Jindalee Resources : Full Year Statutory Accounts

JINDALEE RESOURCES LIMITED AND CONTROLLED ENTITIES

A.B.N. 52 064 121 133

FINANCIAL REPORT

30 JUNE 2019

CORPORATE DIRECTORY

Board and Management

Justin Mannolini	Non-Executive Chairman
Pip Darvall		Managing Director
Lindsay Dudfield	Executive Director
Patricia (Trish) Farr	Executive Director/Company Secretary
Greg Ledger		Company Secretary
Registered Office & Principal Place of Business
Level 2
9 Havelock Street
West Perth, WA 6005
Telephone:	[phone]
Facsimile:	[phone]
Email:	[e-mail]
Web:	www.jindalee.net

Auditors

BDO Audit (WA) Pty Ltd

38 Station Street

Subiaco, WA 6008

Legal Advisors

House Legal

86 First Avenue

Mount Lawley, WA 6050

Share Registry

Advanced Share Registry

110 Stirling Highway

Nedlands, WA 6000

Telephone:	[phone]
Facsimile:	[phone]

Securities Exchange Listing

The Company is listed on the Australian Securities Exchange Ltd ("ASX") Home Exchange: Perth, Western Australia

ASX Code:

JRL

CONTENTS

DIRECTORS' REPORT ..................................................................................................................	3
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME ........	14
CONSOLIDATED STATEMENT OF FINANCIAL POSITION..............................................................	15
CONSOLIDATED STATEMENT OF CASH FLOWS ..........................................................................	16
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY...............................................................	17
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS..........................................................	18
DIRECTORS' DECLARATION.......................................................................................................	40
AUDITOR'S INDEPENDENCE DECLARATION...............................................................................	41
INDEPENDENT AUDITOR'S REPORT...........................................................................................	42

JINDALEE RESOURCES LIMITED

DIRECTORS' REPORT

DIRECTORS' REPORT

The Directors present their report on the consolidated entity (referred to hereafter as the Group) consisting of Jindalee Resources Limited and the entities it controlled at the end of, or during the year ended 30 June 2019.

Directors

The following persons were directors of Jindalee Resources Limited during the whole of the financial year and up to the date of this report unless noted otherwise:

Lindsay Dudfield

Justin Mannolini

Patricia Farr

Pip Darvall

Principal activities

The principal activity during the year of Jindalee Resources Limited was mineral exploration. During the year there was no change in the nature of this activity.

Financial results

The consolidated loss of the Group after providing for income tax for the year ended 30 June 2019 was $1,019,707 (2018: loss $1,395,292).

Dividends

No dividends have been declared since the end of the previous financial year and no dividends have been recommended by the Directors.

Significant changes in the state of affairs

During the year there has been no significant change in the state of affairs of the Group.

Operations and financial review

The principal activity of the Group is mineral exploration. The Group holds interests in tenements in the United States, Tasmania and Western Australia prospective for lithium, magnesite, gold, diamonds, nickel and iron ore, with most of these tenements wholly owned. The Group also has indirect interests in uranium, gold and base metals through various investee companies.

In line with the Company's business strategy, during the year management evaluated numerous advanced projects in both Australia and overseas, with a view to securing an opportunity capable of growing the Group and creating wealth for Shareholders.

The net assets of the Group have fallen by $847,467 from $5,427,675 at 30 June 2018 to $4,580,207 at 30 June 2019, principally due to the Group's loss for the year of $1,019,707 offset by the movement in share capital and share-based payment reserve of $172,239.

The Directors believe the Group is in a sound financial position to continue its exploration endeavours.

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JINDALEE RESOURCES LIMITED

DIRECTORS' REPORT

Events since the end of the financial year

As announced to ASX on 10 July 2019, the Company announced a 1 for 10 non-renounceable pro rata entitlement offer at $0.30 per share to raise approximately $1.05M (before costs of the offer). The funds raised are to be used to advance the Company's McDermitt Lithium Project (US), Widgiemooltha Gold-Nickel Project (WA) and for general working capital.

As announced to ASX on 26 July 2019, the Group has entered into a Binding Preliminary Sales and Purchase Agreement ("Agreement") with SilverStream SEZC whereby SilverStream will purchase the Groups royalties over projects in the Eastern Goldfields of Western Australia, including West Kundana, Kookynie, Kelly Well, New Bore and Millrose. The Agreement will serve as the basis for a Definitive Sales and Purchase Agreement ("DPA") to be executed by the parties, with the DPA conditional on third-party consents being obtained by Jindalee and completion of further documentation. Consideration for the sale will comprise $250,000 in cash and a $250,000 convertible note with a 12 month expiry.

Other than the matters outlined above, there has not arisen in the interval between the end of the financial year and the date of this report any item, transaction or event of a material and unusual nature likely, in the opinion of the Directors, to affect significantly the operations, the results of those operations, or the state of affairs of the Group in future financial years.

Likely developments and expected results of operations

The Directors are not aware of any developments that might have a significant effect on the operations of the Group in subsequent financial years not already disclosed in this report.

Environmental regulation

The Group is subject to significant environmental regulation in respect of its exploration activities. Tenements in Western Australia are granted subject to adherence to environmental conditions with strict controls on clearing, including a prohibition on the use of mechanised equipment or development without the approval of the relevant government agencies, and with rehabilitation required on completion of exploration activities. These regulations are controlled by the Department of Mines and Petroleum.

Jindalee's claims in the United States of America are all located on Federally owned land managed by the Bureau of Land Management. There are a range of requirements that must be met when undertaking exploration activities, including seeking approval depending on the nature of the activities and undertaking rehabilitation once activities are complete. Bonds are payable prior to the commencement of exploration activities and are returned on satisfactory completion of rehabilitation. Jindalee Resources Limited conducts its exploration activities in an environmentally sensitive manner and the Group is not aware of any breach of statutory conditions or obligations.

Greenhouse gas and energy data reporting requirements

The Directors have considered compliance with both the Energy Efficiency Opportunity Act 2006 and the National Greenhouse and Energy Reporting Act 2007 which requires entities to report annual greenhouse gas emissions and energy use. The Directors have assessed that there are no current reporting requirements for the year ended 30 June 2019, however reporting requirements may change in the future.

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