Announcement PDF SULTAN RESOURCES LTD ABN 35 623 652 522 Annual Report for the Year Ended 30 June 2024 Annual Report | 30 June 2024 Contents Corporate Directory 3 Directors' Report 4 Auditor’s Independence Declaration 33 Consolidated Statement of Profit or Loss and Other Comprehensive Income 34 Consolidated Statement of Financial Position 35 Consolidated Statement of Changes in Equity 36 Consolidated Statement of Cash Flows 37 Notes to the Consolidated Financial Statements 38 Consolidated Entity Disclosure Statement 59 Directors' Declaration 60 Independent Auditor’s Report 61 Corporate Governance Statement 65 ASX Additional Information 66 2|P a g e Annual Report | 30 June 2024 Corporate Directory Board of Directors Jeremy King Steven Groves David Ian 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: www.sultanresources.com.au Securities Exchange Listing Listed on the Australian Securities Exchange (ASX Code: SLZ) Auditors RSM Australia 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 Pert WA 6000 Telephone: 1300 288 664 3|P a g e Annual Report | 30 June 2024 Directors’ Report The Directors of Sultan Resources Limited (“SLZ” or “the Company”) present their report, together with the financial statements on the consolidated entity consisting of Sultan Resources Limited and its controlled entities (“the Group”) for the year ended 30 June 2024. DIRECTORS The names and particulars of the Company’s directors in office during the financial year and at the date of this report are as follows. The Directors held office for this entire year unless otherwise stated. Jeremy King | Non-Executive Chairman Mr King is a corporate lawyer and adviser with over 20 years’ experience in domestic and international legal, financial and corporate matters. Mr King is a director of a boutique corporate advisory and compliance business where he specializes in corporate and strategic advice and managing legal issues associated with clients. He spent several years in London where he worked with Allen and Overy LLP and Debevoise & Plimpton LLP and has extensive experience, particularly in relation to cross border private equity, leveraged buy-out acquisitions and acting for banks, financial institutions and corporate issuers in respect of various debt and equity capital raisings. He regularly advises ASX listed companies on corporate and commercial matters. During the past three years, Mr King held the following directorships in other ASX listed companies: • • • • • • Non-Executive Chairman of ECS Botanics Holdings Ltd (current); Non-Executive Director of Smart Parking Limited (current); Non-Executive Chairman of Redcastle Resources Limited (current); Non-Executive Director of Burgundy Diamond Mines Limited (current); Executive Corporate Director of C29 Metals Limited (resigned 15 March 2024); and Executive Director of Red Mountain Mining Limited (resigned November 2021). Steven Groves | Non-Executive Director Mr Groves has a Bachelor of Applied Geology (Honours) and completed a Master’s of Economic Geology from CODES-SRC at the University of Tasmania. Mr Groves is currently a non-executive director of Six Sigma Metals Ltd (ASX: SI6) and brings 25 years of geological experience in the mining industry including exploration and management roles with BHP Billiton (ASX: BHP), Newmont Mining, Newcrest Mining (ASX: NCM), A-Cap Resources (ASX: ACB) and Botswana Metals. During the past three years, Mr Groves held the following directorships in other ASX listed companies: • • Non-Executive Director of Six Sigma Metals Ltd (resigned April 2023); and Director of Resolution Minerals Limited (resigned 7 November 2022). David Ian Lees | Non-Executive Director Mr Lees has over 16 years’ experience in the Australian financial services industry starting his career as a stockbroker before moving into investment and funds management. These roles have given Mr Lees extensive experience with capital raising, business development, portfolio management, business relationships and corporate governance. 4|P a g e Annual Report | 30 June 2024 Directors’ Report Most recently, Mr Lees has worked in the private sector driving his business from product conception through to design, development, manufacturing and international retail sales. Mr Lees’s education qualifications include a Bachelor of Economics and post graduate diploma in Applied Finance and Investment. During the past three years, Mr Lees held the following directorship in another ASX listed company: • Non-Executive Chairman of C29 Metals Ltd (current). COMPANY SECRETARY | Hannah Cabatit Hannah Cabatit is an employee of Mirador Corporate where she specializes in statutory financial reporting and company secretarial services. Hannah is a Certified Practicing Accountant and has significant years of experience in senior accounting roles, company secretarial and compliance services for public listed and unlisted companies. INTERESTS IN SHARES AND OPTIONS OF THE COMPANY AND RELATED BODIES CORPORATE The following table sets out each current Director’s relevant interest in shares, options to acquire shares of the Company or a related body corporate as at the date of this report. Director Jeremy King Steven Groves David Ian Lees Total Ordinary Shares 2,777,525 150,000 1,235,824 4,163,349 Unlisted Share Options 3,800,000 1,000,000 4,800,000 Listed Options 692,459 92,984 785,443 PRINCIPAL ACTIVITIES The principal activities of the Company during the period were mineral exploration in Australia and lithium exploration in Canada. REVIEW AND RESULTS 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 3) in the Southwest Terrane of Western Australia, containing the Calesi Ni Prospect and Khal Ni-Co Project in the North, and the Kulin and Lake Grace Gold Projects in the South, with the latter surrounding the Griffin’s Find Gold Mine. Calesi Ni Prospect- Rio Farm-in Tenement (E70/5082) Sultan Resources Ltd undertook RC drilling of the Calesi prospect near Kulin, WA, where two holes (CLRC001-002- refer Table 1) funded by RTX were drilled to depths of 210m and 350m respectively in March 2024. Both holes were cased for Downhole Electromagnetic (DHEM) surveys and a subsequent Fixed Loop EM Survey. 5|P a g e Annual Report | 30 June 2024 Directors’ Report Drilling intercepted bands of variably silicified and occasionally sulfide-rich mafic amphibolite, interbedded with a felsic unit, provisionally identified in the field as a tonalite, passing to a granitic basement at around 300m downhole. The dominant sulfide was pyrrhotite, and no support for magmatic nickel sulfides was observed in drilling. Preliminary assessment of the FLTEM and DHTEM data by RTX highlighted local zones within the system of significantly higher conductance than the main conductor (designated as M1-dipping locally at around 10° to the WNW). The data and modelling show that there are local steeper dipping zones (designated M2 and M3) within the system of significantly higher conductance (up to 25,000S compared to 6000–8000S for the main conductor M1) which may warrant some further attention (refer Figure 1). RTX consultants consider that this may be due to remobilisation of sulfides along low-angle structures, or local thickening/accumulation in flexure zones along the strike of the system. The Company submitted initial 5m composite samples from the drilling to ALS laboratory in Perth for gold and multi-element analysis. Results were expedited and received, with an As-Ag-Te-Sb association noted with the sulfides in the broad conductor (M1), which would normally be associated with gold, though no economically significant Au values were noted in the composite values. Single metre samples were subsequently collected from CLRC001 (20-65m and 180-195m); and CLRC002 (20-60m and 170-185m) respectively and also submitted to ALS for analysis. The resulting single metre analyses confirmed the anomalous As-Ag-Te-Sb association with sulfide-rich material (42-53m in CLRC001 and 47-52m in CLRC002 reporting >1% S, to a maximum of 8.4% S), but no significant gold values were observed (maximum 0.036 ppm Au). On the basis of the drilling results, RTX has elected to withdraw from its farm-in in respect of the project. Background: 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. 6|P a g e Annual Report | 30 June 2024 Directors’ Report Figure 1: Drilling traces and EM modelled plates looking NNE, Calesi Project In mid-August 2023, NRG Geophysics were contracted to fly a detailed (100m line-spaced) helicopterborne time-domain electromagnetic (HTDEM) survey totalling around 80-line km over an area approximately 4km SW of the wheatbelt town of Kulin (refer Figure 3). 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 Figure 2), characterised by a strong late-time signal. The Company and RTX considered the geological setting and EM response was suggestive of potential for magmatic nickel sulfide mineralisation. 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 was completed, with Programme of Works (PoW) approval received, providing for 2 Reverse Circulation (RC) holes (refer Figure 2 inset) to test the anomaly for proof of concept, followed by diamond drilling if required. The RC holes were planned for depths of up to 350m, designed to penetrate the modelled target from 70m vertical, and intended to confirm the geometry of the anomaly ahead of potential follow-up diamond drilling. RTX formally exercised their option to earn in to 80% of E70/5082, and sole-funded the drilling campaign, which was managed by Sultan, and completed in March 2023. TABLE 1: Drill Hole details- Calesi Prospect HOLE_ID Northing Easting RL (est) CLRC001 6381500 605510 332 CLRC002 6381481 605477 332 NSI- No Significant Intersections Dip -60 -60 Azimuth 060 060 Depth 210 350 Results NSI NSI 7|P a g e Annual Report | 30 June 2024 Directors’ Report Photo 1: Hagstrom Drill rig completing CLRC002 at Calesi Prospect, south-west of Kulin, WA Figure 2: Channel 24Z EM response image overlain on aerial photography and magnetic response, with tenement E70/5082 highlighted. Location of CLRC001 and CLRC002 highlighted in inset. 8|P a g e Annual Report | 30 June 2024 Directors’ Report Figure 3: Overview Plan of Sultan’s Kondinin-Lake Grace tenure in the South West Terrane of WA, with various areas of interest highlighted, and named gold prospects labelled in yellow. 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” SLZ:ASX announcement 20/02/24: “Calesi Drilling Preparations Update” SLZ:ASX announcement 6/03/24: "Calesi Nickel Prospect Drilling to Commence” SLZ:ASX announcement 14/3/24: “Calesi Prospect Drilling Completed” SLZ:ASX announcement 23/7/24: “Calesi Drill results” 9|P a g e Annual Report | 30 June 2024 Directors’ Report Khal (Previously Kulin Hill) Nickel-Copper-PGE Project (E70/5095) Sultan’s principal area of focus is the Khal (previously 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 (refer Figure 4). 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)1”, which suggests that the sequence is fertile and is a priority target for magmatic Ni-Co sulfides. 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 4: Plan view of 1VD magnetic signature representing the >2km long, 700m wide 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 possible drilling collar positions to test the layered intrusion from the salt lake surface. 10 | P a g e Annual Report | 30 June 2024 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 4). 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 4), 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 continues to plan the siting of 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. 1. 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, E70/5082, E70/5085, E70/5179) The Company is currently compiling a significant exploration effort (including over 3500 soil samples) from the previous tenement holders in the Kulin and Lake Grace area, along with a review of the Company’s own work. The work-to-date highlights a significant prospective horizon associated with the Lake Grace Gold Project of at least 30km of strike requiring additional investigation and drilling (refer Figure 3). The original undrilled Kulin gold discovery(2) which returned multiple high grade gold assays (twelve samples averaging 12.7 g/t Au, max 35 g/t Au) from gossanous granular quartz float is also under review to provide a coherent drill target. 2..A Report 19545- “Kulin Exploration Licence 70/180 Final Report Associated Gold Fields NL” dated 1986 11 | P a g e Annual Report | 30 June 2024 Directors’ Report For further detail on the Kulin Hill/ Lake Grace Nickel Project please refer to the following SLZ:ASX “First Gold Assay Results” 16/05/2019 SLZ:ASX “Drill Program Approved to test anomalies at Lake Grace” 21/01/2020 SLZ:ASX “RC Drill Program testing gravity targets completed” 17/2/2020 SLZ:ASX “Drill Results Update at Lake Grace Project” 15/4/2020 E70/5081, E70/5082, E70/5085, E70/5095 and E70/5179 have been extended for an additional five-year terms. Six-year compulsory reductions on E70/5081, E70/5082, E70/5085, and E70/5095 have also been actioned post-year end. Resultant tenure is amalgamated in Figure 3. THADUNA PROJECT (E52/3481) The Company is reviewing the tenure for next steps in advancing the project. CANADIAN LITHIUM PROJECTS Sultan undertook on-ground exploration at one of its two 100% owned lithium projects in Ontario (ON), Canada (refer Figure 9), 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 established a priority exploration target from the interpreted LCT Goldilocks Zone surrounding the Allison Lake Batholith which covers approximately 3.5km of east-west 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 5-9) for further assessment in the SE portion of the tenure. Photo 2. Aerial view across Ruddy Project looking East, Ruddy Lake in background. 12 | P a g e Annual Report | 30 June 2024 Directors’ Report KEMBER PROJECT At the Kember Project, the Company had previously advised that a desktop review highlighted a series of pegmatitic granite occurrences, noted across an area around seven km in length and typically over a kilometre in width. These will form the focus of initial exploration activities at the Kember Project. The Company had previously opted to delay reconnaissance activities at Kember after a First Nation groups requested additional time to inform its members of planned activities, these negotiations are now nearing completion in respect of gaining initial access to the area. The Company has recently filed a submission to the current round of Ontario Junior Exploration Programme (OJEP) funding for Kember activities for up to CAD$100k of funding being 50% of actual spend. This submission is still under review, with some administrative inquiries from the adjudicating body recently responded to. Field reconnaissance of Kember would ideally be combined with additional groundwork at the priority target previously defined at the Ruddy Project, which can be accessed along the way in daily helicopter flights out of Red Lake ON. Figure 5: 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. 13 | P a g e Annual Report | 30 June 2024 Directors’ Report Figure 6: 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 7: All sampled sites at Ruddy Project from June 2023 reconnaissance, includes reclassified pegmatitic occurrences. 14 | P a g e Annual Report | 30 June 2024 Directors’ Report Figure 8: Pegmatite sites at Ruddy Project; evolved pegmatites with fractionation minerals denoted by darker blue locations. Geology after Fingus, 20223. ABOUT THE RUDDY LITHIUM PROJECT The Ruddy Project (Figures 5-10) 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) mineralisation3,4,5. Although there has been limited exploration over the Ruddy Project claims, previous study of the area by the Ontario Geological Survey (Breaks et al 20034) 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 20034 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. 15 | P a g e Annual Report | 30 June 2024 Directors’ Report Reports by Green Technology Metals5 describe the identification of the spodumene-bearing Ouroboros Pegmatites approximately 10km southwest of the Ruddy Project (refer Figure 10) 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 9 and 11) 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 also 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 3. Fingas, J, 2022: Assessment Report on Crown Land for the Costello Lake Area – 2021 Prospecting Program, dated May 25th, 2022 4. 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 5. Green Technology Metals (ASX:GT1) ASX Announcement: “Strategic lithium footprint substantially expanded” dated 24/01/2022 16 | P a g e Annual Report | 30 June 2024 Directors’ Report Figure 9: 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. 17 | P a g e Annual Report | 30 June 2024 Directors’ Report Figure 10: 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. 18 | P a g e Annual Report | 30 June 2024 Directors’ Report Figure 11: 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, North-Western 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 19 | P a g e Annual Report | 30 June 2024 Directors’ Report LACHLAN FOLD BELT PROJECT, NSW (EL8734, EL8735, EL9070) Sultan continues 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 12). Further review remains to define the next round of exploration and drill targets across the projects. Extensional soil sampling of the main anomalism is planned for Tucklan (EL8734). Ringaroo Big Hill, Razorback Figure 12: NSW- Sultan Tenements located over prospective Macquarie Arc sequence rocks with priority targets indicated. 20 | P a g e Annual Report | 30 June 2024 Directors’ Report CORPORATE 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. In February 2024, the Company undertook a pro-rata non-renounceable entitlement issue of one (1) share (“New Share”) for three (3) existing shares held by eligible shareholders at an issue price of $0.014 per New Share to raise up to $691,553 (before costs), together with one (1) free-attaching listed option (exercisable at $0.03 and expiring 3 years from the date of issue)(“New Options”) for every three (3) New Shares subscribed for and issued (“Offer”). The Offer was completed in March 2024 which resulted in the Company issuing 17,516,253 New Shares and 5,838,720 New Options under the Offer. A total of 31,880,187 New Shares and 10,626,728 Ne