Mila Resources : Final Signed Accounts For Year Ended 30thJune 2023

Mila Resources Plc

Financial Statements

For the year ended

30 June 2023

Registered number 09620350 (England and Wales)

MILA RESOURCES PLC

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2023

CONTENTS

	Page
Directors and Advisors	3
Statement from the Board	4-5
Strategic Report	6-11
Key Personnel	12
Directors' Report	13-25
Independent Auditor's Report to the Members	26-31
Statement of Comprehensive Income	32
Statement of Financial Position	33
Statement of Cashflows	34
Statement of Changes in Equity	35
Notes to the Financial Statements	36-53

MILA RESOURCES PLC

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2023

DIRECTORS AND ADVISORS

Directors	Mark Stephenson
	Lee Daniels
	Neil Hutchison
	Lindsay Mair
Company Secretary	Nick Foster
Registered Office	65 Gresham Street
	London
	EC2V 7NQ
Independent Auditor	PKF Littlejohn LLP
	Statutory Auditor
	15 Westferry Circus
	London
	E14 4HD
Solicitors	Kepstorn
	7 St James Terrace
	Lochwinnoch Road
	Kilmacolm PA13 4HB
Bankers	HSBC
	50 Church Road
	Burgess Hill
	RH15 9AE
Registrars and Transfer Office	Link Market Services (trading as Link Group)
	6th Floor
	65 Gresham Street London
	EC2V 7NQ
Financial Public Relations	St Brides Partners Limited
	22 Bishopsgate
	London
	EC2N 4BQ
Registered Number	09620350
Website	www.milaresources.com

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MILA RESOURCES PLC

STATEMENT FROM THE BOARD

FOR THE YEAR ENDED 30 JUNE 2023

Dear Shareholder

We have made solid progress this year both on a corporate and asset level. Since the financial year end, we have entered into an exciting partnership with Australia's leading lithium company, Liontown Resources, who will explore for lithium targets on our acreage and (subject to shareholder approval on the 8th of November), we will then complete the £2m fund raise (before expenses) which will provide the Company with a robust balance sheet. Our strategy is to build value from both the gold and lithium at our Kathleen Valley Project in Western Australia (the "Project") and move ahead with a number of new business opportunities that have presented themselves this year.

We want Mila to become the "best in class" post-discovery exploration accelerator through the careful identification and development of proven projects that cannot access the traditional routes of funding in the capital markets due to market conditions for IPOs and equities generally. We recently added Alastair Goodship, an exploration geologist with significant experience in leading discovery-focussed exploration teams in a diverse range of environments and jurisdictions globally, to bolster the team.

We have been approached by several business development opportunities and continue to review these as we firmly believe that we can mitigate risk by broadening the portfolio of projects. The biggest single risk facing most junior mining companies is that they are reliant on the success of a sole project, and we want to differentiate Mila by providing companies and management with proven projects with the support structure of a public company and access to capital. By definition, exploration is high risk and high reward, therefore, we want to mitigate and diversify risk by building Mila particularly at the time where high quality exploration and development projects are attractively valued with limited scope to access the closed IPO market.

Gold

During this financial year, we have been highly active at the Project. In the year ending 30 June 2022 we acquired 30% of the Project with the ability to move up to 80% and we continue to retain that flexibility.

We have now completed several drilling phases designed to test the known mineralisation and test the "unknown" by drilling at depth and stepping out from the previously tested mineralisation. With each drilling phase, we are building a better and more complete picture of the geological system which we believe is highly structured, featuring concentrated zones of high-grade mineralisation.

With the benefit of a clearer picture, our next objective will be to conduct more low-cost exploration prior to conducting costly drill programmes. We now believe we know the system sufficiently well to be far more focused and efficient with the exploration budget. Also, I believe we will be able to obtain technical and operational efficiencies by working with the Liontown team. Whilst they are focused on finding lithium they will i be able to share geological insights to assist our team on gold exploration.

We have a number of development routes given the Project is surrounded by gold mining infrastructure and some of Australia's leading gold companies.

Lithium

Earlier this year we were approached by Liontown, our neighbours to the north, to explore for lithium on our Project. Liontown was recently subject to a A$6.6bn takeover bid by American lithium giant, Albemarle Corp. (NYSE: ALB) and is developing Australia's leading lithium project, the Kathleen Valley Lithium Project ahead of targeted production in 2024. Liontown has offtake agreements to supply lithium to companies including LG, Ford and Tesla.

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MILA RESOURCES PLC

STATEMENT FROM THE BOARD

FOR THE YEAR ENDED 30 JUNE 2023

Liontown has mapped pegmatite swarms extending south from its own project and the hypothesis is that this mineralisation corridor covers our own licence area. With the identification of these pegmatite swarms extending on to our own property, we reasoned that it makes commercial sense to work with Liontown to explore for lithium on our project. In addition, they bring a lot of intangible value to our project by sharing geological and technical information and their expertise in the region generally. On the 16th of October 2023 we announced that work is now underway with Liontown on the acreage with the preliminary social and environmental programmes before they can commence their exploration which will initially entail mapping, trenching and sampling in areas of the Project known to host lithium pegmatites.

Finance Review

In October 2022, the Company announced that it had raised £908,000 (before expenses) through a placing of 30,266,651 New Ordinary Shares of GBP0.01 each at a price of 3 pence per placing share. Investors in the Placing will also receive one three-year warrant per Placing Share to subscribe for one new ordinary share at a cost of 4.8p per share. The Company will also issue 524,000 broker warrants that are exercisable at 3p for a period of 3 years. The issue of the Investor Warrants and Broker Warrants is conditional on shareholder approval to increase the Company's share authorities.

Post year- end, in October 2023, the Company announced the placing of 200,000,000 new ordinary shares at a price of 1 pence per ordinary share to raise £2m. The placing shares have one warrant attached with an exercise price of 2 pence for a period of two years from the date of admission. The Placing is conditional on approval by Shareholders of resolutions at a General Meeting ("GM").

Cash Position

At 30 June 2023, cash and cash equivalents amounted to £448,063 (2022: £1,096,084).

Outlook

Mila is now in the most solid position of its brief life since we listed in November 2021. This of course assumes that the shareholders vote in favour of the £2m fund raise on the 8th of November.

We have a clear strategy and are well capitalised to deliver the strategy to fruition. We expect the next 12 months to be highly active on both a corporate and asset level as we continue to assess business development opportunities and how to deliver value from both the gold and lithium at our project.

Whilst the financial period has proven to be difficult for junior mining companies given the challenges in the capital markets, we now look forward to building Mila from the opportunities that present themselves from such circumstances. Ultimately, Mila will continue to be highly entrepreneurial, and I would like to take this opportunity to thank our existing shareholders, and those new to our register, as we look forward with excitement and confidence, to a period of increased activity in the forthcoming financial year.

Mark Stephenson

Executive Chairman

31 October 2023

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MILA RESOURCES PLC

STRATEGIC REPORT

FOR THE YEAR ENDED 30 JUNE 2023

The directors present the strategic report for the year ended 30 June 2023.

Understanding our business

The Company was incorporated on 3 June 2015, with the view of pursuing an initial public offering of its securities onto the London Stock Exchange through a Standard Listing to raise the necessary funds required for the execution of the business strategy, which is to buy asset(s) or business(es) acting as a post discovery accelerator. The Company identifies target(s) that have already had an early-stage geological discovery. To date one successful acquisition has been made, an initial 30% interest in the Kathleen Valley Gold Project in Western Australia. Whilst additional targets will be sought, the current priority is to develop and unlock the potential in the initial gold exploration project.

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MILA RESOURCES PLC

STRATEGIC REPORT

FOR THE YEAR ENDED 30 JUNE 2023

Review of the business and Key Performance Indicators (KPIs)

FY2023 KPIs	Measurement	2023 Performance
Identify business(s) / asset(s)	Successful	Added Alastair Goodship, an exploration
that meet the Company's	identification and	geologist with significant experience in
strategic objectives and	development of	leading discovery-focussed exploration
investment criteria.	proven projects	teams in a diverse range of environments
		and jurisdictions globally, to the team.
		Targets continue to be identified as to
		potential suitability.
Ensure business adequately	The Company's cash	The Company successfully raised
funded.	reserves	£908,000 (before costs) in Oct/Nov 2022,
		and an additional £2m (before expenses)
		in October 2023 (this is contingent on
		shareholder approval at the General
		Meeting on 8 Nov 2023) hence, until the
		fund raise is approved a material
		uncertainty exists which may cause
		significant doubt about the ability to
		continue to trade as a going concern. The
		company continues to explore all funding
		options to ensure the Company is
		adequately funded.
Continued Operational activity	Delivering results from	The Company continued the drilling
in the gold exploration project	Drilling / Assays.	campaign building a better and more
in Western Australia.		complete picture of the geological system

Business review

For a review of developments in the year, please see page 4, the "Statement from the Board".

Principal risks and uncertainties

Exploration and development of a project can be adversely affected by environmental legislation and the unforeseen results of environmental studies carried out during that evaluation.

As the Company undertakes mineral exploration, any disturbance to the environment during this phase is required to be rehabilitated, with the prevailing regulations of the country in which we operate as well as to international best-practice.

Given the Company's size and scale it is not considered practical or cost effective to collect and report data on carbon emissions.

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MILA RESOURCES PLC

STRATEGIC REPORT

FOR THE YEAR ENDED 30 JUNE 2023

The principal risks currently faced by the Company relate to:

Loss of Key Personnel

The Company has three Executive Directors and one Non-Executive Directors. It does not have any other employees. The executive function of the Company is conducted by the three Executive Directors; hence due to the small number people performing the executive function there is a risk that the execution of this function is considerably effected should one or more directors resign from the board. The Company has established a Remuneration Committee that monitors the Directors remuneration packages and seeks to ensure that said packages are competitive in contrast to market peers.

Acquiring Less than Controlling Interests

Regarding future potential acquisition targets, the Company may acquire less than whole voting control of, or less than a controlling equity interest, which may limit the Company's operational strategies and reduce is ability to enhance Shareholder value.

The Company has acquired less than a controlling equity interest in the Kathleen Valley Project. The Company acquired an initial 30% interest, which was the first stage of a three-part earn in agreement. This does not limit the Company's operational strategies as the Company has full control over the operations and maintains the ability to earn a controlling stake.

Inability to Fund Operations Post-Acquisition

The Company may be unable to fund the operations at the Kathleen Valley Project or other projects it invests in if it does not obtain additional funding, however, the Company will ensure that appropriate funding measures are taken to ensure minimum commitments are met. See the going concern assessment on page 24.

The Company's Relationship with the Directors and Conflicts of Interest

Regarding future potential acquisitions, the Company is dependent on the Directors to identify potential acquisition opportunities and to execute an acquisition.

The Directors are not obliged to commit their whole time to the Company's business; they will allocate a portion of their time to other businesses which may lead to the potential for conflicts of interest in their determination as to how much time to assign to the Company's affairs.

Risks Inherent in an Acquisition

Although the Company and the Directors will evaluate the risks inherent in a particular target, they cannot offer any further assurance that all of the significant risk factors can be identified or properly assessed. Furthermore, no assurance can be made that an investment in Ordinary Shares in the Company will ultimately prove to be more favourable to investors then a direct investment, if such an opportunity were available, in a target business.

Reliance on External Advisors

The Directors expect to rely on external advisors to help identify and assess potential and future acquisitions and there is a risk that suitable advisors cannot be placed under contract or that such advisors that are contracted to fail to perform as required.

Reliance on Income from the Acquired Activities

Following an acquisition of an initial 30% interest in the Kathleen Valley Project, the Company may be dependent on the income generated by the acquired project or from the subsequent divestment of the acquired business to meet the Company's expenses. If the acquired business is unable to provide the

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MILA RESOURCES PLC

STRATEGIC REPORT

FOR THE YEAR ENDED 30 JUNE 2023

sufficient amounts to the Company, the Company may be unable to pay its expenses or make distributions and dividends on the Ordinary Shares. This risk can be mitigated by sourcing money through other means, eg. capital raisings.

Political conditions and government regulations could change and have a material effect on the Company's results of operations

Political conditions in jurisdictions in which the Company currently operates its exploration and evaluation activities, namely Western Australia, are generally stable. However, changes may occur in their political, fiscal and/or legal systems, which might adversely affect the Company's operations.

Although the Company believes that its activities are currently carried out in accordance with all applicable rules and regulations, no assurance can be given that new rules, laws and regulations will not be enacted, or that existing or future rules and regulations will not be applied in a manner which could serve to limit or curtail exploration or development of the Company's business or have an otherwise negative impact on its activities.

Gender analysis

A split of our employees and directors by gender and average number during the year is shown below:

MaleFemale

Directors

4

nil

Corporate social responsibility

We aim to conduct our business with honesty, integrity and openness, respecting human rights and the interests of our shareholders and employees. We aim to provide timely, regular and reliable information on the business to all our shareholders and conduct our operations to the highest standards.

We strive to create a safe and healthy working environment for the wellbeing of our staff and create a trusting and respectful environment, where all members of staff are encouraged to feel responsible for the reputation and performance of the Company.

We aim to establish a diverse and dynamic workforce with team players who have the experience and knowledge of the business operations and markets in which we operate. Through maintaining good communications, members of staff are encouraged to realise the objectives of the Company and their own potential.

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MILA RESOURCES PLC

STRATEGIC REPORT

FOR THE YEAR ENDED 30 JUNE 2023

Section 172 Statement

Section 172 of the Companies Act 2006 requires Directors to take into consideration the interests of stakeholders and other matters in their decision making. The Directors continue to have regard to the interests of the Company's stakeholders, however it should be noted that Mila is a relatively small company; with the full complement of staff consisting of only three executive directors and one non- executive director; no employees and the impacts of its activities is currently limited to a single gold exploration project in Western Australia. This statement forms part of the strategic report.

When making decisions the Company takes into account the impact of its activities on the community, the environment and the Company's reputation for good business conduct. In this context, acting in good faith and fairly, the Directors consider what is most likely to promote the success of the Company for its members in the long term.

The Directors are fully aware of their responsibilities to promote the success of the Company in accordance with section 172 of the Companies Act 2006. The Board continuously reflects on how the Company engages with its stakeholders and opportunities for enhancement in the future. As required, the Company's external lawyers and the Company Secretary will provide support to the Board to help ensure that enough consideration is given to issues relating to the matters set out in s172(1)(a)-(f).

The Board regularly reviews the Company's principal stakeholders and how it engages with them. This is achieved through information provided by management via Regulatory News Service announcements, Corporate Presentations, and Shareholder Meetings and teleconferences and also by direct engagement with stakeholders themselves.

We aim to work responsibly with our stakeholders, including suppliers. The key Board decisions made in the year and post year end are set out below:

Significant events/decisions

Key s172 matter(s) affected

Actions and Consequences

Fund Raise of £0.9m (excluding	Business Relationships and	This has enabled the exploration
costs). After year end an additional	Shareholders.	and development of the Kathleen
Fund Raise of £2.0m (excluding		Valley Project asset in the year.
costs), subject to ratification by		The post year end raise, once
shareholders at a General Meeting		approved, will allow the Company
		to advance the project
Advancement of geological	Shareholders, staff and Business	The Company continued the drilling
understanding of the region of the	Relationships.	campaign; building a better and
Company's current acreage		more complete picture of the
		geological system

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