Copper Strike : Half-year Financial Report - 31 December 2021

onlyCopper Strike Limited

ABN 16 108 398 983

useHalf-year Financial Report - 31 December 2021 personalFor

Copper Strike Limited

Contents

31 December 2021

Corporate directory Directors' report

Auditor's independence declaration

Statement of profit or loss and other comprehensive income onlyStatement of financial position

Statement of changes in equity

Statement of cash flows

Notes to the financial statements Directors' declaration

I dependent auditor's review report to the members of Copper Strike Limited

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Copper Strike Limited Corporate directory 31 December 2021

Directors

onlyCompany secretary Registered office

Principal place of business

useShare register

A ditor

personalStock exchange listing Website

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Mr Mark Hanlon (Non-Executive Chairman)

Mr Brendan Jesser (Non-Executive Director)

Mr Anthony McIntosh (Non-Executive Director)

Mr Stefan Ross

Level 4, 100 Albert Road

South Melbourne Victoria 3205

Telephone: [phone]

Level 4, 100 Albert Road

South Melbourne Victoria 3205

Telephone: [phone]

Automic Group

Level 2, 267 St Georges Terrace

Perth, WA 6000

Telephone: [phone]

William Buck

Level 20, 181 William Street

Melbourne, VIC, 3000

Telephone: [phone]

Copper Strike Limited securities are listed on the Australian Securities Exchange (ASX code: CSE)

www.copperstrike.com.au

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Copper Strike Limited Directors' report

31 December 2021

The directors present their report, together with the financial statements, on the company for the half-year ended 31 December 2021.

Directors

onlyThe following persons were directors of Copper Strike Limited during the whole of the financial half-year and up to the date of this report, unless otherwise stated:

Mr Mark Hanlon (Non-Executive Chairman)

Mr Brendan Jesser (Non-Executive Director)

Mr Anthony McIntosh (Non-Executive Director)

Principal activities

useDuring the financial half-year the principal continuing activities of the Company consisted of, reviewing potential exploration and development resource acquisitions (in the materials and other sectors), and management of the Company's investments.

Review of operations

The loss for the Company after providing for income tax amounted to $679,444 (31 December 2020: $161,872).

Financial Position

The net assets of the Company increased by $4,580,796 to $15,830,134 as at 31 December 2021 (30 June 2021: personal$11,249,338). The main reason for the increase was due to the increase in the Company's financial assets at fair value through other comprehensive income, which increased by $7,084,562 (before tax) during the period. As at 31 December

2021 Copper Strike owns 9,141,369 shares in Syrah Resources Limited (Syrah). The Company also holds additional unlisted investments.

The Company's working capital, being current assets less current liabilities decreased to $644,122 (30 June 2021: $1,114,396). The reduction in working capital was largely due to reduction in cash and cash equivalents during the period due to net payments in relation to the Company's business activities during the period.

Since the approach from the ASX over 12 months ago where ASX advised, that in their opinion, Copper Strike's current operations are not sufficient to warrant the continued quotation of its securities, the Company has reviewed a number of different projects in the Materials, Financial and Technology sectors. Acquiring a project is not necessarily a straightforward task. The Board is focused on finding a project that will add value to the share price as we go forward. The directors are also shareholders and strongly believe that the best outcome for Copper Strike will be finding an opportunity that has the potential to provide an appropriate level of upside from a growth perspective.

To date, the Board has reviewed a number of different projects in the Materials space. Some of these were located overseas and others within Australia. Many of these were not advanced enough for the Company to take further, others had technical issues that reduced their attractiveness, while others were in jurisdictions that prevented due diligence due to the impacts of COVID-19 lockouts and lockdowns.

ForIn addition to the Materials space, the Board has reviewed a number of opportunities in the Financial and Technology space. S me of these have significant future potential however are not of an appropriate size for Copper Strike to progress, while thers have vendor expectations of value that we believe will not offer Copper Strike shareholders sufficient upside through

any potential transaction.

The directors currently believe that the Company's future lies within the Materials sector and is continuing to review opportunities in that space. The Company will keep shareholders informed of progress and will provide an update to shareholders at the relevant time.

An ASIC investigation into the Tracing Notice request from 2019 regarding the nature of the shareholding interest held by Mr Kevin McCrohan in the Company, is continuing.

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Copper Strike Limited Directors' report

31 December 2021

Significant changes in the state of affairs

On 8 July 2021, the Company announced that it has been advised by the Australian Securities Exchange (ASX), that it has agreed to extend the date afforded to the Company to demonstrate that it is compliant with Listing Rule 12.1 by one month from 9 July 2021 to 9 August 2021.

onlyIn August 2021, the Company announced that it had applied for a further extension of time beyond 9 August 2021, in order to complete an appropriate acquisition. ASX advised the Company that they will respond to the Company's request for an extension in due course, and in the interim will not suspend the Company at the current time.

On 31 December 2021, the Company issued a total of 3,000,000 Performance Rights to Directors with various vesting c nditions, expiring on 31 December 2024.

During the half-year ended 31 December 2021, the Company's investments in Verrency and ThinkMarkets were converted from Convertible Notes and Convertible Preference Shares, respectively, to ordinary equity.

useTh re were no other significant changes in the state of affairs of the company during the financial half-year.

Matters subsequent to the end of the financial half-year

On 2 February 2022, the Company announced the proposed issue of 1,000,000 unlisted options, exercisable at $0.20 (20 cents) per option, expiring 31 January 2025 to an adviser, being issued as a performance incentive. The issue of the 1,000,000 unlisted options is conditional on completion of a potential transaction/project acquisition.

No other matters or circumstances has arisen since 31 December 2021 that has significantly affected, or may significantly personalaffect the company's operations, the results of those operations, or the Company's state of affairs in future financial 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 immediately after this directors' report.

This report is made in accordance with a resolution of directors, pursuant to section 306(3)(a) of the Corporations Act 2001. On behalf of the directors

___________________________

Mr Mark Hanlon

Non-Executive Chairman

14 March 2022

Melbourne

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