Eastern Resources : Half Year Financial Report – December 2023

Half Year Financial Report

31 December 2023

ABN 70 126 678 037

CONTENTS & CORPORATE INFORMATION

Directors' Report	1
Consolidated Statement of Comprehensive Income	5
Consolidated Statement of Financial Position	6
Consolidated Statement of Changes in Equity	7
Consolidated Statement of Cash Flows	8
Consolidated Notes to the Financial Statements	9
Directors' Declaration	13
Independent Auditor's Report	14
Auditors Independence Declaration	16
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
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 for the half year ended 31 December 2023.

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

FINANCIAL RESULTS

The net results of operations after applicable income tax expense for the half year was a loss of $728,267 (2022 $408,888). There was $396,289 of exploration and evaluation expenditure written off during the period (2022: nil).

REVIEW AND RESULTS OF OPERATIONS

LEPIDOLITE HILL LITHIUM PROJECT

During the reporting period ("Period"), the Company commenced field work at the Lepidolite Hill lithium Project ("Lepidolite Hill"), which the Company has a 70% interest in and Lithium Australian Ltd ("Lithium Australia") (ASX:LIT) retains a 30% interest.

Further to a review of existing data from Lepidolite Hill, a mapping and sampling work program was designed to enhance the geological understanding of the project, with the aim of defining drill targets. There are two prospective areas of interest; the area between the existing Lepidolite Hill pit and Tantalite Hill pegmatite outcrops, and East of Signal Hill towards the recent spodumene pegmatite discovery by Future Battery Minerals Ltd (ASX: FMB), which is east of the Company's project tenure.

The program targeted the area between the existing Lepidolite Hill pit and Tantalite Hill, and East of Signal Hill towards FBM's spodumene pegmatite discovery which is east of the Project. Historical drilling at Lepidolite Hill has discovered thick and high grade lithium bearing pegmatites at the Project (ref ASX: 7 June 2023). A drill program planned will test the potential for extensions of the LCT lithium pegmatites found at the Project, and to assess the potential for lithium bearing pegmatites adjacent to FBM's Kangaroo Hills Lithium project, where thick spodumene bearing pegmatites were identified (ref ASX: FMB12 September 2023).

Figure 1: Lepidolite Hill Project Tenements and FBM drill holes

Eastern Resources Limited

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DIRECTORS' REPORT

The Company executed a heritage Protection Agreement with the Native Title Party and completed a heritage survey at Lepidolite Hill at the end of November.

With receipt and approval of a Program of Work ("PoW") from the Department of Mines, Industry Regulation and Safety, WA ("DMIRS"), the Company engaged an experienced driller for the maiden drilling program to assess the potential for extensions of the lithium-bearing pegmatites found at Lepidolite Hill. The drilling program commenced in February 2024.

YALGOO WEST PROJECT

During the Period, the Company received assay results from the soil sampling program collected at the Yalgoo West project in May 2023. The results have identified lithium anomalies at the project (ref ASX: 24 July 2023).

The soil sampling program targeted the north segment of the Project where the greenstone belt is situated. A total of 550 soil samples were collected at various spacings between 40m and 160m apart on lines varying from 100m to 400m apart. Soil sampling was used because the outcrops of pegmatites were poor and erratic although the depth to basement rocks is believed to be shallow. As such, the value of the elemental results was as expected, lower than if rock chip samples were taken.

There are four areas where broad, anomalous lithium results were observed. These range in size from 300m by 500m to 1,000m by 1,500m. Soil sample results with over 30ppm Li and anomalous Nb, Rb and Cs are interpreted as a strong indicator of highly fractionated bedrock nearby.

All four anomalies are open on at least one side. Whilst one of the anomalies lies near to a known lithium-bearing prospect, Yalgoo West Lithium, the remaining three do not. At the sampled areas without broad zones of elevated lithium results the presence of elevated lithium on the margins indicate additional sampling will be needed to test for potential extensions.

Figure 2: Soil Sample Locations and Anomalies

Eastern Resources Limited

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DIRECTORS' REPORT

Figure 3: Soil Lithium Anomalies at Yalgoo West Project

TAYLOR LOOKOUT PROJECT

In September 2023, the Company completed field work to assess the tenement for pegmatite-hostedLithium-Caesium- Tantalum (LCT) mineralization. Rock chip samples were collected and transferred to a Perth laboratory for analysis.

TRIGG HILL LITHIUM PROJECT

During the Period, the Company conducted a review of the exploration program which focused on assessing previous data from the project. Further to the review a PoW was lodged and subsequently approved by the DMIRS.

LAKE JOHNSTON PROJECT

No exploration activities were conducted at the Lake Johnston project during this Period.

NOWA NOWA IRON PROJECT

During the Period, the Company continued to work on the Environmental Effects Assessment ("EES") approval process, which is an all-inclusive permitting approach including all planning and operating licence requirements for the development and operation of the Nowa Nowa Iron project.

The following assessments have currently been undertaken: Aboriginal Cultural Heritage Impact assessment, Ecology Impact assessment, Traffic Impact assessment and a Groundwater Impact assessment.

The iron ore price continues to perform strongly and whilst any development decision at Nowa Nowa is some way off, a strengthening underlying iron ore price is anticipated to support more robust commercialisation or monetisation alternatives.

NOWA NOWA COPPER PROJECT

In September 2023, the application for the renewal of the Nowa Nowa Copper Project EL 006183 was approved by the Department of Energy, Environment and Climate Action of Victoria.

No exploration work was carried out during the Period.

Eastern Resources Limited

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DIRECTORS' REPORT

CURLEW MINE

During the Period, the Company terminated the Amended and Restated Option Agreement and Deed of Assignment and Assumption executed in January 2023 with Amery Holdings Pty Ltd and Curlew Mine Pty Ltd ("DoAA") to acquire 50% ownership of the Tenement, including 100% interests of all mineral rights except beryl minerals in the Tenement. Termination of the DoAA was due to the Completion Conditions not being met and satisfied in the agreed timeframe.

CORPORATE

NEW PROJECTS SEARCH AND ACQUISITION

The Company has actively reviewed opportunities to acquire an advanced exploration or near-development project in this Period. A number of projects have been evaluated, and the Company has been in commercial discussion with various parties.

PRINCIPAL ACTIVITIES

The principal activity of the Company is the exploration of iron ore, lithium and base metal resources and the development of those resources into economic, cash flow generating mines.

DIVIDENDS

No dividends were paid or proposed during the period.

SUBSEQUENT EVENTS AFTER THE BALANCE DATE

• In February 2024, reverse circulation drilling commenced at the Lepidolite Hill Lithium Project. The drilling program is designed to assess the potential for extensions of the lithium-bearing pegmatites found at the Project, and to target the area between the existing Lepidolite Hill pit and Tantalite Hill, and East of Signal Hill towards FBM's spodumene- bearing pegmatite at the east of the Project.
• In view of the low overall tenor of results from the field work carried out at Taylor Lookout in September 2023, the company have decided to withdraw from the earn-in under the Heads of Agreement between Legacy and EFE dated on 25 February 2022.

AUDITOR'S INDEPENDENCE DECLARATION

A copy of the Auditor's Independence Declaration to the Directors as required under section 307C of the Corporations Act 2001 is set out on page 16.

Signed in accordance with a resolution of the directors.

Eddie King

Chairman

4 March 2024

Eastern Resources Limited

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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE HALF YEAR ENDED 31 DECEMBER 2023

		31 December	31 December
		2023	2022
	Note	$	$
Revenue	4	93,003	-
ASX and ASIC fees		(39,196)	(48,144)
Audit fee		(13,000)	(11,000)
Contract administration services		(137,663)	(123,382)
Directors' fees (net of costs recharged to exploration projects)		(104,323)	(72,000)
Share-based payments		(59,467)	(74,355)
Rent		(12,501)	(4,934)
Insurance			(14,335)
	(9,380)
Exploration and evaluation expenditure written off	6	(396,289)	-
Other expenses from ordinary activities		(49,451)	(60,738)
Loss before income tax expense		(728,267)	(408,888)
Income tax expense
Loss after income tax expense		(728,267)	(408,888)
Other comprehensive income
Other comprehensive income for the period, net of tax		-	-
Total comprehensive (loss) attributable to members of
Eastern Resources Limited		(728,267)	(408,888)
Basic loss per share (cents per share)	8	(0.06)	(0.04)
Diluted loss per share (cents per share)	8	(0.06)	(0.04)

The Consolidated Statement of Comprehensive Income should be read in conjunction with the accompanying notes.

Eastern Resources Limited

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CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2023

		31 December	30 June
		2023	2023
	Note	$	$
Current assets
Cash assets	5	5,017,590	5,905,839
Receivables		94,326	114,286
Total current assets		5,111,916	6,020,125
Non-current assets
Tenement security deposits	7	20,000	20,000
Property, plant and equipment		3,022	880
Deferred exploration and evaluation expenditure	6	7,192,359	7,190,147
Total non-current assets
	7,215,381	7,211,027
Total assets		12,327,297	13,231,152
Current liabilities
Payables		70,492	305,547
Total current liabilities		70,492	305,547
Total liabilities		70,492	305,547
Net assets		12,256,805	12,925,605
Equity
Contributed equity	9	26,398,137	26,398,137
Accumulated losses		(14,329,658)	(14,344,642)
Reserves	10	188,326	872,110
Total equity		12,256,805	12,925,605

The Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.

Eastern Resources Limited

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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE HALF YEAR ENDED 31 DECEMBER 2023

			Contributed	Accumulated
			equity	losses	Reserves	Total equity
		Note	$	$	$	$
	At 1 July 2022		21,511,462	(13,814,775)	931,883	8,628,570
	Loss for the period		-	(408,888)	-	(408,888)
	Other comprehensive income		-	-	-	-
	Total comprehensive income/(loss) for the		-	(408,888)	-	(408,888)
	period
	Transactions with owners in their
	capacity as owners:
	Exercise of options	10	513,100	-	-	513,100
	Share-based payments	11	-	-	74,355	74,355
	Exercised of employee share option value	11	-	20,755	(20,755)	-
	transferred to accumulated losses
	Underwriter options offer	11	-	-	376	376
	Issue of share capital	10	3,011,000	-	-	3,011,000
	Asset acquisition	7	500,000	-	-	500,000
	Transaction costs arising on share issue	10	(175,888)	-	-	(175,888)
	Total transactions with owners in their		3,848,212	20,755	53,976	3,922,943
	capacity as owners
	At 31 December 2022		25,359,674	(14,202,908)	985,859	12,142,625
	At 1 July 2023		26,398,137	(14,344,642)	872,110	12,925,605
	Loss for the period		-	(728,267)		(728,267)
	Other comprehensive income		-	-	-	-

Total comprehensive income/(loss) for the
period
Transactions with owners in their
capacity as owners:
Share-based payments	10

	Lapsed of employee share option value
		10
	transferred to accumulated losses
	Total transactions with owners in their
	capacity as owners
	At 31 December 2023

			(728,267)		-		(728,267)
					59,467		59,467
			743,251		(743,251)		-
	-		743,251		(683,784)		59,467
	26,398,137		(14,329,658)		188,326		12,256,805

The Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.

Eastern Resources Limited

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CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE HALF YEAR ENDED 31 DECEMBER 2023

		31 December	31 December
		2023	2022
	Note	$	$
Cash flows from operating activities
Payments to suppliers and employees		(411,683)	(370,650)
Interest received		90,901	-
Net cash flows (used in) operating activities		(320,782)	(370,650)
Cash flows from investing activities
Payments for deferred exploration and evaluation expenditure		(564,652)	(940,536)
Payments for property, plant and equipment		(2,815)	-
Payments for other asset			(50,000)
	-
Payments for asset acquisition		-	(250,000)
Net cash flows (used in) investing activities		(567,467)	(1,240,536)
Cash flows from financing activities
Proceeds from issue of shares	9	-	3,011,000
Proceeds from exercise of options		-	513,476
Payments for share issue costs	9	-	(174,711)
Net cash flows (used in) from financing activities		-	3,349,765
Net increase (decrease) in cash held		(888,249)	1,738,579
Add opening cash brought forward		5,905,839	4,609,889
Closing cash carried forward	5	5,017,590	6,348,468

The Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.

Eastern Resources Limited

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