Fin Resources : Half Yearly Report and Accounts - 31 December 2021

onlyuseFin Resources Limited Interim Financial Report

personal31 December 2021

finresources.com.au

ABN 25 009 121 644

For

use only

CONTENTS	PAGE
Corporate Directory	1
Directors' Report	2
Auditor's Independence Declaration	5
Consolidated Statement of Profit or Loss and Other Comprehensive Income	6
Consolidated Statement of Financial Position	7
Consolidated Statement of Changes in Equity	8
Consolidated Statement of Cash Flows	9
Condensed Notes to the Consolidated Financial Statements	10
Directors' Declaration	15
Auditor's Independent Review Report	16

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CORPORATE DIRECTORY

Directors

Gautam Varma - Managing Director Brian Talbot - Technical Director

Jason Bontempo - Non-Executive Director Ryan de Franck - Non-Executive Director

Company Secretary

Aaron Bertolatti

Registered Office

First floor, 35 Richardson Street WEST PERTH WA 6005

Share Registry

Advanced Share Registry Limited

110 Stirling Highway

NEDLANDS WA 6009

Auditor

Stantons International Audit & Consulting Pty Ltd Level 2, 40 Kings Park Road

WEST PERTH WA 6005

Solicitors

Gilbert + Tobin

Level 16 Brookfield Place Tower 2

123 St Georges Terrace

PERTH WA 6000

Stock Exchange

Australian Securities Exchange

(Home Exchange: Perth, Western Australia)

ASX Code: FIN

Website

www.finresources.com.au

Fin Resources Limited

1

31 December 2021

Directors' Report

The Directors present their report for Fin Resources Limited ("Fin Resources", "Fin" or "the Company") and its subsidiaries ("the Group") for the half-year ended 31 December 2021.

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DIRECTORS

The persons who were directors of Fin Resources during the half-year and up to the date of this report are:

• Gautam Varma - Managing Director (appointed 17 January 2022)
• Brian Talbot - Technical Director (appointed 30 November 2021)
• Jason Bontempo - Non-Executive Director
• Ryan de Franck - Non-Executive Director (appointed 6 July 2021)
• Andrew Radonjic - Non-Executive Director (resigned 30 November 2021)
• Simon Mottram - Non-Executive Director (resigned 17 January 2022)

REVIEW OF OPERATIONS

Fin Resources is an ASX listed company (ASX:FIN) focussed on the development of the Sol Mar Project (formerly North Onslow Solar Salt Project (NOSSP)). The Sol Mar Project consists of six granted exploration licences and three pending exploration licences located in a proven salt production region with ideal climatic conditions to produce high purity salt. The Company is investigating the use of renewable energy in the form of wind and solar energy to create a zero-carbon footprint project and potentially fuel renewable product streams like Hydrogen and other green by products.

Sol Mar Scoping Study

The Company announced the results of a positive Scoping Study in September 2021. The highly compelling potential economics demonstrated Sol Mar's world class potential with further studies to commence and results reported progressively. The project is based on using 100% renewable energy and producing green products. All proposed products have substantial existing markets. The positive Scoping Study results are to be used to accelerate the partnering strategy.

World Class Renewable Energy Potential

A leading independent renewable energy consultant was engaged by FIN to assess the potential for wind and or solar power generation and confirmed the multi gigawatt potential of FIN's 905km2 strategic tenure position at the North Onslow project area in the Pilbara region of Western Australia.

The total solar resource was estimated to be substantial at 60 GW with the total wind resource estimated at 15 GW. FIN's strategy is not to become a large-scale energy producer but to partner with an established renewable energy project developer for the supply of renewable energy at the North Onslow project area. Initial discussions have indicated there is potentially strong interest from a broad range of groups seeking this type of opportunity.

McKenzie Springs Project

The McKenzie Springs, is located within the Kimberley Region of Western Australia, 85km north-east of the township of Halls Creek. The Project covers an area of approximately 134km2 including identified nickel, copper, cobalt and graphite occurrences. The McKenzie Springs Project is considered prospective for magmatic Ni-Cu sulphide and PGE mineralisation.

The Company completed its Maiden drilling program in October 2020. The maiden drill program consisted of 3 holes (~950m in total) along a prospective strike length of 1.2km within Fin's tenements. A review of the historic and recent geochemical data was undertaken which focused on the area pertaining to the Spring Creek layered intrusion. Further geological and geophysical modelling is required.

Fin Resources Limited

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31 December 2021

Directors' Report

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Board and Management Changes

Mr Ryan de Franck joined the Company's board as a Non-Executive Director on 6 July 2021. Mr de Franck has a broad range of experience across corporate finance, corporate development and company management with a focus on the natural resources sector.

Mr James Barrie joined the Company as its full-time project director for the North Onslow Solar Salt Project on 8 July 2021. Mr Barrie has more than 35 years' experience in leadership roles for salt, iron ore and other projects with numerous Western Australian engineering and mining companies.

Mr. Brian Talbot was appointed to the Board of Directors as a Technical Director on 30 November 2021. Mr Andrew Radonjic stood down as Non-Executive Director.

Option Issues

On 6 July 2021, the Company issued 63,500,000 unlisted options to management, brokers and corporate advisors, exercisable at $0.018 each on or before 30 June 2024 and 11,500,000 performance options to directors (and/or their nominee) exercisable at $0.00001 each on or before 5 July 2026.

Option Conversions

During the period, 42,138,375 listed options (ASX:FINOA) were exercised, raising $1,053,459. 60,925,876 listed options in the same class lapsed unexercised on 31 December 2021.

EVENTS SUBSEQUENT TO REPORTING DATE

On 6 January 2022, Fin was notified that the Western Australian Department of Mines, Industry Regulation and Safety had granted E08/3355 which comprises 85 graticular blocks and covering an area of 270.5km2.

Mr. Gautam Varma was appointed as the Managing Director of the Company on 17 January 2022. Mr. Varma is a veteran of the mining industry having held senior roles at BHP (ASX:BHP), Illuka Resources (ASX: ILU), Xstrata and, most recently as the Chief Representative for Europe, India and South East Asia at Fortescue Metals Group (ASX: FMG). Mr Simon Mottram also resigned as Non-Executive Director.

On 8 February 2022, the Company issued 30,000,000 Performance Options. The Performance Options are exercisable at $0.00001 with vesting conditions of consecutive 5-day VWAPs of $0.054 (1/3 Options), $0.072 (1/3 Options) and $0.09 (1/3 Options). The Company also issued 1,075,000 shares to Mr James Barrie (Project Director) following six months of continued service.

There have been no other significant events subsequent to the end of the financial year to the date of this report which significantly affect the operations of the Group, the results of those operations or the state of affairs of the Group in future financial years.

AUDITOR'S INDEPENDENCE DECLARATION

Section 307C of the Corporations Act 2001 requires our auditors, to provide the Directors of the Company with an Independence Declaration in relation to the review of the half-year financial report. This Independence Declaration is set out on page 5 and forms part of this Directors' report for the half-year ended 31 December 2021.

This report is signed in accordance with a resolution of the Board of Directors made pursuant to s.306(3) of the Corporations Act 2001.

Fin Resources Limited

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31 December 2021

Directors' Report

For personal use only

Signed on behalf of the board in accordance with a resolution of the Directors.

Gautam Varma

Managing Director

Singapore

2 March 2022

Fin Resources Limited

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31 December 2021