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SULTAN RESOURCES LIMITED ABN 35 623 652 522

Annual Report for the Year Ended 30 June 2021

Sultan Resources Limited – Annual Report 2021

Annual Report For the year ended 30 June 2021

DIRECTORS’ REPORT AUDITOR’S INDEPENDENCE DECLARATION 25 CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME 26 CONSOLIDATED STATEMENT OF FINANCIAL POSITION 27 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 28 CONSOLIDATED STATEMENT OF CASH FLOWS 29 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 30 DIRECTORS’ DECLARATION 48 INDEPENDENT AUDITOR’S REPORT 49 CORPORATE GOVERNANCE STATEMENT 52 ASX ADDITIONAL INFORMATION 52

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Sultan Resources Limited – Annual Report 2021

Corporate Directory

Board of Directors

Steven Groves (Managing Director) Jeremy King (Non-Executive Director) David Ian Lees (Non-Executive Director)

Secretary

Mr Mauro Piccini

Registered Office

Suite 2, Level 1 1 Altona Street West Perth WA 6005

Telephone: 08 6559 1792 Website: www.sultanresources.com.au

Securities Exchange Listing

Listed on the Australian Securities Exchange (ASX Code: SLZ)

Auditors

RSM Australia Partners Level 32, 2 The Esplanade Perth WA 6000

Solicitors

Nova Legal 2/50 Kings Park Road West Perth WA 6005

Bankers

Westpac Banking Corporation Level 13, 109 St Georges Terrace Perth WA 6000

Share Registry

Automic Share Registry Level 2, 267 St Georges Terrace Pert WA 6000

Telephone: 1300 288 664

Sultan Resources Limited – Annual Report 2021

Directors’ Report

The Directors of Sultan Resources Limited (“SLZ” or “the Company”) present their report, together with the financial statements on the consolidated entity consisting of Sultan Resources Limited and its controlled entities (“the Group”) for the year ended 30 June 2021.

DIRECTORS

The names and particulars of the Company’s directors in office during the financial year and at the date of this report are as follows. The Directors held office for this entire year unless otherwise stated.

Steven Groves – Managing Director

Mr Groves has a Bachelor of Applied Geology (Honours) and completed a Master’s of Economic Geology from CODES-SRC at the University of Tasmania.

Mr Groves is currently a non-executive director of Six Sigma Metals Ltd (ASX: SI6) and brings 25 years of geological experience in the mining industry including exploration and management roles with BHP Billiton (ASX: BHP), Newmont Mining, Newcrest Mining (ASX: NCM), A-Cap Resources (ASX: ACB) and Botswana Metals.

During the past three years, Mr Groves held the following directorship in another ASX listed company:

Non-executive Director of Six Sigma Metals Ltd (current)

Jeremy King – Non-Executive Director

Mr King is a corporate lawyer and adviser with over 20 years’ experience in domestic and international legal, financial and corporate matters. Mr King is a director of a boutique corporate advisory and compliance business where he specializes in corporate and strategic advice and managing legal issues associated with clients. He spent several years in London where he worked with Allen and Overy LLP and Debevoise & Plimpton LLP and has extensive experience, particularly in relation to cross border private equity, leveraged buy-out acquisitions and acting for banks, financial institutions and corporate issuers in respect of various debt and equity capital raisings. He regularly advises ASX listed companies on corporate and commercial matters.

During the past three years, Mr King held the following directorships in other ASX listed companies:

Non-Executive Director of Red Mountain Mining Limited (current);
Non-Executive Director ECS Botanics Holdings Ltd (formerly Axxis Technology Group Limited) (current);
Non-Executive Director of Smart Parking Limited (current);
Non-Executive Director of Burgundy Diamond Mines Limited (formerly EHR Resources Limited) (current);
Non-Executive Chairmen of Transcendence Technologies Limited (current);
Non-Executive Chairman of Aldoro Resources Limited (resigned November 2019);
Non-Executive Director of Vanadium Resources Limited (formerly Tando Resources Limited) (resigned July 2019);
Non-Executive Director of DTI Group Limited (resigned January 2019); and
Non-Executive Chairman of Queensland Pacific Metals Limited (formerly Pure Minerals Limited) (resigned November 2018).

David Ian Lees – Non-Executive Director

Mr Lees David has over 16 years’ experience in the Australian financial services industry starting his career as a stockbroker before moving into investment and funds management. These roles have given David extensive experience with capital raising, business development, portfolio management, business relationships and corporate governance.

Most recently David has worked in the private sector driving his business from product conception through to design, development, manufacturing and international retail sales. David’s education qualifications include a Bachelor of Economics and post graduate diploma in Applied Finance and Investment.

During the past three years, Mr Lees held no directorships in other ASX listed companies.

Sultan Resources Limited – Annual Report 2021

Directors’ Report

COMPANY SECRETARY

Mauro Piccini

Mr Piccini spent 7 years at the ASX and possesses core competencies in publicly listed and unlisted company secretarial, administration and governance disciplines. Mauro is a Chartered Accountant (CA) and a member of the Governance Institute of Australia (GIA). Mauro started his career in the Perth office of Ernst and Young (EY) where he spent several years in their assurance division.

INTERESTS IN SHARES AND OPTIONS OF THE COMPANY

The following table sets out each current Director’s relevant interest in shares, options and performance rights of the Company as at the date of this report.

Director	Ordinary Shares	Unlisted Share Options
Steven Groves Jeremy King David Ian Lees	150,000	-
	700,144	-
	1,166,868	-
Total	2,017,012	-

PRINCIPAL ACTIVITIES

The principal activity of the Company is mineral exploration.

Sultan Resources Limited – Annual Report 2021

Directors’ Report

REVIEW AND RESULTS OF OPERATIONS

Overview

Lachlan Fold Belt Project

During the year Sultan continued exploration across its suite of highly attractive porphyry and epithermal exploration targets in the Macquarie Arc volcanic rocks of the Lachlan Fold Belt, NSW. The program is the continuation of the 2020 campaign, with drill testing and geophysical surveys ongoing across the Company’s highly prospective suite of porphyry and epithermal gold targets.

EL8735

EL8735 contains the Company’s Star Plateau project which includes the Big Hill, Razorback Ridge and Ringaroo porphyry copper-gold targets. Exploration including surface geochemical programs, geophysical surveys and diamond drilling occurred across the three prospects during the year.

Big Hill / Razorback Ridge

Geochemical Results

Geological mapping, soil and rock chip sampling was undertaken to the east and southeast of the Big Hill target during late 2020. Covering an area of ~3km x 1km, the work defined two large scale, open, high-order Au and Cu in soil anomalies (Figure 1). The first, Razorback Ridge, is a 0.5km x 0.2km Cu-Au area that encompasses a prominent zone of outcropping copper and gold mineralisation southeast of Big Hill. The second is a 2.2km x 0.5km zone of highly anomalous Au and Cu that is situated to the east of Big Hill.

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Figure 1: Gold and Copper soil geochemistry maps (100m x 200m grid) across Big Hill to Razorback Ridge on high resolution aerial imagery.

The Razorback Ridge target is marked by a northeast striking zone of outcropping skarn-style mineralisation that is exposed for over 1 km yet remained unrecognised by previous explorers. Mineralisation is hosted in quartz sulphide vein breccias showing quartz – Fe carbonate – chlorite – sulphide – hematite - +/- magnetite altered limestone and chlorite altered mafic volcanics. The mineralised outcrop is strongly coincident with a prominent N-S striking linear magnetic feature. Exceptional rock chip results up to 2.25g/t Au and up to 2.65% Cu have been returned from outcrop and the entire zone has returned 4 samples over 1g/t, a further 8 samples above 0.5g/t Au and 5 samples over 1% Cu at various locations along strike (Table 1).

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Directors’ Report

Table 1: Significant results from the Razorback Ridge rock samples

SampleID	Sample_Type	GDA_East	GDA_North	Au g/t	Cu %
SPR078	Outcrop	685008	6366096	0.56	2.24
SPR068	Outcrop	685005	6366101	0.98	2.65
SPR079	Outcrop	685005	6366101	0.62	2.42
SPR080	Outcrop	685005	6366101	0.64	2.00
SPR081	Outcrop	685005	6366101	0.99	2.09
SPR037	Outcrop	685005	6366247	1.12	0.13
SPR038	Outcrop	685006	6366247	1.69	0.10
SPR039	Outcrop	685008	6366248	1.14	0.14
SPR040	Outcrop	685009	6366249	2.25	0.07
SPR051	Outcrop	684922	6365610	0.58	0.09
SPR058	Outcrop	684976	6365850	0.59	0.51
SPR059	Outcrop	684976	6365852	0.38	0.55
SPR062	Outcrop	684971	6365887	0.42	0.50
SPR066	Outcrop	685015	6366085	0.04	0.78
SPR067	Outcrop	685008	6366096	0.48	0.20
SPR070	Outcrop	685008	6366096	0.57	0.24

The mineralisation at Razorback shows similarities, albeit over a far greater strike length, to the high grade Gowan Green skarn target 2.6km to the NW, where rock chips up to 24.6g/t Au & 26.1% Cu were returned from mullock sampling ( see ASX Announcement 20/05/2020 ). Both Gowan Green and Razorback Ridge sit on the periphery of the main Big Hill Magnetic Complex. The discovery of historically unrecognised outcropping chalcopyrite, malachite, azurite and chalcocite in skarn with up to 2.25g/t Au and 2.65% Cu exactly half-way between Cadia and Boda confirms Sultan’s interpretation of the high prospectivity of the Star Plateau project.

Magnetic Reprocessing

Reprocessing and 3D inversion of open file magnetic data over the Big Hill prospect area was completed and has greatly enhanced the detail of the Big Hill magnetic complex by highlighting internal magnetic lows and potential structural features. The work also produced a 3D magnetic inversion block model which provided strong indications for the presence of a magnetic intrusive body immediately beneath the Big Hill, Wattle Ridge and Gowan Green surface geochemical anomalies (Figure 2). The inversion block model showed a strong spatial association with the location of surface anomalies and even displays a number of narrow apophyses that extend from the main body at depth to the surface in the locations of the strongest surface geochemical anomalism and porphyry style alteration.

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Figure 2: Big Hill 3D UBC Magnetic Inversion Block Model – Long Section 684,500mE with Gold in Soils (100m clipping window, looking west)

Sultan Resources Limited – Annual Report 2021

Directors’ Report

Induced Polarisation

Dipole-Dipole IP survey was completed at Big Hill in the March quarter 2021. The results showed a prominent chargeability response at Big Hill, with a distinct vertical chargeability anomaly approximately 1km long by 650m wide extending from the bottom of the model at a 500m depth (at 10Mv/v) to beneath the surface in the position of strongest Au, Cu and pathfinder element anomalism (Figure 3). The Big Hill IP response occurs within a distinct magnetic low embayment within the 5km long by 2.5km wide Big Hill Magnetic Complex and is surrounded by a halo of strong magnetic response.

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Figure 3: Combined oblique cross-section showing the coincident IP and magnetic responses at Big Hill and labelled with the locations of outcropping mineralisation and alteration from across the three prospects.

The IP results are interpreted to represent a sulphide rich alkalic lithocap style (albite - quartz - sericite - pyrite) hydrothermal alteration zone of the type that commonly surround resistive cores of potassic alteration and Au-Cu mineralisation in typical alkalic porphyry Cu-Au systems and have greatly enhanced the prospectively of the Big Hill and Razorback targets.

Drilling

Sultan followed up the promising IP results by drilling 3 initial diamond drill holes (Figure 4) at the Big Hill Porphyry AuCu prospect (see ASX Announcement 18/05/2021). These holes were the first 3 holes of a proposed 10-hole program designed to assess the potential for the project to host porphyry-style Cu-Au mineralisation. The holes targeted the prominent IP chargeability anomaly (see ASX Announcement 29/04/2021) that lies within a magnetic low and is coincident with significant soil geochemical anomalism and aim to provide important 3-dimensional geological information to guide subsequent holes towards achieving a significant mineralised intersection.

The 3 holes totalled 1,135.8m and intersected subtle & intricate hydrothermal alteration assemblages in Ordovician volcanic rocks including:

early magnetite, hematite dusting of feldspar ‘reddening’, late pyrite-sericite & calc silicate skarn,
sulphide species with pyrite dominant over trace chalcopyrite & bornite, and
vein types that contain rare magnetite, common epidote and are carbonate-rich/quartz poor with trace sulphides.

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Directors’ Report

These features are considered highly encouraging and are interpreted as marking the outer or distal parts of an alkalic Au-Cu porphyry system.

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A A’
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Figure 4: Big Hill - Plan view of the 3 initial drill holes (3 x 400m deep holes for 1200m) in relation the 120mRL IP chargeability depth slice

Ringaroo

Early in the year, the Company received results from the first program of soil sampling undertaken across the Ringaroo Project within the Company’s Star Plateau Licence (EL8735) (see SLZ ASX announcement 09/07/2020). Soil sampling initially targeted a prominent N-S trending magnetic feature that is interpreted to represent a Macquarie Arc intrusive complex similar to that which hosts Alkane Resources’ (ASX:ALK) Boda porphyry Au-Cu discovery some 25km to the north. (see ALK ASX Announcement 23/03/2020). The magnetic high is at least 4.2km x 1.5km in size and hosts Impact Minerals’ (ASX:IPT) recent Aspley discovery which lies 3km north of the sampled portion of Ringaroo and just over the EL8735 boundary.

Soil Sampling

Soil sampling across a 200m x 200m grid covering a ~3km[2] portion of Ringaroo defined multiple anomalies including a prominent N-S trending 1.0km x 0.40km, gold and copper soil geochemical anomaly showing gold values consistently greater than 3.1ppb Au and copper values above 94ppm Cu (Figure 5). A second anomalous zone located 1km to the south east shows a narrow NE-trending anomaly with gold values greater than 4.5ppb Au and coincident copper above 94ppm Cu. Both anomalies are open in multiple directions and will be further defined as the soil sampling program expands.

Induced Polarisation

During September 2020, Fender Geophysics completed 2 north-south lines and 1 east-west line of dipole-dipole IP surveying across the Ringaroo magnetic high feature that is coincident with the large-scale gold and copper soil geochemical anomaly (Figure 5). The modelled results show a highly encouraging chargeability and resistivity response coincident with the previously identified anomalous areas ( see ASX Announcement 10/11/2020) .

Sultan Resources Limited – Annual Report 2021

Directors’ Report

Inversion modelling of the IP data has defined a west dipping 650m x 200m wide IP high chargeability anomaly (>9mV/V, up to 30mV/V) which overlies a strong IP high resistivity (>1000 Ohm.m) anomaly. The IP results have enhanced the Ringaroo target potential to host porphyry Au-Cu mineralisation. Field mapping has noted alteration styles reminiscent of that associated with porphyries and rock sampling of the magnetic feature a short distance to the North by Impact Minerals has uncovered high copper grades at surface ( see ASX Announcements 14/01/2020 and 23/04/2020 ).

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Figure 5: Location of surveyed IP sections (black lines) over the progressive Half Ranked Variable Gold Soil Map (100m X 100m Sample Grid) on RTP magnetic image. The outline of the IP chargeability anomaly is marked in yellow. Impact Mineral’s rock sample results are from ASX Announcements on 14/01/2020 and 23/04/2020)

Sultan Resources Limited – Annual Report 2021

Directors’ Report

EL8734

EL8734 contains the Company’s Tucklan and Glen Athol porphyry and epithermal targets. Exploration including surface geochemical programs, geophysical surveys and RC/diamond drilling occurred across the Tucklan prospect during the year.

Tucklan

Induced Polarisation Survey

During September 2020, Fender Geophysics completed 7 north-south lines of dipole-dipole IP surveying across previously identified gold and copper soil anomalism and outcropping epithermal-style gold mineralised rock at Tucklan ( see ASX Announcement 02/06/2020 ). The results showed an exceptional chargeability and resistivity response coincident with the previously identified anomalous areas and outcropping mineralisation (Figure 6). Inversion modelling defined a large north west to south east trending, 1.6km x .6km wide IP chargeability anomaly (>9mV/V, up to 20mV/V) which contains multiple bullseye-style higher order anomalies (>30mV/V). The chargeability model is also coincident with strong IP resistivity anomalies (>1000 Ohm.m).

Drilling

During December 2020, Sultan commenced drill-testing the IP anomalies beneath the strong gold and copper surface geochemistry at Tucklan ( see ASX Announcement 07/12/2020 ). The Company completed five deep Reverse Circulation drill holes, many of which produced large amounts of water which compromised the quality of sample return. Only one hole continued to the design depth, and the remaining were left in a condition to be completed with diamond core tails. A diamond rig mobilised to Tucklan early in January ( see ASX Announcement 14/01/2021 ) completed the diamond drilling of two tails into the strongest of the IP anomalies.

Results

The drill program results revealed that the vein and sulphide zone in TRC0001 represents a significant intersection of elevated silver mineralisation and confirms that the IP and surface geochemistry are marking the location of a potentially large, and previously undiscovered, hydrothermal, silver-rich mineralising system.

Silver mineralisation is associated with a multiphase quartz-carbonate-sulphide (pyrite – Pyrrhotite – galena – sphalerite – chalcopyrite) vein system with significant disseminated pyrite-pyrrhotite. Veining is hosted in a selectively pervasive, sericite-chlorite-carbonate altered, foliated, biotite-rich volcaniclastic siltstone – sandstone package.

Significant intersections from the drilling include:

Table 2: Significant silver, lead and zinc intersections from TRC0001

Hole ID	From(m)	To (m)	Interval m)	Ag g/t	Pb ppm	Zn ppm
TRC0001	20	42	22	1.41	50	207
	200	288	88	4.14	305.5	229
Incl.	218	226	8	*15.5*	*1119*	*694.5*
Incl.	224	226	2	*27.7*	*1875*	*1540*
and	284	286	2	*45.6*	*3010*	*1800*

Sultan Resources Limited – Annual Report 2021

Directors’ Report

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Figure 6: Drill collar locations over IP Chargeability pseudo image with Soil Ag >0.21ppm contour (blue outline) and magnetic susceptibility plotted on the right with 5x vertical exaggeration.

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TRC0001:
88m @ 4.1g/t Ag from 200m
including:
8m @ 15.5 g/t Ag from 218m, and
2m @ 45.6 g/t Ag from 284m
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Figure 7: Oblique IP Chargeability Section 725350mE with TRC0001 showing the drill hole Ag assays (ppm) histogram plotted on IP Chargeability cross section (60% transparent)

Sultan Resources Limited – Annual Report 2021

Directors’ Report

This part of the Lachlan Fold Belt is known to host silver-rich mineralisation, with the Bowden’s Silver Deposit (ASX:SVL), located some 70km to the southeast of Tucklan, forming one of Australia’s largest silver deposits.

Tucklan Soil Sampling Extension

Sultan also completed further soil sampling across a 100m x 100m sample grid to the southeast of the previous soil sampling program at Tucklan during the year (se ASX Announcement 12/04/2021). This work increased the size of the NW-SE striking, low level Au (>11.7ppb Au) anomaly and defined a new, large silver anomaly (>0.21ppm Ag) that extends over a 1.5km x 0.5km area immediately to the east of TRC0001 (Figures 8). Pathfinder elements associated with strong silver anomalism include Au+Ba+Be+Cd+Pb+W+Tl. The strong silver anomalism immediately to the east of TRC0001 indicates that the recent drilling has intersected the edge of a large silver-rich mineralising system and future work should focus on defining the extents and tenor of this system in the area of strongest silver anomalism.

The large gold anomaly at Tucklan is coincident with a number of key pathfinder elements such as Hg-Ag-Te-Se-Bi-W-PbAs-Sb-Cd and historical gold workings including numerous prospecting pits, alluvial workings, a shallow shaft and adit are also evident across the zone. The recent drilling did not effectively test for the deep source of gold anomalism at Tucklan. A number of target types have now been identified across the Tucklan licence, including the recently discovered volcaniclastic-hosted silver mineralisation, the interpreted epithermal gold mineralisation indicated by rock sampling and mapping at surface (see ASX Announcement 02/06/2020) and potential deeper porphyry systems indicated by previous geophysical work at Glen Athol (see ASX Announcement 20/10/2020).

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TRC0001:
88m @ 4.1g/t Ag from 200m
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Figure 8: Gridded image of soil Ag response in relation to the recent drilling at Tucklan. Note the elevated silver anomalism immediately to the east of TRC0001.

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Directors’ Report

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Ringaroo
EL9079
Big Hill,
Razorback
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Figure 9: Location Map – Sultan Tenements over the prospective Macquarie Arc sequence with priority targets indicated .

Lake Grace

During the year, the Company commenced reconnaissance exploration for nickel-prospective ultramafic rocks at identified magnetic anomalies within the Lake Grace prospect (see ASX Announcements 20/07/2020, 28/09/2020, 03/06/2021). The Ni-prospectivity of the Sultan’s Lake Grace tenement portfolio has long been recognised by the company and has recently been verified by the discovery of Chalice Gold Mines’ Julimar Ni-Cu-PGE deposit 215km to the northwest in the same belt of rocks (see Chalice ASX announcement of 23/03/2020).

Ground reconnaissance exploration was undertaken across EL70/5095 to verify if magnetic anomalies identified in aeromagnetic surveys represent ultramafic rocks with potential to be associated with nickel sulphide mineralisation. The tenement is almost entirely covered by cleared farmland with prominent granite hills outcropping in the south. There are several salt lakes within the northern section of the tenement with very little outcrop except for one area which is the historic site of the only drilling undertaken on the tenement. These holes intersected thick ultramafics with intervals containing disseminated nickel sulphides. Ground inspection of the outcrop in this area confirmed the presence of outcropping ultramafic, mafic rocks and silcrete/metasediments.

The work program continued in the southeastern portion of EL70/5095 and EL70/5085 where an two areas of prominent magnetic response indicate the presence of further ultramafics rocks. Reconnaissance work in this area has revealed no outcrop and the next stage of evaluation will include aircore drilling to confirm the presence of ultramafic rocktypes.

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Directors’ Report

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Figure 10: Sultan’s Lake Grace portfolio of tenements in relation to the recent applications by Anglo American (blue outline), Impact Minerals (maroon outline) and the Gold Road Resources/Cygnus Gold JV (orange outline). All of Sultan’s tenure lies within an interpreted mobile zone prospective for Ni-Cu mineralisation as postulated by Impact Minerals Ltd (see Impact Minerals announcement dated 10/06/2020)

OTHER PROJECTS

Thaduna

Follow up exploration of the recent gold and base-metal aircore anomalies defined late in 2018 are planned and anticipated to include ground geophysical surveys and further shallow and deep drilling. Negotiations with traditional heritage groups for further land access are ongoing.

East Tallering

A drill program following up historic aircore and RAB gold mineralisation has been planned and discussions with traditional heritage groups for land access are ongoing.

Dalwallinu

Landowner access negotiations are ongoing.

CORPORATE

Financial Performance

The financial results of the consolidated entity for the year ended 30 June 2021 are:

Cash and cash equivalents Net assets Revenue and other income Net loss after tax	30-June-21 30-June-20
	$ $
	1,553,018 2,005,595 6,553,453 5,059,215 15,499 33,424 (888,848) (855,454)

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Directors’ Report

DIVIDENDS

No dividend is recommended in respect of the current financial year (2020: nil).

SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS

There have been no significant changes in the state of affairs during the financial year other than those included in this Directors’ Report.

MATTERS SUBSEQUENT TO THE REPORTING PERIOD

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.

There has been no other matter or circumstance that has arisen since the end of the financial year that has significantly affected, or may significantly affect, the operations of the Group, the results of those operations, or the state of affairs of the Group.

LIKELY DEVELOPMENTS AND EXPECTED RESULTS

In early July, the Company completed the initial 3 diamond drill hole section at the Company’s Big Hill Porphyry Au-Cu prospect (see ASX Announcement 18/05/2021) has been completed. These are the first 3 holes of a possible 10-hole program designed to assess the potential for the prospect to host porphyry-style Cu-Au mineralisation. Drill hole design was based on interpretation of results from the Company’s extensive surface exploration programs undertaken during the past 12 months since acquisition of the project.

Drilling has intersected interpreted porphyry-style alteration with disseminated pyrite, trace chalcopyrite and bornite, possibly indicative of being in the distal parts of an alkalic porphyry Au-Cu system. The Company is awaiting the results of assays.

Drilling confirms the targeted IP chargeability anomaly is caused by pyrite giving sufficient encouragement & vectors for further drill targeting within the larger 5km long by 2.5km wide Big Hill Magnetic Complex. The Big Hill complex exhibits features akin to an Alkalic Porphyry Au-Cu system such as Cadia and Boda and displays:

Coincident Magnetic and IP anomalies
Complimentary low-level soil geochemical Cu – Au + pathfinder anomalies
Outlying high grade Cu-Au rock chip results (Gowan Green and Razorback); and
Drilled porphyry-style alteration, veining and disseminated sulphides.

The analysis and interpretation of the drill data is ongoing to consider locations for additional drilling.

Sultan Resources Limited – Annual Report 2021

Directors’ Report

DIRECTORS’ MEETINGS

The number of Directors’ meetings held during the financial year and the number of meetings attended by each Director during the time the Director held office are:

Director	Number Eligible to Attend	Number Attended
Mr Steven Groves	4	4
Mr JeremyKing	4	4
Mr David Ian Lees	4	4

In addition to the scheduled Board meetings, Directors regularly communicate by telephone, email or other electronic means, and where necessary, circular resolutions are executed to effect decisions.

Due to the size and scale of the Group, there is no Remuneration and Nomination Committee or Audit Committee at present. Matters typically dealt with by these Committees are, for the time being, managed by the Board. For details of the function of the Board, refer to the Corporate Governance Statement on the Company website at www.sultanresources.com.au.

REMUNERATION REPORT (AUDITED)

This remuneration report for the year ended 30 June 2021 outlines the remuneration arrangements of the Group in accordance with the requirements of the Corporations Act 2001 (“the Act”) and its regulations. This information has been audited as required by section 308(3C) of the Act.

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

Voting and comments made at the Company's 2020 Annual General Meeting ('AGM')

At the 2020 AGM, 99.98% of the votes received supported the adoption of the remuneration report for the year ended 30 June 2020. The Company did not receive any specific feedback at the AGM regarding its remuneration practices.

a) Key Management Personnel Disclosed in this Report

Key Management Personnel of the Group during or since the end of the financial period were:

Steven Groves (Managing Director) Jeremy King (Non-Executive Director) David Ian Lees (Non-Executive Director)

There have been no other changes after reporting date and up to the date that the financial report was authorised for issue.

The Remuneration Report is set out under the following main headings:

A Remuneration Philosophy B Remuneration Governance, Structure and Approvals C Remuneration and Performance D Details of Remuneration E Service Agreements F Share-based Compensation G Equity Instruments Issued on Exercise of Remuneration Options H Loans with KMP I Other Transactions with KMP J Additional Information

Sultan Resources Limited – Annual Report 2021

Directors’ Report

A Remuneration Philosophy

KMP have authority and responsibility for planning, directing and controlling the activities of the Group. KMP of the Group comprise of the Board of Directors.

The Group’s broad remuneration policy is to ensure the remuneration package properly reflects the person’s duties and responsibilities and that remuneration is competitive in attracting, retaining and motivating people of the highest quality.

No remuneration consultants were employed during the financial year.

B Remuneration Governance, Structure and Approvals

Remuneration of Directors is currently set by the Board of Directors. The Board has not established a separate Remuneration Committee at this point in the Group’s development, nor has the Board engaged the services of an external remuneration consultant. It is considered that the size of the Board along with the level of activity of the Group renders this impractical. The Board is primarily responsible for:

The over-arching executive remuneration framework;
Operation of the incentive plans which apply to executive directors and senior executives, including key performance indicators and performance hurdles;
Remuneration levels of executives; and
Non-Executive Director fees.

Their objective is to ensure that remuneration policies and structures are fair and competitive and aligned with the longterm interests of the Group.

❖ Non-Executive Remuneration Structure

The remuneration of Non-Executive Directors consists of Directors’ fees, payable in arrears. The total aggregate fixed sum per annum to be paid to Non-Executive Directors in accordance with the Company’s Constitution shall be no more than $500,000 and may be varied by ordinary resolution of the Shareholders in a General Meeting.

Remuneration of Non-Executive Directors is based on fees approved by the Board of Directors and is set at levels to reflect market conditions and encourage the continued services of the Directors. In accordance with the Company’s Constitution, the Directors may at any time, subject to the Listing Rules, adopt any scheme or plan which they consider to be in the interests of the Group and which is designed to provide superannuation benefits for both present and future NonExecutive Directors, and they may from time to time vary this scheme or plan.

The remuneration of Non-Executive Directors is detailed in Table 1 and their contractual arrangements are disclosed in “Section E – Service Agreements”.

Remuneration may also include an invitation to participate in share-based incentive programmes in accordance with Group policy.

The nature and amount of remuneration is collectively considered by the Board of Directors with reference to relevant employment conditions and fees commensurate to a company of similar size and level of activity, with the overall objective of ensuring maximum stakeholder benefit from the retention of high performing Directors.

❖ Executive Remuneration Structure

The nature and amount of remuneration of executives are assessed on a periodic basis with the overall objective of ensuring maximum stakeholder benefit from the retention of high performance Directors.

The main objectives sought when reviewing executive remuneration is that the Group has:

Coherent remuneration policies and practices to attract and retain Executives;
Executives who will create value for shareholders;
Competitive remuneration offered benchmarked against the external market; and
Fair and responsible rewards to Executives having regard to the performance of the Group, the performance of the Executives and the general pay environment.

Sultan Resources Limited – Annual Report 2021

Directors’ Report

C Remuneration and Performance

The following table shows the gross revenue, losses, earnings per share (“EPS”) of the Company as at 30 June 2021.

Revenue and other income ($) Net loss after tax ($) EPS(cents)	30-Jun-21	30-Jun-20
	15,499 (888,848) (1.35)	33,424 (855,454) (1.79)

Relationship between Remuneration and Group Performance

Given the current phase of the Group’s development, the Board does not consider earnings during the current financial period when determining, and in relation to, the nature and amount of remuneration of KMP.

The pay and reward framework for key management personnel may consist of the following areas:

a) Fixed Remuneration – base salary
b) Variable Short-Term Incentives c) Variable Long-Term Incentives

The combination of these would comprise the key management personnel’s total remuneration.

a) Fixed Remuneration – Base Salary

The fixed remuneration for each senior executive is influenced by the nature and responsibilities of each role and knowledge, skills and experience required for each position. Fixed remuneration provides a base level of remuneration which is market competitive and comprises a base salary inclusive of statutory superannuation. It is structured as a total employment cost package.

Key management personnel are offered a competitive base salary that comprises the fixed component of pay and rewards. External remuneration consultants may provide analysis and advice to ensure base pay is set to reflect the market for a comparable role. No external advice was taken this period. Base salary for key management personnel is reviewed annually to ensure the executives’ pay is competitive with the market. The pay of key management personnel is also reviewed on promotion. There is no guaranteed pay increase included in any key management personnel’s contract.

b) Variable Remuneration – Short -Term Incentives (STI)

Discretionary cash bonuses may be paid to senior executives annually, subject to the requisite Board and shareholder approvals where applicable.

c) Variable Remuneration – Long-Term Incentives (LTI)

Options are issued at the Board’s discretion. Other than options disclosed in section D of the Remuneration Report there have been no options issued to KMP at the date of this financial report.

Sultan Resources Limited – Annual Report 2021

Directors’ Report

D Details of Remuneration

Details of the nature and amount of each major element of the remuneration of each KMP of the Group during the financial year are:

Table 1 – Remuneration of KMP of the Group for the year ended 30 June 2021 is set out below:

30 June 2021	Short-term Employee Benefits	Short-term Employee Benefits	Short-term Employee Benefits	Post- Employment	Share Based Payments	Total

	Salary & fees	Non-monetary benefits	Other	Superannuation	Options
	$	$	$	$	$	$
Directors Steven Groves David Ian Lees Jeremy King		- - -	- - -
	75,060(i)			5,827	41,264	122,151
	37,333			3,547	41,264	82,144
	50,667			4,813	103,162	158,642
Total	163,060	-	-	14,187	185,690	362,937

(i) Cash salary and fees includes fees paid or due to be paid and movement in annual leave entitlements for the year.

Table 2 – Remuneration of KMP of the Group for the year ended 30 June 2020 is set out below:

30 June 2020	Short-term Employee Benefits	Short-term Employee Benefits	Short-term Employee Benefits	Post- Employment	Share Based Payments	Total

	Salary & fees	Non-monetary benefits	Other	Superannuation	Options
	$	$	$	$	$	$
Directors Steven Groves David Ian Lees Jeremy King		- - -	- - -
	43,237(i)			3,800	-	47,037
	32,000			3,040	-	35,040
	32,000			3,040	-	35,040
Total	107,237	-	-	9,880	-	117,117

(i) Cash salary and fees includes fees paid or due to be paid and movement in annual leave entitlements for the year.

The following table shows the relative proportions of remuneration that are linked to performance and those that are fixed, based on the amounts disclosed as statutory remuneration expense in the tables above:

Table 3 – Relative proportion of fixed vs variable remuneration expense

	Fixed Remuneration	Fixed Remuneration	At Risk	– STI(%)	At Risk	– LTI(%)
Name	2021	2020	2021	2020	2021	2020
Directors						- - -
Steven Groves	55%	100%	-	-	34%
David Ian Lees	50%	100%	-	-	50%
JeremyKing	35%	100%	-	-	65%

Table 4 – Shareholdings of KMP (direct and indirect holdings) for the year ended 30 June 2021 is set out below:

30 June 2021	Balance at 1/07/2020	On market purchase	Granted as Remuneration	On Exercise of Options	Net Change – Other	Balance at 30/06/2021
Directors Steven Groves David Ian Lees Jeremy King Total	150,000 1,166,868 295,144	- - 405,000	- - -	- - -	- - -	150,000 1,166,868 700,144
	1,612,012	405,000	-	-	-	2,017,012

Sultan Resources Limited – Annual Report 2021

Directors’ Report

Table 5 – Shareholdings of KMP (direct and indirect holdings) for the year ended 30 June 2020 is set out below:

30 June 2020	Balance at 1/07/2019	On market purchase	Granted as Remuneration	On Exercise of Options	Net Change – Other	Balance at 30/06/2020
Directors Steven Groves David Ian Lees Jeremy King Total	150,000 1,166,868 199,324	- - 95,820	- - -	- - -	- - -	150,000 1,166,868 295,144
	1,516,192	95,820	-	-	-	1,612,012

Table 6 – Optionholdings of KMP (direct and indirect holdings) for the year ended 30 June 2021 is set out below:

30 June 2021	Balance at 1/07/2020	On market purchase	Granted as Remuneration	On Exercise of Options	Net Change – Other	Balance at 30/06/2021
Directors Steven Groves David Ian Lees Jeremy King Total	- - -	- - -	400,000 400,000 1,000,000	- - -	- - -	400,000 400,000 1,000,000
	-	-	1,800,000	-	-	1,800,000

There are no options held by the KMP for the year ended 30 June 2020.

E Service Agreements

❖ Steven Groves – Managing Director
Contract: Commenced on 1 June 2018.
Director’s Fee: $40,000 per annum plus statutory superannuation. From 1 November 2020, fee is $72,000 per annum plus statutory superannuation.
Term: No fixed term.
❖ Jeremy King – Non-Executive Director
Contract: Commenced on 1 June 2018.
Director’s Fee: $32,000 per annum plus statutory superannuation. From 1 November 2020, fee is $60,000 per annum plus statutory superannuation.
Term: No fixed term
❖ David Ian Lees– Non-Executive Director
Contract: Commenced on 13 March 2019.
Director’s Fee: $32,000 per annum plus statutory superannuation. From 1 November 2020, fee is $40,000 per annum plus statutory superannuation.
Term: No fixed term

F Share-based Compensation

Share-based compensation in the form of options were issued during the year ended 30 June 2021. (2020: Nil)

	Number	Exercise Price ($)	Expiry Date
Steven Groves	400,000	0.33	18 December 2022
Jeremy King	1,000,000	0.33	18 December 2022
David Lees	400,000	0.33	18 December 2022

Sultan Resources Limited – Annual Report 2021

Directors’ Report

G Equity Instruments Issued on Exercise of Remuneration Options

No remuneration options were exercised during the financial year. (2020: Nil)

H Loans with KMP

There were no loans during the year ended 30 June 2021 (2020: Nil).

I Other Transactions with KMP

Related Party Transactions
The following related party transactions were made during the year: Company Secretary, Financial management & registered office fees paid to Mirador Corporate Pty Ltd(i) Consulting fees paid to Steve R Groves(ii) Office rental fee paid to RedMountain MiningLimited(i)	2021 $ 107,498 - 30,000	2020 $ 79,900 8,640 -

(i) An entity in which Jeremy King is a Director, $4,463 (2020: $14,280) remained payable as at 30 June 2021.

(ii) Steven Groves is a Director, as at 30 June 2021, there was nil payable or prepaid (2020: $4,200 prepaid fee).

Terms and conditions

All transactions were made on normal commercial terms and conditions and at market rates.

There were no other transactions with KMP during the year ended 30 June 2021.

J Additional Information

The earnings of the consolidated entity for the four years to 30 June 2021 are summarised below as the Company was incorporated on 4 January 2018:

	2021	2021	2020	2020	2019	2019	2018
	$		$		$		$
Revenue and other income EBITDA EBIT Profit/(Loss) after income tax Share Price ($) EPS (cents per share)	15,499 (894,347) (894,347) (888,848) $0.195 (1.35)		33,424 (832,030) (832,030) (855,454) $0.135 (1.79)		26,486 (874,197) (874,197) (847,711) $0.059 (2.53)		200 (176,410) (176,410) (176,210) - (13.68)
The factors that are considered to affect total shareholders return (“TSR”) ar					e summarised below:
		2021		2020		2019	2018
		$		$		$	$
Share Price at the financial year/period end ($) Total dividends declared (cents per share) EPS (cents per share)		$0.195 - (1.35)		$0.135 - (1.79)		$0.059 - (2.53)	-1 - (13.68)

¹ There is no share price as the Company was listed on the Australian Securities Exchange (ASX) on 14 August 2018.

End of Audited Remuneration Report.

Sultan Resources Limited – Annual Report 2021

Directors’ Report

INDEMNIFICATION AND INSURANCE OF OFFICERS AND AUDITORS

The Company has indemnified the Directors and Executives of the Company for costs incurred, in their capacity as a Director or Executive, for which they may be held personally liable, except where there is a lack of good faith.

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

The Company has not, during or since the end of the financial period, indemnified or agreed to indemnify the auditor of the Company or any related entity against a liability incurred by the auditor.

During the financial year, the Company has not paid a premium in respect of a contract to insure the auditor of the Company or any related entity.

ENVIRONMENTAL REGULATIONS

The Group is not currently subject to any specific environmental regulation. There have not been any known significant breaches of any environmental regulations during the year under review and up until the date of this report.

PROCEEDINGS ON BEHALF OF THE COMPANY

No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of the Company, or to intervene in any proceedings to which the Company is a party, for the purposes of taking responsibility on behalf of the Company for all or part of these proceedings.

AUDITOR

RSM Australia Partners continues in office in accordance with section 327 of the Corporations Act 2001.

OFFICERS OF THE COMPANY WHO ARE FORMER PARTNERS OF RSM AUSTRALIA PARTNERS

There are no officers of the Company who are former partners of RSM Australia Partners.

AUDITOR’S INDEPENDENCE DECLARATION

The lead auditor’s independence declaration as required under section 307C of the Corporations Act 2001 for the year ended 30 June 2021 has been received and included within these financial statements.

SHARE UNDER OPTION

At the date of this report there were the following unissued ordinary shares for which options were outstanding:

6,000,000 options expiring 7 August 2023, exercisable at $0.24 each.
1,800,000 options expiring 18 December 2022, exercisable at $0.33 each.

SHARE ISSUED ON THE EXERCISE OF OPTIONS

At the date of this report there were no issued shares on the exercise of options granted during the year 30 June 2021 (2020: Nil). No further shares have been issued since that date. No amounts are unpaid on any of the shares.

Sultan Resources Limited – Annual Report 2021

Directors’ Report

NON-AUDIT SERVICES

The Company may decide to employ the auditor on assignments additional to their statutory audit duties where the auditor’s expertise and experience with the Company are important.

Details of the amounts paid or payable to the auditor for non-audit services provided during the period by the auditor are outlined in Note 19 to the financial statements.

The Board of Directors has considered the position and is satisfied that the provision of the non-audit services is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001. The Directors are satisfied that the provision of non-audit services by the auditors, as set out below, did not compromise the auditor independent requirements of the Corporations Act 2001 for the following reasons:

all non-audit services have been reviewed by the Board of Directors to ensure they do not impact the impartiality and objectivity of the auditor; and
None of the services undermine the general principles relating to the auditor independence as set out in APES 110 Code of Ethics for Professional Accountants.

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

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Steven Groves Managing Director 29 September 2021

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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 audit of the financial report of Sultan Resources Limited for year ended 30 June 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 audit; and
(ii) any applicable code of professional conduct in relation to the audit.

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Perth, WA Dated: 29 September 2021

RSM AUSTRALIA PARTNERS

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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

Sultan Resources Limited – Annual Report 2021

Consolidated Statement of Profit or Loss and Other Comprehensive Income For the Financial Year Ended 30 June 2021

Note Revenue from continuing operations Other income Expenses Administrative expenses and corporate expenses 4(a) Compliance and regulatory expenses Consultancy and legal expenses 4(b) Directors’ fees Other expenses Exploration expenses Share-based payment expense 5 Loss from continuing operations before income tax Income tax expense 6 Loss from continuing operations after income tax Other comprehensive loss Items that may be reclassified subsequently to profit or loss Other comprehensive loss for the year, net of tax Total comprehensive loss attributable to the members of Sultan Resources Limited Loss per share for the year attributable to the members Sultan Resources Limited: Basic loss per share (cents) 7 Diluted loss per share (cents) 7	Consolidated 2021 Consolidated 2020 $ $

	15,499 33,424

	(319,675) (220,650)
	(59,974) (49,390)
	(185,869) (172,613)
	(96,267) (71,666)
	(29,025) (16,742)
	(27,847) (202,817)
	(185,690) (155,000)
	(888,848) (855,454) - -
	(888,848) (855,454)
	- -
	- -
	(888,848) (855,454)
	(1.35) (1.79) (1.35) (1.79)

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

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Sultan Resources Limited – Annual Report 2021

Consolidated Statement of Financial Position

As at 30 June 2021

Note ASSETS Current assets Cash and cash equivalents 8 Other receivables 9 Total current assets Non-Current assets Exploration and evaluation 10 Total non-current assets Total assets LIABILITIES Current liabilities Trade and other payables 11 Provisions 12 Total current liabilities Total liabilities Net assets EQUITY Contributed equity 13 Reserves 14 Accumulated losses Total equity	Consolidated 2021 Consolidated 2020 $ $

	1,553,018 2,005,595
	128,169 132,145
	1,681,187 2,137,740


	5,071,270 3,151,333
	5,071,270 3,151,333
	6,752,457 5,289,073

	169,253 217,475
	29,751 12,383
	199,004 229,858
	199,004 229,858
	6,553,453 5,059,215

	8,261,375 6,063,979
	1,060,301 874,611
	(2,768,223) (1,879,375)
	6,553,453 5,059,215

The Consolidated Statement of Financial Position should be read in conjunction with the notes to the financial statements.

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Sultan Resources Limited – Annual Report 2021

Consolidated Statement of Changes in Equity

For the Financial Year Ended 30 June 2021

Contributed equity $	Reserves $	Accumulated Losses $	Total $
6,063,979	874,611	(1,879,375)	5,059,215
- -	-	(888,848)	(888,848)
	-	-	-
- 2,400,000 (202,604) -	-	(888,848)	(888,848)
	- - 185,690	- - -	2,400,000 (202,604) 185,690
8,261,375	1,060,301	(2,768,223)	6,553,453
Contributed equity $	Reserves $	Accumulated Losses $	Total $
4,358,979	874,611	(1,023,921)	4,209,669
- -	-	(855,454)	(855,454)
	-	-	-
- 1,550,000 155,000	-	(855,454)	(855,454)
	- -	- -	1,550,000 155,000
6,063,979	874,611	(1,879,375)	5,059,215

The Consolidated Statement of Changes in Equity should be read in conjunction with the notes to the financial statements.

Sultan Resources Limited – Annual Report 2021

Consolidated Statement of Cash Flows

For the Financial Year Ended 30 June 2021

Note Cash flows from operating activities Payments to suppliers and employees Interest received Grants received Payments made for exploration expenditure Net cash used in operating activities 8 Cash flows from investing activities Payments made for exploration and evaluation Payments made to acquire Colossus Metals Pty Ltd Cash received on acquisition of Colossus Metals Pty Ltd Net cash used in investing activities Cash flows from financing activities Proceeds from the issue of shares Share issue costs Net cash from financing activities Net (decrease) / increase in cash and cash equivalents Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year 8	Consolidated 2021 $ Consolidated 2020 $
	(718,324) (472,688) 5,499 23,424 10,000 - (27,209) (184,628)
	(730,034) (633,892)
	(1,919,939) (327,345) - (100,000) - 2,360
	(1,919,939) (424,985)
	2,400,000 - (202,604) -
	2,197,396 -
	(452,577) (1,058,877) 2,005,595 3,064,472
	1,553,018 2,005,595

The Consolidated Statement of Cash Flows should be

read in conjunction with the notes to the financial statements.

Sultan Resources Limited – Annual Report 2021

Notes to the Consolidated Financial Statements

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Reporting Entity

Sultan Resources Limited (referred to as “Company” or “parent entity”) is a company domiciled in Australia. The address of the Company’s registered office and principal place of business is disclosed in the Corporate Directory of the Annual Report. The consolidated financial statements of the Company as at and for the year ended 30 June 2021 comprise the Company and its subsidiaries (together referred to as the “Consolidated Entity” or the “Group”).

(b) Basis of Preparation

Statement of compliance

These general purpose financial statements have been prepared in accordance with Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') and the Corporations Act 2001, as appropriate for for-profit oriented entities. These financial statements also comply with International Financial Reporting Standards as issued by the International Accounting Standards Board ('IASB').

Basis of measurement

The consolidated financial statements have been prepared on a going concern basis in accordance with the historical cost convention, unless otherwise stated.

Parent entity information

In accordance with the Corporations Act 2001, these financial statements present the results of the consolidated entity only. Supplementary information about the parent entity is disclosed in Note 22.

Changes to the Group’s accounting policies

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.

The following Accounting Standards and Interpretations are most relevant to the consolidated entity:

Conceptual Framework for Financial Reporting (Conceptual Framework)

The consolidated entity has adopted the revised Conceptual Framework from 1 July 2020. The Conceptual Framework contains new definition and recognition criteria as well as new guidance on measurement that affects several Accounting Standards, but it has not had a material impact on the consolidated entity's financial statements.

Significant Judgements and Estimates

The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in Note 2.

(c) Comparatives

Comparative balances for the Group are for the financial period 30 June 2020.

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Sultan Resources Limited – Annual Report 2021

Notes to the Consolidated Financial Statements

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT.)

(d) Principles of Consolidation

Subsidiaries

The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Sultan Resources Limited (‘Company’ or ‘parent entity’) as at 30 June 2021 and the results of all subsidiaries for the year then ended. Sultan Resources Limited and its subsidiaries together are referred to in this financial report as the consolidated entity.

Subsidiaries are all entities (including special purpose entities) over which the consolidated entity has the power to govern the financial and operating policies, generally accompanying a shareholding of more than one-half of the voting rights. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the consolidated entity controls another entity.

Subsidiaries are fully consolidated from the date on which control is transferred to the consolidated entity. They are de-consolidated from the date that control ceases.

Intercompany transactions, balances and unrealised gains on transactions between entities in the Group are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the consolidated entity.

The acquisition method of accounting is used to account for business combinations by the consolidated entity. A change in ownership interest, without the loss of control, is accounted for as an equity transaction, where the difference between the consideration transferred and the book value of the share of the non-controlling interest acquired is recognised directly in equity attributable to the parent.

Non-controlling interests in the results and equity of subsidiaries are shown separately in the consolidated statement of profit or loss and other comprehensive income, statement of changes in equity and statement of financial position respectively.

(e) Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Board. Management has determined that based on the report reviewed by the Board and used to make strategic decisions, that the consolidated entity has one reportable segment.

(f) Revenue Recognition

Interest revenue

Interest revenue is recognised as it accrues, using the effective interest method. This is a method of calculating the amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net carrying amount of the financial asset.

Sultan Resources Limited – Annual Report 2021

Notes to the Consolidated Financial Statements

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT.)

(g) Income Tax

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

Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, deferred tax liabilities are not recognised if they arise from the initial recognition of goodwill. Deferred income tax is also not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.

Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses.

Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount and tax bases of investments in foreign operations where the Group is able to control the timing of the reversal of the temporary differences and it is probable that the differences will not reverse in the foreseeable future.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the Group has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively.

(h) Exploration and evaluation expenditure

Acquisition, exploration and evaluation costs associated with mining tenements are accumulated in respect of each identifiable area of interest. These costs are only carried forward to the extent that the Group’s rights of tenure to that area of interest are current and that the costs are expected to be recouped through the successful commercial development or sale of the area or where activities in the area have not yet reached a stage that permits reasonable assessment of the existence of economically recoverable reserves.

Accumulated costs in relation to an abandoned area are written off in full against profit in the year in which the decision to abandon the area is made.

(i) Cash and Cash Equivalents

Cash on hand and in bank and short-term deposits are stated at nominal value. For the purpose of the statement of cash flows, cash includes cash on hand and in bank, and bank securities readily convertible to cash, net of outstanding bank overdrafts.

Sultan Resources Limited – Annual Report 2021

Notes to the Consolidated Financial Statements

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT.)

(j) Impairment of non-financial assets

Non-financial assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount.

Recoverable amount is the higher of an asset's fair value less costs of disposal and value-in-use. The value-in-use is the present value of the estimated future cash flows relating to the asset using a pre-tax discount rate specific to the asset or cash-generating unit to which the asset belongs. Assets that do not have independent cash flows are grouped together to form a cash-generating unit.

(k) Trade and Other Receivables

Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less any allowance for expected credit losses. Trade receivables are generally due for settlement within 30 days.

The Group has applied the simplified approach to measuring expected credit losses, which uses a lifetime expected loss allowance. To measure the expected credit losses, trade receivables have been grouped based on days overdue.

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

(l) Trade and Other Payables

Liabilities are recognised for amounts to be paid in the future for goods and services received whether or not billed to the Group. Trade payables are usually settled within 30 days of recognition.

(m) Employee Benefits

Short-term employee benefits

Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to be settled within 12 months of the reporting date are recognised in current liabilities in respect of employees' services up to the reporting date and are measured at the amounts expected to be paid when the liabilities are settled.

Other long-term employee benefits

The liability for annual leave and long service leave not expected to be settled within 12 months of the reporting date are recognised in non-current liabilities, provided there is an unconditional right to defer settlement of the liability. The liability is measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. Consideration is given to the expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the reporting date on national government bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows.

Defined contribution superannuation expense

Contributions to defined contribution plans are expensed in the period in which they are incurred.

(n) Share-based Payments

Equity-settled benefits are provided to Key Management Personnel and employees.

Equity-settled transactions are awards of shares, or options over shares, that are provided to employees in exchange for the rendering of services. Cash-settled transactions are awards of cash for the exchange of services, where the amount of cash is determined by reference to the share price.

The cost of equity-settled transactions are measured at fair value on grant date. Fair value is independently determined using an appropriate valuation model that takes into account the exercise price, the term of the option, the impact of dilution, the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk free interest rate for the term of the option, together with non-vesting conditions that do not determine whether the consolidated entity receives the services that entitle the employees to receive payment. No account is taken of any other vesting conditions.

Sultan Resources Limited – Annual Report 2021

Notes to the Consolidated Financial Statements

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT.)

(n) Share-based Payments (CONT.)

The cost of equity-settled transactions are recognised as an expense with a corresponding increase in equity over the vesting period. The cumulative charge to profit or loss is calculated based on the grant date fair value of the award, the best estimate of the number of awards that are likely to vest and the expired portion of the vesting period. The amount recognised in profit or loss for the period is the cumulative amount calculated at each reporting date less amounts already recognised in previous periods.

Market conditions are taken into consideration in determining fair value. Therefore, any awards subject to market conditions are considered to vest irrespective of whether or not that market condition has been met, provided all other conditions are satisfied.

If equity-settled awards are modified, as a minimum an expense is recognised as if the modification has not been made. An additional expense is recognised, over the remaining vesting period, for any modification that increases the total fair value of the share-based compensation benefit as at the date of modification.

If the non-vesting condition is within the control of the consolidated entity or employee, the failure to satisfy the condition is treated as a cancellation. If the condition is not within the control of the Group or employee and is not satisfied during the vesting period, any remaining expense for the award is recognised over the remaining vesting period, unless the award is forfeited.

If equity-settled awards are cancelled, it is treated as if it has vested on the date of cancellation, and any remaining expense is recognised immediately. If a new replacement award is substituted for the cancelled award, the cancelled and new award is treated as if they were a modification.

(o) Contributed equity

Ordinary shares are classified as equity.

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

If the Company reacquires its own equity instruments, for example as a result of a share buy-back, those instruments are deducted from equity and the associated shares are cancelled. No gain or loss is recognised in the profit or loss and the consideration paid including any directly attributable incremental costs (net of income taxes) is recognised directly in equity.

Sultan Resources Limited – Annual Report 2021

Notes to the Consolidated Financial Statements

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT.)

(p) Earnings Per Share

Basic earnings per share

Basic earnings per share are calculated by dividing:

The profit or loss attributable to owners of the Company, excluding any costs of servicing equity other than ordinary shares.
By the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the year.

Diluted earnings per share

Diluted earnings per share adjust the figures used in the determination of basic earnings per share to take into account:

The after-income tax effect of interest and other financing costs associated with dilutive potential ordinary shares, and
The weighted average number of additional ordinary shares that would have been outstanding assuming the conversion of all dilutive potential ordinary shares.

(q) Goods and Services Tax (“GST”)

Revenue, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the taxation authority. In this case it is recognised as part of the cost of acquisition of the asset or as part of the expense.

Receivables and payables area stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the taxation authority is included as a current asset or liability in the statement of financial position.

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing and financing activities which are recoverable from, or payable to, the taxation authority, are presented as operating cash flows.

(r) Current and Non-Current classification

Assets and liabilities are presented in the consolidated statement of financial position based on current and noncurrent classification.

An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the consolidated entity’s normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within 12 months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current.

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

Deferred tax assets and liabilities are always classified as non-current.

Sultan Resources Limited – Annual Report 2021

Notes to the Consolidated Financial Statements

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT.)

(s) Dividends

Dividends are recognised when declared during the financial year and no longer at the discretion of the Company.

(t) Other financial assets

Investments and other financial assets are initially measured at fair value. Transaction costs are included as part of the initial measurement, except for financial assets at fair value through profit or loss. Such assets are subsequently measured at either amortised cost or fair value depending on their classification. Classification is determined based on both the business model within which such assets are held and the contractual cash flow characteristics of the financial asset unless, an accounting mismatch is being avoided.

Financial assets are derecognised when the rights to receive cash flows have expired or have been transferred and the Group has transferred substantially all the risks and rewards of ownership. When there is no reasonable expectation of recovering part or all of a financial asset, it's carrying value is written off.

Financial assets at fair value through profit or loss

Financial assets not measured at amortised cost or at fair value through other comprehensive income are classified as financial assets at fair value through profit or loss. Typically, such financial assets will be either:

(i) held for trading, where they are acquired for the purpose of selling in the short-term with an intention of making a profit, or a derivative; or

(ii)designated as such upon initial recognition where permitted. Fair value movements are recognised in profit or loss.

Financial assets at fair value through other comprehensive income

Financial assets at fair value through other comprehensive income include equity investments which the Group intends to hold for the foreseeable future and has irrevocably elected to classify them as such upon initial recognition.

Impairment of financial assets

The Group recognises a loss allowance for expected credit losses on financial assets which are either measured at amortised cost or fair value through other comprehensive income. The measurement of the loss allowance depends upon the Group's assessment at the end of each reporting period as to whether the financial instrument's credit risk has increased significantly since initial recognition, based on reasonable and supportable information that is available, without undue cost or effort to obtain.

Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12-month expected credit loss allowance is estimated. This represents a portion of the asset's lifetime expected credit losses that is attributable to a default event that is possible within the next 12 months. Where a financial asset has become credit impaired or where it is determined that credit risk has increased significantly, the loss allowance is based on the asset's lifetime expected credit losses. The amount of expected credit loss recognised is measured on the basis of the probability weighted present value of anticipated cash shortfalls over the life of the instrument discounted at the original effective interest rate.

For financial assets measured at fair value through other comprehensive income, the loss allowance is recognised within other comprehensive income. In all other cases, the loss allowance is recognised in profit or loss.

Sultan Resources Limited – Annual Report 2021

Notes to the Consolidated Financial Statements

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONT.)

(u) Acquisition of subsidiaries

The acquisition of subsidiaries is accounted for using the acquisition method of accounting. In the prior year, the subsidiary acquisition of Colossus Metals Pty Ltd holds exploration tenements and no processes or outputs. The acquisitions are therefore assessed as an asset acquisition rather than a business combination. A change in ownership interest, without the loss of control, is accounted for as an equity transaction, where the difference between the consideration transferred and the book value of the share of the non-controlling interest acquired is recognised directly in equity attributable to the parent.

New Accounting Standards and Interpretations not yet mandatory or early adopted

Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory, have not been early adopted by the Group for the annual reporting period ended 30 June 2021.

The new or amended Accounting Standards and Interpretations are not expected to have a significant impact on the financial statements of the Company.

NOTE 2 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS AND ASSUMPTIONS

Exploration and evaluation expenditure

Exploration and evaluation expenditure have been capitalised on the basis that activities in the area have not yet reached a stage that permits reasonable assessment of the existence of economically recoverable reserves. 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.

NOTE 3 SEGMENT INFORMATION

Operating segments are presented using the ‘management approach’, where the information presented is on the same basis as the internal reports provided to the Chief Operating Decision Makers (‘CODM’). The CODM is responsible for the allocation of resources to operating segments and assessing their performance.

The Group operates only in one reportable segment being minerals exploration in Australia. The Board considers its business operations in minerals exploration to be its primary reporting function. Results are analysed as a whole by the chief operating decision maker, this being the Board of Directors. Consequently, revenue, profit or loss, net assets, total assets and total liabilities for the operating segment are reflected in this financial report.

NOTE 4 EXPENSES (a) Administrative and corporate expenses Accounting, audit and company secretarial fees Office rent Marketing fees Travel costs General and administration expenses (b) Consultancy and legal expenses Consulting fees Legal fees	Consolidated Consolidated
	2021 2020
	$ $


	154,694 134,855
	30,000 -
	101,264 67,055
	898 -
	32,819 18,740
	319,675 220,650

	181,534 144,360
	4,335 28,253
	185,869 172,613

Sultan Resources Limited – Annual Report 2021

Notes to the Consolidated Financial Statements

NOTE 5 SHARE BASED EXPENSES

NOTE 5 SHARE BASED EXPENSES
	Consolidated 2021 $ Consolidated 2020 $

Director options(i)	185,690 -
Facilitation shares(ii)	- 155,000
	185,690 155,000

(i) On 10 December 2020, shareholder approval was received for the issue of 1,800,000 options to directors which vested immediately. The options have an exercise price of $0.33 and an expiry date of 18 December 2022. The fair value of the options was $0.1032 per option. A Black-Scholes model with share price at grant date of $0.235, riskfree rate of 0.09% and volatility of 100% were used to fair value the option.

(ii) On 24 June 2020 1,000,000 ordinary shares were issued at a share price of $0.155 for facilitating the acquisition between The Company and Colossus Metals Pty Ltd. In accordance with Australian Accounting Standards, these shares have been fair valued based on the grant date of 24 June 2020 and recognised as a share-based payment in these financial statements. The total value of the shares issued was $155,000.

Refer to Note 21 on the acquisition of Colossus Metals Pty Ltd.

Tax effect of: Amounts not deductible in calculating taxable income Changes in unrecognised temporary differences Tax losses not recognised Income tax expense (c) Deferred tax assets not brought to account are: Accruals/ Provisions Prepayment Exploration related expenditure Business blackhole expenditure Other Capital tax losses Revenue tax losses Total deferred tax assets not brought to account NOTE 6 INCOME TAX (a) The components of tax expense comprise: Current tax Deferred tax Income tax expense reported in the of profit or loss and other comprehensive income (b) The prima facie tax on loss from ordinary activities before income tax is reconciled to the income tax as follows: Loss before income tax expense Prima facie tax benefit on loss before income tax at 30% (2020:30%)	Consolidated 2021 $ Consolidated 2020 $
	- - - -
	- -
	(888,848) (855,454)
	(266,653) (256,636)
	52,707 152,897 (678,844) (155,876) 892,790 259,615
	- -
	13,748 8,846 (4,765) (169) (462,326) (286,006) 116,271 126,768 20 78 100,677 - 1,669,355 737,144
	1,432,980 586,661

Sultan Resources Limited – Annual Report 2021

Notes to the Consolidated Financial Statements

NOTE 6 INCOME TAX (Continued)

Potential deferred tax assets attributable to tax losses and other temporary differences have not been brought to account at 30 June 2021 because the directors do not believe it is appropriate to regard realisation of the deferred tax assets as probable at this point in time. These benefits will only be obtained if:

the Group derives future assessable income of a nature and of an amount sufficient to enable the benefit from the deductions for the expenditure to be realised; and
no changes in tax legislation adversely affect the Group in realising the benefit from the deductions for the expenditure.

NOTE 7 LOSS PER SHARE

Basic loss per share amounts are calculated by dividing net loss for the year attributable to ordinary equity holders of the Company by the weighted average number of ordinary shares outstanding during the year.

Diluted loss per share amounts are calculated by dividing the net loss attributable to ordinary equity holders of the Company by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on the conversion of all the dilutive potential ordinary shares into ordinary shares.

Net loss for the year Weighted average number of ordinary shares for basic and diluted loss Basic and diluted loss per share (cents)(i)	Consolidated 2021 $ Consolidated 2020 $ (888,848) (855,454) 65,798,400 47,805,628 (1.35) (1.79)

(i) Diluted loss per share are the same as basic loss per share because options on issue are anti-dilutive (2020:Nil).

NOTE 8 CASH AND CASH EQUIVALENTS Cash at bank and in hand Loss for the financial year Adjustments for: Share-based payments Changes in assets and liabilities Other receivables Trade and other payables Provisions Net cash used in operating activities NOTE 9 OTHER RECEIVABLES GST receivable Prepayments – Other	Consolidated 2021 $ Consolidated 2020 $

	1,553,018 2,005,595
	(888,848) (855,454) 185,690 155,000 3,976 (77,460) (48,220) 144,422 17,368 (400)
	(730,034) (633,892)
	Consolidated 2021 $ Consolidated 2020 $
	82,284 79,465 45,885 52,680
	128,169 132,145

Allowance for expected credit losses

The Group did not recognise any loss in the profit or loss in respect of the expected credit losses for the year ended 30 June 2021 and 30 June 2020.

Sultan Resources Limited – Annual Report 2021

Notes to the Consolidated Financial Statements

NOTE 10 EXPLORATION AND EVALUATION Opening balance Tenements acquisition costs incurred during the year Exploration and evaluation expenditure incurred during the year Closing balance	Consolidated 2021 $	Consolidated 2020 $
	3,151,333 - 1,919,937
		1,184,751
		1,617,639(i)
		348,943
	5,071,270	3,151,333

(i) Issue of 10,000,000 fully paid ordinary shares in the Company with a fair value of $1,550,000 & payment of $100,000 cash to vendors as part of the consideration to acquire the tenements held in Colossus Metals Pty Ltd less the net assets acquired in Colossus Metals on acquisition. Refer to Note 21 for details.

NOTE 11 TRADE AND OTHER PAYABLES Trade payables Accrued expenses NOTE 12 PROVISIONS Superannuation liability PAYG liability Annual leave liability	Consolidated 2021 $	Consolidated 2020 $

	55,061	102,878
	114,192	114,597
	169,253	217,475
	Consolidated 2021 $	Consolidated 2020 $
	4,085 4,924 20,742
		2,470
		2,898
		7,015
	29,751	12,383

NOTE 13 CONTRIBUTED EQUITY

Consolidated Consolidated (a) Issued and fully paid 2021 2020 No. $ No. $ Ordinary shares 69,534,389 8,261,375 58,625,300 6,063,979 Ordinary shares entitle the holder to participate in dividends and the proposed winding up of the Company in proportion to the number and amount paid on the share hold. (b) Movement reconciliation Number $ At 30 June 2019 47,625,300 4,358,979 Consideration for Colossus Metals Pty Ltd 10,000,000 1,550,000 Facilitation shares 1,000,000 155,000 At 30 June 2020 58,625,300 6,063,979 Shares issued 10,909,089 2,400,000 Capital raising costs - (202,604) At 30 June 2021 69,534,389 8,261,375	Consolidated Consolidated 2021 2020 No. $ No. $	Consolidated Consolidated 2021 2020 No. $ No. $
	69,534,389 8,261,375 58,625,300	6,063,979

Sultan Resources Limited – Annual Report 2021

Notes to the Consolidated Financial Statements

NOTE 14 RESERVES

Options reserve *Movement in reserves* Opening balance Directors’ Options (Note 5) Closing balance	Consolidated 2021 $ Consolidated 2020 $
	1,060,301 874,611
	874,611 874,611 185,690 -
	1,060,301 874,611

NOTE 15 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Group’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk and interest rate risk), credit risk and liquidity risk. The Group’s overall risk management programme focuses on the unpredictability of the financial markets and seeks to minimise potential adverse effects on the financial performance of the Group. The Group uses different methods to measure and manage different types of risks to which it is exposed. These include monitoring levels of exposure to interest rate and foreign exchange risk and assessments of market forecasts for interest rate and foreign exchange prices. Ageing analysis and monitoring of specific credit allowances are undertaken to manage credit risk. Liquidity risk is monitored through the development of future cash flow forecasts.

Risk management is carried out by Management and overseen by the Board of Directors with assistance from suitably qualified external advisors.

The main risks arising for the Group are interest rate risk, credit risk and liquidity risk. The Board reviews and agrees policies for managing each of these risks and they are summarised below.

The carrying values of the Group’s financial instruments are as follows:

Financial Assets Cash and cash equivalents Other receivables Excludes prepayments as no cash or financial asset will be delivered. Financial Liabilities Trade and other payables	Consolidated 2021 $	Consolidated 2020 $

	1,553,018	2,005,595
	82,284	109,145
	1,635,302	2,114,740



	169,253	217,475
	169,253	217,475

(a) Market risk

(i) Foreign exchange risk

The Group was not significantly exposed to foreign currency risk fluctuations.

(ii) Interest rate risk

The Group is exposed to interest rate risk, which is the risk that a financial instrument’s value will fluctuate as a result of changes in the market interest rates on interest bearing financial instruments. The Group’s exposure to this risk relates primarily to the Group’s cash and any cash on deposit. The Group does not use derivatives to mitigate these exposures. The Group manages its exposure to interest rate risk by holding certain amounts of cash in fixed and floating interest rate facilities. At the reporting date, the interest rate profile of the Group’s interest-bearing financial instruments was:

Sultan Resources Limited – Annual Report 2021

Notes to the Consolidated Financial Statements

NOTE 15 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT.)

Cash and cash equivalents	Consolidated Consolidated 2021 2020 Weighted average interest rate(i) Balance $ Weighted average interest rate(i) Balance $
	0.31% 1,553,018 0.56% 2,005,595

(i) This interest rate represents the average interest rate for the year.

Sensitivity

Within the analysis, consideration is given to potential renewals of existing positions and the mix of fixed and variable interest rates. The following sensitivity analysis is based on the interest rate risk exposures in existence at the reporting date. The 1% increase and 1% decrease in rates is based on reasonably expected possible changes over a financial year/period, using the observed range of historical rates for the preceding two-year period.

At 30 June 2021, if interest rates had moved, as illustrated in the table below, with all other variables held constant, post-tax losses and equity would have been affected as follows:

	Loss higher/(lower)	Loss higher/(lower)
	Consolidated	Consolidated
Judgements of reasonably possible	2021	2020
movements:	$	$
+ 1.0% (100 basis points)	15,530	20,056
- 1.0% (100 basis points)	(15,530)	(20,056)

(b) Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. The Group has a strict code of credit, including obtaining agency credit information, confirming references and setting appropriate credit limits. The Group obtains guarantees where appropriate to mitigate credit risk. The maximum exposure to credit risk at the reporting date to recognised financial assets is the carrying amount, net of any provisions for impairment of those assets, as disclosed in the financial position and notes to the financial statements. The Group does not hold any collateral.

The Group’s policy is to trade only with recognised, creditworthy third parties. It is the Group’s policy that all customers who wish to trade on credit terms will be subject to credit verification procedures.

In addition, receivable balances are monitored on an ongoing basis with the result that the Group’s exposure to bad debts is not significant. There are no significant concentrations of credit risk within the Group.

(c) Liquidity risk

Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to its reputation.

The Group manages liquidity risk by maintaining adequate cash reserves from funds raised in the market and by continuously monitoring forecast and actual cash flows. The Group does not have any external borrowings. The following are the contractual maturities of financial liabilities:

1 year or less 1-5 years $ $	> 5 years $	Total $
169,253 -	-	169,253


217,475 -	-	217,475

Sultan Resources Limited – Annual Report 2021

Notes to the Consolidated Financial Statements

NOTE 15 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT.)

(d) Capital risk management

The Group’s objectives when managing capital are to:

Safeguard their ability to continue as a going concern, so that it can continue to provide returns for shareholders and benefits for other stakeholders; and
Maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Company may adjust the number of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

Given the stage of the Group’s development there are no formal targets set for return on capital. The Group is not subject to externally imposed capital requirements. The net equity of the Group is equivalent to capital. Net capital is obtained through capital raisings on the Australian Securities Exchange (“ASX”).

NOTE 16 RELATED PARTY DISCLOSURE

((a) Key Management Personnel Compensation

Details relating to key management personnel, including remuneration paid, are below.

Short-term benefits Post-employment benefits Share-based payments	Consolidated Consolidated 2021 2020 $ $

	163,060 107,237
	14,187 9,880
	185,690 -
	362,937 117,117

Information regarding individual Directors compensation and equity instruments disclosures is provided in the Remuneration Report section of the Directors’ Report.

(b) Transactions with related parties The following transactions occurred with related parties: Mirador Corporate Pty Ltd(i) Steve R Groves Red Mountain Mining Limited(ii)	Consolidated 2021 $ Consolidated 2020 $
	107,498 - 79,900 8,640 30,000 -
	137,498 88,540

(i) The Group paid Mirador Corporate Pty Ltd for company secretarial, registered office fees and financial management services, to which Jeremy King is a director. As at 30 June 2021, $4,463 remained payable (2020: $14,280).

(ii) The Group paid Red Mountain Mining Limited for office rental fee, to which Jeremy King is a director. As at 30 June 2021, $Nil is payable (2020: $Nil).

(c) Amounts payable to/ (receivable from) related parties The following payments are owed to/ (receivable from) related parties: Mirador Corporate Pty Ltd(i) Steve R Groves(ii)	Consolidated 2021 $ Consolidated 2020 $
	4,463 14,280 - (4,200)
	4,463 10,080

(i) The Group pays Mirador Corporate Pty Ltd, a company which Jeremy King is a director, for company secretarial and financial management services. As at 30 June 2021, $4,463 was payable (2020: $14,280).

(ii) Consulting fee paid to Steve R Groves, an entity in which Steven Groves is a Director. As at 30 June 2021 there was nil payable or prepaid (2020: $4,200 prepaid fee).

Sultan Resources Limited – Annual Report 2021

Notes to the Consolidated Financial Statements

NOTE 16 RELATED PARTY DISCLOSURE (CONT.)

(d) Loans with related parties

There were no loans during the year ended 30 June 2021 (2020: nil).

There were no other transactions with related parties during the year ended 30 June 2021.

NOTE 17 COMMITMENTS

Not longer than 1 year More than 1 year but not longer than 5 years More than 5 years	Consolidated 2021 $ Consolidated 2020 $
	750,000 633,150 3,410,000 2,765,480 515,000 400,000
	4,675,000 3,798,630

NOTE 18 CONTINGENT LIABILITIES

On 24 June 2020 the Company granted the vendors of Colossus Metals Pty Ltd or their nominee, a two percent Net Smelter Return Royalty for the life of mine of the Tenements.

On 14 August 2018 Galahad was issued 2,750,000 ordinary shares to complete the acquisition of tenements. On and from the date of commencement of production on the assets, Galahad and/or its nominees will be granted a 2% gross value royalty on products mines and sold from the assets. The term of the royalty is for the length of the economic production life of the assets, to be confirmed and agreed by the parties at various key milestones at project life.

Contingent assets

There are no contingent assets at 30 June 2021 (30 June 2020: Nil).

NOTE 19 AUDITOR’S REMUNERATION

NOTE 19 AUDITOR’S REMUNERATION
Amounts received or due and receivable by RSM Australia for: Audit and review of the financial reports Other services - Income tax preparation	Consolidated 2021 $ Consolidated 2020 $
	28,000 26,500 18,250 7,500
	46,250 34,000

NOTE 20 INTERESTS IN SUBSIDIARIES

	Principal Activities	Country of Incorporation	Ownership	interest
			2021	2020
			%	%
Colossus Metals Pty Ltd	Exploration	Australia	100	100

Sultan Resources Limited – Annual Report 2021

Notes to the Consolidated Financial Statements

NOTE 21 ACQUISITION

On 24 June 2020 the Company completed the acquisition of Colossus Metals Pty Ltd (‘Colossus’) and now owns 100% of all the outstanding share capital in Colossus. As Colossus holds exploration tenements and no processes or outputs were acquired, the acquisition was assessed as an asset acquisition rather than a business combination.

The deemed consideration was the issue of 10,000,000 fully paid ordinary shares and cash consideration to the value of $1,550,000 and cash consideration of $100,000.

On initial recognition, the fair value of the shares issued has been determined by reference to the market share price $0.155 on the day the acquisition was completed.

Details of the purchase consideration and fair value of the assets and liabilities acquired through the acquisition are as follows:

Total purchase consideration comprises:

10,000,000 Consideration shares;
$100,000 cash consideration; and
Deferred consideration.

The deferred consideration is recognised as a contingent liability as disclosed within note 18 of the report.

	2020 $

Value of Share Consideration issued	1,550,000
Cash consideration (i)	100,000
Deferred consideration(ii)	-
	1,650,000

(i)Cash consideration was paid 22 June 2020.

(ii)Fair value is nil due to probability assessment on initial recognition, refer to note 18.

On initial recognition, the fair value of the shares issued has been determined by reference to the market share price $0.155 on the day the acquisition was completed.

Details of the fair value of the assets and liabilities acquired on 24 June 2020 through the acquisition of Colossus Metals Pty Ltd are as follows:

Cash Other asset Exploration assets Net assets acquired	2020 $
	2,361 30,000 1,617,639
	1,650,000

There were no acquisitions in 2021.

Sultan Resources Limited – Annual Report 2021

Notes to the Consolidated Financial Statements

NOTE 22 PARENT ENTITY

Assets Current assets Non-current assets Total assets Liabilities Current liabilities Non-current liabilities Total liabilities Equity Contributed equity Reserves Accumulated losses Total equity Loss for the year Total comprehensive loss	2021 2020 $ $
	1,650,827 2,107,380 1,714,968 1,626,417
	3,365,795 3,733,797
	199,004 208,260 - -
	199,004 208,260
	8,261,375 6,063,979 1,060,301 874,611 (6,154,885) (3,413,053)
	3,166,791 3,525,537
	(2,741,832) (2,389,132)
	(2,741,832) (2,389,132)

Contingent liabilities

The parent entity had no contingent liabilities as at 30 June 2021 and 30 June 2020, other than as disclosed in note 18.

Capital commitments - Property, plant and equipment

The parent entity had no capital commitments for property, plant and equipment as at 30 June 2021 and 30 June 2020.

Lease commitments

The parent entity had no lease commitments as at 30 June 2021 and 30 June 2020.

Significant accounting policies

The accounting policies of the parent entity are consistent with those of the consolidated entity, as disclosed in note 1, except for the following:

Investments in subsidiaries are accounted for at cost, less any impairment, in the parent entity.

Sultan Resources Limited – Annual Report 2021

Notes to the Consolidated Financial Statements

NOTE 23 EVENTS AFTER THE REPORTING DATE

Sultan Resources Limited – Annual Report 2021

Directors’ Declaration

In the Directors’ opinion:

a) The financial statements and accompanying notes are in accordance with the Corporations Act 2001, including:
i) complying with Australian Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements; and
ii) giving a true and fair view of the consolidated entity’s financial position as at 30 June 2021 and of its performance for the year ended on that date.
b) The financial statements and notes comply with International Financial Reporting Standards.
c) There are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

The Directors have been given the declarations required by section 295A of the Corporations Act 2001.

This declaration is made in accordance with a resolution of the Board of Directors made pursuant to section 295(5)(a) of the Corporations Act 2001 and is signed for and on behalf of the Directors by:

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Steven Groves Managing Director 29 September 2021

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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 REPORT TO THE MEMBERS OF SULTAN RESOURCES LIMITED

Opinion

We have audited the financial report of Sultan Resources Limited (the Company) and its subsidiary (the Group), which comprises the consolidated statement of financial position as at 30 June 2021, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and the directors' declaration.

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

(i) giving a true and fair view of the Group's financial position as at 30 June 2021 and of its financial performance for the year then ended; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001.

Basis for Opinion

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Group in accordance with the 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 (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor's report.

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

THE POWER OF BEING UNDERSTOOD AUDIT | TAX | CONSULTING

RSM Australia Pty Ltd 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 Pty Ltd ACN 009 321 377 atf Birdanco Practice Trust ABN 65 319 382 479 trading as RSM

Liability limited by a scheme approved under Professional Standards Legislation

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Key Audit Matters

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

Key Audit Matter How our audit addressed this matter Exploration and Evaluation Expenditure Refer to Note 10 in the financial statements

The Group has capitalised exploration and evaluation expenditure with a carrying value of $5,071,270 as at 30 June 2021.

Our audit procedures included:

Ensuring that the right to tenure of each area of interest is current;

We considered this to be a key audit matter due to the significant management judgments involved in assessing the carrying value of the asset including:

We considered this to be a key audit matter due to  Agreeing a sample of additions to supporting the significant management judgments involved in documentation and ensuring the amounts are capital assessing the carrying value of the asset including: in nature and relate to the area of interest;  Assessing and evaluating management’s
 Determination of whether the expenditure can assessment of whether indicators of impairment be associated with finding specific mineral existed as at 30 June 2021; resources, and the basis on which that  Enquiring with management and reviewing budgets expenditure is allocated to an area of interest; and other supporting documentation as evidence that
 Determination of whether exploration activities active and significant operations in, or relation to, the have progressed to the stage at which the area of interest will be continued in the future; and existence of an economically recoverable  Assessing management’s determination that mineral reserve may be assessed; and exploration and evaluation activities have not yet
 Assessing whether any indicators of reached a stage where the existence or otherwise of impairment are present, and if so, judgments economically recoverable reserves may be applied to determine and quantify any reasonably determined. impairment loss.

Other Information

The directors are responsible for the other information. The other information comprises the information included in the Group's annual report for the year ended 30 June 2021 but does not include the financial report and the auditor's report thereon.

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

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

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

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Responsibilities of the Directors for the Financial Report

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

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

Auditor's Responsibilities for the Audit of the Financial Report

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

A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance Standards Board website at: https://www.auasb.gov.au/auditors_responsibilities/ar2.pdf. This description forms part of our auditor's report.

Report on the Remuneration Report

Opinion on the Remuneration Report

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

In our opinion, the Remuneration Report of Sultan Resources Limited, for the year ended 30 June 2021, complies with section 300A of the Corporations Act 2001.

Responsibilities

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

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RSM AUSTRALIA PARTNERS

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Perth, WA Dated: 29 September 2021

TUTU PHONG Partner

Sultan Resources Limited – Annual Report 2021

Corporate Governance Statement

The Board of Directors of Sultan Resources Limited is responsible for the corporate governance of the Company. The Board guides and monitors the business and affairs of the Company on behalf of the shareholders by whom they are elected and accountable. The Board continuously reviews its governance practices to ensure they remain consistent with the needs of the Company.

The Company complies with each of the recommendations set out in the Australian Securities Exchange Corporate Governance Council’s Corporate Governance Principles and Recommendations 4th Edition (“the ASX Principles”). This statement incorporates the disclosures required by the ASX Principles under the headings of the eight core principles. All of these practices, unless otherwise stated, are in place.

Further information on the Company’s corporate governance policies and practices can be found on the - Company’s website at https://www.sultanresources.com.au/corporate/corporate governance/

ASX Additional Information

Additional information required by the Australian Securities Exchange and not shown elsewhere in this Annual Report is as follows. The information is current as of 28 September 2021.

Position	Holder Name	Holding	% IC
1	MR NARINDER SINGH SUDAGAR SINGH	5,612,484	8.07%
2	CITICORP NOMINEES PTY LIMITED	4,090,647	5.88%
3	OLI PRIVATE INVESTMENT PTY LTD	3,282,512	4.72%
4	SUANNI CAPITAL PTY LTD	2,353,640	3.38%
5	KALCON INVESTMENTS PTY LTD	2,237,938	3.22%
6	SUANNI CAPITAL PTY LTD	2,207,006	3.17%
7	DARREN CRAIG GLOVER	2,125,000	3.06%
7	MR BENJAMIN LEIGH HARPER	2,125,000	3.06%
8	BLACKCHESS INVESTMENT PTY LTD	2,080,000	2.99%
9	MISS FLEUR LESLEY SCHELL	1,300,000	1.87%
10	BNP PARIBAS NOMS PTY LTD	1,278,626	1.84%
11	PAPILLON HOLDINGS PTY LTD	1,209,707	1.74%
12	MR PENGFEI LI	1,200,000	1.73%
13	HOWARD-SMITH INVESTMENTS PTY LTD	1,071,717	1.54%
14	THE PIONEER DEVELOPMENT FUND(AUST)LIMITED	990,000	1.42%
15	XCEL CAPITAL PTY LTD	950,150	1.37%
16	BNP PARIBAS NOMINEES PTY LTD	862,185	1.24%
17	PENINSULA INVESTMENTS(WA)PTY LTD	836,868	1.20%
18	XCEL CAPITAL PTY LTD	833,664	1.20%
19	MRS SALLIE JANE KAIRAITIS	820,000	1.18%
20	MR LUOQI	761,885	1.10%
	Total	38,229,029	54.98%
	Total issued capital - selected security class(es)	69,534,389	100.00%

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Sultan Resources Limited – Annual Report 2021

ASX Additional Information

DISTRIBUTION OF EQUITY SECURITIES

(i) Ordinary share capital

(ii) 69,534,389 fully paid shares held by 734 individual shareholders. All issued ordinary shares carry one vote per share and carry the rights to dividends.

The number of shareholders, by size of holding, is:

Holding Ranges	Holders	Total Units	% Issued Share Capital
above 0 upto and including1,000	29	3,538	0.01%
above 1,000 upto and including5,000	128	433,149	0.62%
above 5,000 upto and including10,000	144	1,184,874	1.70%
above 10,000 upto and including100,000	347	12,466,402	17.93%
above 100,000	86	55,446,426	79.74%
Totals	734	69,534,389	100.00%

(iii) Unlisted Options

6,000,000 unquoted options held by 2 individual shareholders with an exercise price of $0.24 and an expiry date of 7 August 2023.
1,800,000 unquoted options held by 3 individual shareholders with an exercise price of $0.33 and an expirty date of 18 December 2022.

SUBSTANTIAL SHAREHOLDERS

The names of substantial shareholders who have notified the Company in accordance with section 671B of the Corporations Act 2001 are:

	Holding Balance	% of Issued
		Capital
MR NARINDER SINGH SUDAGAR SINGH	5,612,484	8.07%
CITICORP NOMINEES PTY LIMITED	4,090,647	5.88%

RESTRICTED SECURITIES

There were no restricted securities at 28 September 2021.

UNMARKETABLE PARCELS

There were 19 holders of less than a marketable parcel of ordinary shares, which as at 28 September 2021 was 2,857 shares.

ON-MARKET BUY-BACK

There is currently no on-market buyback program for any of Sultan Resources’ listed securities.

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Sultan Resources Limited – Annual Report 2021

ASX Additional Information

ACQUISITION OF VOTING SHARES

No issues of securities have been approved for the purposes of Item 7 of Section 611 of the Corporations Act 2001.

TAX STATUS

The Company is treated as a public company for taxation purposes.

FRANKING CREDITS

The Company has no franking credits.

TENEMENT TABLE

Western Australia

Tenement	Holder	Status	Area	Application Date	Grant Date	Expiry Date	Required Expenditure
Dalwallinu Project
E70/4884	Sultan 100%	Live	57 blocks	30/06/2016	4/08/2017	3/08/2022	$57,000
Thaduna Project
E52/3461	Sultan 100%	Live	6 blocks	11/07/2016	31/10/2017	30/10/2022	$20,000
E52/3481	Sultan 100%	Live	1 block	19/10/2016	8/02/2018	7/02/2023	$10,000
Tallering East Project
E59/2185-I	Sultan 100%	Live	22 Blocks	17/06/2016	1/02/2017	31/01/2022	$22,000
Lake Grace Project
E70/5081	Sultan 100%	Live	58 blocks	21/11/2017	23/07/2018	22/07/2023	$58,000
E70/5082	Sultan 100%	Live	37 blocks	23/11/2017	31/07/2018	30/07/2023	$37,000
E70/5085	Sultan 100%	Live	65 blocks	24/11/2017	23/07/2018	22/07/2023	$65,000
E70/5095	Sultan 100%	Live	54 blocks	1/12/2017	31/07/2018	30/07/2023	$54,000
E70/5179	Sultan 100%	Live	28 blocks	1/6/2018	05/02/19	04/02/2024	$28,000

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Sultan Resources Limited – Annual Report 2021

ASX Additional Information

NSW

TENEMENT	REGISTERED HOLDER	GRANT OR APPLICATION DATE	EXPIRY DATE	STATUS	AREA	ANNUAL RENTAL FEE	ANNUAL ADMIN LEVY	SECURITY REQUIRED	SECURITY HELD	MINERALS	Expenditure requirement
EL 8704 (1992)	Colossus Metals Pty Ltd	5 March 2018	5 March 2023	Current	60 Units	$3,600	$100	$10,000	$10,000	Group 1	$75,000
EL 8734 (1992)	Colossus Metals Pty Ltd	16 April 2018	16 April 2025	Current	16 Units	$960	$100	$10,000	$10,000	Group 1	$50,000
EL 8735 (1992)	Colossus Metals Pty Ltd	16 April 2018	16 April 2025	Current	37 Units	$2,220	$100	$10,000	$10,000	Group 1	$75,000
ELA 6089 (1992)	Sultan Resources Ltd	21 August 2020	-	Pending	4 Units	$240	$100	$10,000	$10,000	Group 1	TBC
Total: 4					117 Units	$7,020	$400	$40,000	$40,000

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AI assistant

SULTAN RESOURCES LTD — Annual Report 2021

65816_rns_2021-09-29_aeeb9bee-1f39-448d-b3fd-ff65db69b13f.pdf

SULTAN RESOURCES LIMITED ABN 35 623 652 522

Annual Report For the year ended 30 June 2021

Contents

Corporate Directory

Board of Directors

Secretary

Registered Office

Securities Exchange Listing

Auditors

Solicitors

Bankers

Share Registry

Directors’ Report

DIRECTORS

Steven Groves – Managing Director

Jeremy King – Non-Executive Director

David Ian Lees – Non-Executive Director

Directors’ Report

COMPANY SECRETARY

Mauro Piccini

INTERESTS IN SHARES AND OPTIONS OF THE COMPANY

PRINCIPAL ACTIVITIES

REVIEW AND RESULTS OF OPERATIONS

Overview

Lachlan Fold Belt Project

EL8735

Big Hill / Razorback Ridge

Geochemical Results

Directors’ Report

Magnetic Reprocessing

Directors’ Report

Induced Polarisation

Drilling

Directors’ Report

Ringaroo

Soil Sampling

Induced Polarisation

Directors’ Report

Directors’ Report

EL8734

Tucklan

Induced Polarisation Survey

Drilling

Results

Directors’ Report

Directors’ Report

Tucklan Soil Sampling Extension

Directors’ Report

Lake Grace

Directors’ Report

OTHER PROJECTS

Thaduna

East Tallering

Dalwallinu

Landowner access negotiations are ongoing.

CORPORATE

Financial Performance

DIVIDENDS

SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS

MATTERS SUBSEQUENT TO THE REPORTING PERIOD

LIKELY DEVELOPMENTS AND EXPECTED RESULTS

Directors’ Report

DIRECTORS’ MEETINGS

REMUNERATION REPORT (AUDITED)

a) Key Management Personnel Disclosed in this Report

Directors’ Report

A Remuneration Philosophy

B Remuneration Governance, Structure and Approvals

❖ Non-Executive Remuneration Structure

❖ Executive Remuneration Structure

Directors’ Report

C Remuneration and Performance

Relationship between Remuneration and Group Performance

a) Fixed Remuneration – Base Salary

b) Variable Remuneration – Short -Term Incentives (STI)

c) Variable Remuneration – Long-Term Incentives (LTI)

D Details of Remuneration

SULTAN RESOURCES LTD Annual Report 2021