Rex Minerals : December 2021 Half-Year Report

For personal use only

Rex Minerals Ltd

ABN 12 124 960 523

and its controlled entities

31 December 2021

Consolidated Interim Financial Report

For personal use only

REX MINERALS LTD

CONSOLIDATED INTERIM FINANCIAL REPORT

Corporate Directory

DIRECTORS

Ian Smith (Chairman)

Richard Laufmann (CEO & Managing Director)

Amber Rivamonte

Ronald Douglas

Greg Robinson

Andrew Seaton

COMPANY SECRETARY

Kay Donehue

PRINCIPAL & REGISTERED OFFICE

68 St Vincent Highway

Pine Point, South Australia 5571

CONTACT DETAILS

PO Box 3435

Rundle Mall, South Australia 5000

1. 1300 822 161 (Australia)
   [phone] (International)

1. [e-mail]

1. www.rexminerals.com.au

SHARE REGISTRARS

Computershare Investor Services Pty Limited

Yarra Falls, 452 Johnston Street

Abbotsford, Victoria 3067

AUDITORS

KPMG Australia

151 Pirie Street

Adelaide, South Australia 5000

BANKERS
ANZ Banking Group Limited	Ord Minnett Ltd
Level 21, 11 Waymouth Street	Level 7, 161 Collins Street
Adelaide, South Australia 5000	Melbourne, Victoria 3000
LEGAL ADVISORS
Baker McKenzie
Level 19, 181 William Street
Melbourne, Victoria 3000

For the period ended 31 December 2021

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For personal use only

REX MINERALS LTDCONSOLIDATED INTERIM FINANCIAL REPORT

Contents

	Page
Directors' report	4
Consolidated interim statement of financial position	9
Consolidated interim statement of profit or loss and other comprehensive income	10
Consolidated interim statement of changes in equity	11
Consolidated interim statement of cash flows	12
Condensed notes to the consolidated interim financial statements	13
Directors' declaration	16
Independent auditor's review report	17
Lead auditor's independence declaration	19

For the period ended 31 December 2021

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For personal use only

REX MINERALS LTD

CONSOLIDATED INTERIM FINANCIAL REPORT

Directors' report

The Directors present their report, together with the consolidated interim financial statements, of Rex Minerals Ltd (the Company or Rex) and its subsidiaries (the Group) for the half-year ended 31 December 2021 (the Half-Year) and the auditors' review report thereon. The consolidated interim financial statements have been reviewed and approved by the Directors on the recommendation of the Audit Committee.

Directors

The Directors of the Company at any time during or since the end of the Half-Year are:

• Ian Smith (Chairman)
• Richard Laufmann (Chief Executive Officer & Managing Director)
• Amber Rivamonte
• Ron Douglas
• Greg Robinson
• Andrew Seaton

Principal activities

The principal activity of the Group during the period was minerals exploration, evaluation and development. Rex intends to make the best use of, and fully exploit, both the Hillside copper-gold Resource in South Australia and the Resource at the Hog Ranch Gold Property in Nevada USA. There were no significant changes in the nature of the Group's principal activities during the period. The Group's principal objective is to create value through the discovery and development of mineral resources.

Operating results

The consolidated interim statement of profit or loss and other comprehensive income shows a loss after tax of $4.3 million for the Half-Year ended 31 December 2021 (2020: loss

$4.6 million).

Review of operations

CORPORATE

Rex remains primarily focused on progressing the Hillside Copper-Gold Project (Hillside) to a final construction decision.

Rex raised a total of $50 million, during the Half-Year, via a two-tranche Placement from professional and sophisticated investors in Australia and overseas at 30.0c per share, following approval by shareholders. The Placement comprised the issue of a total of 166.6 million new ordinary fully paid shares, issued on 11 August 2021 (17.8 million) and 17 September 2021 (148.8 million).

As we establish our development and operational presence in South Australia, both in Adelaide and Ardrossan, Rex remains the only ASX company to have its registered office located on the Yorke Peninsula.

COVID-19 disruption continued to be a major theme in Australia, with Rex being impacted along with many other businesses. However, the re-opening of the East Coast borders just prior to the end of 2021 was a major step forward and a significant positive for 2022.

For the period ended 31 December 2021

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For personal use only

REX MINERALS LTD

CONSOLIDATED INTERIM FINANCIAL REPORT

Andrew Seaton joined the Board as Non-Executive Director from 1 December 2021. Andrew brings over 35 years' experience in the finance, resources and infrastructure industries.

The Company issued 333,333 shares on the exercise of options on 28 September 2021, lapsed 500,000 unquoted options on 29 October 2021 and a further 280,000 unquoted options were issued on 26 November 2021, under the same terms and conditions contained in the Company's approved Option Incentive Plan.

Rex has commenced trading on the US-based OTCQB® Venture Market under the symbol "RXRLF." This listing, on top of the existing ASX listing, was undertaken to help broaden the Company's international investor base.

HILLSIDE PROJECT - SOUTH AUSTRALIA (SA)

Hillside remains one of Australia's largest undeveloped open pit copper Mineral Resources and contains 2 million tonnes of copper and 1.4 million ounces of gold. With the SA Government's approval of the Program for Environment Protection and Rehabilitation (PEPR) for Stage 1 of the Project on 24 July 2020, Rex now has a pathway to development and continues to develop financing options for Hillside.

Early works on Hillside have commenced, including:

• EPCM Services tenders for development of process plant and infrastructure were received and are being evaluated following clarification sessions with vendors
• A Contractor Mining tender is out to market, with a tender brief completed on 20 January 2022
• Work on highway diversions continues, with surveys and geotech drilling completed and additional design work continuing
• Team building and commitments to early site preparations has begun. Recruitment of key personnel is continuing and new office leases were entered into in Adelaide and Ardrossan
• Financing discussions continue to progress with leading banking institutions.

Rex reported updated Hillside Ore Reserves during the Half-Year. The Ore Reserves estimate for Hillside, as announced to the ASX on 20 July 2021, is 181.6Mt @ 0.54% copper (Cu) and 0.14g/t gold (Au), containing 988kt of copper metal and 823kozs of gold (Table 1).

Table 1: Hillside Ore Reserves - July 2021

	Category			Tonnes		Copper	Gold	Contained	Contained
				(Mt)	(%)		(g/t)	Copper (kt)	Gold (koz)
	Proved	58	0.52		0.16		301		308
	Probable	123	0.56		0.13		687		515
	Total			182		0.54		0.14		988		823

Calculations have been rounded to the nearest Mt of ore, 0.01% Cu grade, 0.01g/t Au grade, 1,000t of Cu metal and 1000ozs of Au metal. Some apparent errors may occur due to rounding.

The updated JORC compliant Ore Reserves are more than double the previous Ore Reserves at Hillside (announced to the ASX on 26 May 2015), resulting in a 94% increase in the total contained copper metal.

The Ore Reserves are based on a Stage Two Pre-Feasibility Study transition plan, outlined in the PEPR approved on 23 July 2020. The Pre-Feasibility Study provides for a transition from the existing Stage One Feasibility Study into an expanded open pit. In summary:

• Stage One is unchanged for the first five years of production
• The Stage Two open pit design transitions in year six and is completed by year 27

For the period ended 31 December 2021

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