Ann: Full Year Statutory Accounts, page-10

Going Concern

The accounts have been prepared on the going concer

n basis, which contemplates continuity of normal

activities and the realisation of assets and settle

ment of liabilities in the ordinary course of busin

ess.

The Company recognised a loss of $3,622,547 for the

year ended 30 June 2018 (2017: $3,450,034).

The net working capital position of the Company at

30 June 2018 was a deficit of $919,195 (2017:

$2,393,304). The Company has expenditure commitment

s relating to exploration expenditure

obligations for their projects of $398,589 which po

tentially could fall due in the twelve months to 30

June

2019. Furthermore, the Company has operating lease

commitments of $46,977 payable in the next 12

months.

On 19 September 2017, the Company entered into an a

mended Standby Subscription Agreement with

Stock Assist Group Pty Ltd. Under this amendment, t

he Company has a facility of up to $5,000,000 by

issuing shares at 80% of 5-day VWAP, which it can u

tilise to meet short-term working capital

requirements. An establishment fee of 8,000,000 sha

res on the amended Subscription Agreement has

been paid.

As disclosed in Note 24, the Company received an R&

D rebate of $1.27m in September 2018 in addition

to repaying the $1,000,000 Convertible Note (refer

Note 15).

The Directors have prepared a cashflow forecast whi

ch indicates that the Company will have sufficient

cashflows to meet all commitments and workings capi

tal requirements for the period 12 months from

the date of signing this report. The ability of the

Company to continue as a going concern is dependen

t

on:

•

The drawdown of the Standby Subscription Agreement

with Stock Assist Group Pty Ltd to meet

the payment requirements of their creditors;

•

The ability of the Company to raise capital from e

quity markets as required; and

•

Containing cash outflows based on working capital

requirements.