Cradle Resources : Quarterly activities report/Appendix 5B cash flow

For personal use only

ASX ANNOUNCEMENT

28 July 2022

Quarterly Report

30 June 2022

Cradle Resources Limited (Cradle or the Company) is pleased to provide its Quarterly Report for the quarter ended 30 June 2022.

Corporate Activities

Following disposal of its main undertaking (the interest in PHT) in the September 2021 quarter, the Company was advised by ASX that, in their opinion, the Company's current operations are not sufficient to warrant the continued quotation of its securities. Trading in the Company's securities was suspended pre-open Thursday 13 January 2022.

During the quarter the Company has reviewed and assessed several projects in both the resources and energy sectors located in Australia and overseas. Since disposing of its interest in PHT, the Company has reviewed more than 50 projects across more than 10 countries. Many of the projects reviewed were not advanced enough for the Company to take further, others were in jurisdictions that carried significant sovereign risk and some projects were too expensive for Cradle and its related corporate structure.

Identifying and acquiring a project that will add shareholder value can take significant time and resources. The Board is focused on finding a project that will add value to shareholders and increase the share price over time. The Board strongly believes that the best outcome for Cradle will be finding an opportunity that has the potential to provide an appropriate level of upside from a growth perspective.

ASX will require the Company to seek Shareholder approval pursuant to Listing Rule 11.1.2 and re-comply with Chapters 1 and 2 of the Listing Rules pursuant to Listing Rule 11.1.3 with respect to any future transaction/project acquisition the Company may enter into.

The Company will keep shareholders informed of progress and will make an appropriate announcement when it is in a position to do so.

Funding

The Company's cash balance at 30 June 2022 is $149,804. The Company is taking steps to defer/reduce some administration costs.

Matador Capital Pty Ltd ("Matador Capital"), a related entity of one of the directors, Mr Grant Davey, provides office space, general office services, bookkeeping and accounting services and IT hardware & infrastructure. Matador Capital has agreed to defer some of the cost recharges under the Cost Sharing Agreement and the Office Use Agreement in place.

Subsequent to the end of the quarter, the Company entered into an agreement with Davey Management (Aus) Pty Ltd ("Davey Management"), also a related entity of Mr Grant Davey, whereby Davey Management agreed to provide a loan facility of up to $500,000 to the Company. The key terms are:

• Facility Limit of $500,000
• Interest rate of 8%
• Limited recourse - The recourse of the Lender against the Borrower is limited to the assets of the Borrower after payment of all unsubordinated creditors
• Subordination - the repayment of the total outstanding amount shall be subordinated and

ASX:CXX

cradleresources.com.au

Level 20	Tel: [phone]
140 St Georges Terrace	Fax: [phone]		1
Perth WA 6000	Email: [e-mail]

For personal use only

postponed and made subject to all debts, claims, demands, rights and causes of action of all unsubordinated creditors

• Repayment date is 31 July 2023

Payments to related parties of the entity and their associates

Payments to related parties and their associates during the quarter and included in section 6.1 of the attached Appendix 5B are as follows:

• $46,500 for executive, non-executive and company secretarial fees;
• Payment of $24,651 to Matador Capital, pursuant to a Cost Sharing Agreement and Office Use Agreement in which Matador Capital provides office space, general office services, bookkeeping and accounting services and IT hardware & infrastructure.

Authorised for release by the Board of Directors.

ASX:CXX	2

cradleresources.com.au

For personal use only

Rule 5.5

Appendix 5B

Mining exploration entity or oil and gas exploration entity

quarterly cash flow report

Name of entity

Cradle Resources Limited

ABN	Quarter ended ("current quarter")
60 149 637 016	30 June 2022
Consolidated statement of cash flows	Current quarter	Year to date

$A'000	(12 months)
	$A'000

1. Cash flows from operating activities

1.1

Receipts from customers

-

-

1.2 Payments for

	(a)	exploration & evaluation	-	-
	(b)	development	-	-
	(c)	production	-	-
	(d)	staff costs	(47)	(198)
	(e) administration and corporate costs	(78)	(525)
1.3	Dividends received (see note 3)	-	-
1.4	Interest received	-	1
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)	-	-
1.9	Net cash from / (used in) operating	(125)	(722)
	activities

2. Cash flows from investing activities

2.1 Payments to acquire or for:

(a)	entities	-	-
(b)	tenements	-	-
(c)	property, plant and equipment	-	-
(d)	exploration & evaluation	-	-
(e)	investments	-	-
(f)	other non-current assets	2	(62)

ASX Listing Rules Appendix 5B (17/07/20)	Page 1
+ See chapter 19 of the ASX Listing Rules for defined terms.

For personal use only

Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report

Consolidated statement of cash flows	Current quarter	Year to date
$A'000
	(12 months)
		$A'000

2.2 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 - PHM share subscription	-	(200)
2.6	Net cash from / (used in) investing	2	(262)
	activities

3. Cash flows from financing activities

3.1 Proceeds from issues of equity securities

(excluding convertible debt securities)

-

694

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	-	(48)
	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	-	646
	activities

4.	Net increase / (decrease) in cash and	(122)	(337)
	cash equivalents for the period
4.1	Cash and cash equivalents at beginning of	272	487
	period
4.2	Net cash from / (used in) operating	(125)	(722)
	activities (item 1.9 above)
4.3	Net cash from / (used in) investing activities	2	(262)
	(item 2.6 above)
4.4	Net cash from / (used in) financing activities	-	646
	(item 3.10 above)

ASX Listing Rules Appendix 5B (17/07/20)	Page 2
+ See chapter 19 of the ASX Listing Rules for defined terms.

Appendix 5B Mining exploration entity or oil and gas exploration entity quarterly cash flow report

only

Consolidated statement of cash flows

1. Effect of movement in exchange rates on cash held
2. Cash and cash equivalents at end of period

Current quarter	Year to date
$A'000	(12 months)
	$A'000
150	150

For personal use

5.	Reconciliation of cash and cash	Current quarter	Previous quarter
	equivalents	$A'000	$A'000
	at the end of the quarter (as shown in the
	consolidated statement of cash flows) to the
	related items in the accounts
5.1	Bank balances	150	272
5.2	Call deposits	-	-
5.3	Bank overdrafts	-	-
5.4	Other (provide details)	-	-
5.5	Cash and cash equivalents at end of	150	272
	quarter (should equal item 4.6 above)

6.	Payments to related parties of the entity and their	Current quarter
	associates	$A'000
6.1	Aggregate amount of payments to related parties and their	71
	associates included in item 1
6.2	Aggregate amount of payments to related parties and their	-
	associates included in item 2

Note: if any amounts are shown in items 6.1 or 6.2, your quarterly activity report must include a description of, and an explanation for, such payments.

ASX Listing Rules Appendix 5B (17/07/20)	Page 3
+ See chapter 19 of the ASX Listing Rules for defined terms.