Annual Report Jan - Dec 2021

PYX Resources Limited - ABN 30 073 099 171

Due to PYX's commitment to the environment, printed copies of the Annual Report are only posted to shareholders who have requested to receive a physical copy

PYX Resources: The Emerging Force in the Premium Zircon Industry

Contents

About PYX Resources

4

Mineral Sands Process

6

Highlights

10

Chairman's Letter

12

Year in Review

16

Management Discussion and Analysis

18

Strategy and Business Model

19

Zircon Centred Innovation

26

Uses of Zircon

28

Operating and Financial Review

33

Market Outlook

38

Resources and Reserves

40

Sustainability

47

Directors' Report

53

Renumeration Report - Audited

61

Corporate Governance

68

Auditor's Independence Declaration

75

Financial Statements and Notes

76

Directors' Declaration

77

Consolidated Statement of Profit or Loss

78

Consolidated Statement of Financial Position

79

Consolidated Statement of Changes in Equity

80

Consolidated Statement of Cash Flows

82

Independent Auditor's Report

120

Shareholder and Investor Information

125

Glossary

127

Corporate Information

129

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PYX Resources: The Emerging Force in the Premium Zircon Industry

Forward Looking Statements

Cautionary Note Regarding Forward-looking Information

This Annual Report contains forward-looking statements and forward- looking information within the meaning of applicable Australian and UK securities laws, which are based on expectations, estimates and projections as of the date of this Report.

Forward-looking information includes, or may be based upon, without limitation, estimates, forecasts and statements as to management's expectations with respect to, among other things, the timing and amount of funding required to execute the Company's exploration, development and business plans, capital and exploration expenditures, the effect on the Company of any changes to existing legislation or policy, government regulation of mining operations, the length of time required to obtain permits, certifications and approvals, the success of exploration, development and mining activities, the geology of the Company's properties, environmental risks, the availability of labour, the focus of the Company in the future, demand and market outlook for precious metals and the prices thereof, progress in development of mineral properties, the Company's ability to raise funding privately or on a public market in the future, the Company's future growth, results of operations, performance, and business prospects and opportunities. Wherever possible, words such as "anticipate", "believe", "expect", "intend", "may" and similar expressions have been used to identify such forward-looking information.

Forward-looking information is based on the opinions and estimates of management at the date the information is given, and on information available to management at such time. Forward looking information involves significant risks, uncertainties, assumptions and other factors that could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking information. These factors, including, but not limited to, fluctuations in currency markets, fluctuations in commodity prices, the ability of the Company to access sufficient capital on favourable terms or at all, changes in national and local government legislation, taxation, controls, regulations, political or economic developments in Indonesia and Australia or other countries in which the Company does business or may carry on business in the future, operational or technical difficulties in connection with exploration or development activities, employee relations, the speculative nature of mineral exploration and development, obtaining necessary licenses and permits, diminishing quantities and grades of mineral reserves, contests over title to properties, especially title to undeveloped properties, the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drill results and other geological data, environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins and flooding, limitations of insurance of project cost overruns or unanticipated costs and expenses and should be considered carefully. Many of these uncertainties and contingencies can affect the Company's actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, the Company. Prospective investors should not place undue

reliance on any forward-looking information.

Although the forward-looking information contained in this Report is based upon what management believes, or believed at the time, to be reasonable assumptions, the Company cannot assure prospective purchasers that actual results will be consistent with such forward- looking information, as there may be other factors that cause results not to be as anticipated, estimated or intended, and neither the Company nor any other person assumes responsibility for the accuracy and completeness of any such forward-looking information. The Company does not undertake, and assumes no obligation, to update or revise any such forward-looking statements or forward-looking information contained herein to reflect new events or circumstances, except as may be required by law.

No stock exchange, regulation services provider, securities commission or other regulatory authority has approved or disapproved the information contained in this Report.

Competent Person Statement

The information in this Report that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Dr. John Chisholm, a Competent Person who is

  1. Fellow of AusIMM (Australian Institute of Mining and Metallurgy). Dr. Chisholm is engaged by PYX and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration,

and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code). Dr. Chisholm consents to the inclusion in the Report of the matters based on his information in the form and context in which it appears.

The Mandiri mineral sands deposit hosts a 6 Mt Inferred Mineral Resource of Zircon. The Company originally announced this resource in its Prospectus released on 20 February 2020 and confirms that it

is not aware of any new information or data that materially affects the information included in the Prospectus. All material assumptions and technical parameters disclosed in the Prospectus that underpin the estimates continue to apply and have not materially changed.

The Tisma mineral sands deposit hosts a 4.5 Mt Inferred Mineral Resource of Zircon. The Company originally announced this resource in its Announcement "PYX Resources Limited Agrees to Acquire Tisma Development (HK) Limited, a World-Class, Fully Licensed Mineral Sands Deposit" on NSX on 13 January 2021 and confirms that it is not aware

of any new information or data that materially affects the information included in the Announcement. All material assumptions and technical parameters disclosed in the Announcement that underpin the estimates continue to apply and have not materially changed.

Together the Mandiri and Tisma mineral sand deposits total 10.5 Mt of contained Zircon within a total of 263.5 Mt of heavy mineral sands.

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PYX Resources: The Emerging Force in the Premium Zircon Industry

About PYX Resources

PYX Resources Limited (NSX: PYX | LSE:

PYX) is a leading producer of premium

Zircon, listed on the National Stock

Exchange of Australia and on the Main

Market of the London Stock Exchange.

PYX Mandiri is a large-scale,near-surface open pit mine that has been in operation since 2015.

Following the acquisition of Tisma in 2021, PYX boasts the world's 2nd largest producing mineral sands company globally, in terms of Zircon resources (10.5 Mt of inferred resources). PYX Resources controls two large-scale deposits with exploration, to date, validating the presence of additional Valuable Heavy Minerals such as rutile and ilmenite, amongst others, within its mineral sands.

Determined to strengthen its position as the industry consolidator of Zircon rich deposits within Kalimantan, PYX is committed to mine responsibly and invest in the wider communities in which it operates. PYX Resources is dedicated to fully developing Mandiri and Tisma, with the vision of exploring and acquiring further mineral sands assets in Asia and beyond.

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PYX Resources Ltd. published this content on 16 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 March 2022 22:57:07 UTC.