Announcement PDF INFINI RESOURCES LIMITED ABN 77 656 098 583 ANNUAL REPORT For the year ended 30 June 2025 CORPORATE INFORMATION DIRECTORS Mr Robert Martin Non-Executive Chairman AUSTRALIAN SOLICITORS Hamilton Locke Pty Ltd Level 48, 152-158 St Georges Terrace Perth WA 6000 Dr David Pevcic Executive Director Dr Andrew Wilde Non-Executive Director OFFICERS CANADIAN SOLICITORS Osler, Hoskin & Harcourt LLP 1055 West Hastings Street Suite 1700 Vancouver BC V6E 2E9 Mr Rohan Bone Chief Executive Officer Mr Paul Hughes Chief Financial Officer REGISTERED OFFICE Level 50 108 St Georges Terrace Perth WA 6000 Mr Harry Spindler Company Secretary PRINCIPAL PLACE OF BUSINESS Level 50 AUDITORS HLB Mann Judd 108 St Georges Terrace Perth WA 6000 Level 4 130 Stirling Street SECURITIES EXCHANGE LISTING Perth WA 6000 ASX Limited 20 Bridge Street SHARE REGISTRY Sydney NSW 2000 Automic Registry Services ASX Code – I88 Level 5 126 Phillips Street Sydney NSW 2000 Tel: (02) 9698 5414 CONTACT US T: +61 8 6166 6361 E: info@infiniresources.com.au W: infiniresources.com.au CONTENTS Page Directors’ Report 2 Remuneration Report 18 Auditors’ Independence Declaration 23 Consolidated Statement of Profit or Loss and Other Comprehensive Income 24 Consolidated Statement of Financial Position 25 Consolidated Statement of Cash Flows 26 Consolidated Statement of Changes in Equity 27 Notes to the Consolidated Financial Statements 28 Consolidated Entity Disclosure Statement 53 Director’s Declaration 54 Independent Auditor's Report 55 Additional Information for Listed Companies 59 1 DIRECTORS’ REPORT The Directors present their report together with the financial report of Infini Resources Limited (ASX:I88, “Infini” or the “Company”) and its controlled entities (collectively referred as “Consolidated Entity” or the “Group”) for the financial year ended 30 June 2025. All amounts are presented in Australian Dollars (AUD$), unless noted otherwise. In order to comply with the provisions of the Corporations Act 2001, the Directors report as follows: Directors The following persons were Directors of the Company during the year and up to the date of this report: Appointed Resigned David Pevcic 16 December 2021 - Robert Martin 24 February 2023 30 September 2025* Andrew Wilde 29 January 2024 - Faheem Ahmed 30 September 2025* Charles Armstrong 10 July 2024 17 March 2025 * As announced on 23 September 2025, Mr Faheem Ahmed has consented to act as a non-executive director of the Company and Mr Martin has tendered his resignation as director and chairman, effective 30 September 2025. Following this change, Mr Pevcic will transition from executive director to non-executive chairman. Dr. David Pevcic Executive Director Experience Dr David Pevcic is an experienced corporate professional and investor, with a principal focus on the resources and technology sectors. Dr Pevcic is the founder of Infini Resources Limited, Executive Chairman of Nanoveu Limited (ASX:NVU), Non-Executive Chairman of Battery Age Minerals Limited Non-Executive Chairman of (ASX:BM8), and director of several privately owned mineral exploration ventures in Canada, Brazil and Australia. Dr Pevcic holds a Bachelor of Science, Bachelor of Medicine and Bachelor of Surgery from the University of Western Australia. Interest in Shares and Options Direct Interest (Shares) – 2,509,444 Direct Interest (Options) – 1,333,333 Indirect Interest (Shares) – 4,603,100 Indirect Interest (Options) – 2,000,000 Directorship held in other listed entities Nanoveu Limited (ASX:NVU) – Appointed 27 March 2023 Battery Age Minerals Limited (ASX:BM8) – Appointed 31 January 2023 Mr. Robert Martin Non-Executive Chairman Experience Mr Robert Martin is a commercial businessman with over 25 years experience across a broad range of sectors including mining, manufacturing, mining services and capital markets. Mr Martin has a profound insight into corporate strategy, capital operation, management integration and business structures and efficiencies. Mr Martin previously operated a highly successful global mining services company which became a leading provider of products and services to the mining industry. Mr Martin now runs a family office in Western Australia with a focus on investing and supporting emerging private and public businesses. Mr Martin currently holds the positions of Executive Chairman of Lindian Resources Limited (ASX:LIN), Non-Executive Chairman of ASX-listed 2 Pioneer Lithium Limited (ASX:PLN), Non-Executive Chairman of Equinox Resources Limited (ASX:EQN). The Board considers Mr Martin is an independent Director. Interest in Shares and Options Direct Interest (Shares) – nil Direct Interest (Options) – nil Indirect Interest (Shares) –2,311,342 Indirect Interest (Options) – 2,083,333 Directorship held in other listed entities Lindian Resources Limited (ASX:LIN) – Appointed 23 December 2024 Equinox Resource Limited (ASX:EQN) – Appointed 10 May 2022 Pioneer Lithium Limited (ASX:PLN) – Appointed 16 November 2022 Dr. Andrew Wilde Non-Executive Director Experience Dr Wilde is a geologist with over 35 years industry experience, including over 10 years’ as chief geologist for uranium mining and exploration companies Paladin Energy Ltd (ASX:PDN) and Deep Yellow Ltd (ASX:DYL). In these roles he was responsible for leading technical aspects of uranium exploration and project assessment in Namibia, Malawi, Canada and Australia among others, and played an important role in the discovery of Deep Yellow’s Barking Gecko and Iguana uranium deposits in Namibia. More recently he provided the technical basis for the ASX listing of 92 Energy Ltd (ASX:92E) and was pivotal in the discovery of that company’s GMZ uranium deposit in Saskatchewan, Canada. The Board considers that Dr Wilde is an independent Director. Interest in Shares and Options Direct Interest (Shares) – Nil Direct Interest (Options) - Nil Indirect Interest (Shares) – 83,333 Indirect Interest (Options) – 583,333 Directorship held in other listed entities Nil Key Management Personnel Rohan Bone Chief Executive Officer Experience Mr Rohan Bone is an accomplished mining executive with more than 18 years of global experience across operations, strategy, business development and project delivery. His career spans multiple commodities and jurisdictions, having worked across Australia, Asia, North America and Europe. Prior to joining Infini, Rohan held senior roles with Alcoa, Thyssenkrupp Mining Technologies and Tata Steel Minerals Canada. His experience includes leading major feasibility studies, operational optimisation programs, mergers and acquisitions, global strategy development, and stakeholder engagement with governments, regulators and communities. Rohan holds a Bachelor of Engineering (Mining, Hons) from Curtin University’s WA School of Mines, a Master of Engineering Science (Civil & Project Management) from the University of New South Wales, and a Graduate Diploma in Regional Development from the University of Western Australia. 3 Mr. Paul Hughes Chief Financial Officer Experience Mr Hughes is a Certified Practicing Accountant (CPA) with over 16 years’ experience, including the last 12 years in the construction and resources sector. Mr Hughes held a senior role’s with ASX-50 lithium producer Pilbara Minerals (ASX:PLS) as Principal of Corporate Planning and Investment Analysis, Principal – Finance, Planning & Analysis as well as Senior Commercial Analyst. He has also held senior finance roles at Orica Limited, Downer Mining. Mr Hughes, holds a Bachelor of Business – Accounting & Finance from Edith Cowan University in Western Australia. Mr. Harry Spindler Company Secretary Experience Mr. Spindler is an experienced corporate professional with a broad range of corporate governance and capital markets experience, having held various company secretary positions and been involved with several public company listings, merger and acquisition transactions and capital raisings for ASX-listed companies across a diverse range of industries over the past 20 years. Harry is a member of Chartered Accountants Australia and New Zealand and a member of the Financial Services Institute of Australia. Mr Spindler began his career in corporate recovery and restructuring at one of Australia’s leading independent financial advisory and restructuring providers Ferrier Hodgson (now KPMG) and has for the past 11 years worked for corporate advisory firms through which he has advised a number of clients in a range of industries, as well as held positions as company secretary for a number of ASX-listed companies, including Sino Gas & Energy Holdings Ltd (ASX:SEH; ASX 300), an Australian energy company focused on developing gas assets in China. Harry is also Company Secretary of Critical Resources Limited (ASX:CRR), Battery Age Minerals Limited (ASX:BM8), Nanoveu Limited (ASX: NVU), and Delta Ridge Limited. 4 Dividends Paid or Recommended No dividend was paid or declared for the financial year ended 30 June 2025. Principal Activities The Company’s is focused on identification of geological opportunities and exploration for uranium, lithium, and other minerals. Overview of Infini's portfolio of projects and global footprint. Review of Operations During the year ended 30 June 2025, Infini Resources advanced exploration across its uranium and lithium portfolio in Western Australia and Canada, highlighted by major progress at the flagship Portland Creek Uranium Project in Newfoundland. The Company also strengthened its position in the world-class Athabasca Basin of Saskatchewan through the acquisition of the Reynolds Lake, Reitenbach Lake and Boulding Lake Uranium Projects, and advanced its existing portfolio through airborne geophysics surveys, field programs, and diamond drilling. Uranium: Portland Creek Project (100% interest) The Portland Creek Project (149 km²) lies within the Precambrian Long-Range Complex of the Humber Tectonic–Stratigraphic zone. The geology consists of metaquartzite and a suite of paragneisses, intruded by leucocratic granite, which are believed to have been thrust westward over Paleozoic carbonate-dominant sediments. The project area covers a large regional uranium anomaly, first identified in the 1970’s through a Newfoundland government lake sediment sampling program. Originally, one uranium showing was recorded in the Newfoundland Mineral Deposit Index, reporting 2,180 ppm U₃O₈. A compilation of historic and recent exploration data has since delineated a 6 km zone of anomalous uranium and radon gas in lake sediments, soils and in an airborne radiometric survey. This anomaly closely follows a prominent fault scarp, marking the edge of a granitic plateau interpreted as a deep-seated fault. Key achievements during the reporting period include: • Soil sampling program: Expanded soil sampling confirmed a major uranium-in-soil anomaly at the Falls Lake (formerly Talus) Prospect, now measuring ~800 m x 100 m with a peak result of 7.5% U₃O₈, among the highest-grade soil results globally. Additional anomalous clusters were identified to the north and south, with values up to 1,500 ppm U₃O₈, highlighting district-scale potential. 5 • Phase 1 drilling program: Infini completed six diamond drill holes, intersecting zones of hydrothermally altered granite. Laboratory assays confirmed the presence of anomalous uranium and pathfinder elements, indicating proximity to potential uranium mineralisation. Geological interpretation suggests a potential shear-hosted uranium system, with primary structural targets still untested. • Phase 2 planning: Exploration modelling and target generation were advanced for the upcoming Phase 2 program, set to commence in September 2025. Structural mapping will precede drilling to refine high-priority targets. • Government support: Infini received CAD $150k under Newfoundland’s Junior Explorer Assistance (JEA) program to support exploration activities. Overview of prospective exploration areas at Portland Creek, demonstrating the occurrence of soil sampling grades up to 74,997 ppm U₃O₈, anomalous radiometric data and Infini’s package of tenements Reynolds Lake, Reitenbach Lake & Boulding Lake (100% Interest) The Reynolds Lake and Reitenbach Lake Projects are contiguous and are comprised of a significant 677km2 combined land package on the outer edge of the Athabasca basin area, offering immediate exposure to a shallow unconformity-style uranium exploration opportunity in a premier, uranium miningfriendly jurisdiction. The projects are characterised by a regional fault, multiple surface showings immediately along strike in either direction and radioactive boulders along trend. The local geology comprises Paleoproterozoic Wollaston group rocks that lie unconformably above Paleoproterozoicmodified Neoarchean granitoid basement and the Peter Lake Domain to the east, with the Needle Falls SZ propagating in a northeast direction along the boundary between the two. Boulding Lake is a uranium exploration project located in Saskatchewan, Canada, 32km west of Cigar Lake Uranium Mine. The Boulding Lake project is a traditional exploration play in the Athabasca Basin that offers exposure to several unconformity-style uranium plays in a premier, uranium mining-friendly jurisdiction. The project is immediately west of Denison Mines’ Johnston Lake and 92 Energy’s Clover projects. The total area of the project is 254km2. Potential for a primary uranium source within the project area is indicated by magnetic lows (interpreted basin sediments) and south-west trending ice flow directions. 6 Key achievements during the reporting period included: • Completed acquisition of the Reynolds Lake, Reitenbach Lake and Boulding Lake uranium projects in February 2025, securing a total of 931 km² of tenure in the Athabasca Basin, in close proximity to the McArthur River and Eagle Point uranium deposits. • Completed the first modern airborne geophysical surveys across Reynolds Lake and Boulding Lake, comprising 1,100 line km of TDEM survey at Reynolds Lake and Reitenbach Lake, and 1,300 line km of magnetic survey at Boulding Lake. • Survey results identified multiple large-scale parallel EM conductors >10 km in strike length at Reynolds Lake, coincident with radiometric anomalies and favourable geology within the Needle Falls Shear Zone, supporting prospectivity for unconformity-style uranium mineralisation at shallow depth. • Detailed desktop studies are ongoing, integrating new airborne geophysical datasets with historical radiometric, geological, and geochemical information to delineate priority structural corridors and refine targets for unconformity-style uranium mineralisation ahead of maiden field campaigns. Figure 1: Location of the Reynolds Lake Uranium Project and Reitenbach Uranium Project relative to the world-renowned Athabasca Basin, synonymous with high-grade uranium deposits, and in close proximity to existing operations, access and infrastructure. Des Herbiers (100% Interest) The property is located approximately 52km east-northeast of Havre St-Pierre, Québec, Canada, in the Grenville Province of the Canadian Shield. Historical exploration and drilling have revealed an abundance of low grade, near surface, bulk tonnage uranium that contains a JORC compliant inferred mineral resource of 162.1Mt @ 123ppm U3O8. No further exploration activities have been conducted during the reporting period. Prospect Double S Middle Zone TJ Zone Inferred Resource Cut-off Grade (U3O8 ppm) 100 90 90 Tonnes (Mt) 81.5 52.0 28.7 162.2 Grade (U3O8 ppm) 130 119 112 123 Contained Metals (U3O8) kt Mlb 10.5 23.2 6.2 13.7 3.2 7.1 19.9 44.0 7 Figure 2: Location of the Des Herbiers Uranium Project in plan view depicting anomalous radiometrics(U2/Th), historical drilling and trench channel sampling Yeelirrie North (100% Interest) The Yeelirrie North Project currently consists of exploration license E53/2188 and prospecting license P53/1703, covering an area of ~208km², located approximately 70km southwest of Wiluna, Western Australia. If successfully granted, the four new exploration license applications will see the Company’s Project size increase by an additional ~554km2, to a total area of ~762km2. The project is highly prospective for uranium mineralisation and lies within the same geological domain as Cameco Corp’s world class Yeelirrie uranium deposit hosting 128.1Mlb U3O8 at an average ore grade of 1500 ppm U3O8. Work during the year focused on progressing access and heritage agreements. No drilling, sampling or surveying work was completed. Figure 3: Location of the Yeelirrie North uranium project – with newly staked exploration licenses (highlighted red) and showing the geological rationale with extensive and coincidental uranium-thorium anomalism identified in regional radiometrics 8 Tinco (50% Tinco North Interest, 100% Tinco South Interest) The Tinco Project area lies to the south-southwest of the Athabasca Basin. It is underlain by the Mudjatik Domain which is composed mainly of granitoid felsic gneisses of probable Archean age, which are considered basement to narrow, arcuate to closed belts of supracrustal rocks of sedimentary and volcanic origins. Two types of uranium mineralisation have been recognised in the area - occurrences in remobilised basement and occurrences in supracrustal. Previous geological mapping has identified lenses of radioactive pegmatite up to 1.5 m in width. Historical outcropping grab samples on the property grade up to 600ppm U3O8 and 0.5% Nb. Key achievements during the reporting period included: • Completed comprehensive airborne magnetic, radiometric, and EM surveys across both Tinco claims, totalling 1,030 line km, marking the first modern, high-resolution geophysical coverage of this underexplored project area. • Survey results delineated a major 6 km x 1.5 km shear zone directly associated with historical grab samples grading up to 600 ppm U₃O₈ and 0.5% Nb, confirming the potential for a large-scale mineralised system. Figure 4: Location of the Tinco Uranium-Niobium Project in Saskatchewan Canada Lithium: Paterson Lake (100% Interest) The Paterson Lake Project is located within the highly prospective Archean Separation Lake Greenstone Belt of the Superior Province of Ontario, Canada. The Project has been documented to contain abundant rare-metal bearing pegmatites including 7 named petalite bearing pegmatites and up to 50 unnamed pegmatites that require investigation. Historical outcrop grab sample results include results up to 4.43% Li2O and the best reported historical drill intercept to date of 8m @ 3.12% Li2O. The Separation Rapids Lithium Deposit of Avalon Advanced Materials/Sibelco joint venture is located within 2km of the project boundary. No further exploration activities have been conducted during the reporting period. 9 Figure 6: Location of the Paterson Lake Lithium Project depicting the microgravity survey locations overlain with 1VD drone magnetics, MMI soil sampling, mineralised outcropping pegmatites and historical drillhole mineralisation. Valor (50% Interest, earn-in up to 100%) The Valor Project comprises 229 Claims covering an area of approximately 125km² in southwest Québec, approximately 40km north-west of Val-d’Or. The project is situated on the Archean Preissac Lacorne batholith, a syn-to post-tectonic intrusion that was emplaced in the Southern Volcanic Zone of the Abitibi Greenstone Belt of the Superior Province of Québec. To the north the batholith is bounded by the Manneville Fault and to the south by the Cadillac Fault and the eastward extension of the Porcupine Destor Fault. The batholith, which is a composite body has associated pegmatites and quartz veins. During the year, Infini extended its option agreement with the project vendor through to 31 December 2025. No new fieldwork was completed. Figure 7: Location of the Valor lithium project overlain with regional magnetics and historical mineral occurrences. 10 Pegasus (100% Interest) The Pegasus Lithium Project consists of one granted exploration licence (E74/715) which covers an area of 40 Blocks (~121km²) located approximately 15km southeast of Ravensthorpe in the Esperance region of Western Australia. The project is considered prospective for hard-rock lithium-tantalum mineralisation based primarily on geological and structural analogues drawn from Allkem Limited’s Mt Cattlin lithium deposit located approximately 10km to the east. No further exploration activities have been conducted during the reporting period. Figure 8: Location of the Pegasus lithium project overlain with regional magnetics. Parna (100% Interest) The Parna Lithium Project consists of two exploration licenses (E63/2183 and E63/2184), covering an area of 48 Blocks (~146km²) located within the Southern Cross Domain of the Youanmi Terrane. The Company previously completed a first pass Ultrafine+™ soil sampling survey across the Parna East and West tenements on 800m x 400m grids with the results showing peak values of 119 ppm Li, 14.6 ppb Au and 1600 ppm Ni. No further exploration activities have been conducted during the reporting period. During the year, management has conducted a review of the Group’s portfolio of exploration projects. A decision was made the impair the Parna project as management has considered the project not prospective relative to the remaining portfolio of exploration projects. Corporate Activities • • • • Acquisition: Completed 100% acquisition of Reynolds Lake, Reitenbach Lake and Boulding Lake Uranium Projects in Saskatchewan. Funding: Raised AUD $3.4 million in March 2025 through a Canadian flow-through shares placement to accelerate exploration at Portland Creek. Government Grants: Received CAD $150k from Newfoundland JEA program (June 2025). Leadership: Appointed Mr. Rohan Bone as Chief Executive Officer effective 1 June 2025, bringing over 18 years of international mining and project development experience. 11 Schedule of Tenements • The Company’s tenement and claim schedule is provided in Additional Information for Listed Companies section at the end of the Annual Report. Annual Mineral Resource Statement The Company’s Mineral Resources Statement has been compiled and is reported in accordance with the Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC 2012 edition) and Chapter 5 of the ASX Listing Rules. Des Herbiers Resource Statement Prospect Cut-off Grade (U3O8 ppm) Tonnes (Mt) Grade (U3O8 ppm) 100 90 90 81.5 52.0 28.7 162.2 130 119 112 123 Double S Middle Zone TJ Zone Inferred Resource Contained Metals (U3O8) kt 10.5 6.2 3.2 19.9 Mlb 23.2 13.7 7.1 44.0 Des Herbiers JORC Code 2012 Mineral Resource Estimate (Nov 2023). Reported at a cut-off grade of 100ppm U3O8 was applied at Double S and 90ppm U3O8 at Middle and TJ Zone prospects for an open pit mining scenario. For the Double S Zone, 272 SG determinations were conducted in the mineralised zone while 26 were conducted in the waste zone with the determined bulk SG of 2.63 for mineralised zone and 2.66 for the waste zone. A block model was constructed to cover the entire extent of the uranium mineralisation and any potential pit limits. It was clipped to bottom of overburden surface created from the borehole data. A Datamine subblock routine was used to fill the domain wireframes. Parent blocks are 10 x 20 x 5m in size for Double S and 10 x 10 x 5m for Middle and TJ Zones. Each subblock was estimated individually with minimum sub-block dimension of 1.25 x 2.50 x 0.005m in size. Classification is according to JORC Code Mineral Resource categories. Refer to ASX announcement 10 January 2024. The Company’s governance arrangements and internal controls for reporting its Mineral Resources Estimate includes reporting on an annual basis and in compliance with the 2012 Edition of JORC and the ASX Listing Rules. The Competent Persons are suitably qualified and experienced as defined in the 2012 Edition of JORC. The annual Mineral Resource Estimate in respect of the Des Herbiers Project is based on, and fairly represents, information and supporting documentation prepared by a competent person and announced on ASX on 10 January 2024, ’Prospectus”. As at 30 June 2025, the Company’s only project that has a Mineral Resource Estimate is at the Des Herbiers project (refer above). The Company’s other Projects do not have defined Mineral Resources or Ore Reserves. The Projects are early stage “greenfields” exploration projects covering regions that are considered prospective for lithium and uranium minerals. There has been insufficient exploration works at the Company’s Projects to define a Mineral Resource or Ore Reserve. The annual Mineral Resource Estimate in respect of the Des Herbiers Project is based on, and fairly represents, information and supporting documentation prepared by a competent person and announced on ASX on 10 January 2024. There has been no change to the mineral resource from the previously reported mineral resource. Significant Changes in State of Affairs There were no significant changes in the state of affairs of the Company during the financial period, other than as set out in this report. Financial Results The Company has incurred a total comprehensive loss of $2,775,664 (2024: $1,659,000) for the year ended 30 June 2025 and as at 30 June 2025, held cash and cash equivalents of $618,041 (30 June 2024: $2,017,483). Business Risks Infini Resources Limited, as an exploration company, faces inherent risks in its activities which may materially affect its operations. Future capital requirements The Company will require further financing in the future. 12 Any additional equity financing may be dilutive to Shareholders, may be undertaken at lower prices than the current market price or may involve restrictive covenants which limit the Group's operations and business strategy. Debt financing, if available, may involve restrictions on financing and operating activities. Although the Directors believe that additional capital can be obtained, no assurances can be made that appropriate capital or funding, if and when needed, will be available on terms favourable to the Company or at all. If the Company is unable to obtain additional financing as needed, the Company may be required to reduce the scope of its activities, which could have a material adverse effect on the Company's activities and could affect the Company's ability to continue as a going concern. Exploration and operations The mineral exploration licences comprising the Projects are at various stages of exploration, and prospective investors should understand that mineral exploration and development are high-risk undertakings. There can be no assurance that future exploration of these exploration licences, or any other mineral licences that may be acquired in the future, will result in the discovery of an economic resource. Even if an apparently viable resource is identified, there is no guarantee that it can be economically exploited. Relations with local communities and First Nations people in the areas where our assets are located are important to its operations and may be affected by uncertain factors. We actively engage with all our stakeholders on a regular basis to better understand and address their individual needs. We work with local communities to develop meaningful relationships and regularly carry out social impact assessment on work programs. Tenure Mining and exploration tenements are subject to periodic renewal. There is no guarantee that current or future tenements or future applications for production tenements will be approved. Tenements are subject to the applicable mining acts and regulations of the relevant jurisdiction. The renewal of the term of a granted tenement is also subject to the discretion of the relevant Minister. Renewal or conversion conditions may include increased expenditure and work commitments or compulsory relinquishment of areas of the tenements comprising the Company’s projects. The imposition of new conditions or the inability to meet those conditions may adversely affect the operations, financial position and/or performance of the Company. Irrespective of the Company’s compliance with the conditions of the tenements, and applicable mining acts and regulations, there is no guarantee that applications for forfeiture or cancellation will not be made against the tenements. If any application for forfeiture or objection to the grant of an exemption is lodged, the Company may be required to defend such applications or objections and incur significant costs. Contractual risk The Company’s interests in the Tinco North Claim and Valor projects are subject to the Company earning interests in these projects under the respective acquisition agreements. The ability of the Company to achieve its stated objectives will depend on the performance by the parties of their obligations under these agreements, including the Company complying with its obligation to spend minimum expenditure commitments in qualified time periods, fulfilling its acquisition, earn-in and joint venture obligations and commitments. The Tinco Agreement provides that the Company may earn up to an 100% interest in the Tinco North claims through issuing of shares in two stages; Stage 2, 25% A$50,000 based on the 10-day VWAP, 12 months from Stage 1 (initial acquisition); Stage 3, 25% A$50,000 based on the 10-day VWAP, 12 months from Stage 2. The Valor agreement provides that the Company may earn up to an 100% interest in the Valor project in two stages. Stage 2: 25% within 18 months from the initial acquisition (Stage 1) for A$150,000 cash and the issue of A$150,000 shares based on the 10-day VWAP. Stage 3: 25% within 12 months from the stage 2 acquisition, for A$300,000 cash and the i