September 2021 Quarterly Cashflow Report

Rule 5.5

Appendix 5B

Mining exploration entity or oil and gas exploration entity

quarterly cash flow report

Name of entity

Lefroy Exploration Limited

ARBN	Quarter ended ("current quarter")
052 123 930	30 September 2021

Consolidated statement of cash flows

1. Cash flows from operating activities

1. Receipts from customers
2. Payments for
3. 1. exploration & evaluation (if expensed)
   2. development
   3. production
   4. staff costs
   5. administration and corporate costs
4. Dividends received (see note 3)
5. Interest received
6. Interest and other costs of finance paid
7. Income taxes paid
8. Government grants and tax incentives
9. Other (provide details if material)

Current quarter	Year to date
$A'000	(12 months)
	$A'000

(46)	(46)
(431)	(431)
1	1

1.9	Net cash from / (used in) operating activities	(476)	(476)
2.	Cash flows from investing activities
2.1	Payments to acquire:
	(a)	entities
	(b)	tenements
	(c)	property, plant and equipment
	(d)	exploration & evaluation (if capitalised)	(1,002)	(1,002)
	(e)	investments
	(f)	other non-current assets

ASX Listing Rules Appendix 5B (01/12/19)	Page 1
+ See chapter 19 of the ASX Listing Rules for defined terms.

Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Consolidated statement of cash flows

1. Proceeds from the disposal of:
2. 1. entities
   2. tenements
   3. property, plant and equipment
   4. investments
   5. other non-current assets
3. Cash flows from loans to other entities
4. Dividends received (see note 3)
5. Other (provide details if material)
   Shortfall proceeds received for Western Lefroy Farm-In and Joint Venture
6. Net cash from / (used in) investing activities

3. Cash flows from financing activities

1. Proceeds from issues of equity securities (excluding convertible debt securities)
2. Proceeds from issue of convertible debt securities
3. Proceeds from exercise of options
4. Transaction costs related to issues of equity securities or convertible debt securities
5. Proceeds from borrowings
6. Repayment of borrowings
7. Transaction costs related to loans and borrowings
8. Dividends paid
9. Other (provide details if material)
10. Net cash from / (used in) financing activities

4. Net increase / (decrease) in cash and cash equivalents for the period

1. Cash and cash equivalents at beginning of period
2. Net cash from / (used in) operating activities (item 1.9 above)
3. Net cash from / (used in) investing activities (item 2.6 above)
4. Net cash from / (used in) financing activities (item 3.10 above)

Current quarter	Year to date
$A'000	(12 months)
	$A'000

(1,002)(1,002)

3,3543,354

(476)(476)

(1,002)(1,002)

--

ASX Listing Rules Appendix 5B (01/12/19)	Page 2
+ See chapter 19 of the ASX Listing Rules for defined terms.

Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Consolidated statement of cash flows

1. Effect of movement in exchange rates on cash held
2. Cash and cash equivalents at end of period

5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts

1. Bank balances
2. Call deposits
3. Bank overdrafts
4. Other (provide details)
5. Cash and cash equivalents at end of quarter (should equal item 4.6 above)

Current quarter

$A'000

-

1,876

Current quarter

$A'000

1,866

10

1,876

Year to date

(12 months)

$A'000

-

1,876

Previous quarter

$A'000

3,344

10

3,354

6. Payments to related parties of the entity and their associates

1. Aggregate amount of payments to related parties and their associates included in item 1
2. Aggregate amount of payments to related parties and their associates included in item 2

Current quarter

$A'000

(256)

(30)

Note 6.1 Non- Exec Director fees and portion of the Managing Directors Remuneration related to administration activities for the period 1 July 2021 to 30 September 2021, including settlement of unpaid amounts pertaining to the previous quarter.

Also includes fees payable to New Holland Capital for corporate advisory services, including milestone/hurdle payments in relation to the Western Lefroy Farm-In and Joint Venture Transaction that was executed on 7 June 2018.

Note 6.2 A portion of the Managing Directors Remuneration from 1 July 2021 to 30 September 2021 related to exploration activities.

ASX Listing Rules Appendix 5B (01/12/19)	Page 3
+ See chapter 19 of the ASX Listing Rules for defined terms.

Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report

7.	Financing facilities	Total facility amount		Amount drawn at
	Note: the term "facility' includes all forms of	at quarter end		quarter end
	financing arrangements available to the entity.	$A'000		$A'000
	Add notes as necessary for an understanding of
	the sources of finance available to the entity.
7.1	Loan facilities		-	-
7.2	Credit standby arrangements		-	-
7.3	Other (please specify)		-	-
7.4	Total financing facilities		-	-
7.5	Unused financing facilities available at quarter end		-

7.6 Include in the box below a description of each facility above, including the lender, interest rate, maturity date and whether it is secured or unsecured. If any additional financing facilities have been entered into or are proposed to be entered into after quarter end, include a note providing details of those facilities as well.

8.	Estimated cash available for future operating activities	$A'000
8.1	Net cash from / (used in) operating activities (Item 1.9)	(476)
8.2	Capitalised exploration & evaluation (Item 2.1(d))	(1,002)
8.3	Total relevant outgoings (Item 8.1 + Item 8.2)	(1,478)
8.4	Cash and cash equivalents at quarter end (Item 4.6)	1,876
8.5	Unused finance facilities available at quarter end (Item 7.5)	-
8.6	Total available funding (Item 8.4 + Item 8.5)	1,876
8.7	Estimated quarters of funding available (Item 8.6 divided by Item 8.3)	1.27

8.8 If Item 8.7 is less than 2 quarters, please provide answers to the following questions:

1. Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not?

Answer:

No, cash outflows from investing activities included the payment of drilling and related services as a result of drilling campaigns at the Burns prospect undertaken in the quarter.

Lefroy Exploration Limited does not expect to have the same level of net operating cash outflows going forward, as it is not expecting to undertake the same level of drilling activity within the next 2 quarters. Lefroy Exploration Limited is also actively considering all options to extract value from the Red Dale and Lucky Strike Gold Deposits

Factoring in the expected decline in net operation cash out flows outlined above, and the potential commercialisation of the Red Dale and Lucky Strike prospects, Lefroy Exploration Limited believes it's cash available for future operating activities is in excess of 2 quarters of net cash outflows for relevant outgoings going forward.

ASX Listing Rules Appendix 5B (01/12/19)	Page 4
+ See chapter 19 of the ASX Listing Rules for defined terms.

Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report

2. Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful?

Answer: The Company is currently pursuing an appropriate working capital funding strategy for the next 18 months to accelerate exploration.

3. Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis?

Answer: Yes, as outlined above

Compliance statement

1. This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.
2. This statement gives a true and fair view of the matters disclosed.

Date:

29 October 2021

Authorised by: The Board of Directors

Notes

1. This quarterly cash flow report and the accompanying activity report provide a basis for informing the market about the entity's activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.
2. If this quarterly cash flow report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly cash flow report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.
3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.
4. If this report has been authorised for release to the market by your board of directors, you can insert here: "By the board". If it has been authorised for release to the market by a committee of your board of directors, you can insert here: "By the [name of board committee - eg Audit and Risk Committee]". If it has been authorised for release to the market by a disclosure committee, you can insert here: "By the Disclosure Committee".
5. If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Council's Corporate Governance Principles and Recommendations, the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.

ASX Listing Rules Appendix 5B (01/12/19)	Page 5
+ See chapter 19 of the ASX Listing Rules for defined terms.