Wisr : Annual Reports for 30 June 2019 and 30 June 2020

Desert Metals Limited

A.C.N. 617 947 172

Financial Statements

For the Year ended 30 June 2020

DESERT METALS LIMITED	FINANCIAL REPORT
A.C.N. 617 947 172	30 June 2020
Contents
Directors' report .................................................................................................................................................................	3
Auditor's independence declaration ..................................................................................................................................	7
Statement of profit or loss and other comprehensive income...........................................................................................	8
Statement of financial position...........................................................................................................................................	9
Statement of changes in equity ........................................................................................................................................	10
Statement of cash flows ...................................................................................................................................................	11
Notes to the financial statements ....................................................................................................................................	12
Directors' declaration .......................................................................................................................................................	20
Independent auditor's report ...........................................................................................................................................	21

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DESERT METALS LIMITED	FINANCIAL REPORT
A.C.N. 617 947 172	30 June 2020
Directors' report

Your directors present their report on Desert Metals Limited (Desert Metals or the Company) for the year ended 30 June 2020.

Desert Metals was incorporated with the intention of listing on the Australian Securities Exchange (ASX).

Directors

The names of Directors in office at any time during or since the end of the period are:

•	Antony William Worth	Director
• Robert Angus Castle Stuart	Director
•	Brian Bernard Rodan	Director (Resigned 6 April 2020)
•	Mark Robert Stewart	Director (appointed 15 April 2020)

Directors have been in office since the start of the financial year to the date of this report unless otherwise stated. For additional information of Directors including details of the qualifications of Directors please refer to paragraph 6 Information relating to the directors of this Directors Report.

Company secretary

The following person held the position of Company Secretary at the end of the period:

• Paul Heatley
Qualifications	: BBus, CPA
Experience	: Mr Heatley is an accountant and member of CPA Australia with 20 years
	experience in providing business advisory, taxation and company secretarial
	services.

Dividend paid or recommended

There were no dividends paid or recommended during the year ended 30 June 2020.

Significant changes in the state of affairs

There have been no significant changes in the state of affairs of the Company during the year ended 30 June 2020 other than disclosed elsewhere in this Annual Report.

Operating and financial review

Nature of Operations and Principal Activities

The Company was incorporated as an unlisted public company limited by shares on 29 March 2017, for the purpose of exploring for, discovering and then proceeding to develop mineral deposits.

Operations Review

Desert Metals did not apply for any new licenses during the period. The company has a total of 9 licenses 1,674 km2, with 6 of them granted and 3 under application. Interpretation of geophysical data led to enquiries as to whether the company might have already sufficient assets to proceed to a public listing either via IPO or RTO or some other means. Discussions were held with many parties and preparation for this took up much of the year but no particular structure could be agreed upon. In April the capital structure of the company was re-arranged, there are now 4 shareholders each with 25% of the share capital. Brian Rodan resigned as a Director in April and Mark Stewart was appointed.

Heritage objections over several of the most prospective licenses were dismissed by the Native Title Tribunal (NTT) and the licenses were granted. At the end of the period there are 3 licenses still under application awaiting the NTT decision. A Heritage agreement has been agreed for the Irrida Hill license and this is being used as a template for the other licenses.

COVID 19 has interrupted field planning and fund raising in the latter part of the year but at the end of the year a field trip was imminent and the fund-raising situation was looking more promising.

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DESERT METALS LIMITED	FINANCIAL REPORT
A.C.N. 617 947 172	30 June 2020
Directors' report
Financial Review
Operating Results
For the year ended 30 June 2020 the Company reported a loss before tax of $77,763.

Financial Position

The net assets of the Company have increased from $111,505 at 30 June 2019 to $283,742 at 30 June 2020. As at 30 June 2020, the Company's cash and cash equivalents increased to $296,957 and had working capital of $283,742.

The financial report has been prepared on a going concern basis, which contemplates the continuity of normal business activity and the realisation of assets and the settlement of liabilities in the ordinary course of business.

The Company incurred a loss for the period of $77,763 and a net operating cash out-flow of $67,064.

The directors are satisfied that the going concern basis of preparation is appropriate as the directors are confident of the Company's ability to raise additional funds as and when they are required.

The ability of the Company to continue as a going concern is principally dependent upon the ability of the Company to secure funds by raising capital and managing cash flow in line with available funds. These conditions indicate a material uncertainty that may cast significant doubt about the ability of the Company to continue as a going concern and realise its assets and extinguish its liabilities in the normal course of business and at the amounts stated in the financial report.

Should the Company be unable to continue as a going concern it may be required to realise its assets and extinguish its liabilities other than in the normal course of business and at amounts different to those stated in the financial statements. The financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or to the amount and classification of liabilities that might result should the Company be unable to continue as a going concern and meet its debts as and when they fall due.

Events Subsequent to Reporting Date

There are no other significant after balance date events that are not covered in this Directors' Report or within the financial statements at Note 9 Events subsequent to reporting date

Future Developments, Prospects and Business Strategies

Likely developments, future prospects and business strategies of the operations of the Company and the expected results of those operations have not been included in this report as the Directors believe that the inclusion of such information would be likely to result in unreasonable prejudice to the Company.

Environmental Regulations

The Company's operations are not currently subject to any other significant environmental regulations in the jurisdictions it operates in, namely Australia.

Information relating to the directors

• Antony Worth Qualifications Experience

• Director
• BSc (Hons)
• Mr Worth is a geologist and business development consultant with 25 years experience. He has worked in Australia, Africa, North America and South America on a wide range of commodities and deposit styles. Mr Worth has a broad range of experience across all aspect of the minerals exploration industry, from target generation, exploration management, field programs implementation, through to commodity market analysis, joint venture negotiations and acquisitions. Mr Worth is a past director of Alamar Resources.

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