,389)
		6,476,011
		5,784,100 235,329
		6,019,429

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

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RINCON RESOURCES LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2021

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Note 1. Statement of Significant Accounting Policies

Statement of compliance

The half-year consolidated financial statements are general purpose financial statements prepared in accordance with the requirements of the Corporations Act 2001, applicable accounting standards including AASB 134: Interim Financial Reporting, Accounting Interpretations and other authoritative pronouncements of the Australian Accounting Standards Board (‘AASB’). Compliance with AASB 134 ensures compliance with IAS 34 ‘Interim Financial Reporting’.

The consolidated half-year report does not include full disclosures of the type normally included in an annual financial report. Therefore, it cannot be expected to provide as full an understanding of the financial performance, financial position and cash flows of the Group as in the full financial report.

It is recommended that this financial report be read in conjunction with the annual financial report for the year ended 30 June 2021 and any public announcements made by Rincon Resources Limited during the half-year in accordance with continuous disclosure requirements arising under the Corporations Act 2001 and ASX Listing Rules.

The accounting policies and methods of computation adopted are consistent with those of the previous financial year and corresponding interim reporting unless otherwise stated.

Basis of preparation

The half-year report has been prepared on a historical cost basis. Cost is based on the fair value of the consideration given in exchange for assets. All amounts are presented in Australian dollars, unless otherwise noted.

Standards and Interpretations applicable to 31 December 2021

The consolidated entity 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.

Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.

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RINCON RESOURCES LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2021

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Note 2. Exploration and evaluation Costs carried forward in respect of areas of interests: Movement during the period Opening balance Exploration expenditure Closing balance Note 3. Issued capital 51,336,756 (30 June 2021: 51,336,756) fully paid ordinary shares on issue Balance at 1 July 2020 Movement in ordinary shares on issue Shares issued to in lieu of Director Fees @ $0.0166 per share Share issue on conversion of loan – Lyza & Tanamera@ $0.0166 per share Share issue on conversion of Convertible Note @ $0.014 per share Shares issued in lieu of Capital raising cost @ $0.0166 per share Share issue exercise of options @ $0.0664 per share Consolidation of share capital Share issue as capital raising @ $0.20 per share Lead Manager Mandate purchase @ $0.0010 per share Cost of share issues At 30 June 2021		Consolidated As at 31 December 2021 $ As at 30 June 2021 $ 3,028,733 1,625,681 1,625,681 571,746 1,403,052 1,053,935 3,028,733 1,625,681 31 December 2021 $ 30 June 2021 $ 7,149,857 7,149,857 30 June 2021 Number 30 June 2021 $ 54,491,261 775,523 903,614 15,000 4,865,421 80,766 2,857,143 400,000 937,952 15,570 3,650,000 199,200 (47,598,635) - 30,000,000 6,000,000 1,230,000 246,000 - (582,202) 51,336,756 7,149,857	Consolidated As at 31 December 2021 $ As at 30 June 2021 $ 3,028,733 1,625,681 1,625,681 571,746 1,403,052 1,053,935 3,028,733 1,625,681 31 December 2021 $ 30 June 2021 $ 7,149,857 7,149,857 30 June 2021 Number 30 June 2021 $ 54,491,261 775,523 903,614 15,000 4,865,421 80,766 2,857,143 400,000 937,952 15,570 3,650,000 199,200 (47,598,635) - 30,000,000 6,000,000 1,230,000 246,000 - (582,202) 51,336,756 7,149,857	Consolidated As at 31 December 2021 $ As at 30 June 2021 $ 3,028,733 1,625,681 1,625,681 571,746 1,403,052 1,053,935 3,028,733 1,625,681 31 December 2021 $ 30 June 2021 $ 7,149,857 7,149,857 30 June 2021 Number 30 June 2021 $ 54,491,261 775,523 903,614 15,000 4,865,421 80,766 2,857,143 400,000 937,952 15,570 3,650,000 199,200 (47,598,635) - 30,000,000 6,000,000 1,230,000 246,000 - (582,202) 51,336,756 7,149,857
				30 June 2021 $ 775,523
				15,000 80,766 400,000 15,570 199,200 - 6,000,000 246,000 (582,202)
				7,149,857

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RINCON RESOURCES LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2021

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Note 3. Issued capital (cont.)

ed capital (cont.)
Balance at 1 July 2021 At 31 December 2021	31 December 2021 Number 51,336,756 51,336,756	31 December 2021 $
		7,149,857
		7,149,857

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.

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.

Note 4. Reserves

Opening balance Performance Rights on issue, vesting period expenses(1)(4) Performance Rights issued, vesting period expenses(2)(4) Cancellation of Performance Rights(3) Closing balance	As at 31 December 2021 Number As at 31 December 2021 $ As at 30 June 2021 Number As at 30 June 2021 $ 2,800,000 1,521 - - - 5,263 - - 2,000,000 13,852 2,800,000 1,521 (2,100,000) (1,140) - - 2,700,000 19,496 2,800,000 1,521

1. Vesting period expense related to amortisation expense of performance rights issued in prior period.

2. On 23 September 2021, the Company issued 2,000,000 Performance Rights to the Company’s Managing Director, Mr Gary Harvey, in accordance with his services agreement with the same vesting conditions as the Performance Rights on issue. These performance rights were granted on 23 June 2021.

3. On 9 December 2021, the Company announced the cancellation of 2,100,000 Performance Rights issued to Directors in accordance with the vesting conditions of their resignation.

4. Total share-based payment expense recognised in the profit or loss for the half-year ended 31 December 2021 was $19,115.

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RINCON RESOURCES LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2021

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Note 5. Loss Per Share Loss used in the calculation of basic and diluted loss per share (a) Weighted average number of ordinary shares outstanding during the reporting period used in calculation of basic and diluted loss per share: Basic and diluted loss per share (cents per share)	31 December 2021 $ 31 December 2020 $ (603,448) (724,115) Number of Shares Number of Shares 51,336,756 53,791,031
	(1.18) (1.35)

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

Diluted earnings per share is calculated as net profit or loss attributable to members of the parent, adjusted for:

• costs of servicing equity (other than dividends) and preference share dividends;

• • the after tax effect of dividends and interest associated with dilutive potential ordinary shares that have been recognised as expenses; and

• other non-discretionary changes in revenues or expenses during the period that would result from the dilution of potential ordinary shares; divided by the weighted average number of ordinary shares and dilutive potential ordinary shares, adjusted for any bonus element.

Note 6. Equity-based payments

Equity based payments included in the Statement of Profit or Loss and Other Comprehensive Income for the period are detailed below:

Vesting period expense - performance rights(Note 4) Cancellation of performance rights(Note 4)	31 December 2021 $ 19,115 (1,140) 17,975	31 December 2020 $ - -
		-

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RINCON RESOURCES LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2021

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Note 7. Commitments for expenditure

Exploration commitments

The consolidated entity’s exploration commitments are as follows:

Not longer than 1 year Longer than 1 but not longer than 5 years Longer than 5 years	31 December 2021 $ 74,388 - - 74,388	30 June 2021 $ 40,161 - -
		40,161

Exploration commitments consist of annual rents and rates payable on tenements.

Note 8. Segment Reporting

Rincon Resources Limited operates predominantly in one industry being the mining exploration and evaluation industry in Western Australia.

Segment Information

Identification of reportable segments

The Company has identified its operating segments based on the internal reports that are reviewed and used by the chief operating decision maker (being the Board of Directors) in assessing performance and determining the allocation of resources.

The Company is managed primarily on the basis of evaluation of its gold and copper exploration tenements in Australia and its corporate activities. Operating segments are therefore determined on the same basis.

Reportable segments disclosed are based on aggregating operating segments where the segments are considered to have similar economic characteristics.

Types of reportable segments

(i) Exploration and evaluation

Segment assets, including acquisition cost of exploration licenses and all expenses related to the licenses in Western Australia are reported in this segment.

(ii) Corporate

Corporate, including treasury, corporate and regulatory expenses arising from operating an ASX listed entity. Segment assets, including cash and cash equivalents and other receivables are reported in this segment.

Basis of accounting for purposes of reporting by operating segments

Accounting policies adopted

Unless stated otherwise, all amounts reported to the Board of Directors as the chief operating decision maker with respect to operating segments are determined in accordance with accounting policies that are consistent to those adopted in the annual financial statements of the Group.

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RINCON RESOURCES LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2021

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Note 8. Segment Reporting (cont.)

Segment assets

Where an asset is used across multiple segments, the asset is allocated to the segment that receives the majority of economic value from the asset. In the majority of instances, segment assets are clearly identifiable on the basis of their nature and physical location.

Segment liabilities

Liabilities are allocated to segments where there is direct nexus between the incurrence of the liability and the operations of the segment. Segment liabilities include trade and other payables and provisions.

31 December 2021 (i) Segment performance Segment revenue Segment results Included within segment results: • Interest revenue • Other revenue Segment assets Segment liabilities 31 December 2020 (i) Segment performance Segment revenue Segment results Included within segment results: • Interest revenue Segment assets Segment liabilities		Corporate Exploration and Evaluation Total $ $ $
		2,272 - 2,272 (603,448) - (603,448) 172 - 172 2,100 - 2,100 2,780,959 3,028,733 5,809,692 (116,753) (250,656) (367,409)
		Corporate Exploration and Evaluation Total $ $ $
		218 - 218 (722,695) (1,420) (724,115) 218 - 218 6,070,361 730,296 6,800,657 (260,062) (14,696) (274,758)

(ii) Revenue by geographical region

There was no revenue attributable to external customers for the half-year ended 31 December 2021 (2020: Nil).

(iii) Assets by geographical region

All assets are held in Australia.

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RINCON RESOURCES LIMITED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2021

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Note 9. Contingent liabilities

There are no contingent liabilities as at 31 December 2021 (30 June 2021: Nil).

Note 10. Events after the reporting date

On 15 February 2022, the Company announced the initial results from the Phase 2 drill program at the South Telfer Copper-Gold Project.

As the impact of the Coronavirus (COVID-19) pandemic is ongoing, it is not practicable to estimate the potential impact, positive or negative, after the reporting date. The situation is rapidly developing and is dependent on measures imposed by the Australian Government and other countries, such as maintaining social distancing requirements, quarantine, travel restrictions and any economic stimulus that may be provided.

Other than as discussed above, no other matter or circumstance has arisen since 31 December 2021 that has significantly affected, or may significantly affect the consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial periods.

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RINCON RESOURCES LIMITED DIRECTORS' DECLARATION 31 DECEMBER 2021

In the opinion of the Directors of Rincon Resources Limited (“the Company”):

1. the attached financial statements and notes thereto are in accordance with the Corporations Act 2001 including:

2. a) complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements; and

3. b) giving true and fair view of the Group’s financial position as at 31 December 2021 and of its performance for the half-year then ended; and

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

This declaration is signed in accordance with a resolution of the Board of Directors made pursuant to s.303(5) of the Corporations Act 2001.

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Mr Blair Sergeant Non-Executive Chairman 15 March 2022

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RSM Australia Partners

Level 32, Exchange Tower 2 The Esplanade Perth WA 6000 GPO Box R1253 Perth WA 6844

T +61 (0) 8 9261 9100 F +61 (0) 8 9261 9111 www.rsm.com.au

INDEPENDENT AUDITOR’S REVIEW REPORT TO THE MEMBERS OF RINCON RESOURCES LIMITED

Report on the Half-Year Financial Report

We have reviewed the accompanying half-year financial report of Rincon Resources Limited which comprises the statement of financial position as at 31 December 2021, the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the half-year ended on that date, notes comprising a summary of significant accounting policies and other explanatory information and the directors’ declaration of the consolidated entity comprising the company and the entities it controlled at the half-year end or from time to time during the half-year.

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 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 consolidated entity’s financial position as at 31 December 2021 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 . As the auditor of Rincon Resources Limited, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

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.

THE POWER OF BEING UNDERSTOOD AUDIT | TAX | CONSULTING

RSM Australia Partners is a member of the RSM network and trades as RSM. RSM is the trading name used by the members of the RSM network. Each member of the RSM network is an independent accounting and consulting firm which practices in its own right. The RSM network is not itself a separate legal entity in any jurisdiction. RSM Australia Partners ABN 36 965 185 036

Liability limited by a scheme approved under Professional Standards Legislation

Independence

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001 . We confirm that the independence declaration required by the Corporations Act 2001 , which has been given to the directors of Rincon Resources Limited, would be in the same terms if given to the directors as at the time of this auditor’s review report.

Conclusion

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

• (a) giving a true and fair view of the consolidated entity’s financial position as at 31 December 2021 and of its performance for the half-year ended on that date; and

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

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RSM AUSTRALIA PARTNERS

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Perth, WA Dated: 15 March 2022

TUTU PHONG Partner