Emmerson Resources : Annual Report to Shareholders, 30 June 2023

ANNUAL

REPORT 2023

CONTENTS
Review of Operations	1
Health and Safety	17
Environment, Social and Governance	17
Directors' Report	19
Consolidated Statement of Comprehensive Income	36
Consolidated Statement of Financial Position	37
Consolidated Statement of Changes in Equity	38
Consolidated Statement of Cash Flows	39
Notes to the Consolidated Financial Statements	40
Directors' Declaration	64
Auditor's Independence Declaration	65
Independent Audit Report	66
Tenement Schedule	71
Additional Shareholder Information	74

CORPORATE DIRECTORY

DIRECTORS

Andrew McIlwain, Non-executive Chairman

Michael Dunbar, Managing Director & CEO

Rob Bills, Non-executive Director

Allan Trench, Non-executive Director

Alan Tate, Non-executive Director

COMPANY SECRETARY

Rodney Wheatley

REGISTERED OFFICE

3 Kimberley Street

West Leederville WA 6007

PO Box 1056

West Leederville WA 6901 Telephone: [phone]

Web: www.emmersonresources.com.au

TENNANT CREEK OFFICE

36 Standley Street

Tennant Creek NT 0860

PO Box 1244

Tennant Creek NT 0861

Telephone: [phone]

Facsimile: [phone]

ASX CODE

ERM

SOLICITORS

Steinepreis Paganin

Level 4, Next Building

16 Milligan Street

Perth WA 6000

Ward Keller

Level 7, NT House

22 Mitchell Street

Darwin NT 0807

BANKERS

National Australia Bank

West End, 197 St Georges Terrace Perth WA 6000

AUDITORS

Ernst & Young

The Ernst & Young Building

11 Mounts Bay Road

Perth WA 6000

SHARE REGISTER

Advanced Share Registry Services Limited

110 Stirling Highway

Nedlands WA 6009

PO Box 1156

Nedlands WA 6909

Telephone: [phone]

REVIEW OF OPERATIONS

ABOUT EMMERSON RESOURCES

A track record of mineral discovery plus an emerging gold royalty business.

Emmerson Resources Limited (Emmerson or the Company) continues to deliver to our strategy of:

• Discovering the next generation of high-grade copper, gold, cobalt and bismuth mineralisation deposits at Tennant Creek through the application of innovative exploration utilising new technologies and systematic science-based exploration.
• Developing an emerging gold royalty business by advancing these discoveries for inclusion into the Tennant Creek Mining Joint Venture.

Emmerson holds a commanding land position and is exploring the Tennant Creek Mineral Field (TCMF), one of Australia's highest-grade gold and copper fields that has produced over 5.5Moz of gold and 470,000t of copper from deposits including Warrego, White Devil, Orlando, Gecko, Chariot, and Golden Forty. These deposits are highly valuable assets, and to date, Emmerson has added to the list with its own discoveries. This includes the high-grade gold at Edna Beryl and Mauretania gold deposits, plus copper-gold at Hermitage, Goanna and Monitor where new technology and targeting concepts were applied to make the first discoveries in the TCMF for over two decades.

The recent new tenement applications by major and junior explorers in the Tennant Creek district, not only highlights the prospectivity of the region for copper and gold but also underscores the value of Emmerson's strategic 1,800km2 land holding.

Additionally, Emmerson is actively exploring two early-stagegold-copper projects in NSW, identified from the application of 2D and 3D predictive targeting models in the Macquarie Arc region.

The highly prospective Macquarie Arc in NSW hosts >80Moz gold and >13Mt copper with these resources heavily weighted to areas of outcrop or limited cover. Emmerson's exploration projects contain many attributes of the known deposits within the Macquarie Arc but remain underexplored due to historical impediments, including overlying cover (farmlands and younger rocks) and a lack of effective historic exploration.

The Company's view remains that discovery of new mineral deposits provides the best potential to create value for junior companies and their stakeholders. By combining this model with an emerging royalty business, it provides a low-risk path to substantiate self-funding and value growth.

Our emerging gold royalty business in Tennant Creek, is underpinned by a strategic alliance with our partner, Tennant Consolidated Mining Group (TCMG). This alliance consists of both Exploration (EEJV) and Mining Joint Ventures (SMJV), with the mining and processing within the SMJV areas undertaken by TCMG in return for Emmerson receiving a free carried, 6% royalty on production. TCMG has purchased a CIL mill and has stated it is on schedule to relocate it to the TCMF in 2023. Under the terms of the SMJV, the minimum production royalty is a guaranteed 6% of 60,000oz of gold production, or the equivalent cash payment of any shortfall at the expiration of the five year earn-in period.

Under the EEJV, Emmerson is the manager and operator and TCMG must complete exploration funding of $10.5m over a five-year period across the project area to earn a 75% interest. In addition, Emmerson can earn a direct 40% equity interest in any major mine discovery within the SMJV areas (Major Mine discovery is defined as >250,000oz gold equivalent).

TCMG continues to finalise its plans for the establishment of the centralised CIL mill at Nobles Nob, approximately 12km to the east of Tennant Creek (Figure 1). Once established, this mill will unlock the value contained across many of these stranded, high-grade gold deposits, including those currently subject to the SMJV which include: Chariot, Mauretania, Black Snake and Malbec West. Given the recent exploration success in exploration, it is anticipated that over time more projects (and royalties) will be added to the SMJV over time.

TCMG is a privately owned gold and copper focused resource company that has also acquired tenements and projects from other parties in the TCMF. It has undertaken mining studies with the ultimate goal of developing a portfolio of resources that will provide feed to its centralised CIL processing facility in Tennant Creek.

TENNANT CREEK, NORTHERN TERRITORY

Exploration activities continued at Tennant Creek throughout the field season. Key drill programs were completed at the 100%-owned Hermitage project and at Golden Forty and Traminer within our EEJV tenements in Tennant Creek.

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REVIEW OF OPERATIONS

DISCOVERING THE NEXT GENERATION OF COPPER, GOLD DEPOSITS THROUGH THE

APPLICATION OF INNOVATIVE EXPLORATION AND NEW TECHNOLOGIES.

Emmerson is deploying new detection technologies such as ultra-high resolution drone magnetic surveys to better define subtle magnetic anomalies - specifically, early magnetite iron-oxide (ironstones) that have been overprinted by later hematite bearing, copper, gold, cobalt and bismuth rich fluids. The resolution of a drone survey is far superior to historic, fixed-wing magnetic surveys due to the drone being able to fly 15m above the ground and on 10-25m spaced lines.

The step change in discovery success for this new generation of deposit types is through not only pioneering new technology and techniques but a multi-disciplinary approach that includes deployment of next generation ultra-fine geochemistry, establishing ironstone fertility indices together with a deep understanding of the 3D structure, alteration and geology of the TCMF.

Pictures 1 & 2: Recent Ultra-high resolution drone magnetic survey in progress.

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REVIEW OF OPERATIONS

Figure 1: Map of Emmerson's Tennant Creek Project showing the area covered by the Exploration (EEJV) and the 100% Emmerson owned Jasper Hills, Hermitage and Northern Star and Edna Beryl projects.

Note: *Quoted production from major historical deposits after Ahmad, M. and Munson, T.J. (2013). Geology and mineral resources of the Northern Territory, Special Publication 5, p. For Chariot mine and Malbec West mine, quoted production from Giants Reef Mill Reconciled Production to end of month September 2005 (Giants Reef internal reporting).

NORTHERN PROJECT AREA

Hermitage Project (100% Emmerson) - Discovery of high-grade gold, copper at Hermitage Project

Hermitage is one of a cluster of 100% Emmerson owned prospects on granted mining leases that occurs within the northern corridor at Tennant Creek. These prospects incorporate North Star, Jasper Hills, Katherine Star and Northern Star in Mining Lease 30177 and, Edna Beryl, Thrace, and Macedon in MLC705 (Figure 1).

The mineralisation encountered at Hermitage is hosted in multiple, east-west striking, structurally controlled, ironstone (hematite-magnetite) bodies that are steeply north plunging and remain open in all directions (Figures 2 & 3). The cross sectional (surface expression) of these tabular to pipelike ironstones are on scale with some of the major historical deposits in the TCMF, the largest deposit being Warrego (1.5Moz gold and 173,000t copper) that had cross sectional dimensions of only 200m by 50m, but with significant down plunge continuity of over 600m.

The discovery hole (HERCDD003) at Hermitage intersected 119m at 3.4% copper and 0.88g/t gold (ASX: 28 March 2022 & 14 September 2023). This was followed up by an angled diamond drill hole (HERCDD010) which intersected 94.4m of 2.74% copper, 5.6g/t gold, 17.9g/t silver and 0.4% bismuth including 21.6m at 25.9g/t gold, 74.9g/t silver, 4.1% copper and 1.8% bismuth, with some zones up to 0.3% cobalt (ASX: 17 August 2022). The addition of cobalt and bismuth to the gold and copper adds to the inventory of future facing metals required for the decarbonisation of the economy.

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