Cavalier Resources : Interim Report 31 December 2021

For personal use only

Cavalier Resources Limited

ACN 635 842 143

Interim Financial Report for the half-year ended 31 December 2021

For personal use only

Cavalier Resources Limited Directors' report

31 December 2021

The directors present their report, together with the financial statements, on Cavalier Resources Limited (referred to hereafter as the 'Company') for the financial half-year ended 31 December 2021 (the 'period' or 'half-year').

Directors

The following persons were directors of Cavalier Resources Limited from incorporation up to the date of this report, unless otherwise stated:

Ranko Matic

Daniel Tuffin

Anthony Keers (appointed 24 November 2021)

Company Secretary

Damon Cox (appointed 24 November 2021)

Ranko Matic (resigned 24 November 2021)

Principal activities

During the period, the Company's principal activities included mineral exploration.

Dividends

No dividends were paid or declared during the period. No dividend has been recommended.

Review of operations

The loss for the Company after providing for income tax for the period was $16,002 (31 December 2020: $20,339).

On 1 July 2021, the Company confirmed, as per the conditions of the Tenement Sale Agreement dated 22 July 2020, that it had made the Decision to Mine in respect of Minerals located within the Joint Venture Tenements. Therefore, the deferred consideration was not paid to Roman Kings. As the Company is now pursuing an IPO strategy, as an ASX listed entity the Company will be required to carry out additional future work around the tenements concerned to better define a JORC-Compliant Ore Reserve resulting from a Pre-Feasibility Study in order to commence mining operations.

On 27 October 2021, the Company entered into an option agreement with Matrix Exploration Pty Ltd ('Matrix'), by which the Company has acquired an option over tenement E74/662 (which comprises the 'Ella's Rock Project'). The consideration payable to Matrix comprises;

• $15,000 cash for the grant of the option; and
• On exercise of the option:

1. Pay Matrix $50,000 cash; and

1. Issue Matrix 875,000 shares at a deemed issue price of $0.20 each.

On 27 October 2021, the Company entered into an option agreement with Maximal Investments Pty Ltd ('Maximal'), by which the Company has acquired an option over tenements E37/1421, E37/1422, E37/1423 and E37/1424 (which comprises the 'Gidgie Gold Project'). The consideration payable to Maximal comprises;

• $5,000 cash for the grant of the option; and
• On exercise of the option:

1. Pay Maximal $10,000 cash; and

1. Issue Matrix 200,000 shares at a deemed issue price of $0.20 each.

On 14 December 2021, the Company raised $300,000 in additional seed capital upon the issue of 3,000,000 fully paid ordinary shares at a price of $0.10 per share.

2

For personal use only

Cavalier Resources Limited Directors' report

31 December 2021

Significant changes in the state of affairs

There were no significant changes in the state of affairs of the Company during the period.

Matters subsequent to the end of the period

The impact of the Coronavirus ('COVID-19') pandemic is ongoing. It is not practicable to estimate the potential impact, positive or negative, after the reporting date. The situation is rapidly developing and is dependent on measures imposed by the Australian Government and other countries, such as maintaining social distancing requirements, quarantine, travel restrictions and any economic stimulus that may be provided.

On 14 January 2022, confirmation was received from ASIC that the Company has been converted to a public company and that the name of the Company is now Cavalier Resources Limited.

There have been no other matters or circumstances that have arisen since 31 December 2021 that has significantly affected, or may significantly affect the Company's operations, the results of those operations, or the Company's state of affairs in future financial years.

Auditor's independence declaration

A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out immediately after this directors' report.

This report is made in accordance with a resolution of directors, pursuant to section 306(3)(a) of the Corporations Act 2001.

On behalf of the directors

Ranko Matic

Director

4 February 2022

Perth

3

For personal use only

AUDITOR'S INDEPENDENCE DECLARATION

As lead auditor for the review of the interim financial report of Cavalier Resources Limited (formerly Cavalier Resources Pty Ltd) for the half-year ended 31 December 2021, I declare that to the best of my knowledge and belief, there have been no contraventions of:

1. the auditor independence requirements of the Corporations Act 2001 in relation to the review; and
2. any applicable code of professional conduct in relation to the review.

Perth, Western Australia	N G Neill
4 February 2022	Partner

4

For personal use only

Cavalier Resources Limited

Contents

31 December 2021

Statement of profit or loss and other comprehensive income	6
Statement of financial position	7
Statement of changes in equity	8
Statement of cash flows	9
Notes to the financial statements	10
Directors' declaration	14
Independent auditor's review report to the members of Cavalier Resources	15
Limited

General information

The financial statements cover Cavalier Resources Limited. The financial statements are presented in Australian dollars, which is Cavalier Resources Limited's functional and presentation currency.

Cavalier Resources Limited is an unlisted public company limited by shares, incorporated and domiciled in Australia.

Its registered office is:

Level 1, 51 Colin Street

West Perth, Western Australia 6005

Its principal place of business is:

Level 2, 22 Mount Street

Perth, Western Australia 6005

A description of the nature of the Company's operations and its principal activities are included in the directors' report, which is not part of the financial statements.

The financial statements were authorised for issue, in accordance with a resolution of directors, on 4 February 2022. The directors have the power to amend and reissue the financial statements.

5