Announcement PDF SULTAN RESOURCES LIMITED ABN 35 623 652 522 HALF-YEAR FINANCIAL REPORT 31 DECEMBER 2023 Half-Year Financial Report | 31 December 2023 CONTENTS Corporate Directory 3 Directors' Report 4 Auditor’s Independence Declaration 21 Consolidated Statement of Profit or Loss and Other Comprehensive Income 22 Consolidated Statement of Financial Position 23 Consolidated Statement of Changes in Equity 24 Consolidated Statement of Cash Flows 25 Notes to the Consolidated Financial Statements 26 Directors' Declaration 32 Independent Auditor’s Review Report 33 2|P a g e Half-Year Financial Report | 31 December 2023 CORPORATE DIRECTORY Board of Directors Jeremy King Steven Groves David Lees Non-Executive Chairman Non-Executive Director Non-Executive Director Company Secretary Ms Hannah Cabatit Registered Office Suite 11, Level 2 23 Railway Road Subiaco WA 6008 Telephone: 08 6559 1792 Website: https://www.sultanresources.com.au/ Securities Exchange Listing Listed on the Australian Securities Exchange (ASX Code: SLZ) Auditors RSM Australia Partners Level 32, Exchange Tower 2 The Esplanade Perth WA 6000 Solicitors Nova Legal 2/50 Kings Park Road West Perth WA 6005 Bankers Westpac Banking Corporation Level 13, 109 St Georges Terrace Perth WA 6000 Share Registry Automic Share Registry Level 5/191 St Georges Terrace Perth WA 6000 Telephone: 1300 288 664 3|P a g e Half-Year Financial Report | 31 December 2023 DIRECTORS’ REPORT The Directors of Sultan Resources Limited (“SLZ” or “the Company”) present their report, together with the financial statements on the Company consisting of Sultan Resources Limited and its controlled entities (“the Group”) for the half-year ended 31 December 2023 (“the Period”). It is recommended that the Directors’ Report be read in conjunction with the annual financial statements for the year ended 30 June 2023 and considered together with any public announcement made by the Company during the Period and up to the date of this report. DIRECTORS The names of the Company’s Directors who held office during the Period and until the date of this report are set out below. Directors were in office for this entire Period unless otherwise stated. Director Jeremy King Steven Groves David Lees Position Non-Executive Chairman Non-Executive Director Non-Executive Director PRINCIPAL ACTIVITIES During the financial half-year the principal continuing activities of the consolidated entity was mineral exploration. REVIEW OF OPERATIONS WA PROJECTS LAKE GRACE PROJECT The Lake Grace Project consists of five large tenements (E70/5081, 5082, 5085, 5095 and 5179- refer Figure 5) in the Southwest Terrane of Western Australia, containing the Calesi Ni Prospect and Kulin Hill Ni-Co Project in the North, and the Lake Grace Gold Project in the South, surrounding the Griffin’s Find Gold Mine. Calesi Ni Prospect- Rio Farm-in Tenement (E70/5082) Rio Tinto Exploration Pty Limited (RTX) and Sultan have entered into option to farm-in and joint venture agreement in respect of E70/5082, a portion of Sultan’s Lake Grace tenure (refer ASX announcement 21/6/2023). The agreement allows RTX to undertake preliminary exploration during an initial option period and then earn an 80% interest in E70/5082 by way of $2m of exploration spend within 5 years, with Sultan retaining full ownership of its principal area of focus to date (Kulin Hill tenure on E70/5095). Previously, RTX had identified a strong untested late time conductivity anomaly from a single line SKYTEM response in the northern part of E70/5082, from 20km line-spaced data, coincident with a circular magnetic and radiometric anomaly, which formed the basis for RTX’s entry to the option and farm-in arrangement. In mid-August 2023, NRG Geophysics were contracted to fly a detailed (100m line-spaced) helicopter-borne time-domain electromagnetic (HTDEM) survey totalling around 80-line km over an area approximately 4km SW of the wheatbelt town of Kulin (refer Figures 4, 5). 4|P a g e Half-Year Financial Report | 31 December 2023 DIRECTORS’ REPORT The Company subsequently released images and interpretation of the data by the Company and RTX, with the heli-borne EM survey outlining a significant EM response over 750m in length and 230m in width, which may resolve to two targets with further investigation (refer Figures 1 & 2), characterised by a strong late-time signal. The Company and RTX consider the geological setting and EM response is suggestive of potential for magmatic nickel sulfide mineralisation (refer Figure 2). Preliminary modelling of the target was completed by RTX consultants, with target depths for modelled plates starting from approximately 70m below surface. Planning for initial RC Drilling to confirm the nature of the geophysical anomaly has been completed, with Programme of Works (PoW) approval received from DMIRS, providing for 2 Reverse Circulation (RC) holes holes (refer Figure 1 inset) to test the anomaly for proof of concept, followed by up to 30 diamond holes if required. The RC holes are nominally planned to for depths of up to 350m, are designed to penetrate the modelled target from 70m vertical and are intended to confirm the geometry of the anomaly ahead of potential follow-up diamond drilling. The PoW covers the anomaly south of the Tier 3 Railway Reserve for the Jitarning-Kulin rail line, closed since 2013. Planned holes are outside the 30m buffer of the Railway Reserve, as required by the condition of Grant of E70/5082, until written consent from the Minister responsible for the Act is granted. The Company is currently applying for Ministerial permission under the 1978 Mining Act to undertake drilling within 30m of the Railway Reserve, and from within the Railway Reserve itself. Post half-year end heritage clearance was received from the local Ballardong People Agreement Group. RTX have formally exercised their option to earn in to 80% of Calesi, and will be sole-funding the drilling campaign, to be managed by Sultan. Drilling of the anomaly is planned for March 2024. 5|P a g e Half-Year Financial Report | 31 December 2023 DIRECTORS’ REPORT Figure 1: Channel 24Z EM response image overlain on aerial photography and aeromagnetic mask, with tenement E70/5082 highlighted. EM data also indicates the position of the Tier3 Jitarning-Kulin rail line, closed since 2013. Initial planned 2 hole RC drill traverse highlighted in inset. 6|P a g e Half-Year Financial Report | 31 December 2023 DIRECTORS’ REPORT Figure 2: Channel 34Z EM response image overlaying greyscale aeromagnetics from Sultan 2017 survey. Original SKYTEM line denoted by light blue flight line. Section Line A -B for Figure 3 below highlighted in white. Flight lines are 100m spacing. Figure 3: AEM conductivity response for Heli-EM flight line over E70/5082, for section line A- B Figure 2. 7|P a g e Half-Year Financial Report | 31 December 2023 DIRECTORS’ REPORT Figure 4: Calesi prospect in relation to Kulin township, with location of recently granted tenements E70/6529-31 Figure 5: Overview Plan of Sultan’s Kondinin-Lake Grace Project in the Southwest Terrane of WA, with RTX farm-in/JV tenement E70/5082 and current area of interest highlighted. 8|P a g e Half-Year Financial Report | 31 December 2023 DIRECTORS’ REPORT Previous ASX announcements related to this Project are listed below: SLZ:ASX announcement 21/06/23: “Rio Tinto and Sultan enter into Option and JV Agreement” SLZ:ASX announcement 16/08/23: “Helicopter EM Survey Commences at Rio-Sultan Ground” SLZ:ASX announcement 24/10/23: “EM Survey Confirms Significant Geophysical Anomaly” SLZ:ASX announcement 14/12/23: “Calesi Nickel Prospect Update” Kulin Hill Nickel-Copper-PGE Project (E70/5095) Sultan’s principal area of focus is the Kulin Hill Nickel-Copper-PGE Project on E70/5095, where a greater than 2km long/700m wide ultramafic/mafic package, characterised by a strong magnetic signal coincident with a salt lake surface expression is under investigation. The potential for Ni-Co sulfide mineralisation was suggested by historical drilling conducted on the edge of the sequence in 1967 and 1973, where drill core samples were observed in polished sections containing “…less than 1% of a nickel-cobalt-sulphide mineral (approximately 50% Ni, 5% Co)4”. Observations from the historical drilling also supported some fractionation of the ultramafic at depth; that is, towards the untested central portion of the sequence. Figure 6: Plan view of 1VD magnetic signature representing the ultramafic sequence overlain by aerial photography highlighting the salt lake, with Reserve 18455 (Lot 225568) highlighted in red. Sultan’s 2022 aircore collars are marked in orange, and previous diamond drilling traces in yellow, with recent SLGDD001 named. Orange circles and traces indicate provisional drilling collar positions to test the layered intrusion from the salt lake surface. 9|P a g e Half-Year Financial Report | 31 December 2023 DIRECTORS’ REPORT Previous 2022 aircore drilling from available sites at the project by Sultan returned anomalous results of Ni, Cr, Mg, Fe, S and Co consistent with weathered ultramafic lithologies. The Company contends that further drilling into the ultramafic sequence will support that it is fertile and can host precipitated Ni-Co sulfides. Sultan drilled stratigraphic drill hole SLGDD001 in late 2022 to partially test a portion of the Kulin Hill magnetic anomaly (refer Figure 6). The thick intersection of layered ultramafic geology, along with evidence for the potential remobilisation of sulfides from an ultramafic source in SLGDD001 confirmed the prospectivity of the 2.2km long main target for Ni-Co mineralisation. Interpretation of the geology of the sequence is ongoing. Access to Reserve 18455 As previously advised, negotiations to access the full extent of the target area for drilling, the majority of which extends beneath salt lake Reserve 18455 (refer Figure 6), have been ongoing since early 2022, with the Company receiving confirmation of access from DMIRS during late last year; however ground conditions have been unsuitable since receiving permission to drill. The Company undertook a ground traverse of the lake late in the year which was mostly accessible by foot, but would require additional drying to allow for drilling access. The Company is working an alternative all-weather drilling collar to effectively test the target should access to the salt lake not be available. The Company remains in communication with a suitable diamond drilling contractor with suitable depth and low angle capacity, small footprint including lightweight tracked mobility, and solids and water management capacity to responsibly undertake this work. 4. A Report 7659 “Final Report Corrigin Project, Electrolytic Zinc Company of Australasia Limited” dated 1973 For further detail on the Kulin Hill/ Lake Grace Nickel Project please refer to the following: Sultan (ASX:SLZ) ASX Announcement: 2021 “WA Nickel Project Update” dated 3/06/2021 Sultan (ASX:SLZ) ASX Announcement: 2021 “Drilling for WA Julimar-style Nickel Targets to Commence” dated 23/11/2021 Sultan (ASX:SLZ) ASX Announcement: 2021 “Aircore Drilling Commenced at Lake Grace” dated 16/12/2021 Sultan (ASX:SLZ) ASX Announcement: 2022 “Aircore Drilling Recommences at Lake Grace” dated 12/01/2022 Sultan (ASX:SLZ) ASX Announcement: 2022 “Exploration Update” dated 3/02/2022 Sultan (ASX:SLZ) ASX Announcement: 2022 “Aircore Results for Kulin Hill NI-Sulphide Target Received” dated 4/05/2022 Sultan (ASX:SLZ) ASX Announcement: 2022 “Sultan to Drill Nickel Targets” dated 22/06/2022 Sultan (ASX:SLZ) ASX Announcement: 2022 “Diamond Drill Hole Commences at Kulin Hill Nickel Project” dated 14/10/2022 Sultan (ASX:SLZ) ASX Announcement: 2022 “Diamond Drill Hole Completed at Kulin Hill Nickel Project” dated 16/11/2022 Sultan (ASX:SLZ) ASX Announcement: 2023 “Initial Geochemistry Confirms Target Geology at Kulin Hill” dated 17/02/2023 Sultan (ASX:SLZ) ASX Announcement: 2023 “Kulin Hill Nickel - Diamond Hole Confirms Prospectivity” dated 19/04/2023 Lake Grace Gold Project (E70/5081, E70/5085, E70/5179) E70/5081, E70/5082, E70/5085 and E70/5095 have recently been extended for an additional five-year terms. A Five-Year extension of Term submission has been submitted for E70/5179. Post half year end reconnaissance exploration was undertaken on E70/5179. THADUNA PROJECT (E52/3481) No active fieldwork was undertaken during the period. 10 | P a g e Half-Year Financial Report | 31 December 2023 DIRECTORS’ REPORT CANADIAN LITHIUM PROJECTS Sultan continued on ground exploration at one of its two 100% owned lithium projects in Ontario, Canada, with assays reported from the Ruddy Project, with low K/Rb ratios established for high proportion of pegmatites sampled, and a priority lithium target area identified within an interpreted ‘Goldilocks’ Zone for further work confirmed and refined. RUDDY PROJECT At Ruddy, the Company has established a priority exploration target from the interpreted LCT Goldilocks Zone surrounding the Allison Lake Batholith which covers approximately 3.5km of eastwest strike in the centre to south of the Company’s Project. After receipt of the assays, the results supported a priority zone of interest within the original LCT Goldilocks interpretation, radially distributed from the northern portion of the Allison Batholith and highlight a priority target (Refer Figures 7-11) for further assessment in the SE portion of the Ruddy tenure. As access to Kember could not be finished prior to the end of the Canadian field season, no active field work was undertaken. Photo 1. Aerial view across Ruddy Project looking East, Ruddy Lake in background. KEMBER PROJECT At the Kember Project (refer Figure 5 &7), the Company had previously advised that a desktop review highlighted a series of pegmatitic granite occurrences in mapping previously conducted at its Kember Project, noted across an area around seven km in length and typically over a kilometre in width. These will form a focus of initial exploration activities at the Kember Project. 11 | P a g e Half-Year Financial Report | 31 December 2023 DIRECTORS’ REPORT The Company has opted to delay reconnaissance activities at Kember after one of four First Nation groups with established rights in the area requested additional time to inform its members of planned activities, which could not be resolved before the onset of the Canadian winter and the cessation of the current field season. The Company continues to negotiate directly with this and other FN group and will deliver a revised timetable for the first pass reconnaissance exploration of Kember in due course, ideally to combine with additional groundwork at the priority target at Ruddy, which can be combined in daily helicopter flights out of Red Lake, ON. Figure 7: Li20 Assays reporting above 100ppm at Ruddy Project in relation to tenure (refer Table 1). Priority Zone area of focus for LCT Pegmatites in hatched area. 12 | P a g e Half-Year Financial Report | 31 December 2023 DIRECTORS’ REPORT Figure 8: Pegmatite locations demonstrating lower K/Rb ratios (refer Table 2), considered indicative of more evolved pegmatitic occurrences, and a vector for LCT pegmatite mineralisation. Figure 9: All sampled sites at Ruddy Project from June 2023 reconnaissance, includes reclassified pegmatitic occurrences. 13 | P a g e Half-Year Financial Report | 31 December 2023 DIRECTORS’ REPORT Figure 10: Pegmatite sites at Ruddy Project; evolved pegmatites with fractionation minerals denoted by darker blue locations. Geology after Fingus, 2022. ABOUT THE RUDDY LITHIUM PROJECT The Ruddy Project (Figures 7-12) directly abuts ground to the west held by Green Technology Metals Limited (ASX: GT1) and is located in the province of Ontario about 162km north-north-east of the town of Dryden. The Project covers around 10km2 and sits on the northern extremity of the Allison Lake Batholith, a fertile intrusive responsible for the development of proximal fractionated pegmatites with potential to host lithium, caesium and tantalum (LCT) mineralisation1,2,3. Although there has been limited exploration over the Ruddy Project claims, previous study of the area by the Ontario Geological Survey (Breaks et al 20032) described the margin of the Allison Lake Batholith at the time as “…an important new exploration target for rare-element mineralization and is the largest such granite thus far documented in Ontario…”. Breaks et al 20032 considered the margin of the Batholith had high potential for further discoveries of rare element mineralization that could occur in exo-contact, metasedimentary-hosted pegmatites or as internal pegmatites within the parent granite, particularly in light of the common regional zonation sequence of rare-element pegmatites from beryl-rich into lithium-rich types. This typically includes spodumene-type pegmatites in an interpreted ‘LCT Goldilocks Zone’ of increased fractionation from the parent granite. With recent renewed interest in rare element mineralisation, the prospective Allison Batholith has emerged as a fully staked, multi-company, battery mineral exploration region. 14 | P a g e Half-Year Financial Report | 31 December 2023 DIRECTORS’ REPORT Reports by Green Technology Metals3 describe the identification of the spodumene-bearing Ouroboros Pegmatites approximately 10km southwest of the Ruddy Project (refer Figure 12) in a similar geological setting, which the Company considers highly encouraging. The Company is focusing exploration at Ruddy at outcrop within the interpreted LCT Goldilocks Zone surrounding the Allison Lake Batholith, covering approximately 3.5km of east-west strike in the centre to south of the Company’s Project. ABOUT THE KEMBER LAKE LITHIUM PROJECT The Kember Project (Figures 5 and 7) is located in the province of Ontario about 180km north of the town of Red Lake, covering an area of around 30km2. Demonstrating the prospectivity of this area, the Kember Project is located about 8km from the PAK/Bolt/Spark lithium deposits of Frontier Lithium Inc. (Frontier) and is contiguous with this project tenure. Recent drilling by Frontier intersected 398.25m of pegmatite averaging 1.88% Li2O, including a 23.4m zone of 3.12% Li2O (see TSX.V Announcement 8/02/2023). Frontier have also recently announced resources totalling 58.5Mt @ 1.51% Li2O from its most recent NI43-101 instrument effective April 28th 2023, calculated from two of four known spodumene-bearing pegmatite occurrences within its PAK Project holdings. There has been no recorded exploration over the Kember Project area, however, mapping by the Geological Survey of Ontario has historically recorded the presence of pegmatitic granites over a northwest to southeast zone around seven km in length and typically over a kilometre in width, providing an initial zone of interest. These pegmatitic granites will be the focus of initial reconnaissance of 5 to 7 days duration, with four helicopter-supported geologists from Canadian-based experienced geological consultants, APEX Geoscience conducting mapping and sampling of priority outcrop. The Company considers rare element mineralisation can occur associated with internal pegmatites within the parent granite. The Company will also conduct reconnaissance of the eastern edge of the project, closer to changes in granitic composition and contact morphologies. References 1. Fingas, J, 2022: Assessment Report on Crown Land for the Costello Lake Area – 2021 Prospecting Program, dated May 25th 2022 2. Breaks, F.W., J.B. Selway J.B and A.G. Tindle A.G. 2003, Ontario Geological Survey, Open File Report 6099, Fertile Peraluminous Granites and Related Rare-Element Mineralization in Pegmatites, Superior Province, North-West and North-East Ontario: Operation Treasure Hunt 3. Green Technology Metals (ASX:GT1) ASX Announcement: “Strategic lithium footprint substantially expanded” dated 24/01/2022 15 | P a g e Half-Year Financial Report | 31 December 2023 DIRECTORS’ REPORT Figure 11: Location of Kember and Ruddy Projects in relation to known Lithium deposits, Northwest Ontario N.B. PAK (TSXV:FL) total resource taken from NI43-101 instrument effective April 28, 2023 Mavis resource (ASX:CRR) taken from ASX release dated June 7, 2023 Root Bay, Seymour Lake and McCombe resources (ASX:GT1) taken from ASX release dated May 5, 2023 Georgia Lake (TSXV:RCK) total resource taken from Georgia Lake Project: Pre-Feasibility Study Nov 22, 2022 Separation Rapids (TSX:AVL) total resource taken from NI43-101 instrument effective Sept 26, 2018 Jackpot (Imagine Lithium- private) estimate taken from Ontario Mineral Inventory Record: MDI42E05SW00019; resource is historic and not compliant with formal resource reporting. 16 | P a g e Half-Year Financial Report | 31 December 2023 DIRECTORS’ REPORT Figure 12: Location of Ruddy Project in relation to regional geology, known pegmatite occurrences (detail sourced from ASX:GT1 Announcement on 24/01/2022), and neighbouring tenure holders. 17 | P a g e Half-Year Financial Report | 31 December 2023 DIRECTORS’ REPORT Figure 13: Location of Kember Project in relation to regional geology and known spodumene-hosted Lithium deposits, Northwest Ontario. For further detail on the Kember and Ruddy Projects please refer to the following: Sultan (ASX:SLZ) Announcement: 2023 “Sultan Resources enters agreement to acquire 100% interest in highly prospective Canadian lithium exploration ground in Ontario, Canada” dated 17/03/2023 Sultan (ASX:SLZ) Announcement: 2023 “Sultan Completes Acquisition of Canadian Lithium Projects” dated 25/05/2023 Sultan (ASX:SLZ) Announcement: 2023 “Sultan Appoints Experienced Canadian Geological Team” dated 1/06/2023 Sultan (ASX:SLZ) Announcement: 2023 “Multiple mapped pegmatitic occurrences Kember Lithium Project” dated 14/06/2023 Sultan (ASX:SLZ) Announcement: 2023 “Multiple Pegmatite occurrences noted as exploration commences at Ruddy Project, NorthWestern Ontario” dated 26/6/2023 Sultan (ASX:SLZ) Announcement: 2023 “Priority Zone Identified at Ruddy Lithium Project, Ontario” dated 25/07/2023 Sultan (ASX:SLZ) Announcement: 2023 “Results Received at Ruddy Lithium Project” dated 22/09/2023 LACHLAN FOLD BELT PROJECT, NSW (EL8734, EL8735, EL9070) During the half-year, Sultan continued to review exploration data across its suite of porphyry and epithermal exploration targets in the Macquarie Arc volcanic rocks of the Lachlan Fold Belt, NSW (refer Figure 14). Further review required to define the next round of exploration and drill targets across the projects. Some planning of further extensional soil sampling of the main anomalism is planned for Tucklan (EL8734). 18 | P a g e Half-Year Financial Report | 31 December 2023 DIRECTORS’ REPORT Ringaroo Big Hill, Razorback Figure 14: NSW- Sultan Tenements located over prospective Macquarie Arc sequence rocks with priority targets indicated. COMPETENT PERSONS STATEMENT The information in this report that relates to Exploration Targets and Exploration Results is based on historical and recent exploration information compiled by Mr Craig Hall, who is a Competent Person and a Member of the Australian Institute of Geoscientists and a fulltime employee of Sultan Resources Limited. Mr Hall has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for the reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Hall consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. DISCLAIMER In relying on the above mentioned ASX announcement and pursuant to ASX Listing Rule 5.23.2, the Company confirms that it is not aware of any new information or data that materially affects the information included in the above-mentioned announcement. 19 | P a g e Half-Year Financial Report | 31 December 2023 DIRECTORS’ REPORT SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS There were no significant changes in the state of affairs of the consolidated entity during the financial half-year. CORPORATE The operating loss for the half-year ended 31 December 2023 was $406,844 (31 December 2022: loss of $1,261,284). On 7 August 2023, 6,000,000 unlisted options, exercisable of $0.24, expired without exercise or conversion. On 12 December 2023, 1,250,000 unlisted options were issued to Mr Jeremy King as approved at the Annual General Meeting on 23 November 2023. AUDITOR’S INDEPENDENCE DECLARATION The Auditor’s Independence Declaration under section 307C of the Corporations Act 2001 is included within this financial report. This report is made in accordance with a resolution of directors, pursuant to section 306(3)(a) of the Corporations Act 2001. On behalf of the directors Jeremy King Non-Executive Chairman Perth, Western Australia Dated 13 March 2024 20 | P a g e RSM Australia Partners Level 32 Exchange Tower, 2 The Esplanade Perth WA 6000 GPO Box R1253 Perth WA 6844 T +61 (0) 8 9261 9100 F +61 (0) 8 9261 9111 www.rsm.com.au AUDITOR’S INDEPENDENCE DECLARATION As lead auditor for the review of the financial report of Sultan Resources Limited 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: (i) the auditor independence requirements of the Corporations Act 2001 in relation to the review; and (ii) any applicable code of professional conduct in relation to the review. RSM AUSTRALIA PARTNERS Perth, WA Dated: 13 March 2024 AIK KONG TING Partner THE POWER OF BEING UNDERSTOOD AUDIT | TAX | CONSULTING RSM Australia Partners is a member of the RSM network and trades as RSM. RSM is the trading name used by the members of the RSM network. Each member of the RSM network is an independent accounting and consulting firm which practices in its own right. The RSM network is not itself a separate legal entity in any jurisdiction. RSM Australia Partners ABN 36 965 185 036 Liability limited by a scheme approved under Professional Standards Legislation Half-Year Financial Report | 31 December 2023 Consolidated Statement of Profit or Loss and Other Comprehensive Income For the half-year ended 31 December 2023 Revenue Other income Administrative expenses and corporate expenses Compliance and regulatory expenses Consultancy and legal expenses Employee benefits expense Exploration expenses Share based payment expense Other expenses Loss before income tax expense Income tax expense Loss after income tax for the period 3(a) 3(b) 4 Other comprehensive loss Other comprehensive loss for the year, net of income tax Other comprehensive loss for the year, net of tax Total comprehensive loss for the period attributable to members of Sultan Resources Limited Loss per share for the period attributable to the members of Sultan Resources Limited Basic and diluted loss per share (cents) 8 31-Dec-23 $ 31-Dec-22 $ 7,090 451 (164,606) (33,587) (75,855) (98,031) (22,207) (7,976) (11,672) (406,844) (406,844) (139,925) (39,125) (79,983) (50,333) (5,538) (939,449) (7,382) (1,261,284) (1,261,284) - - (406,844) (1,261,284) (0.27) (1.51) The Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the notes to the financial statements. 22 | P a g e Half-Year Financial Report | 31 December 2023 Consolidated Statement of Financial Position As at 31 December 2023 Notes ASSETS Current Assets Cash and cash equivalents Trade and other receivables Total Current Assets 31-Dec-23 $ 30-June-23 $ 540,036 37,496 577,532 1,346,030 141,135 1,487,165 9,072,673 9,072,673 8,632,582 8,632,582 9,650,205 10,119,747 LIABILITIES Current Liabilities Trade and other payables Provisions Total Current Liabilities 71,714 18,909 90,623 153,831 7,466 161,297 TOTAL LIABILITIES 90,623 161,297 9,559,582 9,958,450 13,354,207 2,125,443 (5,920,068) 9,559,582 13,354,207 2,117,467 (5,513,224) 9,958,450 Non-Current Assets Exploration and evaluation Total Non-Current Assets 5 TOTAL ASSETS NET ASSETS EQUITY Contributed equity Reserves Accumulated losses TOTAL EQUITY 6 7 The Consolidated Statement of Financial Position should be read in conjunction with the notes to the financial statements. 23 | P a g e Half-Year Financial Report | 31 December 2023 Consolidated Statement of Changes in Equity For the half-year ended 31 December 2023 Contributed Equity $ At 1 July 2023 Loss for the year Total comprehensive loss for the year after tax $ Total $ 2,117,467 (5,513,224) 9,958,450 - - (406,844) (406,844) - - (406,844) (406,844) - 7,976 - 7,976 13,354,207 2,125,443 (5,920,068) 9,559,582 Contributed Equity $ At 1 July 2022 Accumulated Losses $ 13,354,207 Transactions with owners in their capacity as owners: Share-based payments At 31 December 2023 Reserves Reserves Accumulated Losses $ $ Total $ 10,251,763 1,060,301 (3,755,206) 7,556,858 Loss for the year Total comprehensive loss for the year after tax - - (1,261,284) (1,261,284) - - (1,261,284) (1,261,284) Transactions with owners in their capacity as owners: Share-based payments - 939,449 - 939,449 10,251,763 1,999,750 (5,016,490) 7,235,023 At 31 December 2022 The Consolidated Statement of Changes in Equity should be read in conjunction with the notes to the financial statements. 24 | P a g e Half-Year Financial Report | 31 December 2023 Consolidated Statement of Cash Flows For the half-year ended 31 December 2023 Cash flows from operating activities Payments to suppliers and employees Payments for exploration and evaluation expenditure Interest received Net cash used in operating activities 31-Dec-23 $ 31-Dec-22 $ (350,786) (22,207) 7,090 (365,903) (406,890) (5,538) 451 (4