Ann: Half Year Accounts - December 2021, page-2

Exploration is going well, but project financing is in the hands of the global supply chain gods.

Ongoing work,

1. Land access granted for Hylea Project with RC drilling in March-April 2022 to occur, this has the potential to add significant nickel, cobalt and PGM's to the company resource inventory.
2. Exploration granted at Burra Creek (north of Sunrise Project) could unearth tin, precious and battery metals based on historic alluvial tin and large hard rock gold workings in the area,
3. Sunrise East exploration showing good cobalt grades up to 1,120 ppm Co near surface (SDD029)
4. A new 53-hole RC drilling program at Sunrise East is planned for CY2022 to test the extent of the cobalt-bearing oxide mineralisation thus potentially expanding the Sunrise Project resource a further 1,000 metres along strike,
5. Phoenix Platinum drilling (SDD022) identified a bonanza grade of 129 g/t Pt and subsequent platinum exploration suggests platinum mineralisation may broaden to the south and at depth along chromite veins and shear zones,
6. Boona Gap lease could transform into a Limestone quarry - SRL are completing a resource estimate,
7. Sunrise North lease is focused on reprocessing geophysical imagery and landholder negotiations to ultimately target additional battery metal mineralisation,
8. Minore Project could offer rare earth and copper-gold system opportunities based on historic data, work is planned to ramp up during CY2022,
9. Government permits being approved for PEP modifications,
10. Terminated Easpring contract, now all the production of battery materials from Sunrise Project are available for sale to strategic partners who may want product offtake as a condition of a direct investment in the project,
11. Continued R&D for downstream Li-ion battery recycling (black mass refining and precursor cathode production),
12. Scandium alloy development work with Japan's largest aluminium producer is continuing.

Cash reserves decreasing from $54.7 million at $29.3 million

• Forecast cash flows indicate the ability of the Consolidated Entity to maintain a positive cash position for at least the period of 12 months to February 2023.
• The Consolidated Entity expects that the relationship with its major investors will also assist in widening the Consolidated Entity’s opportunities for profitable commercialisation of its technologies in addition to assisting in securing further funding required.
• The Consolidated Entity will continue working towards securing a financing package to support the development of the Sunrise Project and anticipates the Consolidated Entity to produce substantial revenues in the future.
• The directors are confident that the Consolidated Entity can continue to access debt and equity funding to meet medium term working capital requirements and has a history of securing such funding as required to support their confidence.
• On the basis of cash and cash equivalents available as at 31 December 2021, cashflow forecasts to February 2023 and beyond, the ability of the Consolidated Entity to scale back planned activities if required to preserve cash and that sufficient funding is expected to be raised to meet the Consolidated Entity’s medium to long term expenditure forecasts, the directors consider that the Consolidated Entity remains a going concern and these financial statements have been prepared on this basis.

Enough cash reserves for 12 months, until Feb 2023......so do we expect a capital raise later this year (based on well timed exploration discoveries), or Project finance delivered just in time (as a consequence of pending offtake sales with strategic partners)???.

IMHO, 80% chance of finance by July.