Hawsons Iron : Half Yearly Accounts 31 Dec 2021

onlyuseInterim

Financial

Report

personalFor the

Half-Year Ended

31 December 2021

For

Directors' report

Your Directors present their report on Hawsons Iron Limited for the half-year ended 31 December 2021.

Directors

The names and details of the Directors of Hawsons Iron Limited (Hawsons) in office at the date of this report or at any time during the financial period are:

only		Name			Position			Period of directorship
use		Bryan Granzien		Executive Chairman		Appointed 29 December 2020
	Paul Cholakos		Non-executive Director		Appointed 2 April 2012
	Jon Parker		Non-executive Director		Appointed 11 February 2021
Operating results

	Commentary and comparison with prior year	Cash Position
personalReview of operations	A total of $33,756,950 (after costs) was raised through share
	For the half-year ended 31 December 2021, the loss for the
	Consolidated Entity after providing for income tax was	issues in the first quarter of the financial year. The
	$1,468,856 (December 2020: $238,694), as a result of	Consolidated Entity's cash position as at the end of the
	i creased operational expenses necessary to work towards a	reporting period was $31,389,029.
	c mpleted Bankable Feasibility Study (BFS) by the end of the
	year. The difference of $1,230,162 is primarily attributed to:
	• Increase in Employment Expenses ($371,083);
	• Increase in Finance Expenses ($80,879);
	• Increase in Consultant Expenses ($221,392);
	• Increase in Operating Expenses ($513,711) and;
	• Increase in Other Expenses ($43,097).
	Carpentaria Resources Limited (ASX: CAP) changed its name	Resource Upgrade, including a 9% increase in Indicated
	to Hawsons Iron Limited (ASX: HIO), which took effect 23	Resources to 132 Mt and an 18% increase in Inferred
	August 2021.	Resources to 268 Mt. The Mineral Resources have been
			reported in accordance with the 2012 JORC Code and
	The Company raised $35,596,890 (before costs) through a	Guidelines.
Forfully underwritten private placement and an entitlements
	issue to shareholders. In addition $110,000 of shares were	A pit optimisation study by KPS Innovation also confirmed
	issued on the exercise of share options.
	the total resource boundary had not been fully identified,
	As announced on 19 October 2021, a report commissioned	recommended and validated a reduction of the
	commercial cut-off grade from 9.5% recovered magnetic
	from geological experts H&S Consultants, using revised
	fraction (DTR) to 6%, significantly improving mining
	commercial cut-off grades, triggered a material Mineral
	options.
	Hawsons Iron Interim Financial Report - as at December 2021
		1

The report also determined the economic pit shell is	The Company's interest in the Hawsons Iron Project Joint
significantly larger than the one that was used in the	Venture will increase beyond the 93.963% currently held
Prefeasibility Study (2017) and is being confirmed through	after JV partner Starlight Investment Company Pty Ltd
the current Bankable Feasibility Study program (BFS).	failed to meet its cash call for December 31, 2021. HIO will
	fund Starlight's share, so the BFS program remains
The Company signed a A$200 million equity financing Put	unaffected and on track for completion by the end of
Option Agreement with United States investment group	2022.
only
LDA Capital Limited to access additional funding to develop
its high-grade iron ore project.	Despite heavy rains which hampered site works in
	November/December and COVID-19 travel and site
The Company issued 71.5 million unlisted Options to LDA	restrictions, the confirmatory drilling program remains on
Capital pursuant to the terms of the A$200 million equity	schedule and budget to further define the resource, provide
funding agreement announced on 22 December 2021 with	samples for metallurgical test work, groundwater and
potential to deliver up to a further $50.05 million if	geotechnical data.

exercised.

use
Company	Volume	Market
	Formosa Plastics	2.6 Mtpa	Concentrate/pellet feed
personal	Bahrain Steel	3.0 Mtpa	Direct reduction (DR) pellet feed
Shagang	2.5 Mtpa	Pellet feed
Mitsubishi Corporation RtM	1.0 Mtpa	Pellet feed
	Gunvor	1.0 Mtpa	Concentrate
	Kuwait Steel	1.0 Mtpa	DR pellet feed
	Emirates Steel	0.9 Mtpa	DR pellets
	Total	12.0 Mtpa

The world's largest steelmaking countries, China, Japan, Korea and Germany have all stated that they target net zero carbon emissions by 2050 or 2060. To meet these targets, material improvement in carbon dioxide reduction from steelmaking is required. Steelmaking contributes 7% of global emissions and the use of highest iron content iron ore such as the 70% Hawsons Supergrade® product will reduce emissions and increase efficiency.

The use of direct reduction iron (DRI) in steelmaking reduces carbon dioxide emissions by half compared to the use of blast furnaces and does so in part by relying on high grade ores. DRI is also the leading technology for the use of hydrogen in steelmaking.

Competent Person Statement: The information in this report that relates to Exploration Results is based on information reviewed by Mr Justin Haines, who is a member of the Australian Institute of Geoscientists and Australasian Institute of Mining and Metallurgy. Mr Haines is a full-time employee of Hawsons Iron Ltd and has sufficient expertise which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting

Forof Exploration Results, Mineral Resources and Ore Reserves'. Mr Haines consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Hawsons Iron Interim Financial Report - as at December 2021	2

Events after reporting date

There have been no other events since 31 December 2021 that impact upon the financial report.

onlyAuditor's independence declaration

The Auditor's Independence Declaration under s307c of the Corporations Act 2001 is set out on page and forms part of the Directors' report.

Signed in accordance with a resolution of the Board of Directors.

useBryan Granzien Executive Chairman Dated 16 March 2022 personalFor

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Auditor's Independence Declaration

For personal use only

Tel: [phone]	Level 10, 12 Creek St
Fax: [phone]	Brisbane QLD 4000
www.bdo.com.au	GPO Box 457 Brisbane QLD 4001
	Australia

DECLARATION OF INDEPENDENCE BY K L COLYER TO THE DIRECTORS OF HAWSONS IRON LIMITED

As lead auditor for the review of Hawsons Iron Limited for the half-year ended 31 December 2021, I declare that, to the best of my knowledge and belief, there have been:

1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; and
2. No contraventions of any applicable code of professional conduct in relation to the review.

This declaration is in respect of Hawson Iron Limited and the entities it controlled during the period.

K L Colyer

Director

BDO Audit Pty Ltd

Brisbane, 16 March 2022

BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation.

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