Altamin : Half Year Accounts - December 2021

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ALTAMIN LIMITED

ABN 63 078 510 988

AND CONTROLLED ENTITIES

HALF YEARLY REPORT

FOR THE SIX MONTHS ENDED

31 DECEMBER 2021

Results for announcement to the market

This half-year information is given to the ASX under Listing Rule 4.2A

The information contained in this report should be read in conjunction with

the Annual Report for the year ended 30 June 2021

For personal use only

Altamin Limited & Controlled Entities

TABLE OF 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
CONDENSED NOTES TO THE FINANCIAL STATEMENTS .........................................................................................	13
1.	CORPORATE INFORMATION....................................................................................................................	13
2.	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ..............................................................................	13
3.	OPERATING SEGMENTS ..........................................................................................................................	14
4.	ADMINISTRATION EXPENSE ....................................................................................................................	14
5.	EARNINGS PER SHARE .............................................................................................................................	15
6.	RECEIVABLES...........................................................................................................................................	15
7.	EXPLORATION AND EVALUATION EXPENDITURE ....................................................................................	16
8.	EQUITY ....................................................................................................................................................	16
9.	SHARE BASED PAYMENTS .......................................................................................................................	17
10.	KEY MANAGEMENT PERSONNEL AND RELATED PARTY TRANSACTIONS.................................................	17
11.	FINANCIAL RISK MANAGEMENT..............................................................................................................	17
12.	COMMITMENTS AND CONTINGENCIES...................................................................................................	20
13.	EVENTS AFTER THE REPORTING PERIOD .................................................................................................	20
DIRECTORS' DECLARATION ...................................................................................................................................	22
INDEPENDENT AUDITOR'S REVIEW REPORT TO THE MEMBERS OF ALTAMIN LIMITED ........................................	23
CORPORATE DIRECTORY .......................................................................................................................................	25

For personal use only

Altamin Limited & Controlled Entities

Directors' Report for the half-year ended 31 December 2021

DIRECTORS' REPORT

The Directors of Altamin Limited (Altamin or the Company) submit the financial report of Altamin Limited and its subsidiaries (the Group) for the half-year ended 31 December 2021. The name of the company was changed to Altamin Limited from Alta Zinc Limited on 29 November 2021, to reflect the Company's broader base and battery metal portfolio.

In order to comply with the provisions of the Corporations Act 2001, the Directors report as follows:

Directors

The names of the Directors of the Company during or since the end of the half-year are:

Name

Mr Alexander Burns

Mr Geraint Harris

Mr Stephen Hills

Mr Marcello Cardaci

The Directors were in office for the entire period under review.

Review of Operations

The Company continued to focus on its brownfields Gorno Zinc Project, located in the Lombardy region in northern Italy and the Punta Corna Cobalt Project in the Piedmont region. Altamin also has current applications for exploration licences over two of the most significant historical copper mining districts in Italy in the Emilia Romagna and Liguria regions, and a prospective lithium in brine exploration area in the Lazio region.

This review summarises Altamin's activities for the six months to 31 December 2021.

Gorno Zinc Project, Italy

As reported on 8 September 2021, Altamin announced an Exploration Target1 for Gorno of between 17.4 and

22.0 million tonnes at a grade ranging between 8.5 and 10.4% zinc, 1.9 and 2.4% lead, and 19 and 23g/t silver. During the period, Altamin continued its exploration programs at Gorno.

This included specific exploration investigations to enhance the accuracy and detailed characterisation of host rock, structures and mineralisation in the geological database for resource estimation purposes.

In addition, exploration drilling and channel sampling was focused on areas outside the Mineral Resource areas, returning high-grade intersections with Pian-Bracca style mineralisation in a new area 320m north of the high- grade Pian Bracca corridor, and intersecting multiple lenses of mineralisation at Ponente. Drilling was paused during Q4 2021 and is expected to restart during Q1 2022.

Mineral Resource Estimate

On 15 November 2021, Altamin reported an updated Mineral Resource Estimate (MRE)2 above a cut-off grade of 1% zinc is 7.8Mt @ Zn 6.8%; Pb1.8% (Zn+Pb 8.6%) and Ag 32g/t. The MRE was independently prepared by CSA Global.

The Indicated resource category accounts for approximately 74% of the total resource, with the oxide component of the mineralisation comprising approximately 9%.

1. ASX announcement 'Exploration Target Outlines Upside at Gorno' 8 September 2021
2. ASX announcement 'Updated Mineral Resource for Gorno' 15 November 2021

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Altamin Limited & Controlled Entities

Directors' Report for the half-year ended 31 December 2021

Table 1: Mineral Resource Estimate of the Gorno Deposit

Reported above a cut-off grade of 1% Zn

Domain	JORC	Tonnes	Zinc Total	Lead Total		Silver
Classification	kt
	%	kt	%	kt	g/t		koz
	Indicated	5,000	6.7	335	1.7	86	33		5,380
Sulphide	Inferred	2,060	7.2	149	1.8	38	31		2,040
	Subtotal	7,060	6.9	484	1.8	124	33		7,420
	Indicated	670	6.0	40	1.8	12	26		560
Oxide	Inferred	70	7.0	5	1.8	1	26		60
	Subtotal	730	6.1	45	1.8	13	26		620
	Indicated	5,660	6.6	375	1.7	98	33		5,940
Total	Inferred	2,130	7.2	153	1.8	39	31		2,100
	Total	7,790	6.8	528	1.8	137	32		8,040

Initial Scoping Study

On 24 November 2021, Altamin reported an initial Scoping Study3 for the Gorno Project based on the MRE which demonstrates strong production metrics and indicates robust project economics.

The Study presents an evaluation of the financial viability of the Gorno Project (to an accuracy of ±35%), prepared by mining industry consultants CSA Global, with results summarised as follows:

• estimated an approximate total production target of 6.0 Mt containing 77% Indicated and 23% Inferred Mineral Resources at or above a cut-off grade of 3.5% ZnEq at a mining rate of 0.8Mtpa over the proposed 9 year Life of Mine (LOM)
• Positive project economics indicated in the range 50% IRR and A$287M NPV 8% post-tax derived from scenarios of various commodity prices and capital/operating cost sensitivities
• Pre-productioncapital costs of US$114M (±35% accuracy) identified by the study; excluding pre- development capital of approximately A$5.2M
• LOM target of approximately 630,000 dry metric tonnes (dmt) of zinc concentrate (63% Zn) and 108,000 dmt of lead-silver concentrate (76% Pb and 740g/t Ag)
• Planned drill programs to test the extensions of the current Mineral Resource and surrounding exploration target area(s) are likely to extend the life of mine beyond the initial 9 year period

The Study provides confirmation that the Gorno Project is commercially viable and recommends proceeding to the next stage of feasibility studies.

In accordance with the recommendations, the Company has commenced metallurgical testwork, in parallel with ongoing exploration and resource drilling, as part of a Definitive Feasibility Study (DFS) with results expected by the end of calendar year 2022.

Permitting

Operations at Gorno continued under the approved scope of work of the Cime EL. The EL grants the Company the right to explore for lead, zinc, copper, silver and all associated metals over approximately 1,200 hectares centred over the Gorno mine encompassing the historical underground workings and areas of near-mine prospectivity. The Cime EL is valid until 5 July 2023 with the right to extend for a further three years to expiry in 2026. The EL footprint is similar to the area of the Mining Licence (ML) which is currently under application.

3 ASX announcement 'Gorno Scoping Study' 24 November 2021

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Altamin Limited & Controlled Entities

Directors' Report for the half-year ended 31 December 2021

The Company lodged an amended ML renewal application for the Gorno Mine on 23 November 2021 to reflect the updated project configuration contained in the Gorno Scoping Study and to address stakeholder questions arising from the original renewal application.

The public stakeholder consultation concluded on 31 December 2021 and formal feedback is expected from the Italian Ministry of Environment following their review of submissions within H1 2022.

Once approved, the ML will allow the Company to continue exploration for the life of the ML which is expected to be 20+ years. After receipt of the ML approval additional studies, planning and design work will be required to fulfil the final permitting requirements for surface installations, and this will be conducted during the DFS and FEED study stages.

Separately, the Company has agreed commercial terms with landholders to secure purchase options over those properties in the Zorzone Industrial Area, which are required for the Gorno Project's proposed new mine access portal and processing plant.

OHS & E

During the period, the Company confirmed the completion of training and the appointment of an existing full- time staff member to the statutory role of "RSPP" with responsibility for site safety at Gorno. This in-house appointment is significant in that is indicative of the Company's efforts to promote the development of local professional skills as well as enhance the focus on workplace health and safety which has previously been provided solely through the support of external consultant services.

Whilst the COVID-19 situation in the Region of Lombardy has continued to present health risks in the community generally, operations at Gorno were not materially impacted by the pandemic. The Company continued to conform its COVID-19 policy with the workplace regulations decreed by the relevant Italian authorities.

Punta Corna Cobalt Project, Piedmont, Italy

The Punta Corna Cobalt Project consists of two granted Exploration Licences (ELs) Punta Corna and Balme, which cover the historic Usseglio cobalt mining area (active from circa 1756 to 1759) in Piedmont, northern Italy.The Punta Corna Project has been significantly advanced through several campaigns of surface geological mapping and sampling and an in-depth review of historical project exploration and research. The Company has targets at Punta Corna ready to commence drilling when the required permitting is finalised, expected in Q1 2022.

In August 2021, the Company renewed the licence for the Balme EL for a further 3 years. The Balme EL area of approximately 1,550 ha overlies the northern half of the Punta Corna Project and secures the extensions of the prospective geology from the Punta Corna EL.

VMS Projects (Liguria & Emilia Romagna, Northern Italy)

The Company has submitted applications for exploration licences over the most significant copper mining districts in Italy, hosted in copper-rich VMS (Volcanogenic Massive Sulphide) systems:

• Monte Bianco EL (8,200 ha / copper, cobalt, silver and manganese) in the Liguria region of the Northern Apennines; and
• Corchia EL (3,500 ha / copper, cobalt, silver and gold) in the Emilia Romagna region.

Both EL areas contain multiple high-grade mines that historically produced a significant portion of Italy's copper and manganese up to the early 1970s. The mines were typified by their unusually high copper grades. For example, the average grade mined at Libiola was circa 7% Cu and at Corchia was circa 3-5% Cu.

Following examination of the EL applications and review of public comments for the two VMS exploration areas by the VIA committee at the Ministry of the Environment in Rome, the Company has recently received Environmental Decrees in support of its proposed exploration programs over both the Monte Bianco and the Corchia projects. Next, the Company will apply to the respective regional governments for those exploration licences.

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