Pathfinder Resources : Half year report - December 2021

PATHFINDER RESOURCES LTD

DIRECTORS' REPORT

For the half-year ended 31 December 2021

For personal use only

FINANCIAL REPORT

For the half-year ended 31 December 2021

For personal use only

PATHFINDER RESOURCES LTD

DIRECTORS' REPORT

For the half-year ended 31 December 2021

DIRECTORS

Mr Sufian Ahmad	Non-executive Chairman
Mr Hugh Callaghan	Managing Director
Dr Stephen Windle	Non-executive Director

CHIEF FINANCIAL OFFICER

Mr Agha Shahzad Pervez

COMPANY SECRETARY

Mr Harry Spindler

REGISTERED OFFICE

Level 9, 182 St Georges Terrace

Perth WA 6000

Telephone [phone]

Websitewww.pathfinderresources.com.au

POSTAL ADDRESS

P O Box 7310

Cloisters Square PO WA 6850

AUDITORS

BDO Audit (WA) Pty Ltd

Level 9

Mia Yellangonga Tower 2

5 Spring Street

Perth WA 6000

SHARE REGISTRY

Computershare

GPO Box 2975, Melbourne Vic 3001

ASX Code	PF1
ACN	085 905 997
ABN	80 085 905 997

In this report, the following definitions apply:

"Board" means the Board of Directors of Pathfinder Resources Ltd

"Pathfinder" or the "Company" means Pathfinder Resources Ltd ABN 80 085 905 997

For personal use only

PATHFINDER RESOURCES LTD

DIRECTORS' REPORT

For the half-year ended 31 December 2021

Your Directors submit the financial report of Pathfinder Resources Limited (PF1, Pathfinder or the Company) and its controlled entities (the Group, or Consolidated Entity) for the half-year ended 31 December 2021. In order to comply with the provisions of the Corporations Act 2001, the Directors' report as follows.

Directors

The names and particulars of the Directors of the Company in office during or since the end of the half year to the date of this report are:

Director	Position	Appointed	Resigned
Sufian Ahmad	Non-Executive Chairman	1 December 2020
Hugh Callaghan	Managing Director	2 November 2021
	Non-Executive Director	4 June 2021	1 November 2021
Stephen Windle	Non-Executive Director	5 October 2021
Shannon Green	Managing Director	1 December 2020	16 November 2021
	Executive Chairman	30 March 2020	1 December 2020

PRINCIPAL ACTIVITIES

The Company is a mineral exploration company which is presently focused on exploration of base and precious metals in Argentina and Canada.

SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS

In the opinion of the Directors, there were no significant changes in the state of affairs of the Group which have not been disclosed elsewhere in this report.

REVIEW OF OPERATIONS

During the half-year ended 31 December 2021 the Company's primary focus was to advance exploration at the King Tut Project in Argentina and finalise the Divestment of the Hamersley Iron Ore Project.

King Tut Project

Exploration Activities

During the first half of the year, the Company continued to progress permitting for its maiden diamond drilling program.

On 16 August 2021, the Company announced the completion of the planned electric resistivity tomography geophysical survey of the King Tut tenement. The field work was undertaken by experienced professional ALH Geophysics (ALH) based in San Juan. Despite the steep terrain surveyed, see figure 1 below, the Company was able to safely test the length of 4 of the 5 proposed sections, traversing across the known mineralised veins.

Figure 1: Field workers placing electrodes

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PATHFINDER RESOURCES LTD

DIRECTORS' REPORT

For the half-year ended 31 December 2021

The ERT Survey improved the Company's understanding of the size and spatial disposition of inferred mineralised structures which has been used to further optimise the upcoming inaugural drilling program. See Figure 2 below showing planned drill hole locations in reference to the resistive anomaly.

Referred to announcement dated 16 August 2021, all submissions required, including municipal permitting approvals are now with Mining and Environment Administration for approval.

Figure 2: Map showing planned drill pads and resistivity anomaly

The Company is engaging with officials through its Argentinian representatives to advance these approvals.

As part of the permitting of the maiden Diamond Drill Program the team have continued engagements with key stakeholder and community groups in the province. To assist with the development of a comprehensive Social Management and Communication Plan (SMCP) the Company has contracted a local consulting group, Papi Group Latam Consulting, who have extensive experience with mining operations in Argentina.

Consultation with the la Rioja government are ongoing and the Company expects to reach an assessment of the drill program by the end of the March 2022 quarter.

Hamersley Iron Ore Project

On 9 July 2021, the Group together with Lockett executed a Binding Terms Sheet with Equinox Resources Limited (ACN 650 503 325) (Equinox) for the sale of their respective interests in the Hamersley Iron Ore Project. The sale of the Project is conditional upon Pathfinder shareholder approval in accordance with ASX Listing Rule 11.4.1(b), amongst other things.

On 26 July 2021, the Company issued a Notice of Meeting in respect of the Divestment of the Hamersley Iron Ore Project. The resolution was carried on poll at the meeting held on 27 August 2021.

Equinox undertook the initial public offer (IPO) with its prospectus lodged on 31 August 2021 and was admitted to the official list of the Australian Securities Exchange on 12 October 2021. The IPO raised $9 million (before costs) through the offer of 45 million shares, at an issue price of $0.20 per share.

Under the transaction, Pathfinder received 35,000,000 shares and 6,650,000 performance shares and Lockett received 15,000,000 shares and 2,850,000 performance shares.

For personal use only

PATHFINDER RESOURCES LTD

DIRECTORS' REPORT

For the half-year ended 31 December 2021

In conjunction with the sale of the Hamersley Iron Ore Project, Pathfinder agreed to advance Equinox an amount of up to $320,000 by way of an interest free loan to be used by Equinox to pay the expenses in respect of the Equinox IPO. The Company advanced Equinox $221,000 under this agreement which was repaid on 15 October 2021.

Bloom Lake Project

The Company maintained the tenements comprising the Bloom Lake Cobalt Project in Canada during the half year. Activities commenced during the September Quarter with 14 samples collected from the Bloom Lake tenements over a 5-day period. The results are released to the market "High Grade Sample Results from Bloom Lake Project" ASX announcement dated 4 February 2022.

Compliance Statement

This half year report contains information extracted from ASX Market announcements reported in accordance with the 2012 edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" ("2012 JORC Code") and available for viewing at pathfinderresources.com.au. Pathfinder Resources Limited confirms that it is not aware of any new information or data that materially effects the information included in the original ASX market announcement. Such ASX announcements are as follows:

4 February 2022 - Bloom Lake Project Sampling Results

31 January 2022 - - Quarterly Activities Report

20 October 2021 - Quarterly Activities Report

29 September 2021 - Annual Report FY2021

23 August 2021 - Quarterly Activities Report - Update

17 August 2021 - JORC Tables for Geophysics Survey Results 16 August 2021 - Geophysics Survey Results

30 July 2021 - Quarterly Activities Report and Appendix 5B 9 July 2021 - Divestment of Hamersley Iron Ore Project

25 January 2021 - High-grade gold and cobalt mineralisation at King Tut 16 September 2020 - Independent Geologist's Report

FINANCIAL POSITION

The Company made a profit for the period of $4,987,076 (31 December 2020: loss $571,245). At balance date,

capitalised exploration costs totalled $2,083,781 (30 June 2021: $1,814,678). Cash reserves were $1,837,830 (30

June 2021: $3,412,277) a decrease of $1,574,447.

CORPORATE ACTIVITIES

On 26 July 2021, the Company issued a Notice of Meeting in respect of the Divestment of the Hamersley Iron Ore Project. The resolution was carried on poll at the meeting held on 27 August 2021.

On 2 August 2021, the Company announced the establishment of an unmarketable parcel sale facility. Closure of the facility was announced on 22 September 2021, with the sale proceeds distributed to holders on 12 October 2021.

On 23 September 2021, the Company announced the resignation of Managing Director Shannon Green effective 16 November 2021.

On 30 November 2021, the Company held its Annual General Meeting

On 5 October the Company announced the appointment of Dr. Stephen Windle to the Board, as a Non-Executive Director.

On 1 November 2021, the Company announced the appointment of Mr Hugh Callaghan as Managing Director effective immediately.