Annual Report to shareholders

For personal use only

WA Kaolin Limited

ABN 56 083 187 017

Annual Financial Report

30 June 2021

onlyContents

Corporate Information

Directors' Report

Auditor's Independence Declaration

useStatement of Profit or Loss and Other Comprehensive

Statement of Financial Position

Statement of Changes in Equity personalStatement of Cash Flows

Notes to the Financial Statements

Directors' Declaration

Independent Auditor's Report

ASX Additional Information

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WA Kaolin Limited

CORPORATE INFORMATION

ABN 56 083 187 017

onlyDirectors

Dr John White (Non-Executive Chairman)

Mr Alfred Baker (Executive Director)

Ms Cathy Moises (Non-Executive Director)

Mr Linton Putland (Non-Executive Director)

Chief Executive Officer Mr Andrew Sorensen

useCompany secretary Mr Michael Kenyon

Registered office

Lot 3, Ward Road

ROCKINGHAM	WA 6168
Telephone:	[phone]
personal

Principal place of business

Lot 3 Ward Road

EAST ROCKINGHAM WA 6168

Telephone:	[phone]
Website:	www.wakaolin.com.au

Share registry

Automic Share Registry

126 Phillip Street

SYDNEY NSW	2000
Telephone:	1300 288 664

Solicitors

Gilbert & Tobin

Level 16 Brookfield Place Tower

2/123 St George's Terrace

PERTH WA 6000

ForBankers

National Australia Bank

255 George Street

SYDNEY NSW 2000

Auditors

BDO Audit (WA) Pty Ltd

38 Station Street

SUBIACO WA 6008

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WA Kaolin Limited

DIRECTORS' REPORT

The directors of WA Kaolin Limited (the "Company") submit the financial report for the year ended 30 June 2021. In order to comply with the provisions of the Corporations Act 2001, the directors report as follows:

onlyDirectors

The names of directors who held office throughout the period and until the date of this report are as follows. Directors were in office for the entire period unless otherwise stated.

Mr Keith Snell (resigned 24 July 2020)

Mr Alfred Baker

Dr John White

Ms Cathy Moises

Mr Linton Putland

Cameron Baker (appointed as alternate director on 16 August 2020)

Mr Andrew Sorensen (resigned as alternate director on 24 July 2020)

useDirectors' Information

Dr John White (Non-Executive Chairman)

Dr White has been a director and/or CEO of several publicly listed and private Australian companies. Dr White is formerly the Chairman of the Federal Government's Uranium Industry Framework Council, a member of the Federal Government's Defence Procurement Board and Director of the DefenceSA Advisory Board.

Dr White had extensive involvement with Woodside's North West Shelf Offshore Gas and LNG Development from 1978 to 1984, and then participated in the RAN Collins Class Submarine Project tender as Project Director for the Australian-German owned AMEC

proposal.

personalDr White was CEO of Transfield Defence Systems Pty Ltd from 1988 to 1996 and then Global Chief Executive of the recycling/packaging group, Visy Industries. He is currently Chairman of Regenerative Australian Farmers Pty Ltd and Birdon Pty Ltd.

Qualifications: BE(Hon), PhD

Other current directorships: None

Former directorships (last 3 years): None

Special responsibilities: Chairman of Board of Directors, Member of Remuneration and Finance & Audit Committees

Interests in shares: None

Interests in options: 3,000,000

Mr Keith Snell (resigned 24 July 2020)

Mr Snell had over fifty years' experience in the design, construction and logistic support of naval vessels in Australia, the United Kingdom and the United States of America - and throughout his career, successfully completed complex projects for maritime, land, aviation, electronic and industrial systems in Australia and internationally. Keith was also the co-owner and group Managing Director of Scientific Management Associates - Australia's largest supplier of Integrated Logistics Support services to the Department of D fence and Industry. Mr Snell passed away on 24 July 2020 after battling health issues for some time.

Other current directorships: None

Former directorships (last 3 years): None

Special responsibilities: None

Interests in shares: 49,883,574

ForInterests in options: 7,200,000

Mr Alfred Baker (Executive Director)

Mr Baker has an engineering background with more than 40 years' experience in process technology and is co-founder of WA Kaolin. He is an experienced and successful businessman, authoring several patents and designs during his extensive career.

Since 1996, Mr Baker has founded and directed a number of companies, including:

• EMC Pacific Aust P/L (EMCPA), Australia's only manufacturer of power distribution insulators. EMCPA has formed a joint venture to commence manufacture of its products in USA, commencing April 2020.
• Pacific Polymers, a mineral treatment plant operating in Dandenong, Victoria, using patented technology.

Mr Baker was Managing Director of the highly successful PQ Australia (PQA) from 1976 to 1996, which he co-founded with his brother. PQA produces the inorganic chemical, Sodium Silicate, in both glass and liquid form, and the patented valuable downstream product 'Q-Cel' hollow microspheres.

In all cases, innovation, hands on determination and training of younger executives have led to success and low-cost producer status. Mr Baker is also charged with the overall responsibility, as project director, of the Company's Wickepin mine development.

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WA Kaolin Limited

DIRECTORS' REPORT (continued)

Mr Alfred Baker (Executive Director) (continued)

Other current directorships: None

Former directorships (last 3 years): None onlySpecial responsibilities: Executive Director

Interests in shares: 49,883,574

I terests in options: 7,200,000

Ms Cathy Moises (Non-Executive Director)

Ms Moises has worked for a number of the most prominent stock broking firms within Australia including Merrill Lynch, Citigroup, Evans and Partners (as a partner) and most recently worked as Head of Research for Patersons Securities.

Ms Moises has a Bachelor of Science (Hons) Geology in addition to a Securities Institute of Australia Diploma of Finance and Investment and has over 30 years' experience working within the resources industry primarily as a financial analyst. She has

usextensive capital markets, company management, financial analysis and Institutional Investor engagement experience. Qualifications: BSc (Hons), GDAFI

Other current directorships: Arafura Resources Limited, Australian Potash Limited, Podium Minerals Limited, Pearl Gull Limited and PacGold Limited

Former directorships (last 3 years): None

Special responsibilities: Chair of Remuneration Committee, Member of Finance & Audit Committee

Interests in shares: 1,250,000

Interests in options: 3,375,000

personalMr Linton Putland (Non-Executive Director)

Mr Putland holds degrees in Mining Engineering (Bachelor of Engineering, Western Australian School of Mines) and a Masters in Science (Mineral Economics, Western Australian School of Mines) with more than 30 years' experience in mining operations, joint ve tures and corporate management in Australia, Africa and the Americas, over a wide range of commodities.

Mr Putland is principal of LJ Putland & Associates, a private mining consultancy company which was founded in 2002, providing advisory and consultancy services in mining project and company evaluation and due diligence appraisals with a focus on corporate gr wth. During this period, he has also been Managing Director of a privately-owned exploration company with joint venture interests in Africa.

Prior to this he held corporate and senior management roles in IAMGOLD, AurionGold, Delta Gold and Pancontinental Mining. He is a Member of AusIMM and a Graduate Member of AICD.

Qualifications: B Eng (Mining), MSc (Min Economics)

Other current directorships: Breaker Resources NL

Former directorships (last 3 years): Pacific Energy Limited (ceased 2 December 2019); Azumah Resources Limited (ceased 14 November 2019)

Special responsibilities: Chair of Finance & Audit Committee, Member of Remuneration Committee

Interests in shares: None

Interests in options: 1,500,000

Mr Andrew Sorensen (Alternate Director - resigned 24 July 2020) / Chief Executive Officer

ForWith more than three decades experience in operations management, Mr Sorensen joined WA Kaolin in 2006 and has overseen several of the company's key developmental milestones. He is fundamental in driving and implementing the Company's vision and strategy, overseeing the day-to- day activities of the business, liaising with the Board where necessary. He holds a bachelor's degree in Applied Science (Information Management) and a Master of Business Administration.

Prior to joining WA Kaolin, Mr Sorensen held senior leadership positions across a broad range of industries, including General Manager CMTP Pty Ltd Derrimut, Vice President / General Manager (Asia Pacific) for Potters Industries Inc. and Manufacturing Manager for PQ Australia Pty Ltd.

Mr Sorensen's responsibilities include the formulation and implementation of key strategic, business and operational matters. He also manages the operational team and guides the continuous improvement of the Wickepin Kaolin Project. Additionally, he drives standards in health and safety, security, environment, IT and procurement.

Qualifications: B App Sci and MBA

Other current directorships: None

Former directorships (last 3 years): None

Special responsibilities: Chief Executive Officer

Interests in shares: 6,187,556

Interests in options: 2,100,000

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