TUNGSTEN MINING NL — Interim / Quarterly Report 2023

Mar 9, 2023

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Half Year Financial Report 31 December 2022

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Contents

Contents
	Page
Corporate directory	2
Directors’ report	3
Consolidated statement of profit or loss and other comprehensive income	5
Consolidated statement of financial position	6
Consolidated statement of changes in equity	7
Consolidated statement of cash flows	8
Condensed notes to the consolidated financial statements	9
Directors’ declaration	14
Auditor’s independence declaration	15
Independent auditor’s review report	16

1

Tungsten Mining NL • Half Year Financial Report 31 December 2022

Corporate directory

Board of directors:

Gary Lyons (Non-executive Chairman) Tan Sri Dato' Tien Seng Law (Non-executive Deputy Chairman) Chew Wai Chuen (Non-executive Director) Kong Leng (Jimmy) Lee (Non-executive Director) Teck Siong Wong (Executive Director) Russell Clark (Non-executive Director) Wai Cheong Law (Alternate Director)

Chief executive officer:

Teck Siong Wong

Company Secretaries:

Sonu Cheema Simon Borck

Principal and registered office:

Auditors:

Stantons Level 2, 40 Kings Park Road West Perth WA 6005 Telephone: +61 8 9481 3188 Facsimile: +61 8 9321 1204

Bankers:

National Australia Bank Limited Level 14, 100 St Georges Terrace Perth WA 6000

Share registry:

Automic Group Level 5, 191 St Georges Terrace Perth, WA 6000 Telephone: +61 2 8072 1400

Level 4, 46 Colin Street West Perth WA 6005

Solicitors:

Telephone: +61 8 9486 8492 Facsimile: +61 8 6117 4039 Email: info@tungstenmining.com Website: www.tungstenmining.com

Postal address:

PO Box 452 West Perth WA 6872

Bennett Level 14, Westralia Square 141 St Georges Terrace Perth WA 6000 Telephone: +61 8 6316 2200 Facsimile: +61 8 6316 2211

ABN:

67 152 084 403

Issued capital as at 31 December 2022:

Fully paid ordinary shares: 786,414,272

Parent entity:

Tungsten Mining NL

Stock exchange:

Australian Securities Exchange Limited

ASX company code:

TGN

2

Tungsten Mining NL • Half Year Financial Report 31 December 2022

Directors’ Report

Your directors submit their report for Tungsten Mining NL (‘the Company’ or ‘the Parent’) and for the Group, being the Company and its controlled entities, for the half year ended 31 December 2022.

Directors

The names of the Company’s Directors in office during the half-year and until the date of this report are set out below. Directors were in office for the entire period unless otherwise stated.

Gary Lyons Non-executive Chairman Tan Sri Dato' Tien Seng Law Non-executive Deputy Chairman Kong Leng (Jimmy) Lee Non-executive Director Chew Wai Chuen Non-executive Director Teck Siong Wong Executive Director & Interim Chief Executive Officer Russell Clark Non-executive Director Wai Cheong Law Alternate Director

Teck Wong was appointed Executive Director & Interim Chief Executive Officer on 9 August 2022. Prior to this appointment, he was a Non-executive director.

Company Secretaries

Sonu Cheema (Appointed 3 February 2023) Mark Pitts (Resigned 3 February 2023) Simon Borck

Dividends

No amounts have been paid or declared by way of dividend by the Company during the half year or in the period to the date of this report.

Principal activities

The principal activity of the Company and its subsidiaries during the course of the half year continued to be the exploration and evaluation of mining projects.

Operating results

The Group’s cash position as at 31 December 2022 was $12,621,581 (Jun 2022: $14,630,799). During the period net cash flow used in operating activities was $1,839,162 (Dec 2021: $3,493,928).

The net loss of the Group for the half year to 31 December 2022 was $1,852,938 (Dec 2021: $3,555,284), which included exploration expenses of $612,569 (Dec 2021: $1,942,364).

Review of operations

The Group continues to implement its strategy directed at building a tungsten business of scale, with a current resource inventory of 41 million MTU’s (metric tonne units) of WO3 (tungsten trioxide), 71,000 tonnes of Mo (molybdenum), 1 million ounces of Au (gold), 44 million ounces of Ag (silver) and 92,000 tonnes of Cu (copper).

The Mt Mulgine Project remained the highest priority development project for the Group, responsible for the majority of activities. The Company has continued to advance the feasibility studies for this Project and seek suitable partners capable of supporting the Project’s development.

Craig Ferrier stepped down from full time employment with the Company and as a result Teck Wong was appointed as an Executive Director and interim CEO, effective 9 August 2022.

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Tungsten Mining NL • Half Year Financial Report 31 December 2022

Directors’ Report

Events subsequent to balance date

There have been no other matters or circumstances that have arisen since 31 December 2022 that 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.

Auditor’s Independence Declaration

A copy of the auditor’s independence declaration as required under Section 307C of the Corporations Act 2001 is set out on page 15.

Signed in accordance with a resolution of the Directors.

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Gary Lyons Chairman Perth, 10 March 2023

4

Tungsten Mining NL • Half Year Financial Report 31 December 2022

Consolidated statement of profit or loss and other comprehensive income

For the half year ended 31 December 2022

	Consolidated
	December 2022 December 2021
Note	$ $
Revenue Research & Development tax offset - 462,448 Interest 168,858 20,214 Other - 20,786 Total revenue 168,858 503,448 Expenses Loss on sale of plant & equipment - (175,638) Impairment of plant & equipment - (227,959) Administration expenses (580,932) (477,513) Exploration expenses (612,569) (1,942,364) Remuneration expenses (828,295) (1,235,258) (Loss) before income tax (1,852,938) (3,555,284) Income tax expense/benefit - - (Loss) for the period (1,852,938) (3,555,284) Other comprehensive income Items that will not be reclassified subsequently to profit or loss - - Items that may be reclassified subsequently to profit or loss - - Other comprehensive income after tax - - Total comprehensive (loss) for the period after tax (1,852,938) (3,555,284) (Loss) attributable to members of the Parent (1,852,938) (3,555,284) Total comprehensive (loss) attributable to members of the Parent (1,852,938) (3,555,284) Basic loss per share in cents (0.24) (0.45) Diluted loss per share is not shown as it would not reflect an inferior position.	- 462,448 168,858 20,214 - 20,786
	168,858 503,448 - (175,638) - (227,959) (580,932) (477,513) (612,569) (1,942,364) (828,295) (1,235,258)
	(1,852,938) (3,555,284) - -
	(1,852,938) (3,555,284)
	- - - -
	- -
	(1,852,938) (3,555,284)
	(1,852,938) (3,555,284)
	(1,852,938) (3,555,284)

The above statement should be read in conjunction with the accompanying notes.

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Tungsten Mining NL • Half Year Financial Report 31 December 2022

Consolidated statement of financial position

As at 31 December 2022

	Consolidated
	December 2022 June 2022
Note	$ $
Current assets Cash and cash equivalents 3 Trade and other receivables 4 Other assets Total current assets Non-current assets Exploration and evaluation 5 Plant and equipment 6 Right of use assets Total non-current assets Total assets Current liabilities Trade and other payables 7 Lease liabilities Provisions 8 Total current liabilities Non-current liabilities Lease liabilities Provisions 8 Total non-current liabilities Total liabilities Net assets Equity Reserves 9 Issued capital 10 Accumulated losses Total equity	12,621,581 14,630,799 96,512 36,266 403,394 353,706
	13,121,487 15,020,771
	19,707,196 19,707,196 1,919,382 1,943,143 207,909 316,511
	21,834,487 21,966,850
	34,955,974 36,987,621
	496,392 393,179 249,117 281,990 91,395 234,398
	836,904 909,567
	22,101 130,161 526,822 524,808
	548,923 654,969
	1,385,827 1,564,536
	33,570,147 35,423,085
	7,851,718 7,851,718 82,460,127 82,460,127 (56,741,698) (54,888,760)
	33,570,147 35,423,085

The above statement should be read in conjunction with the accompanying notes.

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Tungsten Mining NL • Half Year Financial Report 31 December 2022

Consolidated statement of changes in equity

For the half year ended 31 December 2022

	Issued Capital Reserves Accumulated Total Losses
	$ $ $ $
At 1 July 2022 Loss for the period Other comprehensive income Total comprehensive loss for the period At 31 December 2022 At 1 July 2021 Loss for the period Other comprehensive income Total comprehensive loss for the period At 31 December 2021	82,460,127 7,851,718 (54,888,760) 35,423,085
	- - (1,852,938) (1,852,938) - - - -
	- - (1,852,938) (1,852,938)
	82,460,127 7,851,718 (56,741,698) 33,570,147
	82,460,127 7,851,718 (49,803,611) 40,508,234
	- - (3,555,284) (3,555,284) - - - -
	- - (3,555,284) (3,555,284)
	82,460,127 7,851,718 (53,358,895) 36,952,950

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Tungsten Mining NL • Half Year Financial Report 31 December 2022

Consolidated statement of cash flows

For the half year ended 31 December 2022

	Consolidated
	December 2022 December 2021
	$ $
Cash flows from operating activities Payments to suppliers and employees R&D Tax & other government incentives received Interest received Net cash (used in) operating activities Cash flows from investing activities Payments for property, plant & equipment Net cash (used in) investing activities Cash flows from financing activities Lease payments Net cash (used in) financing activities Net increase/(decrease) in cash Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period	(1,981,483) (3,974,233) - 462,448 142,321 17,857
	(1,839,162) (3,493,928)
	(9,139) (127,997)
	(9,139) (127,997)
	(160,917) (162,559)
	(160,917) (162,559)
	(2,009,218) (3,784,484) 14,630,799 19,345,209
	12,621,581 15,560,725

The above statement should be read in conjunction with the accompanying notes.

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Tungsten Mining NL • Half Year Financial Report 31 December 2022

Condensed notes to the consolidated financial statements

NOTE 1: BASIS OF PREPARATION OF THE HALF-YEARLY FINANCIAL REPORT

The consolidated financial report is a general purpose condensed financial report for the half-year ended 31 December 2022, which has been prepared in accordance with AASB 134 Interim Financial Reporting and the Corporations Act 2001 and this financial report was authorised for issue in accordance with a resolution of the directors on 10 March 2023.

It is recommended that the half-year consolidated financial statements be read in conjunction with the annual financial report for the year ended 30 June 2022 and considered with any public announcements made by Tungsten Mining NL during and subsequent to the half-year ended 31 December 2022 in accordance with continuous disclosure obligations of the ASX Listing Rules .

The half-year consolidated financial statements do not include all notes of the type normally included within the annual financial report and therefore cannot be expected to provide as full and understanding of the financial performance, financial position and financing and investing activities of the Group as the full financial report.

The half-year consolidated financial statements have been prepared on the basis of accrual accounting and historical costs.

Changes in accounting standards

The Group has considered the implications of new and amended Accounting Standards effective for annual reporting periods beginning on or after 1 July 2022 but determined that their application to the financial statements is either not relevant or not material.

NOTE 2: SEGMENT REPORTING

The Group has based its operating segments on the internal reports that are reviewed and used by the executive management team in assessing performance and in determining the allocation of resources.

The Group currently does not have production and is only involved in exploration. As a consequence, activities in the operating segment are identified by management based on the manner in which resources are allocated, the nature of the resources provided and the identity of the manager and country of expenditure. Information is reviewed on a whole of entity basis.

Based on these criteria the Group has only one operating segment, being exploration, and the segment operations and results are reported internally based on the accounting policies as described in the annual financial report for the year ended 30 June 2022 on a whole of entity basis.

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Tungsten Mining NL • Half Year Financial Report 31 December 2022

Condensed notes to the consolidated financial statements

NOTE 3: CASH AND CASH EQUIVALENTS

	Consolidated
	December 2022 June 2022
	$ $
Cash at bank Term deposits	1,601,811 1,427,979 11,019,770 13,202,820
	12,621,581 14,630,799

Nature of cash and cash equivalents

Cash and cash equivalents earn interest at floating rates based on daily bank deposit rates. Short term deposits are made for varying periods of between one day and three months, depending on the immediate cash requirements of the Group, and earn interest at the respective short-term deposit rates.

NOTE 4: TRADE & OTHER RECEIVABLES

	Consolidated
	December 2022	June 2022
	$	$
Trade receivables	37,375	-
GST receivable	7,131	5,382
Interest receivable	48,006	21,470
Other receivables	4,000	9,414
	96,512	36,266
Nature of trade receivables

This balance includes $25,208 due from associate entity GWR Group Limited for the recoupment of certain occupancy costs and staff recharges.

NOTE 5: EXPLORATION AND EVALUATION

	Consolidated
	December 2022 June 2022
	$ $
Capitalised exploration and evaluation	19,707,196 19,707,196
	19,707,196 19,707,196
Mineral acquisition costs

The Group capitalises the acquisition costs in accordance with its accounting policy for exploration and evaluation expenditure. The ultimate recoupment of acquisition costs carried forward in the exploration and evaluation phases are dependent on the successful development and commercial exploitation or sale of the respective areas. There was no movement in capitalised exploration and evaluation during the period.

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Tungsten Mining NL • Half Year Financial Report 31 December 2022

Condensed notes to the consolidated financial statements

NOTE 6: PLANT AND EQUIPMENT

		Consolidated
		December 2022 June 2022
		$ $
Plant and equipment		1,919,382 1,943,143
		1,919,382 1,943,143
The following table illustrates the movement in carrying value of plant and equipment.
	Processing Plant Office Equipment Exploration Equipment Computer Software Total
	$ $ $ $ $
Opening net carrying value Cost of additions Depreciation charge Closing net carrying value	1,638,225 31,672 267,780 5,466 1,943,143 - 9,139 - - 9,139 - (13,072) (16,464) (3,364) (32,900)
	1,638,225 27,739 251,316 2,102 1,919,382

Nature of Processing Plant

The processing plant above includes a dismantled mineral processing facility and an unused x-ray ore sorter, including spare parts, that were acquired in prior financial years. The processing plant is held in storage and is not currently being depreciated as it is not in use.

NOTE 7: TRADE AND OTHER PAYABLES

	Consolidated
	December 2022 June 2022
	$ $
Trade payables Accrued expenses Other payables	310,198 161,138 166,464 172,771 19,730 59,270
	496,392 393,179

Nature of trade and other payables

These unsecured payables are non-interest bearing and are generally on 30-90 days terms. Due to the short term nature of these payables, the carrying value is assumed to approximate their fair value.

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Tungsten Mining NL • Half Year Financial Report 31 December 2022

Condensed notes to the consolidated financial statements

NOTE 8: PROVISIONS

	Consolidated
	December 2022 June 2022
	$ $
Current Provision for rehabilitation Provision for employee annual leave Provision for employee long service leave Non-current Provision for rehabilitation Provision for employee long service leave Total Provisions Provision for rehabilitation	- 9,000 48,202 118,902 43,193 106,496
	91,395 234,398
	519,000 510,000 7,822 14,808
	526,822 524,808
	618,217 759,206

The non-current provision for rehabilitation includes an amount of $400,000 which was assumed in prior financial years as part of the Watershed acquisition.

NOTE 9: RESERVES

	Consolidated
	December 2022 June 2022
	$ $
Share option reserve Loan-funded share scheme reserve Vested and exercisable options	855,398 855,398 6,996,320 6,996,320
	7,851,718 7,851,718

There were no options issued or exercised during the period and there were no outstanding options on issue at period end.

NOTE 10: ISSUED CAPITAL

	Consolidated
	December 2022 June 2022
	$ $
Ordinary shares fully paid	82,460,127 82,460,127
	82,460,127 82,460,127
The following table illustrates the movement in ordinary shares
	$ Number
Balance at the beginning of period Movement during the period Balance at the end of period	82,460,127 786,414,272 - -
	82,460,127 786,414,272

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Tungsten Mining NL • Half Year Financial Report 31 December 2022

Condensed notes to the consolidated financial statements

NOTE 11: CONTROLLED ENTITIES

Tungsten Mining NL is the ultimate parent entity of the consolidated group. The following were controlled entities at period end and have been included in the consolidated financial statements. All shares held are ordinary shares.

Subsidiaries	Country of Incorporation	Percentage Interest Held 31 Dec 2022	Percentage Interest Held 30 Jun 2022	Date Acquired/ Incorporated
SM3-W Pty Ltd	Australia	100	100	13/12/2012
Pilbara Tungsten Pty Ltd	Australia	100	100	30/11/2015
Mid-West Tungsten Pty Ltd	Australia	100	100	30/11/2015
North Queensland Tungsten Pty Ltd	Australia	100	100	09/08/2018
Territory Tungsten Pty Ltd	Australia	100	100	01/03/2019

NOTE 12: CONTINGENT LIABILITIES

Mulgine Drilling Incident

As a result of a drilling incident that occurred at the Mt Mulgine Project in July 2019, DMIRS prosecuted Tungsten Mining NL in the Magistrates Court of Western Australia. Tungsten Mining NL has pleaded guilty to the charge and is awaiting the sentencing hearing. At the date of this report, the Prosecutor and Defendant submissions have not yet been heard in the Court or a sentencing hearing held, therefore it is not possible to estimate a liability.

The Group is not aware of any other significant contingencies that existed at balance date.

NOTE 13: EVENTS SUBSEQUENT TO BALANCE DATE

There have been no other matters or circumstances that have arisen since 31 December 2022 to the date of this report that 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.

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Tungsten Mining NL • Half Year Financial Report 31 December 2022

Directors’ Declaration

In accordance with a resolution of the directors of Tungsten Mining NL, I state that:

In the opinion of the Directors:

• (a) The financial statements and notes of the Group are in accordance with the Corporations Act 2001, including:

• i. Giving a true and fair view of the financial position as at 31 December 2022 and the performance for the half-year ended on that date of the Group; and

• ii. Complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001.

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

On behalf of the Board,

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Gary Lyons Chairman Perth, 10 March 2023

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Tungsten Mining NL • Half Year Financial Report 31 December 2022

Auditor’s independence declaration

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Tungsten Mining NL • Half Year Financial Report 31 December 2022

Independent auditor’s review report

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Tungsten Mining NL • Half Year Financial Report 31 December 2022

Independent auditor’s review report

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Tungsten Mining NL • Half Year Financial Report 31 December 2022