Announcement PDF December 2023 Quarterly Report | 31 January 2024 Variscan Mines Limited (ASX:VAR) Variscan publishes maiden JORC MRE for San Jose Mine Underground drilling discovers new high grade lower lens Guajaraz exploration license extended Investment highlights during the Quarter • • • Variscan Mines published a maiden JORC Mineral Resource Estimate (‘MRE’) for its historically producing San Jose Mine, situated in northern Spain: o Total resource of 1.1Mt @ 9.0% Zinc, 1.2% Lead o Resources in the Indicated category represent 45% of the MRE with grades notably higher (10% Zn) than those in the Inferred category (8.2% Zn). o MRE provides potential for significant grade and tonnage increases with infill drilling. o The deposit is considered to be of sufficient grade, quantity, and continuity to have reasonable prospects for eventual economic extraction. o Additional JORC Exploration Target 1 of 3Mt - 6Mt, with grade ranges of 7 - 11% Zn and 0.3 - 1.6% Pb has also been estimated for the San Jose Mine and Udías deposits indicating the potential for the MRE to grow o The Exploration Target for the San Jose Mine is supplemental to the existing JORC Exploration Target over the entire Novales-Udias Project published by Variscan in Q3 2022 o Mineralization remains open along strike, and at depth, offering the potential to increase the MRE through follow-up drilling. Ahead of the release of the MRE, Variscan Mines announced early high grade zinc assay results from the current Phase 3 underground drilling campaign. o These Phase 3 drill results defined a new lower lens of high-grade zinc mineralization below La Catedral stope in the San Jose Mine. Variscan Mines’ Exploration License for its Guajaraz Exploration License area was extended for a further three years by the Government of Castille-La Mancha. Variscan Mines Limited (ASX:VAR) (“Variscan” or “the Company”) is pleased to announce its Appendix 5B for the quarter ended 31 December 2023 and an accompanying operational update for this period. The potential quantity and grade of this exploration target is conceptual in nature, there is currently insufficient exploration completed to support a mineral resource of this size and it is uncertain whether continued exploration will result in the estimation of a Mineral Resource. The Exploration Target has been prepared in accordance with the JORC Code (2012). 1 Variscan’s Managing Director & CEO, Stewart Dickson said, “The December 2023 quarter saw Variscan Mines tick off another stated deliverable in its San Jose Mine development plan, with an initial, maiden mineral resource estimate issued in late November. We are proud to say that this estimate for San Jose is one of the highest-grade zinc mineral resources currently owned by an ASX-listed company. It will be a critical input into mine re-start assessments we are now progressing. From here, we see plenty of scope for further significant upside in San Jose’s contained resource. Yes, the just released MRE has validated the success of our exploration activities to date across this project. It has also, from a “blue sky” perspective, established a platform upon which we can continue to build a resource inventory. To this end, we will be undertaking additional exploration activities at San Jose over the first half of calendar 2024, with the underground drilling campaign continuing. We look forward to updating investors on progress here over coming months. And while San Jose continues to be our major focus, we were thrilled to lock in a 3-year extension of the Guajaraz Exploration License, located in central Spain, during the quarter. It remains a core asset in our Spainbased project portfolio and we are already working on the design of a future work program there.” OPERATIONS REVIEW Variscan’s exploration and development strategy for the Novales-Udias Project continued to be advanced over the December 2023 quarter. Spain – Novales-Udias Zinc Project The Novales-Udias Project is located in the Basque-Cantabrian Basin, some 30km southwest from the regional capital, Santander. The project is centred around the former producing San Jose underground mine with a large surrounding area of exploration opportunities over the 9km Novales Trend, which includes a number of satellite underground and surface workings. This project, which is highly prospective across multiple fronts and located in close proximity to both major infrastructure requirements and zinc consumers, continued to be the major focus of Variscan’s exploration and development activities over the three months to 31 December 2023. Initial, maiden JORC-compliant Mineral Resource Estimate for San Jose In late November 2023, Variscan released an initial, maiden JORC (2012) compliant Mineral Resource Estimate (“MRE”) for the San Jose Mine, near Novales, located in Cantabria, northern Spain. (see ASX announcement dated 28 November 2023). CSA Global (“CSA Global”), a member of the ERM Group of Companies, was engaged by Variscan to report a MRE for the San Jose deposit and the adjacent north-eastern part of the Udías deposit. The MRE is 1.1Mt @ 9.0% Zn and 1.2%Pb at a cut-off grade of 2% Zn. 2 Table 1. JORC Mineral Resource Estimate for San Jose Mine and north-eastern Udías by deposit and classification reported above a 2% Zn cut-off Notes: • • • • Due to effects of rounding, the total may not represent the sum of all components. Mineral Resource is reported from all blocks, classified as either Indicated or Inferred, where interpolated block grade is ≥2.0% Zn. Block model is coded where blocks have been depleted by historical underground mining activities. A density value of 3 t/m3 is applied to all blocks. Figure 1. JORC Mineral Resource Estimate for San Jose Mine and north-eastern Udías by deposit 3 The MRE has been estimated for the San Jose deposit as well as the adjacent north-eastern part of the Udías deposits, both of which were previously mined for zinc during the 20th century. The Project is centred around the former producing San Jose underground zinc-lead mine with a large surrounding area of exploration opportunities over the 9km Novales Trend, which includes a number of satellite underground and surface workings. The MRE incorporates outcomes from extensive drilling campaigns undertaken in and around the Project. Underground and surface drilling has been carried out since the 1960s, with a drill hole database now comprising 1,105 drill-holes for approximately 94,808m. Variscan itself carried out surface and underground drilling programs in 2022 and 2023, targeting extensions to the known zones of mineralisation as well as targeting new zones of mineralisation. The mineralisation is classified as Mississippi Valley-type (“MVT”), hosted within a stratiform dolomitic unit. The MRE is classified as a combination of Indicated and Inferred categories and has been reported in accordance with the JORC Code (2012) 2, with geological and sampling evidence sufficient to assume geological and grade continuity within the volumes classified as Indicated. The MRE classification levels were based upon an assessment of geological understanding of the deposit, geological and grade continuity, drillhole spacing, quality control results, search and interpolation parameters, and an analysis of available density information. The deposit is considered to be of sufficient grade, quantity, and continuity to have reasonable prospects for eventual economic extraction. Figure 2. Mineral Resource Estimate categories in 3D View Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. The JORC Code, 2012 Edition. Prepared by: The Joint Ore Reserves Committee of The Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia (JORC). 2 4 Additional JORC Exploration Target indicates the potential scale and grade of the San Jose Mine The abovementioned reported MRE sits within a larger JORC Exploration Target of 3Mt - 6Mt, with grade ranges of 7 - 11% Zn and 0.3 - 1.6% Pb 3. Table 2. JORC Exploration Target Tonnage and Grade Estimate Ranges Figure 3. JORC Exploration Target indicates scope for Mineral Resource to grow The potential quantity and grade of this exploration target is conceptual in nature, there is currently insufficient exploration completed to support a mineral resource of this size and it is uncertain whether continued exploration will result in the estimation of a Mineral Resource. The Exploration Target has been prepared in accordance with the JORC Code (2012). 3 5 Further exploration work will occur at San Jose in calendar 2024 The Exploration Target is concentrated around the MRE deposits and over the same strike length. As these areas are well understood by Variscan, it presents a de-risked opportunity and Variscan’s planned field work for calendar year 2024 will include drilling over the extent of the Exploration Target. The Exploration Target for the San Jose Mine is supplemental to the JORC compliant Exploration Target over the larger Novales-Udias Project published by Variscan in Q3 2022 (refer ASX announcement 22 July 2022) which remains extant. Phase 3 Underground Drilling at San Jose Mine defines a new thick lower lens of high-grade zinc with up to 25% zinc intersected In early October 2023, Variscan Mines released high grade zinc assay results from the Phase 3 underground diamond drilling campaign at the San Jose Mine (see ASX announcement dated 5 October 2023). This drilling programme has been focussed on prospective zones identified from the development of the Company’s 3D model and is targeting an expansion of zones of mineralization. These drill results achieve both objectives by defining a new lower lens beneath the La Catedral in the Central Zone and expanding the mineralization footprint with continuity as the new lens links up with the La Caseta trend. The La Catedral lower lens is immediately accessible from main gallery level of the mine. Selected drilling results: • • • • • • NDDT007B 21.85m @ 8.50% Zn, 0.38% Pb o including 18.05m @ 10.22% Zn, 0.46% Pb NDDT007 23.35m @ 7.09% Zn, 1.72% Pb o including 11.0m @ 11.58% Zn, 3.35% Pb NDDT014 14.55m @ 5.81% Zn, 0.90% Pb NDDT012 10.30m @ 5.09% Zn, 0.19% Pb NDDT010 3.80m @ 24.58% Zn, 3.13% Pb NDDT008 9.30m @ 5.18% Zn, 0.13% Pb 6 Figure 4. Cross-section of newly defined La Catedral Lower Lens, Central Zone, San Jose Mine Figure 5. 3D model illustrating newly defined La Catedral Lower Lens, Central Zone, San Jose Mine 7 Figure 6: . Diamond Drill Core from NDDT014 (14.55m @ 5.81% Zn, 0.90% Pb) illustrating massive sphalerite hosted in dolostone Further critical milestones in development of San Jose are now work-in-progress With delineation of a maiden Mineral Resource Estimate for San Jose now complete, Variscan’s next focus is the delivery of other milestones critical to San Jose again becoming a producing mine. San Jose-related tasks that Variscan plans to deliver over the first half of calendar 2024 include: • • • • • • Preparation of a mine-restart concept study for the San Jose Mine. A Phase 4 underground drilling campaign A potential surface drilling campaign at San Jose along strike A potential MRE upgrade The potential actioning of recommendations coming out of the now-being-prepared mine re-start study 8 Figure 7: Variscan’s pathway to development for its San Jose asset Spain – Guajaraz Zinc Project The Guajaraz Project is a prospective brown-field zinc-rich polymetallic opportunity with known mineral occurrences. The project is located in the highly mineralised Central Zone of the Iberian Massif, which ranks as one of the most mineralised geological units globally and represents the internal zone of the prolific European Variscan Orogenic belt. The project area lies within a primary igneous and metamorphic crystalline plateau that hosts abundant hydrothermal vein networks that have a long history of exploration. Brittle-fault related vein and silicified breccia ore deposits are of the BPGC type (zinc-galena-pyrite-chalcopyrite). While the main focus over the December 2023 quarter was again the exploration and eventual development of the Novales-Udias project, Guajaraz remains a core asset in Variscan’s portfolio. Three-year extension of Guajaraz exploration license delivered In late October 2023, Variscan announced that the Consejería de Desarrollo Sostenible (Department of Sustainable Development) of the Junta de Comunidades de CastillaLa Mancha (the regional Government of Castile-La Mancha) had approved a 3-year extension of the “Guajaraz” Permiso de Investigación (Exploration License), located in central Spain (see ASX announcement dated 26 October 2023). 9 Figure 8. Guajaraz Project location A long-term exploration program for Guajaraz is now taking shape The design of a future long-term work program for the Guajaraz Project, which will extend across the 2023 through 2026 lifespan of the now renewed Exploration License, includes: • • • soil geochemistry. geophysical survey. initial drilling campaign. A geophysical campaign will be carried out, covering the same areas included in the already undertaken geochemical prospecting campaign with assay results pending.. The main objective will be to discover polymetallic (Zn-Pb-Ag-Cu), deposits by recording anomalous chargeability and resistivity values utilising Direct Current Induced Polarization (DCIP). Initial planning anticipates the acquisition of chargeability and resistivity data along six profiles between 1.3-1.7km in length. The total length of the campaign will be approximately 8,500 metres. Depending on the results obtained in the proposed geochemical and geophysical surveys, capital allocation and permitting, a surface drilling campaign is anticipated be conducted to drill-test targets identified. The objective of the drilling would be to seek extensions of (Zn-Pb-Ag-Cu) mineralization stepping out from the La Unión Mine. Initial drill hole planning has been conducted based on the geological knowledge acquired to date. The final location of drill-holes will be refined by the results of the preceding geochemical and geophysical surveys. 10 PROJECT SUMMARIES Spain – Zinc-rich Novales-Udias Project The Novales-Udias Project is located in the Basque-Cantabrian Basin, some 30 kilometres southwest from the regional capital, Santander. The project is centred around the former producing San Jose underground mine with a large surrounding area of exploration opportunities for a number of satellite deposits based on underground and surface workings, our substantial database of historic drilling and multiple areas of zinc anomalism identified from recent and historic geochemical surveys. Variscan has defined the NE-SW Novales Trend over 9 kilometres with a parallel mineralised trend over at least 3 kilometres of strike. Key highlights of the Novales-Udias Project: • • • • • • • • • • • • Near term zinc production opportunity Large tenement holding of 68.3 km2 (including several granted mining tenements) Regional exploration potential for another discovery analogous to Reocin (total past production and remaining resource 62Mt @ 8.7% Zn and 1.0% Pb 4,5) San Jose Mine is within trucking distance of the Glencore zinc smelter in the neighboring region of Asturias Classic MVT carbonate hosted Zn-Pb deposits Historic production of high-grade zinc; average grade reported as around 7% Zn 6 Simple mineralogy of sphalerite – galena – calamine Ore is strata-bound, epigenetic, lenticular and sub-horizontal Reported historic production of super high grade ‘bolsas’ (ore bags) commonly 10-20% Zn and in some instances +30% Zn 7 Assay results of targeted grab samples taken from within the underground Novales Mine recorded 31.83% Zn and 62.3% Pb 8 Access and infrastructure all in place Local community and government support due to historic mining activity 1 Velasco, F., Herrero, J.M., Yusta, I., Alonso, J.A., Seebold, I. and Leach, D., 2003 - Geology and Geochemistry of the Reocin Zinc-Lead Deposit, BasqueCantabrian Basin, Northern Spain: in Econ. Geol. v.98, pp. 1371-1396. 5 Cautionary Statement: references in this announcement to the publicly quoted resource tonnes and grade of the Project are historical and foreign in nature and not reported in accordance with the JORC Code 2012, or the categories of mineralisation as defined in the JORC Code 2012. A competent person has not completed sufficient work to classify the resource estimate as mineral resources or ore reserves in accordance with the JORC Code 2012. It is uncertain that following evaluation and/or further exploration work that the foreign/historic resource estimates of mineralisation will be able to be reported as mineral resources or ore reserves in accordance with the JORC Code 2012. 6 Anecdotal evidence from original Novales miners interviewed during the WAI Due Diligence supported with historical production data from the School of Mines in Torrelavega historical archives 7 4 Anecdotal evidence from original Novales miners interviewed during the WAI Due Diligence supported with historical production data from the School of Mines in Torrelavega historical archives. 8 Refer to ASX Announcement of 19 December 2019. 4 11 Figure 9. San Jose Mine site proximal to San Juan Smelter and regional capital, Santander Spain – Guajaraz Zinc-rich Polymetallic Project The Guajaraz Project is a prospective brown-field zinc-rich polymetallic opportunity with known mineral occurrences. The project is located in the highly mineralised Central Zone of the Iberian Massif, which ranks as one of the most mineralised geological units globally and represents the internal zone of the prolific European Variscan Orogenic belt. Variscan believes Guajaraz represents an excellent, de-risked brownfield polymetallic project. Reflective of this belief in the prospectivity of this Project, the Company filed an application with the authorities in Castilla-La Mancha during the year for a 3-year extension of the current exploration licence over the Guajaraz tenement area. This 3-year extension, covering the period 2023 through 2026 was granted to Variscan Mines’ local Spanish subsidiary, Variscan La Mancha in late October 2023. FINANCIAL & CORPORATE CASH Cash at bank at the end of the quarter was $779,000 Subsequent to the end of the quarter, the Company issued 14,555,556 new shares at $0.018 each, raising approximately $262,000 before costs. SUMMARY OF EXPENDITURE ON EXPLORATION ACTIVITIES For the quarter, the Group spent $285,000 on exploration activities, substantively all of which related to the Group’s Spanish zinc projects. These exploration activities related to: • • • Surface and underground drilling; Geological mapping and modelling; Technical consulting fees; 12 • • Tenement administration, reporting and management; and Directly-attributable corporate overheads and administration costs. In accordance with ASX Listing Rule 5.3.2, the Company advises that no Mining Development or Production activities were conducted during the quarter. SHARE CAPITAL Late in the December 2023 quarter, Variscan issued 2,385,627 shares to Directors in lieu of fees, as approved by shareholders at the Company’s 2023 Annual General Meeting held on 14 November 2023 (see ASX announcement dated 28 December 2023). In the same announcement, the Company advised that 2,500,000 performance rights have been validly exercised, resulting in the issue of 2,500,000 new ordinary shares. As noted at 30 June 2023, a portion of the placement funds relating to the second tranche of the recent Capital Raising, totaling $595,000 had been delayed. The Board advises that the remaining funds have since been received and the final tranche of shares and options were issued to the subscriber on 19 January 2024 as noted above. DEFERRED SETTLEMENT SHARES In accordance with the acquisition of the Spanish Zinc projects, the Company must issue additional shares upon the satisfaction of certain exploration milestones. These milestones are for the definition, in accordance with JORC 2012, of an Inferred Mineral Resource (or greater) of: • • • Milestone 1: 4 million tonnes at 7% Zn Milestone 2: 8 million tonnes at 7% Zn Upon satisfaction of each of these milestones, the Company must issue 27,500,000 ordinary shares to the vendors of Slipstream Spain Pty Ltd and Slipstream Spain 2 Pty Ltd, and 2,426,471 shares to Hispanibal S.L. as the vendor of the “Hispanibal Option”, for a total of 59,852,941 Ordinary Shares if both milestones are met. There is currently no obligation to issue the milestone shares OTHER During the quarter, the Company made payments to related parties of $23,000, represented by remuneration paid to Directors. ENDS This ASX announcement has been authorised by the 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 13 Media & Investor Enquiries The Capital Network Julia Maguire E: julia@thecapitalnetwork.com.au P: +61 2 8999 3699 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 (formerly Twitter) Visit our investor website: www.variscan.com.au COMPETENT PERSONS STATEMENT The information in this document that relates to the Exploration Target, exploration results and technical information is based on, and fairly represents information and supporting documentation reviewed by Dr. Mike Mlynarczyk, Principal of the Redstone Exploration Services, a geological consultancy acting as an external consultant for Variscan Mines. Dr. Mlynarczyk is a Professional Geologist (PGeo) of the Institute of Geologists of Ireland, and European Geologist (EurGeol) of the European Federation of Geologists, as well as Fellow of the Society of Economic Geologists (SEG). With over 10 years of full-time exploration experience in MVT-style zinc-lead systems in several of the world’s leading MVT provinces, Dr. Mlynarczyk has sufficient experience 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 December 2012 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (‘JORC Code’). Dr. Mlynarczyk consents to the inclusion in the report of the matters based upon the information in the form and context in which it appears. Where reference is made to previous releases of exploration results and mineral resource estimates in this announcement, the Company confirms that it is not aware of any new information or data that materially affects the information included in those announcements and all material assumptions and technical parameters underpinning the exploration results and mineral resource estimates included in those announcements continue to apply and have not materially changed. 14 LISTING OF TENEMENTS HELD AT 31 DECEMBER 2023 Tenement SPAIN – Note 5 Tenement No. Interest Joint Venture Details Cantabria Buenahora Fraction 1 IP 16.662-01 100% Buenahora Fraction 2 IP 16.662-02 100% San José EC 94 100% La Torra EC 512 100% Tres Amigos EC 1565 100% Torpeza EC 2557 100% Andrea EC5220 100% Andrea-demasía a EC5374 100% Es EC8049 100% Dudosa EC8165 100% Cargadoiro EC11589 100% Tres amigos-demasía a EC11594 100% Flor del pueblo EC12942 100% Torpeza-demasía a EC12952 100% Torpeza-3ª demasía a EC13079 100% Torpeza-2ª demasía a EC13080 100% Flor del pueblo-demasía a EC13154 100% Dudosa-demasía a EC13170 100% Andrea-3ª demasía a EC13175 100% Andrea-2ª demasía a EC13176 100% Cargadoiro-demasía a EC13260 100% Ampliación a Matilde EC13641 100% Aumentada EC14238 100% Campitos EC14554 100% Campitos-demasía a EC14640 100% Carmenchu EC14945 100% Amelita EC14949 100% Eloísa EC14947 100% Ampliación a Matilde-demasía a EC14948 100% Cargadoiro 2 EC14954 100% Amelita-demasía a EC14979 100% Carmenchu-demasía a EC14980 100% Eloísa-demasía a EC14981 100% Carmenchu-2ª demasía a EC14982 100% 6º Aumento a porvenir EC15672 100% Ampliación a Matilde-demasía a EC13641-10 100% Campitos-segunda demasía a EC14554-20 100% Cargadoiro 2- demasía a EC14954-10 100% Carmenchu-tercera demasía a EC14980-30 100% 15 Tenement 6º Aumento a porvenir-demasía a Tenement No. EC15672-10 Interest 100% Joint Venture Details Torpeza-tercera demasía a EC2557-30 100% IP 4.203 100% Rosario 6 1-40 0310259624 10.4% Note 4 Rosario 7 1-60 0310259632 10.4% Note 4 Rosario 101 03102N2229 10.4% Note 4 Salvadora 0310231355 10.4% Note 4 Abandonara 0310248487 10.4% Note 4 Note 1 Toledo Guajaraz CHILE Rosario NEW SOUTH WALES Willyama EL 8075 0% Hillston EL 6363 39.2% Native Dog EL 8236 0% Note 1 Woodlawn South ELs 7257 and 7469 0% Royalty interest only Junction Dam EL 5682 0% Marmota acquired 100% ownership. See Note 2 Callabonna EL 5360 49% Red Metal 51%, can earn 70% St Pierre PER 100% Beaulieu PER 100% Perilya can earn 80%, Eaglehawk 9.8% SOUTH AUSTRALIA FRANCE EL = Exploration License PER = Permis Exclusif de Recherche (France) IP = Investigation Permit (Spain) EC = Exploration Concession (Spain) Note 1: Under an agreement with Silver City Minerals Limited, Broken Hill Operations and Eaglehawk Geological Consulting Pty Ltd Variscan has converted its interest in parts of these tenements to a NSR (Net Smelter Return). 16 Note 2: Marmota has earned 100% of the uranium rights only in EL 5682. Variscan has a 0.5% net profits royalty on production from a uranium mine. Note 3: The remaining exploration licenses owned by Variscan Mines SAS (excluding the Couflens PER) have been conditionally acquired by a new wholly owned subsidiary, Variscan Mines Europe Limited. Pursuant to the approval for the Subsidiary Sale, the Ministry of Economy and Finance has imposed, without prior consultation, the compulsory relinquishment of the remaining licenses. The Company has approved the relinquishment request and has yet to receive a response. The timetable for the completion of the relinquishment process is unknown. Note 4: On 1 July 2019 the Company announced it had successfully renegotiated the terms of the existing Option Agreement to provide the Company with a participating interest of 10.4%. The Company can earn up to 90% of the project through payment of amounts totaling approximately US$2.25 million. 17 Rule 5.5 Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report Name of entity Variscan Mines Limited ABN Quarter ended (“current quarter”) 16 003 254 395 31 December 2023 Consolidated statement of cash flows Current quarter $A’000 1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for Year to date (6 months) $A’000 - - (4) (9) (b) development - - (c) production - - (d) staff costs (23) (73) (e) administration and corporate costs (95) (237) (a) exploration & evaluation 1.3 Dividends received (see note 3) - - 1.4 Interest received 3 7 1.5 Interest and other costs of finance paid - - 1.6 Income taxes paid - - 1.7 Government grants and tax incentives - - 1.8 Other (provide details if material) - - Net VAT refunded – Spanish Operations - 270 1.9 Net cash from / (used in) operating activities (119) (42) 2. Cash flows from investing activities 2.1 Payments to acquire or for: (a) entities - - (b) tenements - - (c) property, plant and equipment - - (281) (525) (e) investments - - (f) - - - (d) exploration & evaluation other non-current assets ASX Listing Rules Appendix 5B (17/07/20) + See chapter 19 of the ASX Listing Rules for defined terms. Page 1 Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report Consolidated statement of cash flows 2.2 Current quarter $A’000 Year to date (6 months) $A’000 Proceeds from the disposal of: (a) entities - - (b) tenements - - (c) property, plant and equipment - - (d) investments - - (e) other non-current assets - - 2.3 Cash flows from loans to other entities - - 2.4 Dividends received (see note 3) - - 2.5 Other (provide details if material) - - 2.6 Net cash from / (used in) investing activities (281) (525) 3. Cash flows from financing activities 3.1 Proceeds from issues of equity securities (excluding convertible debt securities) 53 333 3.2 Proceeds from issue of convertible debt securities - - 3.3 Proceeds from exercise of options - - 3.4 Transaction costs related to issues of equity securities or convertible debt securities - - 3.5 Proceeds from borrowings - - 3.6 Repayment of borrowings - - 3.7 Transaction costs related to loans and borrowings - - 3.8 Dividends paid - - 3.9 Other (provide details if material) - - 3.10 Net cash from / (used in) financing activities 53 333 4. Net increase / (decrease) in cash and cash equivalents for the period 4.1 Cash and cash equivalents at beginning of period 1,131 1,016 4.