Announcement PDF ASX Announcement | 14 March 2025 Variscan Mines Limited (ASX:VAR) FINANCIAL REPORT – HALF-YEAR ENDED 31 DECEMBER 2024 Variscan Mines Limited (“Variscan” or the “Company”) encloses its half-year financial report for the period ended 31 December 2024. Yours faithfully Mark Pitts Company Secretary This announcement has been approved for release by Mr Mark Pitts, Company Secretary, Variscan Mines Limited. For further information, please contact: Variscan Mines Limited (ASX:VAR) Stewart Dickson Managing Director & CEO E: stewart.dickson@variscan.com.au T: +44 (0) 7799 694195 Media & Investor Enquiries Jane Morgan Management Chloe Hayes / Jane Morgan E: chloe@janemorganmanagement.com.au / jm@janemorganmanagement.com.au P: +61 (0) 458 619 317 / +61 (0) 405 555 618 About Variscan Mines Limited (ASX:VAR) Variscan Mines Limited (ASX:VAR) is a growth oriented, natural resources company focused on the acquisition, exploration and development of high-quality strategic mineral projects. The Company has compiled a portfolio of highimpact base-metal interests in Spain, Chile and Australia. Its primary focus is the development of its advanced zinc projects in Spain. The Company’s name is derived from the Variscan orogeny, which was a geologic mountain building event caused by Late Paleozoic continental collision between Euramerica (Laurussia) and Gondwana to form the supercontinent of Pangea. To learn more, please visit: www.variscan.com.au For more information Follow us on LinkedIn Follow us on X Visit our investor website: www.variscan.com.au Interim Financial Report for the half-year ended 31 December 2024 Contents Corporate Information 3 Directors’ Report 4 Auditor’s Independence Declaration 6 Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income 7 Condensed Consolidated Statement of Financial Position 8 Condensed Consolidated Statement of Changes in Equity 9 Condensed Consolidated Statement of Cash Flows 10 Notes to the Condensed Interim Financial Statements 11 Directors’ Declaration 22 Independent Auditor’s Review Report 23 Corporate Information Directors Mr Anthony Wehby Non-executive Chairman Mr Stewart Dickson Managing Director & CEO Mr Nick Farr-Jones Non-executive Director Dr Frank Bierlein Non-executive Director Company Secretary Mr Mark Pitts Registered Office Level 5/191 St Georges Terrace Perth WA 6000 Australia P: +61 8 9316 9100 E: info@variscan.com.au Share Registry Automic Level 5/191 St Georges Terrace Perth WA 6000 Australia P: 1300 288 664 Auditors HLB Mann Judd Level 4, 130 Stirling Street Perth WA 6000 Australia +61 8 9227 7500 Securities Exchange Listing Variscan Mines Limited’s shares are listed on the Australian Securities Exchange (ASX: VAR) Competent Persons Statements Where Company refers to exploration results, historical data and mineral resource estimates previously advised to the ASX it confirms that it is not aware of any new information or data that materially affects the information included in previous announcements and all material assumptions and technical parameters disclosed in those announcements continue to apply and have not materially changed. Variscan Mines Limited Page 3 Directors’ Report Your Directors of Variscan Mines Limited (the “Company”) submit the Interim Financial Report of the Group, being the Company and its controlled entities (“Variscan” or the “Group”), for the half year ended 31 December 2024. In order to comply with the provisions of the Corporations Act 2001, the Directors report as follows: Directors The names of Directors who held office during or since the end of the interim period and until the date of this report are noted below. Directors were in office for the entire period unless otherwise stated. Mr Anthony Wehby Non-executive Chairman Mr Stewart Dickson Managing Director & CEO Mr Nicholas (Nick) Farr-Jones Non-executive Director Dr Frank Bierlein Non-executive Director Review of operations Variscan Mines Limited (ASX:VAR) has made significant progress in the half-year ending 31 December 2024, particularly in advancing its zinc projects in Spain. Novales-Udías Zinc-Lead Project, Spain Exploration and Resource Development San Jose Mine The Company continued its underground drilling campaign at the San Jose Mine, focusing on extending known mineralized zones and delineating additional high-grade zinc-lead mineralization beyond the existing Mineral Resource Estimate (MRE). The drilling program delivered multiple high-grade intercepts, with notable results including (refer ASX Announcement dated 11 July 2024): - 14.10m @ 5.31% Zn, 0.44% Pb 11.00m @ 6.66% Zn, 0.72% Pb 4.65m @ 5.49% Zn, 0.14% Pb 4.00m @ 5.92% Zn, 0.26% Pb In addition to drilling, Variscan undertook detailed geological mapping and structural analysis to refine its understanding of the controls on mineralization. The results of these studies have provided important insights that will inform future drilling strategies and the upcoming Mine Re-Start Study. Udías Mine Complex The Udías Mine Complex, historically linked to the San Jose Mine, has been identified as a high-priority exploration target due to its past production history and evidence of high-grade zinc-lead mineralization. During the period, Variscan undertook a comprehensive historical data review, incorporating archival mine records, historical drill results, and underground sampling data to refine target areas. In November 2024 the Company commenced underground drilling within the Udías Mine Complex, which reported exceptionally high-grade results in early 2025 (refer ASX Announcement dated 4 March 2025), including: - 15.30m @ 17.42% Zn, 4.40% Pb 14.30m @ 8.09% Zn, 1.28% Pb 15.25m @ 6.10% Zn, 0.46% Pb These results will provide critical data that will enhance the broader resource potential of the Novales-Udías Project. Mineral Resource Estimate (MRE) Update A major milestone for the period was the significant update to the Novales-Udías Project’s Mineral Resource Estimate, announced in December 2024 (refer ASX Announcement dated 9 December 2024). The MRE was increased threefold to 3.4 million tonnes at 7.6% zinc and 0.9% lead, significantly enhancing the project’s scale and development potential. Importantly, the update marked the first-time classification of Measured Resources at Novales-Udías, underscoring the growing confidence in the geological model and continuity of mineralisation. The updated MRE incorporated data from recent drilling campaigns, underground mapping, and historical mine records. The higher confidence Measured Resource component provides a strong foundation for mine planning and economic assessments. Variscan’s technical team is now integrating the updated MRE into the ongoing Mine Re-Start Study, which will evaluate production scenarios, mining methods, and economic feasibility ahead of a potential decision to restart mining operations at San Jose. Variscan Mines Limited Page 4 Directors’ Report Deposit Classification San Jose Measured 1,100 8.0 1.5 9.5 Indicated 600 9.5 1.2 10.7 Inferred 300 7.0 0.8 7.8 2,000 8.3 1.3 9.6 Indicated 500 6.5 0.7 7.2 Inferred 900 7.2 0.6 7.8 Sub-total 1,400 7.0 0.6 7.6 Total 3,400 7.6 0.9 8.5 Sub-total Udías Tonnes (Kt) Zn (%) Pb (%) Zn + Pb (%) Notes: • The Mineral Resource is reported above a 2% Zn+Pb cut-off grade. • Due to rounding, totals may not precisely reflect the sum of individual components. • The MRE incorporates data from both recent and historical drilling campaigns, with a total of 1,331 drill holes contributing to the resource model. This updated MRE reflects a significant increase in geological confidence and resource inventory, underscoring the exceptional potential of the Novales-Udías Project as one of the highest-grade zinc deposits owned by an ASX-listed company. Strategic Partnerships • Marketing Agreement: Variscan appointed Square Trading as its exclusive marketing manager for the global sale of zinc concentrates from its Novales-Udías and Guajaraz Projects in Spain. Square Trading will also assist in securing third-party financing for the construction and operation of the mines under development. Financial Position • Capital Raising: The Company successfully raised $2,367,335 (with an additional $84,000 received during the previous financial year) through an interim funding placement and a fully underwritten renounceable entitlement offer. This capital injection has strengthened the Company’s financial position, enabling the advancement of development activities, with a focus on the forthcoming Mine Re-Start Study for the San Jose Mine. Significant events after balance date There has been no additional matter or circumstance that has arisen after balance date that has significantly affected, or may significantly affect, the operations of the Group, the results of those operations, or the state of affairs of the Group in future financial periods. Auditor Independence Declaration Section 307C of the Corporations Act 2001 requires our auditors, HLB Mann Judd, to provide the Directors of the Company with an Independence Declaration in relation to the review of the half-year report. This Independence Declaration is set out on page 6 and forms part of this Directors’ Report for the half year ended 31 December 2024. Signed in accordance with a resolution of the Directors. Stewart Dickson Managing Director Dated this 14th day of March 2025 Variscan Mines Limited Page 5 AUDITOR’S INDEPENDENCE DECLARATION As lead auditor for the review of the consolidated interim financial report of Variscan Mines Limited for the half-year ended 31 December 2024, 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. Perth, Western Australia 14 March 2025 Variscan Mines Limited D B Healy Partner Page 6 Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the half-year ended 31 December 2024 Consolidated Notes Six months to Six months to 31 December 31 December 2024 2023 $ $ Continuing operations Interest income 4,885 6,726 Other income - 1,078 Total income 4,885 7,804 Compliance expenses (87,493) (34,483) Professional services expenses (196,731) (114,511) (111) (156) Directors’ expenses (193,017) (121,000) Travel and accommodation expenses (18,782) (23,181) Other expenses (30,612) (46,136) Total expenses (526,746) (339,467) Realised loss on foreign exchange (16,476) (1,509) Unrealised (loss)/gain on foreign exchange (2,724) 2,032 Total foreign exchange (loss)/gain (19,200) 523 Loss before income tax (541,061) (331,140) - - (541,061) (331,140) Exchange differences on translation of foreign operations 24,970 (53,795) Other comprehensive income / (loss) for the period, net of tax 24,970 (53,795) (516,091) (384,935) (0.10) (0.09) Finance expenses Income tax expense Loss for the period after income tax Other comprehensive income, net of income tax Items that may be reclassified subsequently to profit or loss Total comprehensive loss for the period Loss per share Basic and diluted loss per share (cents per share) 3 The accompanying notes form part of these financial statements Variscan Mines Limited Page 7 Condensed Consolidated Statement of Financial Position As at 31 December 2024 Consolidated Notes 31 December 30 June 2024 2024 $ $ Assets Current assets Cash and cash equivalents 1,151,915 250,260 Trade and other receivables 220,066 122,784 1,371,981 373,044 58,954 61,765 9,956,195 9,331,873 Other non-current assets 69,217 66,737 Total non-current assets 10,084,366 9,460,375 Total assets 11,456,347 9,833,419 Trade and other payables 177,041 509,617 Total current liabilities 177,041 509,617 Total liabilities 177,041 509,617 11,279,306 9,323,802 Total current assets Non-current assets Property, plant and equipment Deferred exploration and evaluation expenditure 4 Liabilities Current liabilities Net assets Equity Issued capital 5 38,018,166 36,066,871 Reserves 5 640,229 302,259 Accumulated losses (27,379,089) (27,045,328) Total equity 11,279,306 9,323,802 The accompanying notes form part of these financial statements Variscan Mines Limited Page 8 Condensed Consolidated Statement of Changes in Equity For the half-year ended 31 December 2024 Consolidated Share-based payment reserve Issued capital 1 July 2023 Foreign currency translation reserve Accumulated losses Total 35,344,243 726,582 149,192 (26,844,339) 9,375,678 Loss for the period - - - (331,140) (331,140) Other comprehensive loss for the period, net of income tax - - (53,795) - (53,795) Total comprehensive loss for the period - - (53,795) (331,140) (384,935) Issue of shares for cash 333,000 - - - 333,000 Issue of shares in lieu of fees 45,628 - - - 45,628 Exercise of performance rights 70,000 (70,000) - - - - (449,282) - 449,282 - 31 December 2023 35,792,871 207,300 95,397 (26,726,197) 9,369,371 1 July 2024 36,066,871 207,300 94,959 (27,045,328) 9,323,802 Loss for the period - - - (541,061) (541,061) Other comprehensive income for the period, net of income tax - - 24,970 - 24,970 Total comprehensive income/(loss) for the period - - 24,970 (541,061) (516,091) 2,367,335 - - - 2,367,335 Issue of shares to Directors under loan agreements 132,000 - - - 132,000 Issue of shares in lieu of fees 163,000 - - - 163,000 Issue of options as share issue costs (520,300) 520,300 - - - - (207,300) - 207,300 - Share issue costs paid (190,740) - - - (190,740) 31 December 2024 38,018,166 520,300 119,929 (27,379,089) 11,279,306 Lapse of options Issue of shares for cash Lapse of options The accompanying notes form part of these financial statements Variscan Mines Limited Page 9 Condensed Consolidated Statement of Cash Flows For the half-year ended 31 December 2024 Consolidated Six months to Six months to 31 December 31 December 2024 2024 $ $ (509,727) (384,639) Interest received 4,885 6,726 Finance costs (111) (156) (504,953) (378,069) (797,273) (191,925) Purchase of property, plant and equipment (7,178) (640) Net cash outflow from investing activities (804,451) (192,565) Notes Cash flows from operating activities Payments to suppliers and employees Net cash outflow from operating activities Cash flows from investing activities Exploration and evaluation expenditure Cash flows from financing activities Proceeds from issue of shares – placement and entitlement offer 5 2,367,335 333,000 Proceeds from issue of shares – loan agreements 5 32,000 - Share issue costs paid (190,740) - Net cash inflow from financing activities 2,208,595 333,000 Net increase / (decrease) in cash and cash equivalents 899,191 (237,634) Cash and cash equivalents at the beginning of the period 250,260 1,017,571 Effect of foreign exchange rate fluctuations on cash held 2,464 (1,022) 1,151,915 778,915 Cash and cash equivalents at the end of the period The accompanying notes form part of these financial statements Variscan Mines Limited Page 10 Notes to the Condensed Interim Financial Statements For the half-year ended 31 December 2024 Note 1: Basis of Preparation These condensed interim financial statements are general purpose financial statements, which have been prepared in accordance with the requirements of the Corporations Act 2001, Australian Accounting Standards including AASB 134 Interim Financial Reporting, Accounting Interpretations and other authoritative pronouncements of the Australian Accounting Standards Board. The financial statements comprise the consolidated condensed interim financial statements for the Group. For the purposes of preparing the consolidated financial statements, the Group is a for-profit entity. The interim financial statements do not include full disclosures of the type normally included in the annual financial report. Therefore, it cannot be expected to provide as full an understanding of the financial performance, financial position and cash flows of the Group as the annual financial report. It is recommended these interim financial statements be read in conjunction with the annual financial report for the year ended 30 June 2024 and any public announcements made by Variscan Mines Limited and its subsidiaries during the half year in accordance with continuous disclosure requirements arising under the Corporations Act 2001 and the ASX Listing Rules. The accounting policies and methods of computation adopted are consistent with those of the previous financial year and corresponding half year. These accounting policies are consistent with Australian Accounting Standards and with International Financial Reporting Standards. The financial statements have been prepared on a historical cost basis, except for financial assets carried at fair value. Historical cost is based on the fair values of the consideration given in exchange for assets, goods and services. The company is domiciled in Australia and all amounts are presented in Australian dollars, unless otherwise noted. For the purpose of preparing the interim financial statements, the half year has been treated as a discrete reporting period. (a) Statement of compliance The financial report was authorised for issue on 14 March 2025. The interim financial statements comply with Australian Accounting Standards, which include Australian equivalents to International Financial Reporting Standards (AIFRS). Compliance with AIFRS ensures that the financial report, comprising the interim financial statements and notes thereto, complies with International Financial Reporting Standards (IFRS). New Standards and Interpretations applicable for the half year ended 31 December 2024 In the period ended 31 December 2024, the Directors have reviewed all of the new and revised Standards and Interpretations issued by the AASB that are relevant to the Group and effective for the current reporting period. As a result of this review, the Directors have determined that there is no material impact of the new and revised Standards and Interpretations on the Group and, therefore, no material change is necessary to Group accounting policies. Standards and Interpretations in issue not yet adopted The Directors have also reviewed all of the new and revised Standards and Interpretations on issue not yet adopted for the period ended 31 December 2024. As a result of this review the Directors have determined that there is no material impact of the Standards and Interpretations in issue not yet adopted on the Group and, therefore, no change is necessary to Group accounting policies. (b) Going concern The financial report has been prepared on the going concern basis, which contemplates continuity of normal business activities and the realisation of assets and settlements of liabilities in the ordinary course of business. For the half-year ended 31 December 2024, the Group recorded a net loss after tax of $541,061 (2023: $331,140), and net cash outflows from operating and investment activities of $1,309,404 (2023: $570,634). At 31 December 2024, the Group had $1,151,915 in cash and cash equivalents (30 June 2024: $250,260) and net working capital of $1,194,940 (30 June 2024: $136,573). Notwithstanding the above, and whilst not immediately required, the Group will need to raise further funds into the future to meet its planned exploration and development expenditure and corporate overheads. The Group’s ability to raise additional funds into the future will be impacted by the success of exploration activities and market conditions. The Directors have reviewed the Group’s overall financial position and are of the opinion that the use of the going concern basis of accounting is appropriate as they believe the Group will have sufficient funds available for at least 12 months to achieve its objectives and noting that it will be able to raise further funding or reduce or delay expenditures. Should these planned activities to raise or conserve capital not be successful, there exists a material uncertainty that may cast significant doubt upon the Group’s ability to continue as a going concern and, therefore, to realise its assets and extinguish its liabilities in the normal course of business and at the amounts stated in the financial report. Variscan Mines Limited Page 11 Notes to the Condensed Interim Financial Statements For the half-year ended 31 December 2024 Note 2: Segment Reporting AASB 8 Operating Segments requires operating segments to be identified on the basis of internal reports about components of the Group that are regularly reviewed by the Chief Operating Decision Maker in order to allocate resources to the segment and to assess its performance. The Group’s operating segments have been determined with reference to the monthly management accounts used by the Chief Operating Decision maker to make decisions regarding the Group’s operations and allocation of working capital. Due to the size and nature of the Group, the Board as a whole has been determined as the Chief Operating Decision Maker. Based on the quantitative thresholds included in AASB 8, there are currently two geographical segments, being Australia and Spain, which are considered for management purposes to form part of the single reportable segment of mineral exploration. Segment information The following tables present revenue and profit information and certain asset and liability information regarding geographical segments: As at Segment assets Segment liabilities Segment loss before income tax expense Variscan Mines Limited Spain Total $ $ $ 31 December 2024 1,121,491 10,334,856 11,456,347 30 June 2024 212,068 9,621,351 9,833,419 31 December 2024 (89,733) (87,308) (177,041) 30 June 2024 (456,041) (53,576) (509,617) For the half year ended Segment income Australia Australia Spain Total $ $ $ 31 December 2024 (7,479) 12,364 4,885 31 December 2023 7,804 - 7,804 31 December 2024 (551,249) 10,188 (541,061) 31 December 2023 (332,218) 1,078 (331,140) Page 12 Notes to the Condensed Interim Financial Statements For the half-year ended 31 December 2024 Note 3: Loss Per Share Basic and diluted loss per share Consolidated Six months to Six months to 31 December 31 December 2024 2023 Basic and Diluted loss per share (cents per share) (0.10) (0.09) Gain/(Loss) The Gain or (Loss) used in the calculation of basic and diluted gain/(loss) per share is as follows: Consolidated Loss used in the calculation of basic loss per share Six months to Six months to 31 December 31 December 2024 2023 $ $ (541,061) (331,140) Weighted average number of ordinary shares The weighted average number of ordinary shares used in the calculation of basic and diluted loss per share is as follows: Consolidated Weighted average number of ordinary shares for the purpose of basic earnings per share There is no impact of potential ordinary shares as they are not considered to be dilutive Weighted average number of ordinary shares for the purpose of diluted earnings per share Variscan Mines Limited Six months to Six months to 31 December 31 December 2024 2023 Number Number 526,279,813 351,907,581 - - 526,279,813 351,907,351 Page 13 Notes to the Condensed Interim Financial Statements For the half-year ended 31 December 2024 Note 4: Deferred Exploration and Evaluation Expenditure Carrying value Consolidated Exploration and evaluation costs 31 December 30 June 2024 2024 $ $ 9,956,195 9,331,873 Reconciliation Consolidated Six months to Year to 31 December 30 June 2024 2024 $ $ 9,331,873 8,097,650 Expenditure incurred 500,632 1,272,166 Depreciation capitalised 9,989 9,957 113,701 (47,900) 9,956,195 9,331,873 Opening balance Impact of foreign currency exchange differences Closing balance The recoupment of costs carried forward in relation to areas of interest in the exploration and evaluation phases is dependent on the successful development and commercial exploitation or sale of the respective areas. Variscan Mines Limited Page 14 Notes to the Condensed Interim Financial Statements For the half-year ended 31 December 2024 Note 5: Issued Capital & Reserves Contributed Equity 31 December 2024 30 June 2024 $ $ 38,018,166 36,066,871 Share capital 782,857,708 ordinary shares fully paid (30 June 2024: 379,000,368) Movement in ordinary shares on issue Six months to Year to 31 December 2024 30 June 2024 Number $ Number $ Balance at beginning of period 379,000,368 36,066,871 338,003,630 35,344,243 Shares issued for cash 345,333,529 2,367,335 33,055,555 595,000 Shares issued for funds received during a previous period (a) 14,000,000 - 3,055,556 - Shares issued subject to loan agreements with Directors 21,238,097 132,000 - - Shares issued in lieu of directors fees (b) 23,285,714 163,000 2,385,627 45,628 Conversion of performance rights - - 2,500,000 70,000 Share funds received in advance (a) - - - 84,000 Options issued as share issue costs (c) - (520,300) - - (190,740) - (72,000) 38,018,166 379,000,368 36,066,871 Other share issue costs Balance at end of period 782,857,708 During the year ended 30 June 2024, a total of $84,000 was received relating to the issue of shares completed on 22 July 2024. Also during the year ended 30 June 2024, the Company issued 3,055,556 shares relating to the receipt of $55,000 during the previous financial year. Shares issued in lieu of directors fees during the year ended 30 June 2024 were valued by reference to the Company’s shares as quoted on the ASX for the month to which the liability related. For those issued during the current period, these were valued at the price of the Entitlement Offer at $0.007. The Company issued a total of 78,833,394 options to Underwriters and Lead Managers of the Entitlement Offer made during the period. These options, which have been valued using the Black-Scholes Option Pricing Model, have been recognised as share issue costs during the period. Variscan Mines Limited Page 15 Notes to the Condensed Interim Financial Statements For the half-year ended 31 December 2024 Note 5: Issued Capital & Reserves Reserves 31 December 2024 30 June 2024 $ $ Share based payment reserve 520,300 207,300 Foreign currency translation reserve 119,929 94,959 Total Reserves 640,229 302,259 Movement in share-based payment reserve Consolidated Six months to Year to 31 December 30 June 2024 2024 $ $ Opening balance 207,300 726,582 Share based payments during the period – share issue costs 520,300 - - (70,000) Lapse of options (207,300) (449,282) Closing balance 520,300 207,300 Exercise of performance rights Movement in unlisted options on issue Six months to Year to 31 December 2024 30 June 2024 Number $ Number $ Balance at beginning of period 65,888,890 207,300 46,277,779 656,582 Issue of options to Underwriters and Lead Manager 78,833,394 520,300 - - Free-attaching options issued during the period 116,452,400 - 36,111,111 - Lapse of options (14,500,000) (207,300) (16,500,000) (449,282) Balance at end of period 246,674,684 520,300 65,888,890 207,300 Movement in performance rights on issue Six months to Year to 31 December 2024 30 June 2024 Number $ Number $ Balance at beginning of period - - 2,500,000 70,000 Exercise of performance rights - - (2,500,000) (70,000) Balance at end of period - - - - Variscan Mines Limited Page 16 Notes to the Condensed Interim Financial Statements For the half-year ended 31 December 2024 Note 6: Share-based Payments The following share-based payment arrangements were in place during the period: Unlisted options Number Grant date Expiry date Exercise price Fair value at grant date $ $ Vesting terms Current Status Broker Options 2,500,000 30 Jun 2021 30 Sep 2024 $0.12 $0.0490 Immediately Lapsed Key Management Personnel Options – Tranche 4 4,000,000 30 Nov 2022 30 Nov 2024 $0.045 $0.0080 Immediately Lapsed Key Management Personnel Options – Tranche 5 4,000,000 30 Nov 2022 30 Nov 2024 $0.055 $0.0070 Immediately Lapsed Key Management Personnel Options – Tranche 6 4,000,000 30 Nov 2022 30 Nov 2024 $0.065 $0.0062 Immediately Lapsed Lead Manager & Underwriter Options 78,833,394 18 Dec 2024 30 Nov 2026 $0.015 $0.0066 Immediately Vested / Exercisable The fair value of services rendered in return for unlisted options is based on the fair value of the unlisted options granted, measured using the Black-Scholes model. The following inputs were used in the measurement of the fair values at grant date of the unquoted options issued during the financial period, being the Lead Manager & Underwriter Options: Lead Manager & Underwriter Options Fair value (per security) at grant date $0.0066 Share price at grant date $0.013 Exercise price $0.015 Expected volatility 100% Option life 2 years Expected dividends Risk-free interest rate Number of options Total fair value of securities granted Variscan Mines Limited 3.94% 787,833,394 $520,300 Page 17 Notes to the Condensed Interim Financial Statements For the half-year ended 31 December 2024 Note 7: Financial Instruments Fair value measurement Measured at fair value on recurring basis Financial assets and financial liabilities measured at fair value in the statement of financial position are grouped into three levels of a fair value hierarchy. The three levels are defined based on the observ