Twenty Seven : December 2021 Half Year Financial Statements

For personal use only

Twenty Seven Co. Limited

ABN 48 119 978 013

Interim Financial

Report

Half-Year Ended 31 December 2021

Table of Contents

Page

use only

Corporate Directory ...........................................................................................................................................	1
Directors' Report................................................................................................................................................	2
Auditors Independence Declaration ................................................................................................................	13
Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income ............................	14
Condensed Consolidated Statement of Financial Position .............................................................................	15
Condensed Consolidated Statement of Changes in Equity ............................................................................	16
Condensed Consolidated Statement of Cash Flows.......................................................................................	17
Notes to the Interim Financial Statements.......................................................................................................	18
Directors' Declaration ......................................................................................................................................	25
Independent Auditor's Review Report .............................................................................................................	26

Corporate Directory

For personal

Directors

Rohan Dalziell - Non-executive Chairman

Mark Burchnall - Non-executive Director

Timothy Armstrong-Non-executive Director

Chief Executive Officer

Simon Phillips

Chief Financial Officer / Company Secretary

Amy Fink / Dale Hanna

Registered Office & Administrative Office

Twenty Seven Co. Limited ABN 48 119 978 013 Suite 17

145 Stirling Hwy

Nedlands, Perth Western Australia 6009 Telephone [phone] [e-mail]

Website

www.twentysevenco.com.au

Share Registry

Computershare Investor Services Pty Ltd

Level 5, 115 Grenfell Street

Adelaide SA 5000

GPO Box 1903

Adelaide SA 5001

Investor Enquiries (within Australia):

Ph: 1300 556 161 Facsimile [phone]

Auditor

Grant Thornton Audit Pty Ltd

Level 43, 152 - 158 St Georges Terrace Perth, Western Australia 6000

Banker

National Australia Bank

Level 14, 100 St Georges Terrace

Perth, Western Australia 6000

Australian Securities Exchange

The Company is listed on the Australian Securities Exchange.

ASX code: TSC

Twenty Seven Co. Limited - Financial Report

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Twenty Seven Co. Limited

Directors' Report

Directors' Report

For personal use only

Your Directors present this report on Twenty Seven Co. Limited and its consolidated entities ('Group', 'Twenty Seven Co.', 'TSC' or 'Company') for the half-year ended 31 December 2021 ("half-year").

DIRECTORS

The names of each person who has been a Director during this half-year to the date of this report are:

1. Rohan Dalziell (Non-Executive Chairman) - appointed 9 September 2021

1. Robert Scott (Non-Executive Chairman) - resigned 9 September 2021

1. Mark Burchnall (Non-Executive Director)

1. Timothy Armstrong (Non-Executive Director)

All directors have been in office for the whole period up until the date of this report unless otherwise indicated.

CHIEF EXECUTIVE OFFICER

1. Simon Phillips

COMPANY SECRETARY

1. Dale Hanna

PRINCIPAL ACTIVITIES

During the financial half year, the principal activities of the Group consisted of;

• Completion of RC drilling programme at the Rover Gold Project;
• Completion of auger drilling programme at Yarbu Gold Project;
• Review of geochemical and historical sample data at Trident and subsequent identification of new lithium and tin targets;
• Completion of Trident rock chip sampling programme targeting copper and gold mineralisation.

CONSOLIDATED RESULTS

During the half-year ended 31 December 2021 the Group incurred a loss of $394,664 (2020: loss $2,741,857). The significant loss for the prior year relates to the recognition of an impairment charge of $2,395,984 to the Company's New South Wales exploration assets.

Twenty Seven Co. Limited - Financial Report

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Twenty Seven Co. Limited

Directors' Report

REVIEW OF OPERATIONS

Exploration Activities

For personal use only

Western Australia Archaean Gold Assets

ROVER GOLD PROJECT (E57/1085, E57/1120, E57/1134)

TSC's 100% owned Rover project is located near Sandstone in a base metals and gold mineral rich area associated with Archean greenstone belts. Rover Project consists of three exploration licenses (E57/1085, E57/1134 and E57/1120) which make up a large 460km² tenure package covering two linear Archean greenstones, with a combined length of around 160km. Historically the area is underexplored and is currently undergoing a resurgence in exploration.

Figure 1: Map of the Rover project showing the location of the Harmonic and Creasy 1 prospects

as well as the most recent soil sampling locations

RC Drilling Programme Complete

A key outcome during the half year reporting period was the successful completion of a Reverse Circulation ("RC") drilling programme at the Rover Gold Project (see Figure 1).

A total of 31 holes for 2,161m was completed, with 574 samples submitted to the laboratory for multi element and gold analysis.

Post reporting period end, TSC received all gold assay results from the RC drilling programme. A summary of the findings is provided below.

Highlights from the drilling include:

• 8m @ 0.47g/t from 52m in 21RVRC022
• 36m @ 0.20g/t from 16m in 21RVRC006
• 8m @ 0.23g/t from 4m in 21RVRC023
• 3m @ 0.26g/t from 96m (EOH) in 21RVRC021
• 43m @ 0.16g/t from 128m (EOH) in 21RVRC002

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Twenty Seven Co. Limited

Directors' Report

For personal use only

The intersection in hole 21RVRC002 appears to correlate well with the mineralisation identified in the 2019 drilling undertaken at Harmonic which is down dip, and hole 21RVRC006 shows very good correlation with holes 19RVRC009 and 10 and 20RVRC057 and 58 which are 50m along strike to the south.

Interestingly, all areas drilled in this field campaign show anomalous gold which reinforces the potential for Rover to host significant gold mineralisation. Given that all areas drilled appear to show elevated gold, those drill results highlight the potential for Rover to host significant gold mineralisation yet to be identified. Further work will be undertaken to ascertain that potential.

Sampling and assaying of the 1m splits were underway at the time of writing to ascertain the full outcomes of the 2021 drilling programme.

Figure 2: RC drill rig on site at Rover

Rover Drilling Programme Summary

Six (6) holes were designed to extend the Harmonic Prospect ("Harmonic"), a priority target, at depth and along strike, and the remaining 25 holes were designed to test the gold-in-soil anomalism identified in November 2020 at the Middle Well, Four Corners and Blue Hills Prospects.

Initial geological observations at Harmonic are in line with expectations, with mafics and quartzites having been intersected in all holes. Geology at the Middle Well, Four Corners and Blue Hills Prospects consisted mainly of mafic basalts/dolerites (with some potential ultramafics), granites and BIFS/SIFS.

A key takeaway from the programme was hole 21RVRC022 which recorded an intersection of 4m (62-66m DH) of massive sulphides (pyrite and pyrrhotite) with minor chert which contained potential exhalative texture.

Importantly, the intersection of massive sulphide is of significant base metal interest given that ASX-listed Cobre Limited's Perrinvale Project (~30km south of the Rover Project) has shown that massive pyrite can be associated with base metal prospectivity. If the massive sulphide assays return any base metal anomalism, then this may indicate that the geology within Rover is fertile with respect to base metals in the form of volcanic- hosted massive sulphides ("VHMS") which would require follow up work.

Twenty Seven Co. Limited - Financial Report

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