Metal Bank : Annual Report to Shareholders

ABN 51 127 297 170

Metal Bank Limited

and its controlled entities

Annual Financial Report

For the year ended

30 June 2020

METAL BANK LIMITED AND ITS CONTROLLED ENTITIES

CONTENTS

Letter from the Chair		1
Review of Operations	2	- 12
Corporate Governance		13
Directors' Report	14 - 20
Auditor's Independence Declaration		21
Consolidated Statement of Profit or Loss and Other Comprehensive Income		22
Consolidated Statement of Financial Position		23
Consolidated Statement of Changes in Equity		24
Consolidated Statement of Cash Flows		25
Notes to the Financial Statements	26	- 45
Director's Declaration		46
Independent Audit Report to the Members of Metal Bank Limited	47	- 50
Additional Information for Listed Companies	51	- 53
Corporate Directory		54

METAL BANK LIMITED AND ITS CONTROLLED ENTITIES

LETTER FROM THE CHAIR

Dear Shareholder

On behalf of the Directors of Metal Bank Limited (Metal Bank, MBK or the Company), I am pleased to report on the activities of the Company for the year ended 30 June 2020. Our exploration activities have focussed on the 8 Mile and Eidsvold projects which have been significantly advanced during the year.

The 8 Mile project, located 18km along strike from the 2Moz Mt Rawdon goldmine, has moved from a discovery to an advanced gold project. Our initial drilling intersected extensive gold mineralisation on two prospects and then confirmed a maiden inferred Mineral Resource and Exploration Target at Flori's Find. With grade and widths increasing at depth and with indications that we are getting closer to the potential bulk tonnage target, we are excited with the prospects in the year ahead.

At the Eidsvold Project we defined a highly prospective drill ready gold target applying the latest 3D geophysical modelling techniques. We have modelled a 7 km2 alteration system interpreted as a very large intrusion related gold (IRG) system at the Great Eastern target with geophysical responses similar to the 3 Moz Mt Leyshon gold deposit. The Great Eastern target now presents a new opportunity to drill an untested large-scale gold target within a proven region of multi-million ounce IRG deposits.

With our focus on 8 Mile and Eidsvold, MBK had been seeking a joint venture partner since 2018 to further fund exploration for the Triumph project. Early in the new financial year the Company granted an option to an unrelated private group to acquire the Triumph project for a total potential consideration of up to $6.4 million and a 1% royalty. That sale has now settled providing the Company with additional cash to fund its exploration projects.

The Company has recently been successful in raising approximately $2.11 million through a placement and an entitlement offer both of which closed oversubscribed with strong support from new sophisticated and professional investors and existing shareholders. These funds have now enabled us to develop an exploration strategy aimed at achieving step change development advances at both 8 Mile and Eidsvold. At 8 Mile we are focussed on a bulk tonnage discovery and at Eidsvold we are aiming to demonstrate that the Great Eastern Target is a new large IRG system. Work on the ground has commenced and we look forward to moving both these projects to the next level.

Sue-Ann Higgins, who has significant experience in the mining industry, joined the Board in early calendar 2020, following the resignation of Anthony Schreck. The exploration programmes are now ably led by Trevor Wright, a geologist with many years' experience on MBK projects.

With our exploration programmes being based in Queensland we have not experienced any disruption as a result of COVID-19. However, the health and safety of our team and contractors remains paramount and the Company continues to practice strict protocols to minimise any potential risks.

We look forward to continued exploration success in the year ahead and we thank our shareholders for their ongoing support.

Inés Scotland

Non-executive Chair

29 September 2020

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METAL BANK LIMITED AND ITS CONTROLLED ENTITIES

REVIEW OF OPERATIONS

REVIEW OF OPERATIONS

Highlights
8 Mile Project		Advanced Exploration Project
		Moved from discovery to an advanced project with a maiden Inferred
		Resource and Exploration Target1 and close to a potential bulk
		tonnage target
Eidsvold		Drill ready opportunity
		3D Modelling of geophysical data beneath surface geochemical
		anomalies at the Great Eastern Target identifies a drill ready, 7 km2
		large-scale intrusion related gold target
Corporate		Triumph sale
		In July 2020, MBK announced the sale of its Triumph tenements for a
		total potential consideration of $6.4 million plus a 1% gross royalty
Capital Raising		$2.11 million raised
		A placement and entitlement offer were completed following the end
		of the year raising over $2.11 million

Big Gold in Southeast Queensland

Metal Bank holds two high quality large-scale gold projects, 100% owned by Roar Resources Pty Ltd, a wholly owned subsidiary of the Company. Both projects have multi-million-ounce potential in a region that hosts several gold mines including the Cracow (3Moz Au) and Mt Rawdon (2Moz Au) gold mines as well as the historical Mt Morgan deposit (8Moz Au). Refer to Figure 1.

The 8 Mile project is located near the Mt Rawdon gold deposit in south-east Queensland. Multiple large-scale targets have been identified along >3.6km mineralized corridor at the Eastern Target, including a maiden Inferred Mineral Resource and Exploration Target1 at the Flori's Find Prospect. The Western Target and northern extensions of the Eastern Target remain untested.

The Eidsvold project presents a drill ready 7km2 opportunity at its Great Eastern Target of a similar scale and geophysical response to the 3 M oz Au Mt Leyshon deposit and close to the Eidsvold historical goldfield of 100,000oz Au historical production.

1 MBK ASX Release dated 23 April 2020

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