Asiamet Resources : 2022 Annual Report and Financial Statements

2022 Annual Report

For the year ended 31 December 2022

In USD unless otherwise noted

Contents
Company Information	3
Overview	4
2022 Highlights	5
Chairman's Statement	6
Chief Executive Officer's Statement	9
Strategic Report	11
Overview of Operations	11
Board of Directors	21
Risk Management Report	26
Stakeholder Engagement Statement	28
Corporate Governance Statement	30
Directors' Responsibility Statement	35
Financial Statements	36
Consolidated Statement of Financial Position	37
Consolidated Statement of Comprehensive Loss	38
Consolidated Statement of Cash Flows	39
Consolidated Statement of Changes in Equity	40
Notes to the Consolidated Financial Statements	42
Independent auditor's report	70

Company Information

Directors	Director, Executive Chairman
Antony (Tony) Manini
Dominic Heaton	Non-Executive Director
Peter Pollard	Non-Executive Director
Faldi Ismail	Non-Executive Director
Feng (Bruce) Sheng	Non-Executive Director
Eva Armila Djauhari	Non-Executive Director
Chief Executive Officer
Darryn McClelland
Registered address
Thistle House
4 Burnaby Street
Hamilton HM12
Bermuda
Independent auditors
Crowe UK LLP
2nd Floor, 55 Ludgate Hill
London, EC4M 7JW
Company solicitors (UK)
Bird & Bird LLP
12 New Fetter Lane
London EC4A 1JP
Nominated Advisor
RFC Ambrian Limited
Level 48, Central Park
152-158 St Georges Terrace
Perth WA 6000
Australia

Brokers

Optiva Securities Limited

118 Piccadilly London W1J 5NW

Registrars

Computershare Investor Services Plc

The Pavilions

Bridgewater Road

Bristol BS13 8AE

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Overview

Asiamet Resources Limited (the "Company" or "Asiamet") is an emerging mid-tier exploration and development company focused on copper and copper-gold deposits in Indonesia, with its key projects located on the islands of Kalimantan and Sumatra, adjacent to the key growth markets in Asia. The Company holds two assets in its portfolio:

• The KSK Contract of Work ("KSK CoW") is 100% owned by the Company and is located in the Kalimantan Volcanic Arc, a highly endowed and prospective region of Kalimantan, Indonesia. The KSK project comprises: o BKM copper project ("BKM Project" or "BKM"):

Development ready heap-leach Solvent Extraction-Electrowinning("SX-EW") project. An updated Feasibility Study is due for completion and expected to demonstrate a technically viable and economically robust copper cathode project with significant upside potential.

1. BKZ polymetallic project:
   Emerging high-grade polymetallic zinc-lead-silver-gold-copper and copper-silver deposits (800 metres north of the BKM Project). BKZ contains JORC compliant resources of Lead, Zinc and Copper.

• 1. Exploration portfolio:
     The KSK CoW covers a large and highly prospective area where Asiamet has identified a pipeline of fifteen copper, polymetallic and gold targets including the BKM Project and the BKZ deposit.
     Specifically, the drilling program at BKZ has identified "Exploration Targets" for the Upper Zinc Zone, Lower Copper Zone and new Precious Metals (Gold/Silver) Zone.
• The Beutong project ("Beutong Project") is 80% owned and is held under an Izin Usaha Pertambangan Operasi Produksi (Operation Production Mining Business Licence) ("IUP-OP") in Aceh Province, Indonesia. The Beutong Project represents a rare opportunity given its key characteristics, that include:
• 1. Large high-qualitycopper-gold porphyry development project located in close proximity of existing infrastructure;

1. Contained metal in JORC compliant Resources (100% basis) of 2.43Mt Cu, 2.11Moz Au and 20.9Moz Ag; o Significant Resource expansion and exploration upside potential.

Coupled with its exciting project portfolio, Asiamet has a strong technical and commercial team with extensive experience in South-East Asia and a proven track record of bringing mining projects into production.

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2022 Highlights

• Completed the BKZ drilling program which focussed on resource extensions and delivered a significant uplift in JORC compliant resources of all metals and discovery of a new gold/silver mineralised zone.
• Completed the first detailed materiality assessment related to Environmental, Social and Governance ("ESG") elements which will deliver the Company's first integrated ESG implementation framework to be utilised to develop appropriate policies and procedures.
• Appointment of Chief Executive Officer, Mr Darryn McClelland, who is based in Indonesia.
• Significant BKZ Resource Upgrade including new exploration target identified: o 50% increase in contained zinc;
  o 75% increase in contained copper; and
  o Potential for 100-220koz of gold and 10-20Moz silver in newly discovered Exploration Targets.
• Progressed BKM Copper Project Power supply solution survey.
• Continued progress with the BKM Feasibility Study Update engineering workstreams. Delivered new BKM Life of Mine Production Physicals as part of the Feasibility Study Update.
• Completed a capital placing, raising gross proceeds of approximately $3.0 million with PT Delta Dunia Makmur Tbk. in November 2022.

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