VERITY RESOURCES LIMITED — Interim / Quarterly Report 2021

Mar 10, 2021

==> picture [205 x 123] intentionally omitted <==

ACN 122 995 073

FINANCIAL REPORT

FOR THE HALF-YEAR ENDED

31 DECEMBER 2020

CONTENTS

Directors' Report	3
Auditor’s Independence Declaration	8
Consolidated Statement of Profit or Loss and Other Comprehensive Income	9
Consolidated Statement of Financial Position	10
Consolidated Statement of Changes in Equity	11
Consolidated Statement of Cash Flows	12
Notes to the Consolidated Interim Financial Statements	13
Directors' Declaration	18
Independent Auditor’s Review Report	19

Si6 Metals Limited (formerly known as Six Sigma Metals Limited) – Interim Financial Report 2021

2 | P a g e

DIRECTORS’ REPORT

The Directors of Si6 Metals Limited (“Si6” or “the Company”) present their report, together with the financial statements on the consolidated entity consisting of Si6 Metals Limited and its controlled entities for the halfyear ended 31 December 2020 (“the Period”).

It is recommended that the Directors’ Report be read in conjunction with the annual financial statements for the year ended 30 June 2020 and considered together with any public announcement made by the Company during the period and up to the date of this report.

1. DIRECTORS

The names of the Company’s Directors who held office during the Period and until the date of this report are set out below. The Directors were in office for this entire Period unless otherwise stated.

Director	Position	Duration of Appointment
Mr Patrick Holywell	Executive Chairman	Appointed 25 November 2019
Mr Steven Groves	Technical Director	Appointed 22 February 2017
Mr Joshua Letcher	Non-Executive Director	Appointed 21 August 2017

2. PRINCIPAL ACTIVITIES

The Group’s principal activities during the year continue to be on exploration at the Maibele Project (Botswana) as well as Western Australia, following an option agreement entered into to acquire the Monument Project.

3. REVIEW OF OPERATIONS AND ACTIVITIES

Botswana – Maibele Project

The Maibele nickel sulphide mineralisation is related to ultramafic intrusions within mobile belt rocks and is broadly similar in style to other ultramafic intrusion-related mobile belt nickel discoveries such as NovaBollinger and Julimar. The Project is prospective for base metals and platinum group elements. During the period, planning was undertaken for a single deep diamond hole (which commenced late in the period) at Maibele North within a large electromagnetic conductor spatially associated with the mineralisation, testing along strike to the east of the nickel-sulphide intersection from the previous drill hole MARD0094. MARD0094 successfully intersected a nickel sulphide body returning significant assay results such as 6.82 metres @ 0.75% Ni, 0.25% Cu, 485 ppm Co, 0.06g/t Au and 0.43g/t Pd from 460 metres (see ASX announcement dated 14 October 2020).

During the period, other work undertaken at Maibele included gradient array induced polarization surveys at Airstrip and Dibete prospects which demonstrated strong chargeability responses for high-grade copper and silver mineralisation. Sampling was also undertaken at the Majante prospect highlighting a 1.2km long, subparallel zone of strong nickel responses coincident with the conductive electromagnetic feature.

Si6 has a farm-in and joint venture agreement with BCL Limited and its subsidiary BCL Investments (Pty) Ltd (jointly referred to as BCL). Under the terms of this agreement, BCL was required to spend A$4 million on exploration expenditure to earn a 40% equity interest in three tenements. BCL has the option to continue funding the project to a Bankable Feasibility Study in order to earn an additional 30%. In October 2016, BCL was placed into liquidation.

Si6 Metals Limited (formerly known as Six Sigma Metals Limited) – Interim Financial Report 2021

3 | P a g e

DIRECTORS’ REPORT

In early 2021, the Honourable, Moagi Lefoko, the Minister of Mineral Resources, Green Technology and Energy Security of Botswana, recently affirmed in Botswana Parliament the press release by the Liquidator for the BCL Group of Companies, stating that Premium Nickel Resources (PNR) was selected as the preferred bidder to acquire the assets formerly owned by BCL. PNR is a private Canadian company, dedicated to the exploration and development of high-quality nickel-copper-cobalt resources.

BCL owns the Selebi Phikwe mine, which is in close proximity to Si6’s projects. Selebi Phikwe operations are comprised of a mining complex, a concentrator and a smelter, as well as other supplementary assets and infrastructure including rail line, dams, tailings, dumps, and employee housing. Mining concluded in 2016 when the operations were placed on care and maintenance, due to low base metal prices and high operational costs. The mine employed more than 5,000 workers at the time of their closing.

==> picture [473 x 226] intentionally omitted <==

Figure 1: Location map showing Si6’s as well as Si6/BCL JV tenements, Maibele resource and the nearby BCL Selebi Phikwe mine.

An initial JORC-compliant (2012) Inferred Resource was calculated at Maibele by MSA South Africa in 2015 (see Table 1.). At the time of BCL’s liquidation, Worley Parsons had been engaged to recalculate the resource based on further drilling in preparation for mining pre-feasibility studies. This work was never completed.

==> picture [452 x 76] intentionally omitted <==

Si6 Metals Limited (formerly known as Six Sigma Metals Limited) – Interim Financial Report 2021

4 | P a g e

DIRECTORS’ REPORT

Western Australia – Monument Project

In Western Australia, Si6 Metals entered into a binding and exclusive heads of agreement to acquire a 100% interest in the Monument Project which is prospective for gold. The Project covers an area of 310km2 in a well-established mining district hosting excellent infrastructure and access including the sealed Leonora-toLaverton Road, which runs directly through the Project, a gas pipeline and a sealed airstrip at Laverton. The Project contains significant gold mineralisation and ~30km of relatively untested gold-hosted banded iron formation, which is interpreted to be the same unit that hosts the Westralia gold deposit (Dacian’s Mt Morgan Project), located immediately southeast of the Project. The world class Laverton Tectonic Zone, in which the Project lies, has produced more than 30 million ounces of gold and yielded some of Australia’s best-known gold mines.

Since entering into the heads of agreement, Si6 has undertaken preparations for a 4,400 metre reverse circulation drilling program at Korong and Waihi, which commenced in early 2021. The Korong Prospect has been the focal point of previous explorers and currently has an inferred resource estimate of 0.86Mt @ 1.8g/t for 50,000oz (see Table 2). Ongoing project assessment work has also identified additional drill targets and exploration targets for follow up. Reconnaissance sampling has also confirmed bedrock mineralisation >1g/t Au over 9km of strike between A1 and Perseverance prospects with a number of bedrock samples >3g/t Au and a peak value of 39.3g/t Au from grab sampling at the Fred’s Well North workings.

==> picture [229 x 307] intentionally omitted <==

==> picture [253 x 249] intentionally omitted <==

Figure 2: Location map showing the Monument Project proximity to Dacian’s Mount Morgan Project (in yellow)

Si6 Metals Limited (formerly known as Six Sigma Metals Limited) – Interim Financial Report 2021

5 | P a g e

DIRECTORS’ REPORT

	Korong Inferred Resource
Deposit	Tonnes	Grade (g/t)	Au Ounces
Korong	650,000	1.6	33,000
Korong UG	205,000	2.5	17,000

Table 2: Inferred Resource calculated by Mining Plus in 2018 to JORC 2012 compliance (at a 0.5g/t cut off for Korong and 2g/t cut off for Korong UG)(see ASX announcement dated 25 August 2020).

Competent Persons Statement

The information in this report that relates to Exploration Targets and Exploration Results is based on historical exploration information compiled by Mr Steven Groves, who is a Competent Person and a Member of the Australian Institute of Geoscientists. Mr Groves is a Director of Six Sigma Metals Limited. Mr Groves has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for the reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Groves consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Disclaimer

In relying on the above mentioned ASX announcements and pursuant to ASX Listing Rule 5.23.2, the Company confirms that it is not aware of any new information or data that materially affects the information included in the above mentioned report.

Share Placements

The Company completed a capital raising initiative via a combination of share placement and a Share Purchase Plan. The Company successfully raised $0.96 million via a share placement at $0.006 of 160,000,000 ordinary shares on 14 July 2020. 240,000,000 ordinary shares were issued at $0.006 per share to raise $1.44 million on 18 August 2020.

4. SIGNIFICANT CHANGES TO THE STATE OF AFFAIRS

There have been no significant changes to the state of affairs during the half-year ended 31 December 2020.

5. FINANCIAL RESULTS

The financial results of the Company for the half year ended 31 December 2020 are:

	31-Dec-20	30-Jun-20
Cash and cash equivalents ($)	5,618,402	799,695
Net assets ($)	5,476,418	729,714

Si6 Metals Limited (formerly known as Six Sigma Metals Limited) – Interim Financial Report 2021

6 | P a g e

DIRECTORS’ REPORT

	31-Dec-20	31-Dec-19
Net loss after tax ($)	(1,090,431)	(383,760)
Loss per share (cents)	(0.02)	(0.06)

6. EVENTS OCCURRING AFTER REPORTING DATE

There are no matters or circumstances which have arisen since the end of the half-year which significantly affected or may significantly affect the operations of the consolidated entity, the results of those operations, or the state of affairs of the consolidated entity in subsequent financial periods.

7. AUDITOR’S INDEPENDENCE DECLARATION

The lead auditor’s independence declaration under s 307C of the Corporations Act 2001 is set out on page 8 for the half-year ended 31 December 2020.

This report is signed in accordance with a resolution of the Board of Directors.

Patrick Holywell Executive Chairman

11 March 2021

Si6 Metals Limited (formerly known as Six Sigma Metals Limited) – Interim Financial Report 2021

7 | P a g e

38 Station Street Subiaco, WA 6008 PO Box 700 West Perth WA 6872 Australia

Tel: +61 8 6382 4600 Fax: +61 8 6382 4601 www.bdo.com.au

==> picture [77 x 30] intentionally omitted <==

DECLARATION OF INDEPENDENCE BY JARRAD PRUE TO THE DIRECTORS OF SI6 METALS LIMITED

As lead auditor for the review of Si6 Metals Limited for the half-year ended 31 December 2020, I declare that, to the best of my knowledge and belief, there have been:

1. No contraventions of the auditor independence requirements of the Corporations Act 2001 relation to the review; and

2. No contraventions of any applicable code of professional conduct in relation to the review.

This declaration is in respect of Si6 Metals Limited and the entities it controlled during the period.

==> picture [73 x 49] intentionally omitted <==

Jarrad Prue Director

BDO Audit (WA) Pty Ltd

Perth, 11 March 2021

BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation.

SI6 METALS LIMITED

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

FOR THE HALF-YEAR ENDED 31 DECEMBER 2020

Note Other Income Employment and consultancy Administrative and corporate expenses Other expenses Directors remuneration and fees Professional fees Travel and marketing Share-based payments 5 Exploration expenses Loss before income tax for the period Income tax expense Loss after income tax for the period Other comprehensive (loss)/income that may be subsequently reclassified to profit or loss Exchange differences from translation of foreign operations Total comprehensive loss for the period attributable to members of Si6 Metals Limited Loss per share for the period attributable to the members of Si6 Metals Limited: Basic and diluted loss per share	31-Dec-20 31-Dec-19 $ $
	10,716 2,455
	- (36,227)
	(180,656) (88,784)
	(545) (59,103)
	(139,799) (90,793)
	(99,260) (104,499)
	(17,774) (6,809)
	(279,300) -
	(383,813) -
	(1,090,431) (383,760)
	- -
	(1,090,431) (383,760)
	(2,086) 5,764
	(1,092,517) (377,996)
	(0.02) (0.06)

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

Si6 Metals Limited (formerly known as Six Sigma Metals Limited) – Interim Financial Report 2021

9 | P a g e

SI6 METALS LIMITED

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2020

Note ASSETS Current Assets Cash and cash equivalents Trade and other receivables Total Current Assets Non-Current Assets Right of use asset 3 Property, plant and equipment Total Non-Current Assets TOTAL ASSETS LIABILITIES Current Liabilities Trade and other payables Provisions Lease liability 3 Total Current Liabilities Non-Current Liabilities Lease liability 3 Total Non-Current Assets TOTAL LIABILITIES NET ASSETS EQUITY Issued capital 4 Reserves 5 Accumulated losses TOTAL EQUITY	31-Dec-20 30-Jun-20 $ $
	5,618,402 799,695 71,443 30,971
	5,689,845 830,666
	133,012 - 5,877 -
	138,889 -
	5,828,734 830,666
	239,139 84,897 17,037 16,055 14,855 -
	271,031 100,952
	81,285 -
	81,285 -
	352,316 100,952
	5,476,418 729,714
	26,926,050 21,661,131 795,519 223,303 (22,245,151) (21,154,720)
	5,476,418 729,714

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

Si6 Metals Limited (formerly known as Six Sigma Metals Limited) – Interim Financial Report 2021

10 | P a g e

SI6 METALS LIMITED

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE HALF YEAR ENDED 31 DECEMBER 2020

Balance at 1 July 2020 Net loss for the half-year Other comprehensive income for the half-year Total comprehensive income for the period Issue of ordinary shares Cost of capital raising Conversion of options Share-based payments Balance at 31 December 2020 Balance at 1 July 2019 Net loss for the half-year Other comprehensive income for the half-year Total comprehensive income for the period Issue of ordinary shares Cost of capital raising Balance at 31 December 2019	Issued Share Capital Share-based Payments Reserve Foreign Currency Translation Reserve Accumulated Losses Total Equity $ $ $ $ $ 21,661,131 465,090 (241,787) (21,154,720) 729,714
	- - - (1,090,431) (1,090,431) - - (2,086) - (2,086)
	- - (2,086) (1,090,431) (1,092,517)
	4,400,000 - - - 4,400,000 (599,959) 295,002 - - (304,957) 1,414,878 - - - 1,414,878 50,000 279,300 - - 329,300
	26,926,050 1,039,392 (243,873) (22,245,151) 5,476,418
	21,402,070 414,097 (257,691) (20,468,345) 1,090,131
	- - - (383,760) (383,760) - - 5,764 - 5,764
	- - 5,764 (383,760) (377,996)
	332,503 - - - 332,503 (73,442) 50,993 - - (22,449)
	21,661,131 465,090 (251,927) (20,852,105) 1,022,189

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

Si6 Metals Limited (formerly known as Six Sigma Metals Limited) – Interim Financial Report 2021

11 | P a g e

SI6 METALS LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE HALF YEAR ENDED 31 DECEMBER 2020

	31-Dec-20	31-Dec-19
	$	$
Cash flows used in operating activities
Payments to suppliers and employees	(323,712)	(482,406)
Interest received	716	2,453
Payments for exploration and evaluation	(333,383)	-
Governmentgrants	10,000	-
Net cash flows used in operating activities	(646,379)	(479,953)
Cash flows from investing activities
Payments forproperty, plant and equipment	(5,877)	-
Net cash flowsprovided by financing activities	(5,877)	-
Cash flows from financing activities
Proceeds from the issue of shares	4,400,000	332,500
Share issue costs	(304,957)	(22,447)
Proceeds from the conversion of options	1,414,878	-
Payments for leases	(36,872)	-
Net cash flowsprovided by financing activities	5,473,049	310,053
Net (decrease)/increase in cash and cash equivalents	4,820,793	(169,900)
Cash and cash equivalents at the beginning of the period	799,695	1,230,860
Foreign currencyeffect on cash held	(2,086)	5,764
Cash and cash equivalents at the end of theperiod	5,618,402	1,066,724

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

Si6 Metals Limited (formerly known as Six Sigma Metals Limited) – Interim Financial Report 2021

12 | P a g e

SI6 METALS LIMITED

Notes to the Consolidated Interim Financial Statements

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

These general purpose interim financial statements for half-year reporting period ended 31 December 2020 have been prepared in accordance with requirements of the Corporations Act 2001 and Australian Accounting Standard AASB 134: Interim Financial Reporting. The Group is a for-profit entity for financial reporting purposes under Australian Accounting Standards.

This interim financial report is intended to provide users with an update on the latest annual financial statements of Si6 Metals Limited. As such, it does not contain information that represents relatively insignificant changes occurring during the half-year within the Group. It is therefore recommended that this financial report be read in conjunction with the annual financial statements of the Group for the year ended 30 June 2020, together with any public announcements made during the following half-year.

Significant accounting judgments and key estimates

The preparation of the interim financial report requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expense. Actual results may differ from these estimates.

In preparing this interim financial report, the significant judgments made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial report for the year ended 30 June 2020.

Accounting Policies

The accounting policies are consistent with those applied in the previous financial year and those of the corresponding interim reporting period, other than as detailed below.

New and amended Accounting Standards that are effective for the current period

The Company has adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (the AASB) that are relevant to their operations and effective for the current halfyear. New and revised Standards and amendments thereof and Interpretations effective for the current year that are relevant to the Company are:

• AASB 2018-6 Amendments to Australian Accounting Standards – Definition of a Business

• AASB 2018-7 Amendments to Australian Accounting Standards – Definition of Material

• AASB 2019-1 Amendments to Australian Accounting Standards – References to the Conceptual Framework

• AASB 2019-3 Amendments to Australian Accounting Standards – Interest Rate Benchmark Reform

• AASB 2019-5 Amendments to Australian Accounting Standards – Disclosure of the Effect of New IFRS Standards Not Yet Issued in Australia

• AASB 2020-4 Amendments to Australian Accounting Standards – COVID-19-Related Rent Concessions

Their adoption has not had any material impact on the disclosures or on the amounts reported in these financial statements.

Si6 Metals Limited (formerly known as Six Sigma Metals Limited) – Interim Financial Report 2021

13 | P a g e

SI6 METALS LIMITED

Notes to the Consolidated Interim Financial Statements

NOTE 2: OPERATING SEGMENTS

The consolidated entity operates within two geographical segments within mineral exploration being Australia and Botswana. The segment information provided to the chief operating decision maker is as follows:

NOTE 3: LEASES Period Ended 31 December 2020 Revenue and other income Result (loss) Total assets Total liabilities Period Ended 31 December 2019 Revenue and other income Result (loss) Period Ended 30 June 2020 Total assets Total liabilities	Australia Botswana Total
	$ $ $
	10,716 - 10,716
	(949,568) (140,863) (1,090,431)
	5,821,116 7,618 5,828,734
	(329,497) (22,819) (352,316)
	2,455 - 2,455
	(322,660) (61,100) (383,760)
	825,077 5,589 830,666
	(75,444) (25,508) (100,952)
	31-Dec-20 30 Jun-20
	$ $
Current
Lease liability	17,518 -
Unexpired interest	(2,663) -
	14,855 -
Non-Current
Lease liability	88,167 -
Unexpired interest	(6,882) -
	81,285 -
In December 2020, the Company purchased a motor vehicle for $133,012. A deposit of $36,872 was paid and the remaining balance of $96,140 has been financed at an interest rate of 2.98%, expiring December 2026.

NOTE 4: ISSUED CAPITAL

	31-Dec-20 30 Jun-20
	$ $
Issued and paid up Capital
a) 1,318,451,819 Ordinary Shares Fully Paid (2020: 645,003,153)	26,926,050 21,661,131

Si6 Metals Limited (formerly known as Six Sigma Metals Limited) – Interim Financial Report 2021

14 | P a g e

Notes to the Consolidated Interim Financial Statements

SI6 METALS LIMITED

NOTE 4: ISSUED CAPITAL (CONTINUED)

Movement in ordinary shares on issue 2020 Balance at the beginning of the period Conversion of options Issue of shares to DiscovEx Placement Issue of shares Capital raising costs Balance at the end of period	31 December 2020 30 June 2020 No. of Shares $ No. of Shares $
	645,003,153 21,661,131 561,878,153 21,402,070 149,987,652 1,414,878 - - 5,813,954 50,000 - - 400,000,000 2,400,000 83,125,000 332,503 117,647,060 2,000,000 - (599,959) - (73,442)
	1,318,451,819 26,926,050 645,003,153 21,661,131

NOTE 5: RESERVES AND SHARE-BASED PAYMENTS

Share-based payments reserve Foreign currency translation reserve Movement reconciliation Share-based payments reserve Balance at the beginning of the period Share-based payments expense Capital raising expense Balance at the end of the period Movement reconciliation Foreign currency translation reserve Balance at the beginning of the period Other comprehensive income Balance at the end of the period	31-Dec-20 30 Jun-20 $ $
	1,039,392 465,090 (243,873) (248,901)
	795,519 216,189
	465,090 414,097
	279,300 -
	295,002 50,993
	1,039,392 465,090
	(241,787) (257,691) (2,086) 15,904
	(243,873) (241,787)

Si6 Metals Limited (formerly known as Six Sigma Metals Limited) – Interim Financial Report 2021

15 | P a g e

SI6 METALS LIMITED

Notes to the Consolidated Interim Financial Statements

NOTE 5: RESERVES AND SHARE-BASED PAYMENTS (CONTINUED)

Summary of options granted during the period

Options Issue Date Date of Expiry	Exercise Price Balance at the start of theperiod Granted during the period Exercised during the period Expired during the period Balance at the end of the period	Exercise Price Balance at the start of theperiod Granted during the period Exercised during the period Expired during the period Balance at the end of the period
Openingbalance	276,686,366 - 96,273,525 - 180,412,841
Directors & companysecretary 30/9/2020 1/7/2022	$0.008 - 26,000,000 18,000,000 - 8,000,000
Free attaching 30/9/2020 1/7/2022	$0.008 - 200,000,000 20,714,127 - 179,285,873
Lead manager 30/9/2020 1/7/2022	$0.008 - 30,000,000 15,000,000 - 15,000,000
Exploration manager 13/10/2020 13/10/2022	$0.02 - 3,000,000 -
		- 3,000,000
	276,686,366 259,000,000 149,987,652 - 385,698,714

The options detailed below have been valued using the Black-Scholes model. The Company has used BlackScholes to value the options as they are not able to estimate the value of the services reliably. The model and assumptions are shown in the table below:

	Directors & Company secretary	Lead manager	Exploration manager
Grant date shareprice	$0.014	$0.014	$0.013
Exerciseprice	$0.008	$0.008	$0.02
Expected volatility	125%	125%	125%
Grant date	21/09/2020	21/09/2020	13/10/2020
Expirydate	1/07/2022	1/07/2022	13/10/2022
Dividendyield	0%	0%	0%
Risk free rate	0.19%	0.19%	0.19%
Black-Scholes Valuation	$0.010	$0.010	$0.008
Total Fair Value of Options	$255,669	$295,002	$23,631
Number of Options Issued	26,000,000	30,000,000	3,000,000

NOTE 6: EXPLORATION

In July 2020, the Company entered into an exclusivity agreement and subsequently, in August 2020, a binding Heads of Agreement with DiscovEx Resources Ltd with an option to acquire a 100% interest in the Monument Gold Project. As part of the agreement, $50,000 was paid in cash and a further $50,000 was paid in shares (see note 4).

NOTE 7: CONTINGENCIES AND COMMITMENTS

There are no changes in the Company’s commitments or contingencies from 30 June 2020.

NOTE 8: DIVIDENDS

No dividends were paid or proposed to be paid to members during the half year ended 31 December 2020.

NOTE 9: RELATED PARTIES

There have been no material changes to related parties since the financial year ended 30 June 2020. During the period, options were issued to Directors. 15 million were issued to Patrick Holywell, 3 million were issued to Joshua Letcher and 6 million were issued to Steve Groves. Refer to Note 5 for further details regarding the options.

Si6 Metals Limited (formerly known as Six Sigma Metals Limited) – Interim Financial Report 2021

16 | P a g e

SI6 METALS LIMITED

Notes to the Consolidated Interim Financial Statements

NOTE 10: EVENTS AFTER THE END OF THE INTERIM PERIOD

There are no matters or circumstances which have arisen since the end of the half-year which significantly affected or may significantly affect the operations of the consolidated entity, the results of those operations, or the state of affairs of the consolidated entity in subsequent financial periods.

Si6 Metals Limited (formerly known as Six Sigma Metals Limited) – Interim Financial Report 2021

17 | P a g e

SI6 METALS LIMITED

DIRECTORS’ DECLARATION

In the directors' opinion:

• the attached financial statements and notes comply with the Corporations Act 2001, Australian Accounting Standard AASB 134 'Interim Financial Reporting', the Corporations Regulations 2001 and other mandatory professional reporting requirements;

• the attached financial statements and notes give a true and fair view of the consolidated entity's financial position as at 31 December 2020 and of its performance for the financial half-year ended on that date; and

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

Signed in accordance with a resolution of directors made pursuant to section 303(5)(a) of the Corporations Act 2001.

On behalf of the directors

Patrick Hollywell Executive Chairman

11 March 2021

Si6 Metals Limited (formerly known as Six Sigma Metals Limited) – Interim Financial Report 2021

18 | P a g e

Tel: +61 8 6382 4600 38 Station Street Fax: +61 8 6382 4601 Subiaco, WA 6008 www.bdo.com.au PO Box 700 West Perth WA 6872 Australia

==> picture [77 x 30] intentionally omitted <==

INDEPENDENT AUDITOR’S REVIEW REPORT

To the members of Si6 Metals Limited

Report on the Half-Year Financial Report

Conclusion

We have reviewed the half-year financial report of Si6 Metals Limited (the Company) and its subsidiaries (the Group), which comprises the consolidated statement of financial position as at 31 December 2020, 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 halfyear ended on that date, a summary of statement of accounting policies and other explanatory information, and the directors’ declaration.

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the accompanying half-year financial report of the Group does not comply with the Corporations Act 2001 including:

• (i) Giving a true and fair view of the Group’s financial position as at 31 December 2020 and of its financial performance for the half-year ended on that date; and

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

Basis for conclusion

We conducted our review in accordance with ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity . Our responsibilities are further described in the Auditor’s Responsibilities for the Review of the Financial Report section of our report. We are independent of the Company 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 (including Independence Standards) (the Code) that are relevant to the audit of the annual 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 the same terms if given to the directors as at the time of this auditor’s review report.

Responsibility of the directors for the 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.

BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation.

==> picture [78 x 31] intentionally omitted <==

Auditor’s responsibility for the review of the financial report

Our responsibility is to express a conclusion on the half-year financial report based on our review. ASRE 2410 requires us to conclude whether we have become aware of any matter that makes us believe that the half-year financial report is not in accordance with the Corporations Act 2001 including giving a true and fair view of the Group’s financial position as at 31 December 2020 and its financial performance for the half-year ended on that date and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 .

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.

BDO Audit (WA) Pty Ltd

==> picture [70 x 68] intentionally omitted <==

Jarrad Prue Director

Perth, 11 March 2021