Cavalier Resources : Pty Ltd - Financial Report 30 June 2021

For personal use only

Cavalier Resources Pty Ltd

(formerly Specrez Pty Ltd)

ACN 635 842 143

Financial Report for the year ended 30 June 2021

For personal use only

Cavalier Resources Pty Ltd Directors' report

30 June 2021

The directors present their report, together with the financial statements, on Cavalier Resources Pty Ltd (formerly Specrez Pty Ltd) (referred to hereafter as the 'Company') for the financial year ended 30 June 2021.

Directors

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

Ranko Matic

Daniel Tuffin

Anthony Keers (appointed 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 financial period. No dividend has been recommended.

Review of operations

The loss for the Company after providing for income tax was $39,219 (2020: $6,805).

On 22 July 2020, the Company executed a tenement sale agreement with Messina Resources Limited ('Messina') to acquire Messina's 15% beneficial interest in M37/1202 and E37/893 (together 'Joint Venture Tenements') for cash consideration of $45,000.

On 22 July 2020, the Company executed a tenement sale agreement with Roman Kings Pty Ltd ('Roman Kings') to acquire Roman Kings' 85% beneficial interest in the Joint Venture Tenements for consideration comprising of;

• $10,000 cash deposit;
• $180,000 cash consideration;
• $100,000 deferred consideration, if a Decision to Mine is not made before 21 July 2021,
• Advance royalty payments of $100,000 on 21 July 2022 and 21 July 2023, if Mining Operations have not commenced before those dates; and
• 1.75% Net Smelter Returns Royalty.

Significant changes in the state of affairs

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

Matters subsequent to the end of the financial 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 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.

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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 entered into an option agreement with Aurum Fabri Pty Ltd ('Aurum Fabri'), by which the Company has acquired an option over tenement P24/5200 (which comprises the 'Pleasant Surprise Project'). The consideration payable to Aurum Fabri comprises;

• $1,000 cash for the grant of the option; and
• $10,000 cash on exercise of the option.

On 20 November 2021, the Company completed a share split on the basis that every ordinary share be divided into 220 ordinary shares. Share numbers shown in this financial report reflect their pre-share split numbers.

On 22 November 2021, the Company changed its name to Cavalier Resources Pty Ltd.

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.

There have been no other matters or circumstances that have arisen since 30 June 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.

Likely developments and expected results of operations

Information on likely developments in the operations of the Company and the expected results of operations have not been included in this report because the directors believe it would be likely to result in unreasonable prejudice to the Company.

Environmental regulation

The Company is not subject to any significant environmental regulation under Australian Commonwealth or State law.

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Information on directors

Name:

Title:

Qualifications, experience and expertise:

Ranko Matic

Director

B.Bus, CA

Mr. Ranko Matic is a Chartered Accountant with over 30 years' experience in the areas of financial and executive management, accounting, audit, business and corporate advisory. Ranko is a director of a chartered accounting firm and a corporate advisory company based in Perth, and has specialist expertise and exposure in areas of audit, corporate services, due diligence, mergers and acquisitions, and valuations. Through these positions, Ranko has been

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Name:

Title:

Qualifications, experience and expertise:

Name:

Title:

Qualifications, experience and expertise:

involved in an advisory capacity to over 40 initial public offerings and other re-capitalisations and re-listings of ASX companies in the last 20 years. Ranko is currently a non-executive director of ASX listed companies Australian Gold & Copper Ltd and East Energy Resources Ltd. Mr Matic has also acted as Chief Financial Officer and Company Secretary for companies in the private and public listed sector and continues to hold various roles in this capacity with publicly listed companies.

Daniel Tuffin

Director

BEng, BSc, DipPM, FAusIMM(CP), MAICD

Mr. Daniel Tuffin is the founder and MD of successful mine consulting firm Auralia Mining Consulting and is a hands-on mining engineer with over 20 years' experience. His career began in iron ore and gold projects in WA and later extended internationally. He's established many successful companies and mining projects, including co- founding private Kalgoorlie gold mining venture Rose Dam Resources, discovering and then privately co- developing the RDSW open pit, which to date has produced over 30koz of gold. As the co-founder of Roman Kings, he developed the WA Crawford and Gambier Lass North Projects, later vending them into the Kingwest IPO (ASX:KWR) for $3.6m in scrip. He's also developed assets in the NT within his Montejinni Resources company prior to their vend into Tempest Minerals (ASX:TMR) for their IPO in 2017. He is currently the Managing Director of Panther Metals Limited (ASX:PNT) and Technical Director of Leonora gold float Mount Malcolm Mines NL (ASX:M2M).

Anthony Keers

Non-ExecutiveDirector (appointed 24 November 2021)

BEng, DipPM, AusIMM(CP)

For

Mr. Anthony Keers holds a degree in Mining Engineering (Hons) from the University of Queensland, a Diploma in Project Management and is an AusIMM accredited Chartered Professional.

Prior experience includes working as an underground engineer for Sons of Gwalia, a consultant mining engineer for AMC and LQS, and a business analyst for Gemcom.

As a Director of Auralia Mining Consulting over the past 13 years, his expertise has varied both in commodity types and locations around the world, spanning all aspects of mine planning, scheduling and operations. This has formed a solid base of knowledge to draw from, carrying out Feasibility Studies and Reserve Estimation work for both ASX and TSX listed entities.

Company secretary

Damon Cox (appointed 24 November 2021)

Ranko Matic (since incorporation on 28 August 2019 to 24 November 2021)

Meetings of directors

There were no directors' meetings held during the financial period. The Company does not have a formally constituted audit committee or remuneration committee as the board considers that the Company's size and type of operation do not warrant such committees.

Shares under option

There were no shares of Cavalier Resources Pty Ltd under option at the date of this report.

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Shares issued on the exercise of options

There were no ordinary shares of Cavalier Resources Pty Ltd that were issued during the financial period and up to the date of this report on the exercise of options granted.

Indemnity and insurance of officers

During the financial year, the Company maintained an insurance policy which indemnifies the Directors and Officers of Cavalier Resources Pty Ltd in respect of any liability incurred in connection with the performance of their duties as Directors or Officers of the Company. The Company's insurers have prohibited disclosure of the amount of the premium payable and the level of indemnification under the insurance contract.

Indemnity and insurance of auditor

The Company has not, during or since the end of the financial period, indemnified or agreed to indemnify the auditor of the Company or any related entity against a liability incurred by the auditor.

During the financial period, the company has not paid a premium in respect of a contract to insure the auditor of the Company or any related entity.

Proceedings on behalf of the company

No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of the Company, or to intervene in any proceedings to which the Company is a party for the purpose of taking responsibility on behalf of the Company for all or part of those proceedings.

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.

Auditor

HLB Mann Judd (WA Partnership) were appointed on 9 December 2021, and remains in office, as per section 327A of the Corporations Act 2001.

Non-audit services

No amounts were paid or payable to the auditor for non-audit services provided during the year ended 30 June 2021.

This report is made in accordance with a resolution of directors, pursuant to section 298(2)(a) of the Corporations Act 2001.

On behalf of the directors

Ranko Matic

Director

22 December 2021

Perth

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