Announcement PDF KINGSTON RESOURCES LIMITED ABN 44 009 148 529 Half Yearly Financial Statements 31 December 2024 Kingston Resources Limited and its Controlled Entities CONTENTS Page No. ➢ Corporate Directory ...................................................................................................................................... 2 ➢ Directors’ Report .......................................................................................................................................... 3 ➢ Consolidated Statement of Financial Position ............................................................................................ 12 ➢ Consolidated Statement of Profit or Loss and Other Comprehensive Income ........................................... 13 ➢ Consolidated Statement of Cash Flows ..................................................................................................... 14 ➢ Consolidated Statement of Changes in Equity ........................................................................................... 15 ➢ Notes to the Financial Statements .............................................................................................................. 16 ➢ Directors’ Declaration ................................................................................................................................ 25 ➢ Independent Auditor’s Review Report ....................................................................................................... 26 1 CORPORATE DIRECTORY for the half year ended 31 December 2024 Kingston Resources Limited and its Controlled Entities Corporate Directory DIRECTORS Mick Wilkes (B Eng (Hons), MBA, GAICD) Non-Executive Chairman Andrew Corbett (B Eng (Mining, Hons), MBA, MAICD) Managing Director Anthony Wehby Non-Executive Director Stuart Rechner (BSc, LLB, MAIG, MAusIMM, GAICD) Non-Executive Director COMPANY SECRETARY Vinod Manikandan (CPA, AGIA) REGISTERED OFFICE AND PRINCIPAL PLACE OF BUSINESS 202/201 Miller Street North Sydney NSW 2060 AUSTRALIA Telephone Email Website (02) 8021 7492 info@kingstonresources.com.au www.kingstonresources.com.au AUDITORS Hall Chadwick (NSW) Chartered Accountants SHARE REGISTRY Automic Group BANKERS Australia & New Zealand Banking Group Limited Macquarie Group Limited Bank of South Pacific SOLICITORS Ashurst Australia Cowell Clarke Commercial Lawyers Resources Legal Pty Ltd STOCK EXCHANGE Australian Securities Exchange (ASX) The home Exchange is in Perth, Western Australia Secondary Listing - Frankfurt Stock Exchange ASX CODE KSN 2 DIRECTORS’ REPORT for the half year ended 31 December 2024 Kingston Resources Limited and its Controlled Entities Directors’ Report Your Directors submit their report for the half year ended 31 December 2024. DIRECTORS The names of the Company’s Directors in office during the half year and until the date of this report are set out below. Directors were in office for this entire period unless otherwise stated. ➢ Mick Wilkes ➢ Andrew Corbett ➢ Anthony Wehby ➢ Stuart Rechner PRINCIPAL ACTIVITIES The Company is an Australian-based Company listed on the ASX. The principal activity of the Group during the period was mineral production and exploration. REVIEW OF OPERATING RESULTS AND OPERATIONS Operating Results Kingston reported a statutory net loss of $2,521,479 for the half year (2023: profit $2,689,226). Review of Operations Kingston commenced open pit mining operations with the initial blast occurring on 11 June 2024. The transition from the previous Tailings Mining operation was completed seamlessly due to the transition of numerous operators into the open pit project. The company has employed 40 new employees, the majority of these being residents of the Lachlan Shire. Open pit ore was initially stockpiled in June, July and August while refurbishment of the crushing and grinding circuits was being finalised. The refurbishment of the processing plant was budgeted to be a $13.2m project and Kingston executed the project solely using in-house expertise which allowed the Company to deliver the project on time and at a total cost 4% higher than the initial budget. Kingston rapidly increased crushing and grinding rates to be running consistently at 50 tonnes per hour, 20% above the original plant design. Weekly gold and silver sales were established as early as September 2024. Figure 1: Pearse North pit prior to the initial blast (facing south). 3 DIRECTORS’ REPORT for the half year ended 31 December 2024 Kingston Resources Limited and its Controlled Entities PS PN Figure 2: Pearse North (PN) open pit in July 2024. Pearse South (PS) pit in the background (facing south). Figure 3: Pearse North open pit mining operations by January 2025 (facing north east). OPEN PIT MINING AND PROCESSING Open pit mining and processing was successfully ramped up to full capacity over the December 2024 half. Initial challenges with rock fragmentation and haulage rates were quickly overcome, allowing for an increase in the rate of material movement from October 2024 onwards. Between the first and second quarter, ore and waste mined increased 4 DIRECTORS’ REPORT for the half year ended 31 December 2024 Kingston Resources Limited and its Controlled Entities 36% and 58% respectively. Production improved across all metrics across the half as the site was ramped up. Gold produced increased 78% over the two quarters, with 5,201oz sold over the half. The Pearse Ore Reserve estimates used mining cutoff grades of 1.3g/t and 1.5g/t for Pearse North and South respectively. Due to a marked increase in the spot gold price, Kingston has decided to lower the mining cutoff grade to 0.8g/t, resulting in a reduction in mined gold grades. Material Movement 25 Material Moved (kt) 20 15 10 5 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Dec-24 Figure 4: Monthly material movement from open pit mining at Pearse. Table 1: Open pit mining and processing summary. Physical Summary Unit Q1 FY25 Q2 FY25 H1FY25 Waste Mined t 413,600 654,080 1,067,680 Ore Mined t 45,136 61,201 106,337 Ore Processed t 43,269 73,717 116,986 Head Grade g/t 1.51 1.56 1.54 Processing Recovery % 89% 89% 89% Gold Produced oz 1,868 3,333 5,201 Gold Sales oz 1,680 3,261 4,941 Silver Sales oz 11,551 22,862 34,413 Average Gold Price $/oz 3,777 4,101 3,991 Gold recovery remained higher than the original forecast of 85%, reaching 89% for the December half. Additionally, the original plan expected an earlier transition to sulphide ore, which has a forecast gold recovery of 78%. Kingston has benefited from a strong momentum in the spot gold price and this resulted in an increase in the realised gold price. Gold and silver sales from Mineral Hill are sold at the daily market price, allowing the company to fully capitalize on the current gold price bull market. Commercial production for the Pearse open pits was declared as of 1 October 2024. During the December quarter, operating costs were $8.8m and sustaining capital was $0.35m, resulting in an all-in-sustaining cost of $2,814/oz (net of silver by-product revenue). UNDERGROUND ORE RESERVE AND LOM UPDATE Kingston released an initial underground Ore Reserve for the Southern Ore Zone during the half and extended life-ofmine (LOM) plan to six years (see ASX released dated 30 September 2024). As part of the release, the Company also issued a revised LOM production target comprising open pit and underground Ore Reserves and a component of 5 DIRECTORS’ REPORT for the half year ended 31 December 2024 Kingston Resources Limited and its Controlled Entities Inferred Resources. The first 12 and 36 months of the production target are underpinned by 89% and 80% of Measured and Indicated Resources respectively. Key highlights of the LOM plan include: • LOM extended to six years. • Open pit mining to the end of CY2025. • Revised Ore Reserve estimates for the Pearse open pits based on an updated Pearse North Mineral Resource. • Initial Underground Ore Reserve: 0.7Mt for 0.8% Cu, 1.4g/t Au, 20g/t Ag, 1.9% Pb and 1.6% Zn. • Ore Reserves in the mine plan of 1.1Mt. • Total production target of 2.2Mt. • LOM production of 207koz gold equivalent (AuEq) payable. • Gold and copper comprise 85% of the payable metal in AuEq terms. The statement of the underground Ore Reserve is a significant development for Kingston, as it materially increases the technical and financial certainty for Mineral Hill. Underground drilling has recommenced to continue infilling and extending the underground resources. Figure 5: Underground production target existing development (orange) and mining designs (multi-coloured). MISIMA GOLD PROJECT Kingston appointed Argonaut PCF Limited (“Argonaut”) as exclusive financial adviser to lead and manage a formal strategic process in respect of the Misima Gold Project (“Misima”) during the half. The main aim of engaging Argonaut is to crystallise the deep value built at Misima during the Company’s ownership. 6 DIRECTORS’ REPORT for the half year ended 31 December 2024 Kingston Resources Limited and its Controlled Entities Argonaut has a strong history of successful transactions in the APAC region, particularly within the gold sector of PNG. Argonaut’s reputation is well regarded among major international gold and natural resource companies and their team has strong commercial and technical expertise in managing corporate and asset level transactions. A site visit was conducted in December 2024 to complete their own extensive due diligence. Kingston continued to advance the Misima Gold Project during the half, progressing landholder identification studies and ongoing environmental monitoring in support of the Environmental and Social Impact Assessment (ESIA). The company remains deeply engaged with the local community, implementing initiatives aimed at empowering locals in education, health, and business development. Notably, Kingston facilitated a Women in Business program, reaching over 629 women since its inception in 2023, with a focus on empowering women through business training and financial literacy programs. Figure 6: Argonaut site visit conducting due diligence work. CORPORATE On 28 November 2024, the company held its Annual General Meeting (AGM). All resolutions were passed and decided by way of poll. On 9 December 2024, Kingston announced its intention to raise a total of $8.4 million (before cost) by undertaking a $6.4 million Placement and a $2 million fully underwritten Share Purchase Plan (SPP) both at an issue price of $0.075 per share. The Company successfully completed the Placement on 16 December 2024. The fully underwritten SPP was completed on 22 January 2025 with retail shareholders strongly supporting the SPP by subscribing for 61% of the offer and the remaining 39% taken up by the underwriter, Delphi Unternehmensberatung Akteingesellschaft, an existing major shareholder and sophisticated investor. Kingston received applications for 16,126,541 Shares totalling to $1,209,494. The funds raised will be strategically allocated to accelerate surface exploration, drill underground resource extension targets, and expand resources to drive production growth at Mineral Hill. 7 DIRECTORS’ REPORT for the half year ended 31 December 2024 Kingston Resources Limited and its Controlled Entities MINERAL RESOURCES TABLE Mineral Hill (NSW, Australia) Table 2: Mineral Hill Mineral Resource summary, prepared by Mr S. Hayward of Kingston Resources Ltd. Rounding errors may occur. Resource Category Tonnes Au Ag Cu Pb Zn Au Ag Cu Pb Zn kt g/t g/t % % % koz koz kt kt kt Measured Indicated Inferred Total 233 4,501 3,020 2.01 1.13 1.81 11 29 18 1.2% 1.1% 0.9% 0.5% 1.9% 0.9% 0.4% 1.1% 0.7% 15 164 175 81 4,556 1,727 3 47 25 1.2 77 26 0.8 46 20 7,755 1.42 26 1.0% 1.4% 0.9% 354 6,364 75 104 67 Table 3: Mineral Hill Mineral Reserve summary, prepared by Mr J. Wyche of Australian Mine Design and Development Pty Ltd. Rounding errors may occur. Reserve Proved Probable Total Tonnes Au Ag Cu Pb Zn Au Ag Cu Pb Zn kt g/t g/t % % % koz koz kt kt kt 1,100 1,100 2.2 2.2 31 31 0.8% 0.8% 1.9% 1.9% 1.6% 1.6% 74 74 1,087 1,087 5.5 5.5 13 13 11 11 Misima Gold Project (PNG) Table 4: Misima Gold Project Mineral Resource summary, prepared by Mr S. Hayward of Kingston Resources Ltd. Rounding errors may occur. Deposit Umuna Total Resource Umuna TOTAL Cooktown Stockpile Cooktown Stockpile Ewatinona Total Resource Ewatinona TOTAL Misima Misima TOTAL Classificati on Indicated Inferred Cutoff g/t Au 0.3 0.3 Inferred 0.5 Indicated Inferred 0.3 0.3 Indicated Inferred Tonnes Mt 93.5 64.1 157.6 3.8 3.8 4.2 3.4 7.6 97.7 71.3 169 Gold g/t Au 0.78 0.58 0.70 0.65 0.65 0.88 0.74 0.81 0.79 0.59 0.71 Silver g/t Ag 4.3 3.8 4.1 7.0 7.0 2.6 3.2 2.8 4.3 3.8 4.1 Au Moz Ag Moz 2.4 1.2 3.6 0.1 0.1 0.12 0.08 0.2 2.5 1.4 3.8 13.1 7.5 20.5 0.9 0.9 0.3 0.3 0.7 13.4 8.7 22.1 Table 5: Misima Gold Project Ore Reserve summary, prepared by Mr J. Wyche of Australian Mine Design and Development Pty Ltd. Rounding errors may occur. Ewatinona Probable Ewatinona Total Umuna Probable Umuna Total Probable Misima Total Reserve Tonnes Mt Gold Au g/t Silver Ag g/t Au koz Ag koz 3.9 3.9 0.8 0.8 2.4 2.4 100 100 300 300 71.7 71.7 75.6 75.6 0.8 0.8 0.8 0.8 4.6 4.6 4.5 4.5 1,784 1,784 1,944 1,944 10,603 10,603 10,938 10,938 8 DIRECTORS’ REPORT for the half year ended 31 December 2024 Kingston Resources Limited and its Controlled Entities COMPETENT PERSON’S STATEMENT The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Mr. Stuart Hayward BAppSc (Geology) MAIG, a Competent Person who is a member of the Australian Institute of Geoscientists. Mr. Hayward is an employee of the Company. Mr. Hayward has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr. Hayward consents to the inclusion in this report of the matters based upon the information in the form and context in which it appears. The Competent Person signing off on the overall Ore Reserves Estimate is Mr John Wyche BE (Min Hon), of Australian Mine Design and Development Pty Ltd, who is a Fellow of the Australasian Institute of Mining and Metallurgy and who has sufficient relevant experience in operations and consulting for open pit metalliferous mines. Mr Wyche consents to the inclusion in this report of the matters based upon the information in the form and context in which it appears. Kingston publicly reports Exploration Results and Mineral Resource estimates in accordance with the ASX Listing Rules and the requirements and guidelines of the 2012 edition of the Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves – the JORC Code. Kingston’s governance for public reporting of Exploration Results and Mineral Resource estimates includes important assurance measures. All reports are signed-off by appropriate JORC Competent Persons with JORC Code Table 1 Checklists as required. Exploration Results and Mineral Resource estimates are also peer reviewed (either by Kingston technical staff or suitably qualified external consultants) before Board approval and ASX release. FINANCIAL POSITION At 31 December 2024 the consolidated entity had net assets of $94,788,138 (30 June 2024: $90,781,524) and $9,893,172 in cash (30 June 2024: $8,357,776). On 16 December 2024, the Company issued 85,333,334 Placement shares at $0.075 raising $6,400,000 (before costs). SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS Other than reported above in the Review of Results and Operations, there were no significant changes in the state of affairs of the Company during the reporting period. DIVIDENDS There were no dividends paid, recommended, or declared during the current or previous financial half-years. OPTIONS AND PERFORMANCE RIGHTS During the half-year ended 31 December 2024 Directors and employees of the Company were granted options and performance options. Please see Note 10 for details. EVENTS AFTER THE BALANCE DATE On 9 December 2024, the Company announced its intention to undertake a fully underwritten SPP to raise $2 million (before cost) at an issue price of $0.075. The SPP was fully underwritten by Delphi Untemehmensberatung Akeingsellschaft an existing major shareholder and sophisticated investor. The SPP shares were issued on 22 January 2025, with 16,126,541 shares issued to SPP applicants raising $1,209,494 (before cost) and 10,540,080 Shares allocated to the underwriter raising $790,506. Other than the above, there has not been any matter or circumstance that has arisen after balance date that has significantly affected, or may significantly affect, the operations of the Company, the results of those operations, or the state of affairs of the Company in future financial periods. 9 DIRECTORS’ REPORT for the half year ended 31 December 2024 Kingston Resources Limited and its Controlled Entities Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001 The Auditor’s Independence Declaration is set out on page 11 and forms part of the Directors’ Report for the half year ended 31 December 2024. Pursuant to section 306 Corporations Act 2001 this Directors’ Report: (a) is made in accordance with a resolution of the Directors; (b) is dated 28 February 2025; and (c) is signed by Mick Wilkes. On behalf of the directors . Mick Wilkes Chairman 28 February 2025 10 KINGSTON RESOURCES LIMITED ABN 44 009 148 529 AND CONTROLLED ENTITIES AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE CORPORATIONS ACT 2001 TO THE DIRECTORS OF KINGSTON RESOURCES LIMITED In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the following declaration of independence to the directors of Kingston Resources Limited. As the lead partner for the review of the financial report of Kingston Resources Limited for the half-year ended 31 December 2024, I declare that, to the best of my knowledge and belief, there have been no contraventions of: (i) the auditor independence requirements of the Corporations Act 2001 in relation to the review; and (ii) any applicable code of professional conduct in relation to the review. HALL CHADWICK Level 40, 2 Park Street Sydney NSW 2000 ANTHONY TRAVERS Partner Dated: 28 February 2025 CONSOLIDATED STATEMENT OF FINANCIAL POSITION as at 31 December 2024 Kingston Resources Limited and its Controlled Entities Consolidated Statement of Financial Position Consolidated Group 31 December 2024 30 June 2024 $ $ Notes Current assets Cash and cash equivalents Cash and Trade andcash otherequivalents receivables Available for sale financial assets Inventory Other current assets Total current assets Non-current assets Property, plant and equipment Capitalised exploration expenditure Mine & resource development expenditure Right of use assets Rehabilitation bond and security deposits Total non-current assets Total assets Current liabilities Trade and other payables Interest bearing loan Lease liabilities Employee provisions Deferred payables Total current liabilities Non-current liabilities Borrowings Lease liabilities Rehabilitation provisions Employee provisions Total non-current liabilities Total liabilities Net assets Equity Issued capital Accumulated losses Share based payment reserve Foreign currency translation reserve Total equity 9,893,172 1,009,743 187,900 2,480,288 983,083 14,554,186 8,357,776 515,345 287,900 2,049,895 401,454 11,612,370 29,710,948 50,864,228 27,487,514 629,237 7,552,869 116,244,796 130,798,982 29,121,694 49,759,508 22,865,123 703,495 7,555,209 110,005,029 121,617,399 9,604,082 652,502 546,498 812,211 3,053,162 14,668,455 8,746,694 173,164 256,781 660,547 4,158,967 13,996,153 11 13,646,954 134,045 7,465,000 96,390 21,342,389 36,010,844 94,788,138 9,104,811 188,019 7,465,000 81,892 16,839,722 30,835,875 90,781,524 9 145,907,400 (53,776,990) 2,512,313 145,415 94,788,138 139,856,904 (51,353,844) 2,121,133 5 4 4 6 12 157,331 90,781,524 The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes. 12 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME for the half year ended 31 December 2024 Kingston Resources Limited and its Controlled Entities Consolidated Statement of Profit or Loss and Other Comprehensive Income Consolidated Group 31 December 2024 31 December 2023 $ $ Notes Continuing Operations Sales 14,465,758 23,640,552 Other revenue 16,592 9,000 Cost of sales (4,205,602) (12,595,019) Gross Profit 10,276,748 11,054,533 Administrative expenses (237,811) (278,702) Consultant and legal fees (26,170) (123,594) Director fees (149,371) (179,184) (6,320,500) (3,627,591) Share based payments expense (225,447) (300,611) Mark to market of financial assets gain/(loss) (100,000) 68,750 Foreign exchange loss 107,699 (790,905) 3,325,148 5,822,696 Employee expenses EBITDA Amortisation expense 3 (1,328,670) (716,184) Depreciation expense 3 (3,268,567) (1,757,049) 177,047 5,863 Interest paid (1,426,437) (666,100) (Loss)/Profit before income tax expense (2,521,479) 2,689,226 - - (2,521,479) 2,689,226 (11,916) (35,845) (2,533,395) 2,653,381 Basic (loss)/profit per share (cents) (0.36) 0.55 Diluted (loss)/profit per share (cents) (0.36) 0.44 Interest received Income tax expense (Loss)/Profit for the period Other comprehensive income Other comprehensive income Total comprehensive (loss)/income for the period The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes. 13 CONSOLIDATED STATEMENT OF CASH FLOWS 7 for the half year ended 31 December 2024 Kingston Resources Limited and its Controlled Entities Consolidated Statement of Cash Flows Consolidated Group 31 December 2024 31 December 2023 $ $ CASH FLOWS FROM OPERATING ACTIVITIES Continued Operations Receipts from customers 14,018,647 Interest received 23,695,187 88,485 5,863 (1,099,009) (460,095) Receipts from other income 16,349 9,000 Government grants 75,000 - Payments to suppliers and employees (8,102,457) (14,928,537) NET CASH FLOWS PROVIDED BY OPERATING ACTIVITIES 4,997,015 8,321,418 (1,735,058) (2,224,326) - (36,108) Payment for property, plant and equipment (5,842,900) (5,680,765) Payment for mine development (5,271,690) (4,765,839) (35,434) (3,648,274) (12,885,082) (16,355,312) Proceeds from issue of shares and options 6,400,000 1,045,618 Payments for lease (212,312) (141,407) Transaction costs related to issue of shares, convertibles, or options (368,930) (167,159) Net proceeds from borrowings 4,594,822 - Payments to Quintana Resources LLC (993,637) (367,749) NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES 9,419,943 369,303 Net change in cash and cash equivalents held 1,531,876 (7,664,591) Cash and cash equivalents at beginning of period 8,357,776 18,206,767 3,520 (2,253) 9,893,172 10,539,923 Interest paid CASH FLOWS FROM INVESTING ACTIVITIES Payments for exploration and evaluation Payment for bond deposits Payment for acquisition of Mineral Hill Pty Ltd NET CASH FLOWS USED IN INVESTING ACTIVITIES CASH FLOWS FROM FINANCING ACTIVITIES Effect of movement in exchange rates on cash held CASH AND CASH EQUIVALENTS AT END OF PERIOD The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes. 14 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY for the half year ended 31 December 2024 Kingston Resources Limited and its Controlled Entities Consolidated Statement of Changes in Equity Consolidated Attributable to the shareholders of Kingston Resources Limited Advanced Placement Fund $ Ordinary Shares $ Accumulated Losses $ Share based payment Reserve $ Foreign Exchange Reserves Total Equity $ Balance at 1 July 2023 121,170,385 3,867,452 (50,812,957) 186,894 2,043,126 76,454,900 Profit for the half year - - 2,689,226 - - 2,689,226 Total comprehensive income - - - (35,846) - (35,846) 121,170,385 3,867,452 (48,123,731) 151,048 2,043,126 79,108,280 Issue of shares 2,068,176 - - - - 2,068,176 Advanced placement fund 4,500,000 (4,500,000) - - - - Cost of share issue (440,529) 302,255 - - - (138,274) Share based payments Transfer from share-based payment reserve on expiry/lapse/Issuance of options Balance at 31 December 2023 (468,379) 330,293 - - 416,476 278,390 240,477 - 172,657 - (413,134) - 127,070,130 - (47,951,074) 151,048 2,046,468 81,316,572 Balance at 1 July 2024 139,856,904 - (51,353,844) 157,331 2,121,133 90,781,524 - - (2,521,479) - - (2,521,479) Loss for the half year Total comprehensive income - - - (11,916) - (11,916) 139,856,904 - (53,875,323) 145,415 2,121,133 88,248,129 Issue of shares 6,430,000 - - - - 6,430,000 Cost of shares issued (411,883) - - - - (411,883) - - - - 521,892 521,892 32,379 - 98,333 - (130,712) - 145,907,400 - (53,776,990) 145,415 2,512,313 94,788,138 Share based payments Transfer from share-based payment reserve on expiry/lapse/Issuance of options Balance at 31 December 2024 The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes. 15 DIRECTORS DECLARATION for the half year ended 31 December 2024 Kingston Resources Limited and its Controlled Entities Notes to the Financial Statements 1. CORPORATE INFORMATION The financial statements of Kingston Resources Limited for the half year ended 31 December 2024 are authorised for issue in accordance with a resolution of the Directors on 28 February 2025. Kingston Resources Limited is a company incorporated in Australia and limited by shares listed on the ASX. The nature of the operations and principal activities of the Group are described in the Review of Operating Results and Operations included in the Directors’ Report and in Note 7 Segment Information. 2. SUMMARY OF MATERIAL ACCOUNTING POLICIES The half year financial statements do not include all of the notes of the type normally included within the annual financial report and therefore cannot be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of the consolidated entity as the full financial report. The half year financial statements should be read in conjunction with the annual Financial Statements of the Group as at 30 June 2024. It is also recommended that the half year financial statements be considered together with public announcements made by Kingston Resources and its controlled entities during the half year ended 31 December 2024 and up to the date of this report in accordance with the continuous disclosure obligations arising under the Corporations Act 2001. a) Basis of Preparation These general purpose financial statements for the interim half year reporting period ended 31 December 2024 have been prepared in accordance with requirements of the Corporations Act 2001 and Australian Accounting Standards including AASB 134: Interim Financial Reporting. Compliance with Australian Accounting Standards ensures that the financial statements and notes also comply with International Financial Reporting Standards. The interim financial statements are intended to provide users with an update on the latest annual financial statements of Kingston Resources Limited and its controlled entities (the Group). As such, it does not contain information that represents relatively insignificant changes during the half year within the Group. It is therefore recommended that these financial statements be read in conjunction with the annual financial statements of the Group for the year ended 30 June 2024, together with any public announcements made during the half year and up to the date of this report. The accounting policies and methods of computation are the same as those adopted in the most recent annual financial report. From 1 July 2024, the consolidated entity has adopted all Australian Accounting Standards and Interpretations effective for annual periods beginning on or before 1 July 2024. The adoption of new and amended standards and interpretations had no impact on the financial position or performance of the consolidated entity. The consolidated entity has not elected to early adopt any new standards or amendments that are issued but not yet effective. 16 DIRECTORS DECLARATION for the half year ended 31 December 2024 b) Kingston Resources Limited and its Controlled Entities Going Concern The consolidated entity incurred a net loss of $2,521,479 (2023:profit $2,689,226) and positive operating cash flows of $4,997,015 (2023: $8,321,418) for the half year ended 31 December 2024. As at 31 December 2024 the consolidated entity held cash of $9,893,172. During the period the following significant equity raisings were made: • On 9 December 2024, the Company announced its intention to undertake a Share Placement Offer raising $6,400,000 and a fully underwritten SPP raising $2,000,000, raising a total of $8,400,000 (before costs). On 16 December 2024, the company issued 85,333,334 Placement Shares at an issue price of $0.075, raising a total of $6,400,000 before costs. • The SPP was fully underwritten by Delphi Untemehmensberatung Akeingsellschaft an existing major shareholder and sophisticated investor to raise $2,000,000 (before costs) at an exercise