SUREFIRE RESOURCES NL — Interim / Quarterly Report 2019

Mar 14, 2019

==> picture [297 x 109] intentionally omitted <==

AND ITS CONTROLLED ENTITIES

_____________ HALF-YEAR FINANCIAL REPORT 31 DECEMBER 2018

---

ABN 48 083 274 024

==> picture [293 x 107] intentionally omitted <==

AND ITS CONTROLLED ENTITIES

CONTENTS

CONTENTS
HALF-YEAR FINANCIAL REPORT
	Page No.
Directors’ Report	3
Auditor’s Independence Declaration	8
Consolidated Statement of Financial Performance	9
Consolidated Statement of Financial Position	10
Consolidated Statement of Changes in Equity	11
Consolidated Statement of Cash Flows	12
Notes to and forming part of the Financial Statements	13
Directors' Declaration	16
Independent Auditor’s Review Report	17

• Page 2 -

DIRECTORS’ REPORT

==> picture [204 x 75] intentionally omitted <==

Your directors submit the financial report of Surefire Resources NL (the “ Company ” or “ Surefire ”) and its subsidiaries (the “ Group ”) for the halfyear ended 31 December 2018.

DIRECTORS

The following persons were directors of the Company during the half-year and up to the date of this report:

• Mr Vladimir Nikolaenko

• Mr Michael Povey

• Mr Roger Smith

REVIEW OF OPERATIONS

The total loss from continuing operations for the half-year ended 31 December 2018 was $773,401 (2017: $313,598).

The Group’s activities during the six-month period are summarised in this report which unless otherwise stated, should be read as if dated 31 December 2018.

PROJECT REPORT

During the period the Company significantly advanced its Unaly Hill Vanadium project towards a Scoping and Pre-Feasibility study. The assays of the Reverse Circulation (RC) exploration drilling have provided excellent grade and resource data and the metallurgical testwork programme has been completed with very positive vanadium grades and recoveries. In addition, a comprehensive review of the Kooline project area by geological consultants CSA Global Pty Ltd has indicated that the historic Kooline Pb-Ag-Cu workings are indicative of an Intra Magmatic Copper Gold (IMCG) mineralisation system The report findings provide a structural framework for the mineral potential and areas of new exploration targets for both the high grade lead-silver area and base metal-gold potential.

Unaly Hill Vanadium

The Company completed a sequence of programmes during the period in order to advance the Unaly Hill Vanadium Project near Sandstone, in the Murchison Region of WA. towards a Scoping and the Preliminary Feasibility Study. This work consisted of:

1. A 345m deep diamond drill hole UHDM001 primarily drilled to obtain a quality core for metallurgical testwork;

2. A 10 Hole RC drilling programme designed to test additional magnetic anomalies and the northwards extension of the known resource; and

3. Completion of an advanced metallurgical testwork programme.

RC Drilling Programme

During the September quarter a total of 10 RC drill holes ranging in down-hole depth from 100m to 200m were completed along six traverses for an aggregate of 1,258m. From this, a total of 524 drill samples were transported from site and submitted to ALS Laboratories at Malaga, Western Australia for ME-XRF21 analysis.

All the drill holes intersected a number of vanadiferous titano-magnetite layers and assay results have confirmed the presence of consistent bands of significant grades of vanadium mineralisation up to 40m in down-hole width. The new results confirm extensive areas of vanadium-bearing magnetite mineralisation some 4km north of the current established JORC Inferred resource of 86Mt @ 0.42% V2O5. (@ 0.3% Cut-off). The mineralisation occurs as wide adjacent parallel bands, dipping steeply easterly on some sections with relatively shallow levels of weathered/oxidized cover. The mineralisation remains open along strike and depth. Significant results include:

• Individual composite intersections of grades up to 0.90% V2O5;

• 15 intersections greater than 0.50% V2O5 and wider than 4 metres;

• Significant intersection widths of:

• 40m @ 0.44% V2O5 from 82m in UHRC008 Including 24m @ 0.51% V2O5

• 34m @ 0.53% V2O5 from 79m in UHRC009 including 16m @ 0.69% V2O5

• 36m @ 0.43% V2O5 from 64m in UHR007 including 14m @ 0.58% V2O5

• Drilling results are consistent with grades attained from historic resource drilling

(The intersections are calculated with a cut-off grade of 0.2% V ₂ O ₅ .)

In-Fill Drilling Programme

The excellent drill results from the RC programme indicate a robust resource and enable the Company to progress its plan for an extended in-fill drilling programme to advance the resource to an Indicated JORC status. CSA Global (CSA) were tasked with assessing the historic exploration data for the project area and provide recommendations for target areas and drill density in order to achieve the Indicated JORC Resource objective.

• Page 3 -

DIRECTORS’ REPORT

==> picture [204 x 75] intentionally omitted <==

and recommended a 100 m (along strike) by 50 m (across strike) drill pattern that should be prioritised in two main areas: These are:

1. The area immediately north and south of drill holes UHN105 and UDHM001. There is a 350m to 400m distance to the adjacent section lines to the north and south, which will be targeted initially, to a depth of approximately 200 m. This represents a strike length of approximately 800m;

2. Focus is also to be placed on the area between drill holes 18UHRC006 and 18UHRC0011. This represents a strike length of approximately 1,500 m.

Metallurgical Testwork Programme

During the period the comprehensive metallurgical testwork programme was completed on the Unaly vandiferous magnetite core obtained from diamond drill hole UHDM001 (Figure 1). The programme, developed and supervised by METS Engineering Group based in Perth, Western Australia focused on the salt roasting process, a commonly used process for the processing of vanadiferous titanomagnetites that recovers vanadium as a product from the ore. The testwork looked at the effects of grind size on mineral liberation and magnetic separation and addressed the following parameters:

1. Comminution and physical characterisation

2. Mineralogy

3. Magnetic beneficiation

4. Salt roasting

==> picture [440 x 29] intentionally omitted <==

==> picture [440 x 28] intentionally omitted <==

==> picture [440 x 28] intentionally omitted <==

==> picture [440 x 29] intentionally omitted <==

==> picture [440 x 28] intentionally omitted <==

==> picture [440 x 29] intentionally omitted <==

==> picture [440 x 28] intentionally omitted <==

==> picture [440 x 28] intentionally omitted <==

==> picture [440 x 29] intentionally omitted <==

==> picture [440 x 27] intentionally omitted <==

Figure 1: Diamond Drill Core UHDM001 showing massive magnetite

Assays of the core mineralisation revealed three main mineralised zones, all identified as fresh ore and that were primarily disseminated with small massive intervals. These zones were classified into Low, Medium and High-grade composites based on the average vanadium grade and three composites were formed, one for each mineralised zone identified in the hole.

• Page 4 -

DIRECTORS’ REPORT

==> picture [204 x 75] intentionally omitted <==

Key Metallurgical Results

Consistent vanadium grades and recoveries across the three mineralised zones tested

• 192% to 367% vanadium upgrade

• V2O5 Concentrate Grades up to 1.43% achieved

• Lower grade mineralised zone beneficiates exceptionally well

• Ore below a nominal cut-off grade shown to beneficiate to similar grades as high-grade zones

• Excellent rejection of gangue minerals

• Up to 99.5% rejection for silica

• Up to 99.0% rejection for alumina

• Good salt roast vanadium recoveries

Geological Setting

The Unaly Hill Vanadium project licence area, E57/1068 lies within the Atley Igneous Complex located approximately 48 km south of Sandstone in the East Murchison Mineral field of Western Australia (Figure 2). The Atley Intrusion is a layered gabbroic body that is elongate in an NNE/SSW orientation and runs along the axis of the regional scale Youanmi Fault, a regionally dominant geological feature. It has a maximum thickness of 4.5 km and there are exposures over a strike length of 17 km. The iron-vanadium-titanium mineralisation is situated within cyclical cumulous layers within the intrusive complex.

The Company has previously established a substantial vanadium resource from drilling 3 kilometres of the anomalous magnetic anomaly.

==> picture [440 x 130] intentionally omitted <==

==> picture [440 x 130] intentionally omitted <==

==> picture [440 x 130] intentionally omitted <==

Figure 2: Regional Geology and Unaly Hill and Victory Bore Licence areas

• Page 5 -

DIRECTORS’ REPORT

==> picture [204 x 75] intentionally omitted <==

Kooline Project Lead-Silver-Copper-Gold

During the period activity on the project centred on the comprehensive review by CSA Global of the historic data on regional geochemistry and the project area’s target potential based on the compilation of all available geochemical data which was additionally assessed by Dr Steven Batty, an independent geological consultant. The reviews have highlighted promising mineralisation potential.

The CSA work has indicated that the historic Kooline lead-silver-copper (Pb/Ag/Cu) workings are indicative of an Intra Cratonic Magma Copper Gold (IMCG) mineralisation system. The IMCG deposit class is derived from magmatic fluids and is a broad group of deposits that include, Iron oxide copper gold (IOCG) and the Abra Pb- (Cu-Au) deposit located approximately 250km SE of Kooline.

The main findings of the reviews are:

• The Kooline project is interpreted to lie immediately south of a major regional structure (the Baring Downs Suture) that channelled mineralised fluid into the project area;

• Compilation of all available historic geochemical data from surface sampling and drilling clearly shows that only a limited area of the project area has been tested; and

• Where the area has been tested, anomalous results are common.

The historic exploration focus by other workers has been on the high-grade Lead-Silver-Copper veins associated with the artisanal workings. There has been no coherent exploration to define the potential for large volume Lead-Silver-Copper deposits. Copper appears to have been treated as a by-product and Gold, despite an historic intercept of 1m @ 3.87g/t Au (AK09RC04 at 25m) at the Bilrose working and minor artisanal gold workings in the area, has not been the focus of any previous coherent exploration programme.

Exploration Targets

All the observations suggest the area has not been effectively explored spatially or at depth and that the mineral system that could be present within the Kooline tenements presents numerous target opportunities for further exploration.

Lead-silver have been the historically mined in this area, and the short- to mid-term market conditions for lead make this commodity an interesting proposition to pursue. In addition, the exploration upside to potentially define base metals and gold in this area is extremely encouraging.

==> picture [469 x 306] intentionally omitted <==

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

1
?
?
Baring Downs Suture
Potential Major Fluid Pathway
Area with great potential
? but no data
Along strike from
mineralised outcrop. ?
Significant potential
?
2
?
Area with great potential
but no data ?
? = Areas of exploration interest with little or no data
----- End of picture text -----

Figure 3: Anomalous INDEX 5 scores for combined surface and drill sample dataset combined with anomalous Fortescue Metals Auger samples and high-Au in Au-only drilling (background image from CSA 2018). Targets generated for this release.

• Page 6 -

DIRECTORS’ REPORT

From the data two clear trends: are apparent as shown in Figure 3.

==> picture [204 x 75] intentionally omitted <==

• Area 1, hosts highly anomalous results even with the broad spaced data and the area is also in close proximity to the potentially major mineralised fluid pathway in the Baring Downs Suture; and

• Area 2 hosts the historic Kooline Pb-Ag-Cu workings plus additional anomalies, including gold either along strike or sub-parallel to the main mineralised trends

As a result of these reviews and analysis, programmes will be planned to test the historic shallow Lead-Silver-Copper workings at depth and in areas of structural complexity where the mineralisation has the potential to increase in thickness. In addition, geochemical programmes will be planned to evaluate the potential along strike and under cover from known mineralisation where no work has previously been undertaken. Areas with gold potential will also be pursued.

Geological Setting

The Kooline Project is centred 55 kilometres south of the Paulsen’s goldmine and 190 kilometres WNW of Paraburdoo within the Ashburton province of Western Australia. The project area tenements consists of granted Exploration Licence, E08/2373 and E08/2956 which form 48 km of contiguously striking licenses that link numerous clusters of high-grade historic artisanal Lead-Silver-Copper workings.

INDEPENDENCE DECLARATION BY AUDITOR

The lead auditor’s independence declaration under section 307C of the Corporations Act 2001 is set out on page 8 for the half-year ended 31 December 2018.

This report has been signed in accordance with a resolution of directors.

For and on behalf of the Directors

Signature affixed to original document and held on file

Mr Vladimir Nikolaenko

Managing Director 14 March 2019

• Page 7 -

AUDITOR’S INDEPENDENCE DECLARATION

To those charged with governance of Surefire Resources NL

As auditor for the review of Surefire Resources NL for the period ended 31 December 2018, I declare that, to the best of my knowledge and belief, there have been:

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

• ii) no contraventions of any applicable code of professional conduct in relation to the review.

Signature of Greenwich & Co Audit Pty Ltd affixed to original document and held on file

Greenwich & Co Audit Pty Ltd

Signature of Rafay Nabeel affixed to original document and held on file

Rafay Nabeel

Audit Director 14 March 2019 Perth

• Page 8 -

==> picture [204 x 75] intentionally omitted <==

CONSOLIDATED STATEMENT OF FINANCIAL PERFORMANCE

FOR THE HALF-YEAR ENDED 31 DECEMBER 2018

Notes Revenue: Interest income Expenses: Director fees and consulting charges Exploration expenses Administration expenses Legal fees (Loss) before income tax expense Income tax expense (Loss) from continuing operations Other comprehensive income for the period Total Comprehensive income for the period attributable to members of the Company Basic (loss) per share (cents per share) Diluted (loss) per share (cents per share) The accompanying notes form part of these financial statements.	Half-Year Ended 31 Dec 2018 ($) - (235,350) (395,294) (93,575) (49,182) (773,401) - (773,401) - (773,401) (0.184) (0.184)	Half-Year Ended 31 Dec 2017 ($) 12 (144,856) (68,361) (93,120) (7,273)
		(313,598) -
		(313,598)
		-
		(313,598)
		(0.013) (0.013)

• Page 9 -

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2018

==> picture [204 x 75] intentionally omitted <==

Notes Current Assets Cash and cash equivalents Trade and other receivables Total Current Assets Non-Current Assets Deferred exploration expenditure Total Non-Current Assets TOTAL ASSETS Current Liabilities Trade and other payables Total Current Liabilities TOTAL LIABILITIES NET ASSETS Equity Contributed equity 3 Reserves 3 Accumulated losses TOTAL EQUITY	31 Dec 2018 ($) 771,623 59,743 831,366 415,000 415,000 1,246,366 413,297 413,297 413,297 833,069 26,512,659 375,200 (26,054,790) 833,069	30 June 2018 ($) 1,860,697 42,473
		1,903,170
		415,000
		415,000
		2,318,170
		717,100
		717,100
		717,100
		1,601,070
		26,507,259 375,200 (25,281,389)
		1,601,070

The accompanying notes form part of these financial statements.

• Page 10 -

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF-YEAR ENDED 31 DECEMBER 2018

==> picture [204 x 75] intentionally omitted <==

	Contributed Equity (Net of costs) ($)	Reserves ($)	Accumulated Losses ($)	Total ($)
Balance at 1.7.2017	23,250,156	52,500	(24,049,600)	(746,944)
Comprehensive Income
Operating (loss)for theperiod			(313,598)	(313,598)
Total comprehensive income for the period			(313,598)	(313,598)
Transactions with owners, in their capacity as owner, and other transfers
Options expired		(52,500)	52,500	-
Balance at 31.12.2017	23,250,156	-	(24,310,698)	(1,060,542)
Balance at 1.7.2018	26,507,259	375,200	(25,281,389)	1,601,070
Comprehensive Income
Operating (loss) for the period	-	-	(773,401)	(773,401)
Total comprehensive income for the period	-	-	(773,401)	(773,401)
Transactions with owners, in their capacity as owner, and other transfers
Options exercised	5,400	-	-	5,400
Balance at 31.12.2018	26,512,659	375,200	(26,054,790)	833,069

The accompanying notes form part of these financial statements.

• Page 11 -

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE HALF-YEAR ENDED 31 DECEMBER 2018

==> picture [204 x 75] intentionally omitted <==

CASH FLOWS FROM OPERATING ACTIVITIES Interest received Payments to suppliers and employees Net cash (used in) operating activities CASH FLOWS FROM INVESTING ACTIVITIES Exploration and evaluation expenditure incurred Payments for new prospects Net cash from (used in) investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from exercise of options Loan advances Net cash from financing activities Net (decrease) increase in cash held Cash and cash equivalents at the beginning of the financial period Cash and cash equivalents at the end of the financial period The accompanying notes form part of these financial statements.	Half-Year Ended 31 Dec 2018 ($) - (591,204) (591,204) (444,763) (58,507 (503,270) 5,400 - 5,400 (1,089,074) 1,860,697 771,623	Half-Year Ended 31 Dec 2017 ($) 12 (72,112)
		(72,100)
		(68,361) -
		(68,361)
		- 130,652
		130,652
		(9,809) 20,554
		10,745

• Page 12 -

NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2018

==> picture [204 x 75] intentionally omitted <==

NOTE 1 BASIS OF PREPARATION AND ACCOUNTING POLICIES

Basis of Preparation

These general purpose financial statements for the interim half-year reporting period ended 31 December 2018 have been prepared in accordance with the requirements of the Corporations Act 2001 and Australian Accounting Standard 134: Interim Financial Reporting .

These financial statements were approved by the Board of Directors on the date of the Directors Declaration.

This interim financial report is intended to provide users with an update on the latest annual financial statements of Surefire Resources NL (the “ Company ”) and its subsidiary (together, the “ Group ”). As such, it does not contain information that represents relatively insignificant changes occurring during the half-year. It is therefore recommended that this financial report be read in conjunction with the annual financial statements for the year ended 30 June 2018, together with any public announcements made by the Company during the half-year in accordance with continuous disclosure requirements arising under the Corporations Act 2001.

These financial statements have been prepared on an accruals and historical cost basis, except where indicated.

Going Concern

For the half-year ended 31 December 2018, the Group incurred an operating loss of $773,401 (31 December 2017: $313,598), incurred net cash outflows of $1,089,074 (31 December 2017: $9,809) and had net working capital of $418,069 at reporting date.

The Group will require further funding during the next 12 months in order to meet day to day obligations as they fall due and to progress its exploration projects. Based on the Group’s cash flow forecast the Board of Directors is aware of the Group’s need to access additional funding in the next 12 months to enable the Group to continue its normal business activities and to ensure the realisation of assets and extinguishment of liabilities as and when they fall due, including progression of its exploration interests.

The directors are satisfied that at the date of signing of the financial report, there are reasonable grounds to believe that the Group will be able to continue to meet its debts as and when they fall due and that it is appropriate for the financial statements to be prepared on a going concern basis.

In forming this view the directors have taken into consideration the following.

• The ability of the Group to obtain funding through various sources, including debt and equity issues which are currently being investigated by management.

• The Group has the capacity, if necessary, to reduce its operating cost structure in order to minimise its working capital requirements.

• The ability to further vary cash flow depending upon the achievement of certain milestones.

Should the Group not achieve the matters set out above, there is significant uncertainty whether it will be able to continue as a going concern and therefore whether it will be able to pay its debts as and when they fall due and realise its assets and extinguish its liabilities in the normal course of business and at the amounts stated in the financial statements.

These financial statements do not include any adjustments relating to the recoverability or classification of recorded asset amounts, or to the amounts or classification of liabilities that may be necessary should the Group not be able to continue as a going concern.

Accounting Policies

The same accounting policies and methods of computation have been followed in this interim financial report as were applied in the most recent annual financial statements.

The Group has adopted all the new, revised or amending Accounting Standards and Interpretations issued by the Australian Accounting Standards Board that are mandatory for the current reporting period. The adoption of these Accounting standards and Interpretations did not have any significant impact on the financial performance or position of the Group.

Any new, revised or amending Accounting Standards of Interpretations that are not yet mandatory have not been adopted early.

The following Accounting Standard is most relevant to the consolidated entity:

AASB 9 Financial Instruments

The consolidated entity has adopted AASB 9 from 1 July 2018. The standard introduced new classification and measurement models for financial assets. A financial asset shall be measured at amortised cost if it is held within a business model whose objective is to hold assets in order to collect contractual cash flows which arise on specified dates and that are solely principal and interest. A debt investment shall be measured at fair value through other comprehensive income if it is held within a business model whose objective is to both hold assets in order to collect contractual cash flows which arise on specified dates that are solely principal and interest as well as selling the asset on the basis of its fair value. All other financial assets are classified and measured at fair value through profit or loss unless the entity makes an irrevocable election on initial recognition to present gains and losses on equity instruments (that are not held-for-trading or contingent consideration recognised in a business combination) in other comprehensive income ('OCI'). Despite these requirements, a financial asset may be irrevocably designated as measured at fair value through profit or loss to reduce the effect of, or eliminate, an accounting mismatch. For financial liabilities designated at fair value through profit or loss, the standard requires the portion of the change in fair value that relates to the entity's own credit risk to be presented in OCI (unless it would create an accounting mismatch). New simpler hedge accounting requirements are intended to more closely align the accounting treatment with the risk management activities of the entity. New impairment requirements use an 'expected credit loss' ('ECL') model to recognise an allowance. Impairment is measured using a 12-month ECL method unless the credit risk on a financial instrument has increased significantly since initial recognition in which case the lifetime ECL method is adopted. For receivables, a simplified approach to measuring expected credit losses using a lifetime expected loss allowance is available.

• Page 13 -

NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2018

==> picture [204 x 75] intentionally omitted <==

There was no material impact on adoption of the new standards and no adjustment made to current or prior period amounts.

NOTE 2 OPERATING SEGMENTS Segment Information Identification of reportable segments

The Group has identified that it operates in only one segment based on the internal reports that are reviewed and used by the board of directors (chief operating decision makers) in assessing performance and determining the allocation of resources. The Group's principal activity is mineral exploration.

Revenue and assets by geographical region

The Group's revenue is received from sources and assets located wholly within Australia.

Major customers

Due to the nature of its current operations, the Group does not provide products and services.

NOTE 3 EQUITY Contributed Equity - Ordinary Shares Balance at the beginning of the period Exercise of options Issue of shares to Acuity Capital as Collateral Shares pursuant to a Controlled Placement Agreement (refer to September 2018 quarterly report released to ASX on 26 October 2018 Balance at the end of the period Contributed Equity – Partly paid Contributing Shares Balance at the beginning of the period Balance at the end of the period Contributed Equity - Options Balance at the beginning of the period Exercise of options Balance at the end of the period Total Contributed Equity Share Based Reserve Balance at the beginning of the period Balance at the end of the period	31 Dec	2018
	Number	$
		26,507,259 5,400 -
		26,512,659
		-
		-
		- -
		-
		26,512,659
		375,200
		375,200

NOTE 4 CONTROLLED ENTITIES

NOTE 4 CONTROLLED ENTITIES
Subsidiaries of Surefire Resources NL	Country of Incorporation	Percentage Owned (%)
Unaly Hill Pty Ltd (i)	Australia	100%
Sandstone Holdings Pty Ltd (i)	Australia	100%
Associate of Surefire Resources NL
Oil & Gas SE Pty Ltd (i)	Australia	49%

(i) These companies are dormant.

• Page 14 -

NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF-YEAR ENDED 31 DECEMBER 2018

==> picture [204 x 75] intentionally omitted <==

NOTE 5 EVENTS SUBSEQUENT TO REPORTING DATE

A General Meeting of shareholders was held 6 March 2019. At that meeting, shareholders approved all proposals occasioned by the proposed acquisition of the Victory Bore vanadium tenement from High Grade Metals Limited ( HGM ). The resolutions as passed related to the payment of a royalty to Mutual Holdings Pty Ltd, an entity controlled by a Director of Surefire, namely Mr Vladimir Nikolaenko, the issue of shares to HGM as part consideration for the tenements and approval to issue shares to satisfy a condition of the acquisition agreement.

Other than noted above there have been no matters or circumstances that have arisen since 31 December 2018 which have significantly affected or may significantly affect:

• (a) the Group’s operations in future years; or

• (b) the results of those operations in future years; or

• (c) the Group’s state of affairs in future years.

NOTE 6 CONTINGENT LIABILITIES AND ASSETS

The directors intend to clarify and possibly dispute various invoices included in the Company’s financial records which were raised by outgoing directors in relation to services rendered. The total amount of those charges equates to $267,221 and have been included in expenses incurred to date.

• Page 15 -

DIRECTORS' DECLARATION

==> picture [204 x 74] intentionally omitted <==

The directors of the Company declare that:

1. the accompanying financial statements and notes:

2. (a) comply with Accounting Standard AASB 134 : Interim Financial Reporting and the Corporations Act 2001 ; and

3. (b) give a true and fair view of the financial position of the Company as at 31 December 2018 and its performance for the half-year ended on that date.

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

This declaration is made in accordance with a resolution of the Board of Directors:

Signed at Perth:

Signature affixed to original document and held on file

Mr Vladimir Nikolaenko

Managing Director

Dated this 14th day of March 2019

• Page 16 -

Independent Auditor’s Review Report

To the members of Surefire Resources NL

Report on the Half-Year Financial Report

We have reviewed the accompanying half-year financial report of Surefire Resources NL (“the Company”), which comprises the consolidated condensed statement of financial position as at 31 December 2018, the consolidated condensed statement of profit or loss and other comprehensive income, consolidated condensed statement of changes in equity and the consolidated condensed statement of cash flows for the half-year ended on that date, notes comprising a summary of significant accounting policies and other explanatory information, and the directors’ declaration.

Directors’ Responsibility for the Half-Year Financial Report

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

Auditor’s Responsibility

Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity , in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the Company’s financial position as at 31 December 2018 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Act 2001 . As the auditor of Surefire Resources NL, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

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

Independence

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001 .

• Page 17 -

Conclusion

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

• (a) giving a true and fair view of Surefire Resources NL’s financial position as at 31 December 2018 and of its performance for the half-year ended on that date; and

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

Emphasis of Matter – Inherent uncertainty regarding continuation as a going concern

Without modifying our conclusion, we draw attention to Note 1 to the half-year financial report which outlines that the ability of the Company to continue as a going concern is dependent on the Company securing additional funding through either the issue of further shares and/or options.

As a result, there is a material uncertainty related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern, and therefore whether it will realise its assets and extinguish its liabilities in the normal course of business and at the amounts stated in the financial report.

Signature of Greenwich & Co Audit Pty Ltd affixed to original document and held on file

Greenwich & Co Audit Pty Ltd

Signature of Rafay Nabeel affixed to original document and held on file

Rafay Nabeel Audit Director 14 March 2019 Perth

• Page 18 -