Announcement PDF Lightning Minerals Ltd ABN 40 656 005 122 Interim Financial Report For the Half-Year Ended 31 December 2023 Level 6, 505 Little Collins Street, Melbourne VIC 3000 | admin@lightningminerals.com.au | www.lightningminerals.com.au | (08) 9429 8806 1 Interim Financial Report 31 December 2023 TABLE OF CONTENTS Contents CORPORATE DIRECTORY ................................................................................................................. 3 REVIEW OF OPERATIONS ................................................................................................................. 4 DIRECTORS’ REPORT ....................................................................................................................... 17 AUDITOR'S INDEPENDENCE DECLARATION ............................................................................. 19 CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME ............................................................................................................................................... 20 CONSOLIDATED STATEMENT OF FINANCIAL POSITION ......................................................... 21 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY .......................................................... 22 CONSOLIDATED STATEMENT OF CASH FLOWS ....................................................................... 23 NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS ..... 24 DIRECTORS’ DECLARATION ........................................................................................................... 32 INDEPENDENT AUDITORS’ REVIEW REPORT ............................................................................ 33 SCHEDULE OF TENEMENTS ........................................................................................................... 35 Level 6, 505 Little Collins Street, Melbourne VIC 3000 | admin@lightningminerals.com.au | www.lightningminerals.com.au | (08) 9429 8806 2 Interim Financial Report 31 December 2023 CORPORATE DIRECTORY Directors Mr Craig Sharpe (Non-Executive Chairman) Mr Alexander Biggs (Managing Director) Mr Francesco Cannavo (Non-Executive Director) Company Secretary Mr Justyn Stedwell Registered Office Level 6, 505 Little Collins Steet Melbourne VIC 3000 Telephone: (08) 9429 8806 Perth Office Level 11, 40 The Esplanade Perth, WA 6000 Telephone: (08) 9429 8806 Auditors HLB Mann Judd (VIC) Partnership Level 9, 550 Bourke Street Melbourne VIC 3000 Legal Advisers Moray and Agnew Lawyers Level 6, 505 Little Collins Steet Melbourne VIC 3000 Share Registry Automic Pty Ltd Level 5, 126 Phillip Street Sydney NSW 2000 Telephone: 1300 288 664 Email: hello@automic.com.au Website: www.automic.com.au Securities Exchange Listing Lightning Minerals Limited shares are listed on the Australian Securities Exchange (ASX) ASX Code: L1M Website www.lightningminerals.com.au Level 6, 505 Little Collins Street, Melbourne VIC 3000 | admin@lightningminerals.com.au | www.lightningminerals.com.au | (08) 9429 8806 3 Interim Financial Report 31 December 2023 REVIEW OF OPERATIONS DUNDAS PROJECT (100% L1M) Drilling was completed at the Company’s Dundas project on tenement E63/2001. The maiden drill program has been successful in locating a felsic pegmatitic hydrothermal system within the tenement. Assays have now been received for all pegmatite samples submitted for laboratory analysis (ASX Announcement 29 September 2023). Results for lithium-caesium-tantalum are subdued overall. Some minor but non-material elevations in caesium, tantalum and tin are present in drill hole DSRC0029. Evaluation of results is currently underway to determine a relevant strategy for targeting potential LCT pegmatite bodies concealed under salt lakes to the north-west of the completed drilling. This area falls within the prospective Mt Kirk mafic geological unit that transects the tenement in a north-north-west orientation. The geological thesis for exploration within E63/2001 was that concealed LCT pegmatites may generate a sufficient geochemical signature through the transported cover above to cause a geochemical response in the soil. Previous exploration works by the Company utilising soil geochemistry identified lithium-rubidium in-soil anomalies, these broadly coincide with the location of the pegmatites uncovered during recent drilling (ASX Announcement 23 January 2023). Additionally, geophysical targets interpreted from aeromagnetic interpretations further warranted drill testing and formed the basis for drill targeting. The discovery of the unmineralised pegmatite bodies under cover, at the scale they have been intersected downhole, is considered a positive indicator for the prospectivity for the tenement. Other areas with similar transported cover within the tenement may also host similar pegmatitic hydrothermal fluid systems without surficial expression, but within a geochemical setting more aligned with the nucleation of lithium bearing minerals. Figure 1: Geological cross section ‘A’ - interpreted pegmatite after intersections in holes DSAC0031DSAC0034, and DSRC0029 and DSRC0030 Level 6, 505 Little Collins Street, Melbourne VIC 3000 | admin@lightningminerals.com.au | www.lightningminerals.com.au | (08) 9429 8806 4 Interim Financial Report 31 December 2023 Figure 2: Drill location map showing RC drill areas and intersected pegmatite locations Infill soil sampling has been completed on tenements E63/2000 to further define drill targets and follows up on the positive geochemical results which outlined an 8km 2 lithium in soil anomaly up with results up to 218ppm lithium (ASX announcement 23 March 2023). The results of the infill campaign are considered encouraging with peak assay values reported of up to 177ppm lithium, 69.8ppm caesium, and 296ppm rubidium. Two anomalous areas have been identified. The larger of these is elevated in lithium, caesium, and rubidium, within an area approximately 2.6km long and 1km wide (Figure 3). A secondary zone of anomalism occurs ~2.7km North-East of the first anomaly. This area is approximately 600m long x 300m wide with a cluster of 16 samples returning values over 80ppm lithium. Peak assay values up to 166ppm lithium, 171ppm rubidium and 17.5ppm caesium have been recorded (Figures 4, 5 and 6). Level 6, 505 Little Collins Street, Melbourne VIC 3000 | admin@lightningminerals.com.au | www.lightningminerals.com.au | (08) 9429 8806 5 Interim Financial Report 31 December 2023 Figure 3: Dundas South tenement E63/2000 and E63/1993 showing UFF+ lithium soil geochemistry results for reconnaissance and infill sampling programs with resultant target areas Level 6, 505 Little Collins Street, Melbourne VIC 3000 | admin@lightningminerals.com.au | www.lightningminerals.com.au | (08) 9429 8806 6 Interim Financial Report 31 December 2023 Figure 4: Lithium in soil geochemical results within E63/2000 Figure 5: Rubidium in soil geochemical results within E 63/2000 Level 6, 505 Little Collins Street, Melbourne VIC 3000 | admin@lightningminerals.com.au | www.lightningminerals.com.au | (08) 9429 8806 7 Interim Financial Report 31 December 2023 Figure 6: Caesium in soil geochemical results within E 63/2000 A drilling contractor was appointed in November 2023 (ASX Announcement 30 November 2023) and began drilling in January 2024, subsequent to end of Half Year. DALMAS AND HIVER PROJECTS (100% L1M) The Company executed a Binding Letter of Intent to acquire the Dalmas Project (47km2) and Hiver Project (32km2) in the prolific lithium region of James Bay, Quebec, Canada. Multispectral data covering the Dalmas and Hiver Projects has been interrogated with analysis of both Sentinel 2 and ASTER satellite data completed. Multiple areas of interest have now been identified with a total of 165 discreet multispectral targets for follow up field investigation. The identified target areas extend up to 2.7km in strike on the Dalmas Project and 2.1km on the Hiver Project. The Dalmas Project area exhibits 113 potential targets, the remaining 52 targets occur within the Hiver Project tenure. The majority of multispectral targets appear to occur in four clustered areas at Dalmas, and three at Hiver. Identifying these target areas is a crucial step in defining a phase 1 work program consisting of rock chip sampling and ground reconnaissance which will focus on the potential identification of lithium bearing pegmatites. Level 6, 505 Little Collins Street, Melbourne VIC 3000 | admin@lightningminerals.com.au | www.lightningminerals.com.au | (08) 9429 8806 8 Interim Financial Report 31 December 2023 Figure 7: Dalmas project with identified multispectral pegmatite targets (red outlines) on Sentinel 2 composite image Figure 8 and 9: Hiver project with identified pegmatite targets (red outlines) on Sentinel 2 composite image; and 1:2,000,000 QGS interpreted bedrock geology Level 6, 505 Little Collins Street, Melbourne VIC 3000 | admin@lightningminerals.com.au | www.lightningminerals.com.au | (08) 9429 8806 9 Interim Financial Report 31 December 2023 Figure 10: Dalmas project with identified multispectral pegmatite targets (red outlines) on Sentinel 2 composite image and 1:2,000,000 QGS interpreted bedrock geology The Company completed its inaugural exploration campaign at its Dalmas and Hiver projects in November 2023 (ASX Announcement 03 November 2023). Historic reports of pegmatites have been confirmed during the field reconnaissance, these pegmatites are broadly coincident with targets identified during recent Multispectral analysis. Follow up exploration programs are now being developed with a focus on reviewing existing geophysical data across the project areas and defining target areas for further exploration targeting. A reconnaissance mapping and rock sampling program was then developed and conducted during late October. The program was managed by the experienced Quebec-based company IOS Geosciences (IOS). Preliminary indications from the field reconnaissance have confirmed the presence of pegmatites within both the Dalmas and Hiver projects. Figures 11 and 12 display field locations where both pegmatitic outcrop and pegmatite boulders have been recorded; initial visual assessment by field geologists suggest the mineral assemblages present are commonly quartz-feldspar-biotite. The geochemistry of these pegmatites is yet to be quantified via laboratory analysis of 32 samples taken. Level 6, 505 Little Collins Street, Melbourne VIC 3000 | admin@lightningminerals.com.au | www.lightningminerals.com.au | (08) 9429 8806 10 Interim Financial Report 31 December 2023 Figure 11: Pegmatite outcrop and boulders mapped within the Dalmas Project (NAD 83/UTM Z18N) Figure 12: Pegmatite outcrop and boulders mapped within the Hiver Project (NAD 83/UTM Z18N) Level 6, 505 Little Collins Street, Melbourne VIC 3000 | admin@lightningminerals.com.au | www.lightningminerals.com.au | (08) 9429 8806 11 Interim Financial Report 31 December 2023 Figure 13 and 14: Left: Pegmatite outcrop within the Dalmas Project (317026mE, 5943450mN, WGS 84/UTMZ19N), and Right: Large Quartz Feldspar Biotite Pegmatite Boulder located at 319995mE, 5940922mN, WGS 84/UTMZ19N. Figure 15 and 16: Left: Pegmatite containing potential beryl (±Apatite?) mineral within Dalmas project (Pen lid for scale, 316859mE, 5943604mN, WGS 84/UTMZ19N), Right: Quartz Feldspathic pegmatite sample taken from Hiver project (302519mE, 5995547mN, WGS 84/UTMZ19N) MT JEWELL PROJECT (100% L1M) Review and interpretation of existing drilling data has been completed during the period and is ongoing subsequent to end of Half Year including a geophysical review of potential drill targets. POW applications have been approved by The Department of Mines, Industry Regulation and Safety (DMIRS). Heritage agreements have been executed. MAILMAN HILL PROJECT (100% L1M) Data review and interpretation of existing drilling data has been completed during the period and is ongoing subsequent to end of the Half Year to determine potential for an inaugural exploration campaign in early 2024 targeting gold mineralisation and potential extensions to Cavalier Resources Level 6, 505 Little Collins Street, Melbourne VIC 3000 | admin@lightningminerals.com.au | www.lightningminerals.com.au | (08) 9429 8806 12 Interim Financial Report 31 December 2023 (ASX: CVR) Crawford project. POW applications have been approved by The Department of Mines, Industry Regulation and Safety (DMIRS). Heritage agreements have been executed. MT BARTLE PROJECT (100% L1M) Application for the Mt Bartle tenements is still pending. Data review and analysis is ongoing and continues subsequent to the end of Half Year. Discussions regarding execution of heritage agreements are still ongoing. Figure 17: Location of Dundas project tenements Level 6, 505 Little Collins Street, Melbourne VIC 3000 | admin@lightningminerals.com.au | www.lightningminerals.com.au | (08) 9429 8806 13 Interim Financial Report 31 December 2023 Figure 18: Lightning Minerals’ project tenement summary (Australian Projects) Level 6, 505 Little Collins Street, Melbourne VIC 3000 | admin@lightningminerals.com.au | www.lightningminerals.com.au | (08) 9429 8806 14 Interim Financial Report 31 December 2023 Figure 19: Dalmas and Hiver project locations, James Bay, Quebec PROJECT GENERATION During the period the Company received a number of project opportunities, and conducted high-level internal project evaluation and will continue to identify and review projects that may be complimentary to its business. Level 6, 505 Little Collins Street, Melbourne VIC 3000 | admin@lightningminerals.com.au | www.lightningminerals.com.au | (08) 9429 8806 15 Interim Financial Report 31 December 2023 ABOUT LIGHTNING MINERALS Lightning Minerals is a mineral exploration company, listed on the Australian Securities Exchange (ASX:L1M) and focused on the exploration of critical minerals and lithium at its tenements across Western Australia. The Company’s flagship Dundas project is located in the prolific Dundas region of Western Australia. The Company also owns the Dalmas and Hiver lithium projects in Quebec, Canada, another significant and evolving lithium region globally as well as other projects in Western Australia which include Mt Jewell, Mt Bartle and Mailman Hill which are prospective for base metals and critical minerals. FORWARD LOOKING STATEMENTS Information included in this release constitutes forward-looking statements. Often, but not always, forward looking statements can generally be identified by the use of forward-looking words such as “may”, “will”, “expect”, “intend”, “plan”, “estimate”, “anticipate”, “continue”, and “guidance”, or other similar words and may include, without limitation, statements regarding plans, strategies and objectives of management, anticipated production or construction commencement dates and expected costs or production outputs. Forward looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance and achievements to differ materially from any future results, performance or achievements. Relevant factors may include, but are not limited to, changes in commodity prices, foreign exchange fluctuations and general economic conditions, increased costs and demand for production inputs, the speculative nature of exploration and project development, including the risks of obtaining necessary licences and permits and diminishing quantities or grades of reserves, political and social risks, changes to the regulatory framework within which the Company operates or may in the future operate, environmental conditions including extreme weather conditions, recruitment and retention of personnel, industrial relations issues and litigation. Forward looking statements are based on the Company and its management’s good faith assumptions relating to the financial, market, regulatory and other relevant environments that will exist and affect the Company’s business and operations in the future. The Company does not give any assurance that the assumptions on which forward looking statements are based will prove to be correct, or that the Company’s business or operations will not be affected in any material manner by these or other factors not foreseen or foreseeable by the Company or management or beyond the Company’s control. Although the Company attempts and has attempted to identify factors that would cause actual actions, events or results to differ materially from those disclosed in forward looking statements, there may be other factors that could cause actual results, performance, achievements or events not to be as anticipated, estimated or intended, and many events are beyond the reasonable control of the Company. Accordingly, readers are cautioned not to place undue reliance on forward looking statements. Forward looking statements in these materials speak only at the date of issue. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, in providing this information the Company does not undertake any obligation to publicly update or revise any of the forward-looking statements or to advise of any change in events, conditions or circumstances on which any such statement is based. COMPETENT PERSONS STATEMENT The information contained herein that relates to exploration results is based on information compiled or reviewed by Mr Jarrad Woodland, who is a Competent Person and a member of the Australasian Institute of Mining and Metallurgy. Mr Woodland is a full-time employee of the company. Mr Woodland has sufficient experience which is relevant to the style of mineralisation and types of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Persons as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Woodland consents to the inclusion of his name in the matters based on the information in the form and context in which it appears. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements, and that all material assumptions and technical parameters have not materially changed. The Company also confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcements. Level 6, 505 Little Collins Street, Melbourne VIC 3000 | admin@lightningminerals.com.au | www.lightningminerals.com.au | (08) 9429 8806 16 Interim Financial Report 31 December 2023 DIRECTORS’ REPORT The Directors hereby present their Interim Financial Report on Lightning Minerals Limited (ASX: L1M) (the Company) and its controlled entities (the Group or consolidated entity) for the half-year ended 31 December 2023. To comply with the provisions of the Corporations Act 2001, the Directors report as follows: DIRECTORS Except as otherwise stated below, the following persons were Directors of Lighting Minerals Limited during the whole of the half-year and up to the date of this Report as follows: Director Title Appointment Date Mr Alexander Biggs Managing Director 28 September 2023 Mr Craig Sharpe Non-Executive Director (Interim Non-Executive Chairman) 08 April 2022 Mr Francesco Cannavo Non-Executive Director 13 December 2021 PRINCIPLE ACTIVITIES The Group holds the rights to several resource tenements in Western Australia and in the James Bay area of Quebec, Canada and is actively exploring the tenements for lithium, gold and base metals. REVIEW OF OPERATIONS During the period, the Group made a loss $1,070,647 (2022: $1,148,402). The focus during the period was on exploration activities in the Dundas tenements. The Group expended $1,034,298 on exploration activities. The Company acquired the rights to exploration tenements in the Hiver and Dalmar projects, located in the James Bay area of Quebec, Canada during the period by acquiring the issued share capital of Lithium Rabbit Quebec Pty Ltd (“LRQ”). The consideration paid/payable to the vendors comprised of cash payment of $220,000, 1,406,864 ordinary shares at an issue price of $0.1777, totalling $250,000, 2% Net Smelter Royalty of which 1% may be brought back at any time for $1 million and 3 sets of milestone payments to be satisfied via the issuance of shares, totalling .$1.2 million, should certain agreed non-market related conditions be met. The Company also incorporated a Canadian based company, Lightning Canada Corporation to hold the acquired tenements in the Hiver and Dalmar projects. As a result of operations and its investment in the exploration assets, the Group’s net assets have decreased from $6,490,934 to $6,103,907. Net working capital, being current assets less current liabilities, amount to $2,500,771. Exploration assets amounted to $3,546,197. Level 6, 505 Little Collins Street, Melbourne VIC 3000 | admin@lightningminerals.com.au | www.lightningminerals.com.au | (08) 9429 8806 17 Interim Financial Report 31 December 2023 SIGNIFICANT CHANGE IN STATE OF AFFAIRS During the period the Group completed the acquisition of LRQ in order to acquire 100% interest in two Lithium projects in the James Bay area of Quebec, Canada. On 28 September 2023, Peter McNeil and Karen Lloyd resigned from the Board and Alexander Biggs was appointed as Managing Director, with Craig Sharpe appointed NonExecutive Chairmen. Other than the above matters, there are no other significant changes during the period. AFTER BALANCE DATE EVENTS The Board is not aware of any matter or circumstance not otherwise dealt with in these financial statements that has significantly or may significantly affect the operation of the Group, the results of those operations, or the state of affairs of the Group in subsequent financial years. AUDITORS INDEPENDENCE DECLARATION A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 19. Signed in accordance with a resolution of the Directors made pursuant to s.306 (3) of the Corporations Act 2001. On behalf of the Directors MR ALEXANDER BIGGS MANAGING DIRECTOR 14 March 2024 Level 6, 505 Little Collins Street, Melbourne VIC 3000 | admin@lightningminerals.com.au | www.lightningminerals.com.au | (08) 9429 8806 18 Auditor’s independence declaration As lead auditor for the review of the half year financial report of Lightning Minerals Ltd (“the Company”) and the entities it controls (“the Group”) for the half-year ended 31 December 2023, I declare that, to the best of my knowledge and belief, there have been no contraventions of: (a) the auditor independence requirements of the Corporations Act 2001 in relation to the review; and (b) any applicable code of professional conduct in relation to the review. This declaration is in relation to the Company and the entities it controlled during the period. HLB Mann Judd Chartered Accountants Jude Lau Partner Melbourne 14 March 2024 hlb.com.au HLB Mann Judd (VIC) Partnership ABN 20 696 861 713 Level 9, 550 Bourke Street, Melbourne VIC 3000 | GPO Box 2850, Melbourne VIC 3001 T: +61 (0) 3 9606 3888 F: +61 (0) 3 9606 3800 E: mailbox@hlbvic.com.au Liability limited by a scheme approved under Professional Standards Legislation. HLB Mann Judd (VIC) Partnership is a member of HLB International, the global advisory and accounting network 19 Interim Financial Report 31 December 2023 CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME Consolidated 31 December 2023 $ Note Income 31 December 2022 $ 38,687 - Exploration expenditure Directors’ fees and salaries and wages General and administrative expenses Corporate expenses Depreciation Finance costs Acquisition costs expensed (42,719) (708,734) (73,090) (217,568) (33,122) (4,101) (30,000) (22,923) (960,690) (45,269) (113,005) (5,397) (1,118) - Loss before income tax Income tax expense Net Loss for the period (1,070,647) (1,070,647) (1,148,402) (1,148,402) - - (1,070,647) (1,148,402) (2.18) (2.18) (5.99) (5.99) - Other Comprehensive income/(loss) Other comprehensive loss net of tax Total comprehensive (loss) Basic (loss) per share (cents per share) Diluted (loss) per share (cents per share) 9 9 The above statement should be read in conjunction with the accompanying notes. Level 6, 505 Little Collins Street, Melbourne VIC 3000 | admin@lightningminerals.com.au | www.lightningminerals.com.au | (08) 9429 8806 20 Interim Financial Report 31 December 2023 CONSOLIDATED STATEMENT OF FINANCIAL POSITION Consolidated 31 December 2023 $ 30 June 2023 1,546,647 47,833 64,530 1,019,761 3,694,346 45,717 34,070 1,000,000 2,678,771 4,774,133 2,961 53,978 3,546,197 3,701 86,360 2,041,899 Total Non-Current Assets 3,603,136 2,131,960 Total Assets 6,281,907 6,906,093 85,781 57,129 35,090 178,000 309,036 69,401 17,095 395,532 - 19,627 - 19,627 178,000 415,159 6,103,907 6,490,934 6,773,823 (3,305,657) 2,635,741 6,526,499 (2,235,010) 2,199,445 6,103,907 6,490,934 Note Current Assets Cash and cash equivalents Trade and other receivables Prepayments Other financial assets 3 4 Total Current Assets Non-Current Assets Plant and equipment Right of use asset Exploration and evaluation assets 7 2 $ Current Liabilities Trade and other payables Lease liability Provisions Total Current Liabilities 8 Non-Current Liabilities Lease liability 8 Total Liabilities Net Assets Equity Issued capital Accumulated losses Reserves Total Equity 5 6 The above statement should be read in conjunction with the accompanying notes. Level 6, 505 Little Collins Street, Melbourne VIC 3000 | admin@lightningminerals.com.au | www.lightningminerals.com.au | (08) 9429 8806 21 Interim Financial Report 31 December 2023 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Consolidated Note At 1 July 2022 Loss for the period Other comprehensive income/(loss) Total comprehensive income/(loss) for the period Transactions with owners in their capacity as owners: Issue of shares, net of costs Share based payments - cost of equity - options granted - performance rights granted - acquisition of assets As at 31 December 2022 Consolidated Note At 1 July 2023 Loss for the period Other comprehensive income/(loss) Total comprehensive income/(loss) for the period Transactions with owners in their capacity as owners: Cost of issuing shares Share based payments - options granted - performance rights granted - acquisition of assets As at 31 December 2023 Issued capital $ 563,632 Reserves Accumulated losses $ $ (58,533) Total $ 505,099 - - (1,148,402) (1,148,402) - - - - - - (1,148,402) (1,148,402) 5,763,011 - - 5,763,011 320,000 305,034 557,100 643,344 193,178 - - 877,100 643,344 193,178 305,034 6,951,677 1,393,622 (1,206,935) 7,138,364 Issued capital $ 6,526,499 Reserves Accumulated Total losses $ $ $ 2,199,445 (2,235,010) 6,490,934 - - (1,070,647) (1,070,647) - - - - - - (1,070,647) (1,070,647) 5 (2,676) (2,676) 6 6 5 250,000 25,003 411,293 - - 25,003 411,293 250,000 6,773,823 2,635,741 (3,305,657) 6,103,907 The above statement should be read in conjunction with the accompanying notes. Level 6, 505 Little Collins Street, Melbourne VIC 3000 | admin@lightningminerals.com.au | www.lightningminerals.com.au | (08) 9429 8806 22 Interim Financial Report 31 December 2023 CONSOLIDATED STATEMENT OF CASH FLOWS Consolidated Cash flows from operating activities Note Payments to suppliers and employees (net of GST) Interest received Interest paid Net cash (used in) operating activities 31 December 2023 $ 31 December 2022 (671,273) (356,475) 19,039 (4,101) (656,335) (1,118) (357,593) - (4,885) (1,456,790) (1,456,790) (421,880) (426,765) $ Cash flows from investing activities Payments for property and equipment Exploration and evaluation expenditure and acquisition Net cash (used in) investing activities Cash flows from financing activities Proceeds from issue of shares Cost of issuing shares Repayment of lease liabilities Net cash (used in) / provided by financing activities (2,675) (31,899) 7,023,000 (329,725) (4,882) (34,574) 6,688,393 Net (decrease) / increase in cash held (2,147,699) 5,904,035 3,694,346 334,865 1,546,647 6,238,900 Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period 3 The above statement should be read in conjunction with the accompanying notes. Level 6, 505 Little Collins Street, Melbourne VIC 3000 | admin@lightningminerals.com.au | www.lightningminerals.com.au | (08) 9429 8806 23 Interim Financial Report 31 December 2023 NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS 1. BASIS OF PREPARATION This general purpose interim financial report for the half-year ended 31 December 2023 has been prepared in accordance with AASB 134 Interim Financial Reporting and the Corporations Act 2001 as appropriate for profit-oriented entities. Compliance with AASB 134 ensures compliance with International Financial Reporting Standard IAS 34 Interim Financial Reporting. The half-year financial report does not include all the notes of the type normally included within the annual financial report and therefore cannot be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of the Group as the full financial report. It is recommended that the half-year report be read in conjunction with any public announcements made by the Company during the half-year ended 31 December 2023 in accordance with the continuous disclosure obligations of the ASX listing rules. The financial sta