MRG Metals : 31.12.21 Half Year Accounts

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MRG Metals Limited

Half Year Financial Report 31 December 2021

Half Year Financial Report

MRG Metals Limited

ABN: 83 148 938 532

For the half-year ended 31 December 2021

For personal use only

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MRG Metals Limited

Half Year Financial Report 31 December 2021

Contents

Corporate Directory	3
Director's Report	4
Auditor's Independence Declaration	51
Statement of Financial Position	52
Statement of Profit or Loss and Other Comprehensive Income	53
Statement of Changes in Equity	54
Statement of Cash Flows	55
Notes to the condensed interim Financial Report	56
Directors' declaration	62
Independent Auditor's Review Report	63

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MRG Metals Limited

Half Year Financial Report 31 December 2021

Corporate Directory

Directors & Secretary

Andrew Van Der Zwan

Non Executive Chairman

Christopher Gregory

Non Executive Director

Shane Turner

Non Executive Director and Company Secretary

Principal place of business

12 Anderson Street West, Ballarat VIC 3350 Telephone: [phone] Fax: [phone] Email: [e-mail] www.mrgmetals.com.au

Registered office

12 Anderson Street West, Ballarat VIC 3350

PO Box 237, Ballarat VIC 3353

Telephone: [phone] Fax: [phone]

Corporate accountant and Registered ASIC Agent

RSM Australia Pty Ltd

12 Anderson Street West, Ballarat VIC 3350 PO Box 685, Ballarat VIC 3353

Telephone: [phone] Fax: [phone] www.rsm.com.au

Solicitors

Moray & Agnew

Level 6, 505 Little Collins Street, Melbourne VIC 3000

Telephone: [phone]	Fax: [phone]
www.moray.com.au

Share Registry

Automic Pty Ltd

Level 5, 126 Phillip Street, Sydney NSW 2000

Telephone: [phone]

Auditor

William Buck Audit (Vic) Pty Ltd Level 20

181 William Street, Melbourne Vic 3000 Telephone (office): [phone] Website: www.williambuck.com

Stock Exchange Listing

ASX Codes: MRQ, MRQOC

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MRG Metals Limited

Half Year Financial Report 31 December 2021

Director's Report

The Directors of MRG Metals Limited ('MRG') present their Report together with the financial statements of the consolidated entity, being MRG Metals Limited ('the Company') and its controlled entities, MRG Metals (Australia) Pty Ltd, MRG Metals (Exploration) Pty Ltd, Sofala Resources Pty Ltd, Sofala Mining & Exploration Lda, Sofala Mining & Exploration I Lda, Sofala Mining & Exploration II Lda, Sofala Mining & Exploration III Lda, Sofala Mining & Exploration IV Lda, Sofala Mining & Exploration V Lda, Sofala Mining & Exploration VI Lda, Sofala Mining & Exploration VII Lda, Sofala Mining & Exploration VIII Lda, Sofala Mining & Exploration IX Lda and Sofala Mining

• Exploration X Lda ('the Group') for the half year ended 31 December 2021 and the Independent Review Report thereon.

Projects

MOZAMBIQUE

During the six months to 31 December 2021, MRG announced results of the updated JORC Mineral Resource estimate (MRE) for the global Koko Massava deposit, which lies within the Corridor Central licence.

An infill aircore drilling program was carried out in 2021 in a High-Grade Zone within the Inferred Mineral Resource portion of the maiden Koko Massava MRE. Receipt of all analytical results, including inter-laboratory QA/QC analysis and results from a comprehensive mineralogical study, has facilitated the preparation of an updated MRE, again at a 4% THM cut-off for the Koko Massava deposit (Table 1 and Figure 1).

Table 1: Summary of the updated JORC Mineral Resource estimate for the global Koko Massava deposit area.

Summary of Mineral Resources(1)								THM Assemblage(2)
Mineral		In Situ
Material	THM	BD	THM	SLIMES	OS	ILM	RUT	ZIR	TIMAG CHROM MOTH ANDA NMOTH
Resource
(Mt)	(Mt)	(gcm3)	(%)	(%)	(%)	(%)	(%)	(%)	(%)	(%)	(%)	(%)	(%)
Category
Indicated	557	28	1.7	5.1	17	1	39	1	1	32	4	13	8	3
Inferred	977	49	1.7	5.0	16	1	38	1	1	32	4	13	8	3
Grand Total	1,534	78	1.7	5.1	17	1	38	1	1	32	4	13	8	3
Notes:

1. Mineral resources reported at a cut-off grade of 4% THM
2. Mineral assemblage is reported as a percentage of in situ THM content.

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MRG Metals Limited

Half Year Financial Report 31 December 2021

For personal use only

Figure 1: Map showing the outline of the global Koko Massava Resource area within the Corridor Central

(6620L) Licence.

The updated global Koko Massava MRE comprises a total Mineral Resource of 1,534 Mt @ 5.1% THM, with 17% Slimes, containing 78 Mt of THM with an assemblage of 38% ilmenite, 32% titano- magnetite, 1% rutile and 1% zircon. The JORC categories are specifically stated as:

• Indicated Mineral Resource of 557 Mt @ 5.1% THM and 17% Slimes containing 28 Mt of THM with an assemblage of 38% ilmenite, 32% titano-magnetite, 1% rutile and 1% zircon.