Valor Resources : 30 June 2020 Annual Report

ABN 88 076 390 451

ANNUAL REPORT

30 JUNE 2020

VALOR RESOURCES LIMITED

CONTENTS	PAGE NO
Directors' Report	3
Consolidated Statement of Profit or Loss and Other Comprehensive Income	10
Consolidated Statement of Financial Position	11
Consolidated Statement of Cash Flows	12
Consolidated Statement of Changes in Equity	13
Notes to the Consolidated Financial Statements	14
Directors' Declaration	34
Auditor's Independence Declaration	35
Independent Auditor's Report	36
ASX Additional Information and Tenement Table	39

CORPORATE DIRECTORY

Directors	Share Registry

Mr. Brian McMaster (Non-Executive Chairman)

Dr. Nicholas Lindsay (Chief Executive Officer and

Executive Director - Technical)

Ms. Paula Smith (Non-Executive Director)

Company Secretary

Automic Registry Services Pty Ltd

Level 2, 267 St Georges Terrace

PERTH, WA 6000

Telephone:	+ 61 8 9324 2099
Facsimile:	+ 61 8 9321 2337

Ms. Paula Smith

Registered Office

22 Lindsay Street

PERTH, WA 6000 Telephone: [phone] Facsimile: [phone]

Website: www.valorresources.com.au

Auditors

BDO Audit (WA) Pty Ltd

38 Station Street

SUBIACO, WA 6008

Stock Exchange

Australian Securities Exchange Limited

(Home Exchange: Perth, WA)

ASX Code: VAL

Valor Resources Limited

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2020 Report to Shareholders

VALOR RESOURCES LIMITED

DIRECTORS' REPORT

The Directors present their report for Valor Resources Limited and its subsidiaries ("Valor" or "the Group") for the year ended 30 June 2020.

DIRECTORS

The names, qualifications and experience of the Group's Directors in office at any time during the year are as follows. Directors were in office for this entire year unless otherwise stated.

Mr. Brian McMaster

Non-Executive Chairman

Mr McMaster is a Chartered Accountant and has over 20 years' experience in the areas of venture capital and project financing, corporate reconstruction and turnaround/performance improvement. Mr McMaster is the principal of Garrison Capital a boutique venture capital firm and formerly was a partner of the restructuring firm KordaMentha and prior to that was a partner at Ernst & Young. His experience includes significant working periods in the United States, South America, Asia and India.

Mr McMaster is currently a director of AIM traded Harvest Minerals Limited (appointed 1 April 2014), AIM traded Jangada Mines plc (appointed 30 June 2015), AIM quoted Arc Minerals Limited (appointed 1 August 2017).

Mr McMaster was previously a director of Haranga Resources Limited (appointed 1 April 2014, resigned 1 June 2017), Bounty Mining Limited (appointed 29 March 2016, resigned 8 October 2017), LSE quoted Contango Holdings Limited (appointed 26 October 2017, resigned 30 June 2020) and TSX-V traded Five Star Diamonds Limited (appointed 20 April 2017, resigned 1 October 2017). He has not held any other listed directorships in the past three years.

Dr. Nicholas Lindsay

Chief Executive Officer and Executive Director - Technical

Dr. Lindsay has over 30 years' experience in the global mining industry with strong exposure in South America. He has held senior roles in Chile and Australia, and managed ASX junior mining and exploration companies operating in South America. Dr. Lindsay has a BSc Honours degree in geology and an MBA from the University of Otago (New Zealand), and a PhD (Metallurgy & Materials Engineering) from the University of the Witwatersrand (South Africa). Dr Lindsay is also a member of the AusIMM and the Australian Institute of Geoscientists.

Dr Lindsay is currently a director of Lake Resources NL (appointed 18 July 2017), Manuka Resources Limited (appointed 7 June 2019) and Daura Capital Corp. (appointed 29 March 2018). He has not held any other directorships in the past three years.

Ms. Paula Smith

Non-Executive Director & Company Secretary

Ms. Smith is a finance professional with over 16 years' experience and is presently a director of a consulting and secretarial advisory firm specialising in business advisory, consulting and back office support (finance and secretarial) to SMEs and ASX listed entities. Prior to that Ms. Smith held senior roles in advisory firms KordaMentha and Ernst & Young. Ms. Smith holds a Bachelor of Commerce/Law (Hons), is a qualified Chartered Accountant and a Graduate of the Australian Institute of Company Directors.

Ms. Smith was a director of Lithex Resources Limited (appointed 29 January 2015, resigned 2 December 2016) and Haranga Resources Limited (appointed 28 March 2017, resigned 4 May 2018). She has not held any other listed directorships over the past three years.

Valor Resources Limited

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2020 Report to Shareholders

VALOR RESOURCES LIMITED

DIRECTORS' REPORT (continued)

INTERESTS IN THE SECURITIES OF THE GROUP

As at the date of this report, the interests of the Directors in the securities of Valor Resources Limited are:

Director	Ordinary Shares	Listed Options exercisable
		at $0.015 each, on or
		before 31/12/2021
Mr. Brian McMaster	102,030,143	10,000,000
Dr. Nicholas Lindsay	-	-
Ms. Paula Smith	5,007,425	5,000,000

RESULTS OF OPERATIONS

The Group's net loss after taxation attributable to the members of Valor Resources Limited for the year ended 30 June 2020 was $3,094,431 (2019: $4,036,303).

DIVIDENDS

No dividend was paid or declared by the Group during the year and up to the date of this report (2019: Nil).

CORPORATE STRUCTURE

Valor Resources Limited is a company limited by shares which is incorporated and domiciled in Australia.

NATURE OF OPERATIONS AND PRINCIPAL ACTIVITIES

The principal activities of companies within the Group during the financial year were mineral exploration and examination of new resource opportunities.

REVIEW OF OPERATIONS

Berenguela South & Picha Projects - Peru

As announced on 31 January 2020, Valor intended to continue its focus on developing the exploration potential of its 100% owned Berenguela South and Picha Projects however a strict Covid-19lock-down regime was applied in Peru preventing any substantive mining exploration activities being undertaken in 2020. Desktop studies have continued with the emphasis on facilitating a restart of field activities as soon as circumstances allow.

The Projects comprise 10 tenements held by Valor's 100% owned peruvian subsidiary Kiwanda S.A.C as follows:

Project	Concession Name	Tenement	Location	Title Area
	Corona 01-18	01-01208-18
	Corona 02-18	01-01209-18
Berenguela South	Corona 03-18	01-01210-18	Santa Lucia	4,900 hectares
Corona 04-18	01-01211-18
	Corona 05-18	01-01212-18
	Corona 06-18	01-01213-18
	Picha 2	01-03853-05	45km South
Picha Project	Picha 3	01-03854-05	East of the	2,000 hectares
Picha 7		town Santa
	01-00578-07
	Leon 3	01-04638-08	Lucia

Berenguela Project - Peru ("Berenguela")

As announced to the ASX on 14 January 2019, Valor executed a joint venture option agreement with Kennecott Exploration Company, (later assigned to Rio Tinto Mining & Exploration), both wholly owned subsidiaries of Rio Tinto. Pursuant to the option agreement, 1,427 metres of diamond drilling was completed in 4 diamond drill holes, focusing on the mineral system below the existing deposit. Details of the work undertaken by Rio Tinto was detailed in ASX Announcement dated 31 January 2020 titled "Berenguela Copper-SilverProject Update" in which they also announced that Rio Tinto had declined to execute the joint venture option.

Valor Resources Limited

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2020 Report to Shareholders