Announcement PDF and its controlled entities 2021 ANNUAL REPORT ABN: 39 151 155 207 Annual Report 2021 CONTENTS DIRECTORS’ REPORT 3 REMUNERATION REPORT 21 AUDITORS’ INDEPENDENCE DECLARATION 27 CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME 28 CONSOLIDATED STATEMENT OF FINANCIAL POSITION 29 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 30 CONSOLIDATED STATEMENT OF CASH FLOWS 31 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 32 DIRECTORS’ DECLARATION 57 INDEPENDENT AUDITORS’ REPORT 58 SHAREHOLDER INFORMATION 61 CORPORATE DIRECTORY 65 SCHEDULE OF EXPLORATION TENEMENTS 66 Annual Report 2021 2 ESTRELLA RESOURCES LIMITED AND CONTROLLED ENTITIES Re DIRECTORS’ REPORT DIRECTORS’ REPORT Your directors present the following report on Estrella Resources Limited (“the Company”) and its wholly owned subsidiaries (together referred to hereafter as “the Group”) for the financial year ended to 30 June 2021. Directors The names of directors in office at any time during or since the end of the period are: Christopher Daws Managing Director (appointed 18 November 2020) Leslie Pereira Non-Executive Chairman John Kingswood Non-Executive Director Stephen Brockhurst Non-Executive Director Neil Hutchison Non-Executive Director (appointed 18 November 2020) Unless noted above, all directors have been in office since the start of the financial year to the date of this report. Principal activities The principal activities of the Group during the reporting period were to explore nickel projects in Western Australia. Review of Operations Estrella Resources Limited (ASX: ESR) (Estrella or Company) is pleased to provide its Review of Operations for the full year ended 30 June 2021. Work Summary The focus of fieldwork and studies during the full-year were the Carr Boyd Nickel Project and Spargoville Nickel Projects after the successful divestment of the Munda Gold Project. CARR BOYD NICKEL PROJECT, WA 100% The Carr Boyd Nickel Project is located some 80km NNW of the city of Kalgoorlie-Boulder in Western Australia’s Goldfields Region (Figure 1). The Project comprises three Mining Leases and six Exploration Licenses and can be accessed by the recently upgraded Scotia-Carr Boyd haul-road. The Company considerably strengthened its exploration efforts at the Carr Boyd Nickel Project after successfully intersecting significant massive nickel and copper sulphides at depth within the T5 Prospect area in August 2020. Considerable work was undertaken on the geological front as well as on infrastructure investment to boost our exploration effort. Over the year, 26 diamond drill holes were collared and 11 more wedged daughter holes were completed for a total of 14,675m of core across the project. Several geological programs were Annual Report 2021 3 ESTRELLA RESOURCES LIMITED AND CONTROLLED ENTITIES Re DIRECTORS’ REPORT implemented to broaden the Company’s understanding of the geology and nickel potential across the Carr Boyd Complex. Additional to this was the installation of an office, coreyard, 16-man camp, laundry, kitchen and dining facilities along with associated power and water infrastructure. Figure 1: Carr Boyd Nickel Project located 80km NNE of Kalgoorlie-Boulder in WA's Goldfields Region. The T5 Prospect is located 1.1km NNE of the historic Carr Boyd Rocks Mine (Figure 2) and was identified in 2019 following RC drilling of a HP FLTEM anomaly 1. A diamond drill hole into the T5 prospect, CBDD030 intersected 3.2m of massive sulphides grading 3.2% Ni, 0.6% Cu, 0.7g/t Pt+Pd and 2.5g/t Au from 436.3m down hole. This hole was drilled 300m south of the original T5 discovery zone. 1 Assay Results Confirm New Sulphide Nickel Discovery Zone at Carr Boyd Rocks - 8 July 2019 Annual Report 2021 4 ESTRELLA RESOURCES LIMITED AND CONTROLLED ENTITIES Re DIRECTORS’ REPORT The massive sulphide core (Figure 3) lies within a broad 13.9m zone of mineralisation situated on the T5 Pyroxenite basal contact. Figure 2: Estrella Resources Tenure over the Carr Boyd Igneous Complex Figure 3: Ni-Cu bearing massive sulphide zone in diamond drill hole CBDD030 drilled 300m south of the T5 Ni-Cu discovery zone. Annual Report 2021 5 ESTRELLA RESOURCES LIMITED AND CONTROLLED ENTITIES Re DIRECTORS’ REPORT Economic Significance of the Basal Contact CBDD030 and subsequent drilling highlighted to the Company that the mineralisation recently discovered was significantly different to that located at the Carr Boyd Rocks Mine some 1,100m to the SSE. The mine is located within a mafic sequence of rocks some 400m from the basal contact. When studying other intrusive-style nickel deposits world-wide, it is clear that in almost all situations where multiple intrusion complexes similar to Carr Boyd host mineralisation, the economically significant deposits form in the earliest magmas of these complexes, and almost always on or within a short distance from the basal contact. The basal contact is the lower-most point of an intrusion where gravity assists the accumulation of sulphides (nickel, copper and or PGEs). Therefore when exploring these complexes, exploration should focus on the basal positions of the earliest rock-types first. The Carr Boyd Complex Basal Contact Given the geological significance of the T5 Discovery and the age of the Carr Boyd Intrusive Complex, the Company invested exploration funds into mapping and understanding the Carr Boyd internal stratigraphy and that of the surrounding Morelands Formation. This enabled the company to understand the direction that gravity, at the time of nickel-copper sulphide formation, was assisting to form sulphide accumulations on the basal contact. The company has mapped some 30km of basal contact, most of which is prospective for nickel mineralisation, however historically, has received the least attention from previous explorers, with only 3km of basal contact being drilled below a depth of 30m. Figure 4 below shows the mapped basal contact immediately surrounding the T5 Discovery and the Carr Boyd Rocks Mine area. As can be seen, almost all historical nickel sulphide exploration hits have been located very close to the basal contact, save for the Carr Boyd Rocks Mine itself. The Company has subsequently developed a working geological model for the Carr Boyd Igneous Complex, the T5 Discovery mineralisation and the off-contact Carr Boyd Pipes mineralisation. The Company will continue to refine the model based on continuing exploration and collaborations with external parties such as the CSIRO. Seismic Research and Development Project The Company saw developing the geological model as a priority in order to drive and enhance its exploration activities at Carr Boyd. In order to use the model to test the basal contact at depth, it was decided to conduct a hard-rock seismic survey which could be combined with several historical geophysical datasets so that a 3D image of the basal contact could be constructed. Annual Report 2021 6 ESTRELLA RESOURCES LIMITED AND CONTROLLED ENTITIES Re DIRECTORS’ REPORT Figure 4: Mapped basal contact in relation to sulphidic sediments, assimilation zones where sulphides enter the intrusion and nickel sulphides located at surface (NiS). Mapping reveals that the paleogravity direction is to the west (left) with younging to the east. The Carr Boyd basal contact is the most prospective horizon within the Intrusive Complex. Historically it been difficult to intersect in drilling due to its variable dip and in places, faulted nature. The imaging of this contact should vastly improve the success rate of any targeted drilling at depth. The company commissioned Graeme Hird from Rock Solid Seismic to assist with the interpretation. Mr Hird is Australia’s most experienced hard-rock seismic interpreter. The seismic survey was conducted by Eastern States company Ultramag in March of this year, utilising state-of-the-art equipment such as the e-Vibe and Bluetooth nodes from Schlumberger. Annual Report 2021 7 ESTRELLA RESOURCES LIMITED AND CONTROLLED ENTITIES Re DIRECTORS’ REPORT The e-Vibe system enabled access into areas where traditional seismic systems were too large and destructive to operate effectively at Carr Boyd (Figure 5). In addition the system enabled precise frequency control over the seismic source to enhance survey outcomes. Figure 5: R&D Seismic Survey conducted by Ultramag enabled very low environmental impact seismic surveying at Carr Boyd, allowing the company to image the prospective basal contact at depth ahead of drill planning. Working Geological Exploration Model for T5 and Carr Boyd Pipes During the year the Company reconstructed a mineralisation model that would explain the relationship between the Carr Boyd Pipes mineralisation and the T5 Discovery. Whilst other geological possibilities exist that would have the T5 Discovery and the Carr Boyd Pipes as separate mineralisation events, the proximity of the lodes to each other and similarity of the nickel-copper sulphides caused the Company to look for a common source to explain both. Work on proving the model will continue. Figure 6: Working hypothesis of the links between the T5 Discovery and the Carr Boyd Pipes mineralisation. Annual Report 2021 8 ESTRELLA RESOURCES LIMITED AND CONTROLLED ENTITIES Re DIRECTORS’ REPORT In essence, Carr Boyd pyroxenite feeder zones (intrusions) assimilated sulphides as they rose to surface approx. 2.65 M.y.a. These assimilation zones were depicted in plan view in Figure 4 and diagrammatically in Figure 6. This assimilation results in nickel sulphides forming, which accumulate through gravity, settling onto the Western basal contact in “Trap Sites” such as at T5. Mineralisation at T5 exhibits textures in core that show the sulphides have accumulated within their host pyroxenite on and near the basal contact. Sulphide abundance increases toward the basal contact. The Carr Boyd Mine resulted from a sulphur bleed off the basal contact into higher, less prospective rocks (Figure 6), with mineralisation occurring as a sulphide mega-breccia. This bleed occurs because massive sulphide liquids tend to remain molten long after the host intrusion has solidified. Pressure differentials within the cooling intrusion can then cause the remobilisation of these still-molten sulphides, forming pipe-like breccias as seen in the photograph at the top of Figure 6. Combining the Working Model with the Seismic and other Geophysical Datasets Figure 7: 3D rendering of the local basal contact around the T5 Discovery and Carr Boyd Rocks area. The image above (Figure 7) is a combination of the working geological model and the 3D rendering of the seismic survey combined with other geophysical datasets received from Rock Solid Seismic in late June. The resulting surface gives the Company the ability to target the T5 basal contact at depth without the uncertainty that results from not understanding the orientations involved and hence drill hole depths and angles required. Annual Report 2021 9 ESTRELLA RESOURCES LIMITED AND CONTROLLED ENTITIES Re DIRECTORS’ REPORT T5 Drilling Over the last year, 26 diamond drill holes were collared and 11 more wedged daughter holes were completed for a total of 14,675m of core across the Carr Boyd Project. The majority of drilling was located at the T5 Discovery where close spaced wedge drilling was combined with geological and textural studies to ascertain the flow direction of the T5 Pyroxenite. As at the end of the period, significant high-grade intersections can be seen in Figure 8. These intersections are located within a broad mineralised halo of globular and disseminated sulphides. Significant composite assays are reported in Table 1. Figure 8: Massive sulphide intersections within a broad, mineralised halo of globular and disseminated sulphides at T5. Collar and survey details for the drill holes can be found in Table 2. Annual Report 2021 10 ESTRELLA RESOURCES LIMITED AND CONTROLLED ENTITIES Re DIRECTORS’ REPORT Table 1: T5 Significant Intersections True Hole m From m To Interval Width Ni% CBDD028 165.2 167 1.8 0.9 0.73 including 165.2 165.6 0.4 1.12 CBDD029 NSA - Hole did not test T5 contact CBDD030 431.6 445.5 13.9 6.7 1.18 including 436.3 439.5 3.2 1.5 3.19 CBDD031 NSA - Hole did not test T5 contact CBDD032 NSA - Fault blank, T5 contact not tested CBDD033 368.5 388.6 20.1 9.6 1.04 including 372.52 378.4 5.88 2.8 1.39 and 380.7 382.8 2.1 1.0 1.37 386.15 388.6 2.45 1.2 1.65 Phase 2 and CBDD034 NSA - Fault blank, T5 contact not tested CBDD035 516.8 524.85 8.05 3.9 0.83 including 516.8 520.5 3.7 1.8 1.18 CBDD036 505.6 511 5.4 2.6 0.87 including 506.15 508.1 1.95 1.34 CBDD037 NSA - Fault blank, T5 contact not tested CBDD038 Drinkwater Prospect, regional stratigraphic hole CBDD039 NSA - Sheared T5 contact, low tenor sulphides CBDD040 Drinkwater Prospect, regional stratigraphic hole CBDD041 NSA - Sheared T5 contact, low tenor sulphides CBDD042A 603.7 608.6 4.9 2.4 0.96 including 606.89 608.6 1.71 1.63 True Hole m From m To Interval Width Ni% CBDD048 381.5 388.4 6.9 3.3 0.54 including 382.5 383.14 0.64 1.52 and 385.85 386.2 0.35 1.32 CBDD049A 386.67 393.58 6.91 3.3 0.75 including 388.49 390.36 1.87 1.74 CBDD049C 372.67 375.96 3.29 1.6 0.75 including 372.67 373.27 0.6 1.19 CBDD053 438.06 446.29 8.23 4.0 0.69 including 441.11 443 1.89 1.40 CBDD053A 426 428 2 1.0 0.46 CBDD053B 421.81 426.64 4.83 2.3 0.63 Phase 3 including 422.63 423.05 0.42 1.14 including 425.79 426.64 0.85 1.14 CBDD054 392.3 405.71 13.41 6.4 1.31 including 394.85 401.11 6.26 3.0 2.08 including 397.87 398.98 1.11 3.92 CBDD054A 361.21 387.54 26.33 12.6 0.73 including 361.21 362.27 1.06 1.03 including 364.41 365.56 1.15 1.47 including 376.34 379.05 2.71 1.3 1.10 CBDD054B 357 382.32 25.32 12.2 0.79 including 358.6 363.56 4.96 2.4 1.15 including 368.33 376.11 7.78 3.7 1.14 including 368.33 368.63 0.3 3.49 Cu% 0.34 1.07 Co% 0.04 0.06 2PGE ** 0.65 0.91 Ag g/t 1.78 6.80 0.39 0.64 0.05 0.14 0.45 0.71 1.61 2.56 0.67 0.66 0.54 2.01 0.05 0.07 0.06 0.08 0.79 0.90 2.34 0.83 2.45 2.31 2.61 7.31 0.43 0.61 0.76 1.41 0.03 0.04 0.04 0.05 0.62 0.97 0.61 0.93 2.84 5.29 3.25 6.12 0.35 0.66 0.04 0.07 0.29 0.43 1.35 3.12 Cu% 0.26 0.21 0.36 0.54 0.54 0.53 1.07 0.32 0.34 1.43 0.50 0.62 0.47 0.44 0.63 0.16 0.44 0.55 1.02 0.65 0.58 0.71 0.93 0.08 Co% 0.03 0.08 0.06 0.04 0.08 0.04 0.06 0.03 0.07 0.02 0.03 0.05 0.05 0.06 0.09 0.17 0.04 0.06 0.08 0.06 0.04 0.06 0.05 0.15 2PGE ** 0.41 0.95 0.61 0.48 0.90 0.58 0.72 0.45 0.59 0.52 0.47 0.92 0.72 0.46 0.67 0.59 0.70 0.47 1.97 1.03 0.58 1.13 0.72 0.89 Ag g/t 1.10 1.35 2.10 2.39 2.60 2.35 5.23 1.34 1.49 6.50 2.58 4.30 2.52 1.93 2.78 0.80 1.84 2.00 4.70 3.16 1.92 2.45 3.14 <0.5 ** 2PGE refers to Pt + Pd in g/t Annual Report 2021 11 ESTRELLA RESOURCES LIMITED AND CONTROLLED ENTITIES Re DIRECTORS’ REPORT Table 2: Drill hole collar and survey details as at the end of June 2021. Hole ID CBDD028 CBDD029 CBDD030 CBDD031 CBDD032 CBDD033 CBDD034 CBDD035 CBDD036 CBDD037 CBDD038 CBDD039 CBDD040 CBDD041 CBDD042A CBDD043 CBDD044 CBDD045 CBDD046 CBDD047 CBDD047A CBDD048 CBDD049 CBDD049A CBDD049B CBDD049C CBDD050 CBDD050A CBDD051 CBDD052 CBDD053 CBDD053A CBDD053B CBDD054 CBDD054A Final Depth 251 603.8 495.7 591.8 335.6 450 412 581.7 576.8 420.8 155.7 609.7 439.8 480.7 654.7 495.3 699.8 480.98 563.1 562 277.1 420.4 240.2 414.6 390.5 415 411.4 447.5 Planned Planned 514 484 460.2 461.4 415 Easting Northing RL Dip Azimuth Status 367043.44 366998.82 367024.56 366936.17 367273.97 367392.58 367356.7 367438.42 367420.13 367418.35 365502.12 367450.74 365698.74 367405.46 367404.54 367449.2 367446.56 367395 366938 367394.5 367394.5 367423 367422.5 367422.5 367422.5 367422.5 367422 367422 6673937.98 6673936.74 6673640.27 6674240.78 6673938.89 6673655.88 6673939.2 6673657.55 6673620.88 6673621.16 6673071.37 6673708.36 6673200.04 6673500.16 6673500.34 6673940.44 6673707.34 6672840 6671877 6673656 6673656 6673626 6673626 6673626 6673626 6673626 6673626 6673626 437.72 438.35 434.1 442.69 434.37 429.67 432.63 429.5 429.24 429.39 432.32 429.78 434.72 428.8 428.68 431.98 429.82 425.41 425 429.7 429.7 429.2 429.2 429.2 429.2 429.2 429.2 429.2 -60 -70 -65 -65 -65 -65 -65 -65 -65 -60 -60 -65 -65 -60 -70 -65 -70 -60 -60 -70 -70 -61 -60 -60 -60 -60 -59 -62 90 90 90 90 270 270 270 270 270 270 270 270 270 270 270 270 256 265 310 270 270 261 265 265 265 265 267 267 Completed Completed Completed Completed Completed Completed Completed Completed Completed Completed Completed Completed Completed Completed Completed Completed Completed Completed Completed Completed Completed Completed Completed Completed Completed Completed Completed Completed 367393.5 367393.5 367393.5 367393 367393 6673656 6673656 6673656 6673656.5 6673656.5 429.7 429.7 429.7 429.7 429.7 -70 -70 -70 -69 -69 270 270 270 267 267 Completed Completed Completed Completed Completed The assays confirm the Company’s geological interpretation of the settling, remobilisation and re-settling of massive sulphides along the T5 Pyroxenite Feeder basal contact. The intersections from diamond drillholes CBDD048, CBDD049A and CBDD049C show higher-grade massive and breccia sulphides on Annual Report 2021 12 ESTRELLA RESOURCES LIMITED AND CONTROLLED ENTITIES Re DIRECTORS’ REPORT the basal contact with only a thin zone of lower-grade material stratigraphically above. The lower-grade material consists of disseminated sulphides that grade into globular sulphides just above the massive sulphide zones. This represents the active erosion of massive sulphides in this location at the time of solidification of the melt. These sulphides are carried “down-stream” and are piled up above the massive sulphides intersected in CBDD054, CBDD054A and CBDD054B (Figure 9). In CBDD054B there are two massive sulphide zones, a lower basal contact breccia zone, and an upper semi-massive zone where remobilised globular sulphides from the eroded area mentioned above are beginning to coagulate and descend through the melt. Above this is a much broader zone of disseminated to blebby sulphides which remain suspended by flow turbulence. Figure 9: Massive and globular nickel sulphides from CBDD054B. The globular sulphides sit atop the massive and represent active erosion of the massive sulphides by the crystalising melt. Further down-stream, around holes CBDD053, CBDD053A and CBDD053B, a broad zone of globular, blebby and disseminated sulphides was intersected and is interpreted to be an area where higher turbulence prevented massive sulphide formation and in areas may even have scoured the contact of massive sulphides. This is expected to be a cyclic repetition of scouring and redeposition along the flow direction as evidenced by the intersection of massive sulphides further down the contact in holes CBDD035, CBDD036 and CBDD042A (Figure 10). Annual Report 2021 13 ESTRELLA RESOURCES LIMITED AND CONTROLLED ENTITIES Re DIRECTORS’ REPORT Figure 10: Sulphide remobilisation in the flow direction and subsequent settling "down stream". Going Forward Identification of the controls on flow direction and nickel sulphide deposition indicate to the Company that the T5 Pyroxenite is indeed one of the best prospects within the Carr Boyd Igneous Complex. As such exploration over the next 12 months will focus here however the Company has not lost sight of the fact that there is 30km of basal contact to be tested and that we are only just starting to scratch the surface. Magnetic imaging of the Carr Boyd Intrusive Complex (Figure 11) combined with Estrella’s mapping shows that the T5 Pyroxenite is only one of several basal pyroxenites containing known nickel sulphides and that there is a significant amount of exploration yet to occur in time. Annual Report 2021 14 ESTRELLA RESOURCES LIMITED AND CONTROLLED ENTITIES Re DIRECTORS’ REPORT Figure 11: The T5 Pyroxenite is only one of several mineralised pyroxenite bodies discovered within the Carr Boyd Igneous Complex. Phase 5 will set about ranking these opportunities and discovering currently unknown opportunities that will exist within such a large and fertile system. MUNDA GOLD PROJECT, WA The Company undertook a successful sales process of the Munda Gold Project with numerous offers being made. Auric Mining Limited was the strongest bidder and the Company entered into a Tenement Sale Agreement. Shareholders approved the divestment on the 25 September 2020 and completion of the sale took place during the half-year with an upfront cash consideration received of $1,247,000 (ex GST) from Auric Mining Limited. Following settlement Auric updated the Munda resource to greater than 100,000oz triggering the deferred consideration milestone payment of $650,000 (ex GST) bringing the total consideration received from the sale of Munda to $1,897,000 (ex GST). SPARGOVILLE NICKEL RIGHTS PROJECT, 100% WA The Company has been progressing the potential development of the high grade 5A nickel sulphide deposit during the full-year with Permit of Work application and Exploration Notification being finalised for the extraction of a bulk sample of the 5A ore for metallurgical testing. In light of the recent strength in the nickel market and the positive outlook, the Company has undertaken steps towards commercialisation of the 5A nickel sulphide Mineral Resource with discussions ongoing regarding the treatment of potential high grade nickel sulphide ore recovered from shallow open pit mining. Annual Report 2021 15 ESTRELLA RESOURCES LIMITED AND CONTROLLED ENTITIES Re DIRECTORS’ REPORT Previous drilling has highlighted high grade nickel mineralisation very close to surface and a simple pit cut back of the historic 5A mine has strong merit in light of the current nickel market. The 5A nickel sulphide deposit is one of a number of significant nickel sulphide occurrences that make up the Company’s 100% owned Spargoville Nickel Rights Project which was purchased at a time when nickel projects were not in favour and nickel prices were much lower. 5A Nickel Sulphide Deposit October 2019 Mineral Resource Estimate - Min Type (0.5% Ni Cut-off) Type Disseminated Matrix/Breccia Semi-massive/Massive Total Type Disseminated Matrix/Breccia Semi-massive/Massive Total Type Tonnage kt 37 20 12 69 Indicated Mineral Resource Ni Cu Ni % % t 0.7 0.05 250 2.1 0.17 430 8.1 0.63 950 2.4 0.19 1,630 Tonnage kt 41 17 1 58 Inferred Mineral Resource Ni Cu Ni % % t 0.7 0.10 270 2.5 0.13 410 7.6 0.35 60 1.3 0.11 730 Tonnage kt Disseminated 78 Matrix/Breccia 37 Semi-massive/Massive 13 Total 127 Competent Person Statement Total Mineral Resource Ni Cu Ni % % t 0.7 0.08 520 2.3 0.16 840 8.0 0.61 1,000 1.9 0.15 2,370 Cu t 20 30 70 130 Cu t 40 20 70 Cu t 60 60 80 190 The information in this announcement relating to Exploration Results is based on information compiled by Mr Steve Warriner, who is the Exploration Manager of Estrella Resources and a member of The Australasian Institute of Geoscientists. The information in this announcement relating to the Spargoville 5A Mineral Resources is based on information compiled by Mr Shaun Searle of Ashmore Advisory Pty Ltd, who was a consultant to Estrella Resources, and a member of The Australasian Institute of Geoscientists, and Mr Neil Hutchison, who is a Director of Estrella Resources and a member of The Australasian Institute of Geoscientists. Mr Searle’s and Mr Hutchison’s assessment of the Spargoville 5A Mineral Resource has been reviewed by Mr Warriner, who is the Exploration Manager of Estrella Resources and a member of The Australasian Institute of Geoscientists. Mr Warriner has accepted the findings of the Mineral Resource Statement to be true and accurate under the JORC2012 Code. Mr Warriner has sufficient experience relevant to the style of mineralisation and type of deposit under consideration, and to the activity he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resource and Ore Reserves”. Mr Warriner consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. Annual Report 2021 16 ESTRELLA RESOURCES LIMITED AND CONTROLLED ENTITIES Re DIRECTORS’ REPORT Significant changes in the state of affairs In the opinion of the Directors, other than the matters as outlined in the operations report above, or as set out in the accounts and notes thereto, there were no significant changes in the state of affairs of the Group during the financial year. Dividends In respect to the current year, no dividends were paid or declared during the period by the Group and no recommendation is made as to dividends. Corporate Governance Statement The Group has disclosed its corporate governance statement on the Company website at www.estrellaresources.com.au/investor-centre. Events subsequent to the reporting period On 1 July 2021 the Company issued 10,000,000 unquoted options exercisable at $0.10 expiring 30 June 2022 to Henslow Pty Ltd for the provision of corporate advisory services. On 5 July 2021 the Company issued 144,668,333 ordinary shares to Underwriters on the expiry of the listed options exercisable at $0.05 expiring on 27 June 2021. On 5 July 2021 the Company issued 11,678,685 ordinary shares on conversion of convertible notes with a face value of $100,000 and associated interest of $16,787 at a conversion price of $0.01 per share. On 6 July 2021 the Company issued 5,000,000 unquoted options exercisable at $0.05 expiring 1 June 2022 to Henslow Pty Ltd for underwriting services provided. No other matters or circumstances since the end of the year have occurred that have significantly affected or may significantly affect the operations, the results of the operations or the state of affairs of the Entity in subsequent financial years. Likely future developments and expected results Further information, other than as disclosed this report, about likely developments in the operations of the Group and the expected results of those operations in future years has not been included in this report as disclosure of this information would be likely to result in unreasonable prejudice to the Group. Environmental issues The Group’s operations are subject to the laws and regulations pertaining to mining exploration operations in Australia. As at the date of this Report the Group has not been notified of any breach of any such laws or regulations. Annual Report 2021 17 ESTRELLA RESOURCES LIMITED AND CONTROLLED ENTITIES Re DIRECTORS’ REPORT Information on Directors Mr Christopher Daws: Managing Director (previously CEO) Date of appointment as Managing Director: 18 November 2020 Mr Daws is an experienced mining executive having previously been involved with Niagara Mining (Poseidon), US Nickel and KMC Limited. Mr Daws is a Director and founder of Apollo Phoenix Resources Pty Ltd and a Director of Nimbus Mines Pty Ltd. Mr Daws is responsible for running the day-to-day operations of the Group. Mr Daws is not currently and has not been within the last three years a Director of any publicly listed Companies. Mr Daws currently holds 34,612,265 fully paid ordinary shares, 20,000,000 listed options and 4,500,000 unlisted options in Estrella Resources Limited. Mr Leslie Pereira– Non-Executive Director Date of appointment: 1 February 2019 Mr Pereira is a WA based businessman and investor in the resources sector. Mr Pereira has previously held senior management positions overseeing active mining operations in Indonesia. He has been actively involved in capital raisings and promotions of a number of publicly listed companies. Mr Pereira is not currently and has not been within the last three years a Director of any publicly listed Companies. Mr Pereira currently holds 6,015,769 fully paid ordinary shares, 3,550,000 listed options and 5,000,000 unlisted options in Estrella Resources Limited. Mr John Kingswood – Non-Executive Director Date of appointment: 6 January 2017 Mr Kingswood has over 25 years’ mining experience with significant experience in mining and project management. Mr Kingswood has a track record of acquiring mineral projects and implementing effective strategies. Mr Kingswood is not currently and has not been within the last three years a Director of any publicly listed Companies. Mr Kingswood currently holds 3,380,000 fully paid ordinary shares, 20,000,000 listed options and 5,000,000 unlisted options in Estrella Resources Limited. Mr Stephen Brockhurst – Non-Executive Director & Company Secretary Date of appointment as Non-Executive Director: 3 April 2017 Date of appointment as Company Secretary: 29 October 2020 Mr Brockhurst is the founding Director of Mining Corporate Pty Ltd and has over 15 years’ experience in the finance and corporate advisory industry and has been responsible for the preparation of the due diligence process and prospectuses on a number of initial public offers. His experience includes corporate and capital structuring, corporate advisory and company secretarial services, capital raising, ASX and ASIC compliance requirements. Mr Brockhurst has served on the board and acted as Company Secretary for numerous ASX listed and private companies. He is currently a Director of Locksley Resources Limited and Nelson Resources Limited and was previously a Director of Kingwest Resources Limited (resigned 30 June 2021). Annual Report 2021 18 ESTRELLA RESOURCES LIMITED AND CONTROLLED ENTITIES Re DIRECTORS’ REPORT Mr Brockhurst currently holds 2,500,001 fully paid ordinary shares and 5,750,000 unlisted options in Estrella Resources Limited. Mr Neil Hutchison – Non-Executive Director Date of appointment: 18 November 2020 Mr Hutchison is a geologist with over 30 years’ experience in conducting regional and minesite exploration, target generation, resource drill out, project reviews and evaluations. Mr Hutchison has extensive n