Eastern Resources : Half Year Financial Report – December 2022

Half Year Financial Report

31 December 2022

ABN 70 126 678 037

CONTENTS & CORPORATE INFORMATION

Directors' Report	1
Consolidated Statement of Comprehensive Income	6
Consolidated Statement of Financial Position	7
Consolidated Statement of Changes in Equity	8
Consolidated Statement of Cash Flows	9
Consolidated Notes to the Financial Statements	10
Directors' Declaration	14
Independent Auditor's Report	15
Auditors Independence Declaration	17
Board of Directors
Eddie King - Non-Executive Chairman
Myles Fang - Executive Director
Jason Hou - Non Executive Director
Mark Calderwood - Non-Executive Director
Company Secretary
Heath Roberts
Larissa Brown (appointed 1 September 2022)
Principal and Registered Office
Level 1, 80 Chandos Street
St Leonards, NSW 2065
T: [phone]
E: [e-mail]
www.easternresources.com.au
ASX Share Register
Automic Group
GPO Box 5193
Sydney, NSW 2001
T: 1300 288 664 (Australia)
[phone] (outside Australia)
www.investor.automic.com.au
Auditor
BDJ Partners
Level 8, 124 Walker Street
North Sydney, NSW 2060
Securities Exchange Listing
Australian Securities Exchange
ASX Code: EFE

DIRECTORS' REPORT

Your Directors submit their report for Eastern Resources Limited (formerly Eastern Iron Limited) for the half year ended 31 December 2022.

DIRECTORS

The names of the Company's Directors in office during the half year and until the date of this report are as below. Directors were in office for this entire period unless otherwise stated.

Eddie King	Non-Executive Chairman	Appointed 10	July 2017
Myles Fang	Executive Director	Appointed 12	March 2018
Jason Hou	Non-Executive Director	Appointed 27	September 2021
Mark Calderwood	Non-Executive Director	Appointed 12	January 2023

REVIEW AND RESULTS OF OPERATIONS

FINANCIAL RESULTS

The net results of operations after applicable income tax expense for the half year was a loss of $408,888 (2021: $2,414,472). There was no exploration write off during the period (2021: nil).

TRIGG HILL LITHIUM PROJECT

During the reporting period ("Period"), the Company conducted mapping and sampling works at the Trigg Hill Lithium Project ("Trigg Hill Project").

Figure 1 - Distribution of rock chip samples at Trigg Hill Project

The assay results from the rock chip samples and soil samples collected from Trigg Hill Project confirms highly anomalous levels of lithium (Li), caesium (Cs), tantalum (Ta) and tin (Sn). Of the rock chip samples collected from the large East Curlew pegmatite swarm, at least 80% were from lithium caesium and tantalum (LCT) pegmatites, with peak values of

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DIRECTORS' REPORT

2.28% Li2O, 1.23% Rb2O, 1,552ppm Cs2O, 514ppm Ta2O5 and 2,921ppm SnO2. The soil samples return strongly anomalous lithium, tantalum and tin, with peak values of 517ppm Li2O, 95ppm Ta2O5 and 922ppm SnO2.

With successful mapping and sampling, the Company commenced drilling campaign in September, to test a number of vertical and low angle lithium caesium and tantalum, pegmatites to obtain an understanding of zonation and lithium mineralisation.

In December 2022, the Company completed two reverse circulation (RC) drilling programmes for approximately 4200 meters at the East Curlew and Trigg Hill prospects. In maiden drilling programme completed in October 2022, multiple thick downhole intervals have been intersected, including:

• ETRC001: 3 pegmatite intervals totalling 29m from 60m hole including 17m from surface;
• ETRC006: 7 pegmatite intervals totalling 88m from 128m hole including 39m from 51m;
• ETRC008: 2 pegmatite intervals totalling 43m in 63m hole including 37m from surface;
• ETRC009: single pegmatite interval of 65m from surface in 68m hole;
• ETRC010: 3 pegmatite intervals totalling 57m in 64m hole including 43m from 20m;
• ETRC011: 5 pegmatite intervals totalling 58m in 86m hole including 30m from 55m;
• ECRC009: 3 pegmatite intervals totalling 19m in 66m hole including 13m from 49m; and
• ECRC020: 3 pegmatite intervals totalling 19m in 84m hole including 9m from 46m.

In November 2022, the Company conducted the Phase 2 drilling programme, designed to test extensional targets along strike and at depth of pegmatites intercepted in maiden drilling programme. Phase 2 drilling was completed in December and has intersected pegmatites in 13 holes of the 14 holes drilled. Multiple thick downhole intervals have been intersected, including:

• ECRC023: 5 pegmatite intervals totalling 26m from 150m hole including 19m from 109m;
• ETRC024: 4 pegmatite intervals totalling 18m from 150m hole including 11m from 52m;
• ETRC029: 6 pegmatite intervals totalling 27m from 150m hole including 20m from 47m;
• ECRC031: 5 pegmatite intervals totalling 16m in 150m hole including 9m from 79m; and
• ECRC034: 5 pegmatite intervals totalling 19m in 198m hole including 12m from 144m.

Figure 2 - Drill chips of the drill hole ECRC029

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DIRECTORS' REPORT

TAYLOR LOOKOUT PROJECT

During the Period, a Heritage Inspection ("Heritage Inspection") was completed at the Taylor Lookout Lithium Project ("Taylor Lookout Project") in the Kimberley Region, Western Australia. Attending the inspection were Traditional Landowners, an archaeologist, representatives of Kimberley Land Council, and a Company representative. The Heritage Inspection was conducted on site in early September 2022, and covered areas impacted by the Company's proposed exploration activities. The Heritage inspection report was received in October.

Following receipt of the Heritage Inspection report, the Company conducted field work including surface mapping and rock chip sampling to assess the tenement for pegmatite-hosted LCT mineralization and to define targets for further field works.

YALGOO WEST PROJECT

In September, the Company received confirmation from the WA Department of Mines, Industry Regulation and Safety (DMIRS), in relation to the granting of Yalgoo West Project tenement, E59/2653 and E59/2654. Two new exploration licences E59/2653 and E59/2654 have been granted to Eastern Lithium Pty Ltd, a wholly owned subsidiary of the Company. The Yalgoo West Project is located in the Murchison region of Western Australia about 190km by road from Geraldton where a port facility is used for export of bulk commodities.

In October, the Company conducted a site visit. Multiple pegmatite outcrops have been identified within the Yalgoo West project. The zone observed contains prospective outcropping pegmatites covering an irregular area of about 1.2km x 600m, which occurs within an area of sub to outcropping greenstone. The occurrence of large pegmatites and clusters of pegmatites is encouraging. Subsequently, field mapping and surface geochemistry was planned in 2023 to assess the tenements for pegmatite-hosted LCT mineralisation.

Figure 3 - Geology map showing the pegmatites identified at Yalgoo West Project

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